Exco Technologies Limited - Fourth Quarter ended September 30, 2011 and Quarterly Dividend Declared
November 30 2011 - 4:30PM
PR Newswire (Canada)
-- Annual Sales increased 21% -- Annual Profits increased 46.9% --
Year-end Cash on hand $15.4 million -- No bank debt TORONTO, Nov.
30, 2011 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its fourth quarter ended September 30,
2011. In addition, the Company announced that its quarterly
cash dividend of $0.03 per share will be paid on December 22, 2011
to shareholders of record on December 14, 2011. The
dividend is an "eligible dividend" in accordance with the Income
Tax Act of Canada. Three Months ended Twelve Months ended September
30 September 30 ($000s, except per share amounts) 2011 2010 2011
2010 Sales 52,347 45,929 199,608 165,512 Net income 2,270 2,449
14,807 10,077 Basic and diluted earnings $0.06 $0.06 $0.36 $0.25
per share Common shares outstanding 40,961,823 40,912,823
40,961,823 40,912,823 In the fourth quarter sales were $52.3
million - a $6.4 million or 14% increase over the prior year.
Both business segments reported higher quarterly sales. The
Casting and Extrusion segment recorded higher sales of $32.7
million compared to $30.1 million last year - an increase of
9%. The Automotive Solutions segment experienced a 24%
increase in sales from $15.9 million last year to $19.6 million.
Consolidated annual sales totalled $199.6 million compared to
$165.5 million last year - an increase of $34.1 million or 21% over
last year. Annual sales for the Casting and Extrusion segment
were $125.3 million - an increase of $20.3 million or 19% from the
prior year. Annual sales for the Automotive Solutions segment
were $74.3 million - an increase of $13.8 million or 23% from the
prior year. The Company's fourth quarter net income of $2.3 million
($0.06 per share) compared to $2.4 million ($0.06 per share) in
fiscal 2010 was severely impacted by exchange rate volatility in
the last months of the quarter. This caused expenses in the
Corporate segment to increase by $1 million from foreign exchange
losses mainly on the fair valuation of Mexican peso collars and in
the Casting and Extrusion segment to increase by $839 thousand from
the revaluation of the Company's Mexican peso investment in Excoeng
Mexico. These exchange losses - although notional, non-cash
in nature and under IFRS reporting which commences next quarter
will not recur with respect to the revaluation of the Company's
investment in Excoeng Mexico - reduced fourth quarter earnings per
share by 3 cents per share and annually by 2 cents per share.
Fourth quarter pretax earnings increased in the Automotive
Solutions segment by $2 million or 189% over the same quarter last
year ($3 million compared to $1.1 million last year) on strong
overall demand, efficient production and generally smooth new
product launches. Partially offsetting this improvement was a
decline in quarterly pretax earnings in the Casting and Extrusion
segment by $881 thousand. The extrusion tooling group's
earnings were impacted by the final costs of closing the AluDie
business (severances $340 thousand), production inefficiencies from
relocating the last of AluDie's machinery and equipment to Colombia
and write down of some equipment from the Colombian acquisition
($134 thousand). The large mould businesses struggled with
tight delivery dates on a growing book of business. This
caused excessive overtime and excessive outsourcing of certain long
lead time functions. As internal capacity is adjusted both
overtime and outsourcing should abate. This group also
experienced cost overruns on several first off moulds during the
quarter. The Company reported full year consolidated net income of
$14.8 million or $0.36 per share compared to $10.1 million or $0.25
per share last year. Annual Casting and Extrusion earnings
increased by 17% to $13.3 million from $11.4 million in the prior
year. The Automotive Solutions segment recorded earnings of
$12 million for the year compared to $4.4 million last year. Gross
margin in the quarter increased slightly to 23.8% compared to 23.3%
last year. Full year gross margin also increased slightly to 26.5%
compared to 26% last year. During the fourth quarter the Company
continued the sales and earnings momentum that has been
consistently building since 2010. With both automotive
tooling and component sales convincingly recovering in North
America and the closure of AluDie now complete, the Company's
earnings and cash position should continue to prosper. We
also look forward to our two start-ups, Excoeng Mexico and Exco
Colombia, beginning to contribute in the later part of the year and
our large mould businesses to improve operating efficiencies by
insourcing throughout the year as internal production capacity
rises. The Company continues to have a strong balance sheet with no
bank debt and $15.4 million cash on hand at year end despite having
funded increased account receivable and inventory of $23.5 million,
capital expenditures of $8.2 million and paying $4.3 million in
dividends during the year. "While exchange rate volatility caused
by unpredictable global events and some internal operating
inefficiencies have taken an unexpected bite out of our fourth
quarter, I am pleased with Exco's overall performance in 2011" said
Brian Robbins, President and CEO of Exco, "and I am
comfortable that the fundamentals of our various business units are
robust and point to continued growth." (For further information and
prior year comparison please refer to the Company's Fourth Quarter
Interim Financial Statements in the Investor Relations section
posted at www.excocorp.com. Alternatively, please refer to
www.sedar.com after November 30, 2011.) Exco Technologies
Limited is a global supplier of innovative technologies servicing
the die-cast, extrusion and automotive industries. Through
our 10 strategic locations, we employ 2,019 people and service a
diverse and broad customer base. Management will hold a conference
call to discuss the fourth quarter results on Thursday December 1,
2011 at 10:00 am (Toronto Time). The local dial in number for
the call is (647) 427-7450 or toll free 1-888-231-8191. To
access the live audio webcast, please log on to www.excocorp.com or
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3748140 a
few minutes before the event. Real Player is required for
access. For those unable to participate on December 1, 2011,
an archived version will be available on the Exco website.
This news release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws. We use words such as "anticipate", "plan", "may",
"will", "should", "expect", "believe", "estimate" and similar
expressions to identify forward-looking information and statements
especially with respect to growth and financial performance of the
Company's business units, contribution of our two start-up business
units and improvement in operating efficiencies in the large mould
businesses. Such forward-looking information and statements
are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe to be relevant and appropriate in the
circumstances. These assumptions include the number of automobile
vehicles produced, investment by OEMs in drivetrain architecture,
weakening raw material prices, continuing economic recovery and
currency fluctuations. Readers are cautioned not to place
undue reliance on forward-looking information and statements, as
there can be no assurance that the assumptions, plans, intentions
or expectations upon which such statements are based will
occur. Forward-looking information and statements are subject
to known and unknown risks, uncertainties, assumptions and other
factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed, implied or anticipated by such information
and statements. These risks, uncertainties and
assumptions are described in the Company's Management's
Discussion and Analysis included in our 2011 Annual Report, in our
2011 Annual Information Form and, from time to time, in other
reports and filings made by the Company with securities regulatory
authorities. While the Company believes that the expectations
expressed by such forward-looking information and statements are
reasonable, there can be no assurance that such expectations and
assumptions will prove to be correct. In evaluating
forward-looking information and statements, readers should
carefully consider the various factors which could cause actual
results or events to differ materially from those indicated in the
forward-looking information and statements. Readers are cautioned
that the foregoing list of important factors is not
exhaustive. Furthermore, the Company will update its
disclosure upon publication of each fiscal quarter's financial
results and otherwise disclaims any obligations to update publicly
or otherwise revise any such factors or any of the forward-looking
information or statements contained herein to reflect subsequent
information, events or developments, changes in risk factors or
otherwise. Exco Technologies Limited CONTACT: Source: Exco
Technologies Limited (TSX-XTC)Contact: Paul Riganelli,
Vice-President, Finance and ChiefFinancial OfficerTelephone: (905)
477-3065 Ext. 7228Website: http://www.excocorp.com
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