- Annual Sales increased 21%
- Annual Profits increased 46.9%
- Year-end Cash on hand $15.4
million
- No bank debt
TORONTO, Nov. 30, 2011 /PRNewswire/ - 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
September 30 |
Twelve Months
ended
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 per
share |
$0.06 |
$0.06 |
$0.36 |
$0.25 |
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.
SOURCE Exco Technologies Limited