Exco Technologies Limited - First Quarter ended December 31, 2011 and Quarterly Dividend Declared
January 25 2012 - 4:30PM
PR Newswire (Canada)
-- Year over year Quarterly Sales increased 29% -- Year over year
Quarterly Profits increased 157% -- Quarter-end Cash on hand $18
million -- No bank debt TORONTO, Jan. 25, 2012 /CNW/ - Exco
Technologies Limited (TSX-XTC) today announced results for its
first quarter ended December 31, 2011. In addition, the
Company announced that its quarterly cash dividend of $0.03 per
share will be paid on March 30, 2012 to shareholders of record on
March 14, 2012. The dividend is an "eligible dividend"
in accordance with the Income Tax Act of Canada. Three Months ended
December 31 ($000s, except per share amounts) 2011 2010 Sales
58,486 45,193 Net income 5,286 2,054 Basic and diluted earnings per
share $0.13 $0.05 Common shares outstanding 40,925,227 40,912,823
Consolidated sales for the first quarter ended December 31, 2011
were $58.5 million - an increase of $13.3 million or 29% compared
to last year. This quarter's sales growth continues the
strong post-recessionary recovery trend that began in 2010.
The Casting and Extrusion segment reported sales of $36.8 million -
an increase of $9.4 million or 34% compared to last year.
This growth was fuelled by strong demand for automotive die cast
moulds and die casting equipment and components as well as
improving demand for extrusion dies in North America. Sales
in the Automotive Solutions segment in the first quarter were $21.7
million - an increase of $3.9 million or 22% over last year. Growth
here was principally driven by stronger vehicle production volume
in North America. Consolidated net income for the first quarter was
$5.3 million or $0.13 per share. This represents an increase
of 157% over last year's consolidated net income of $2.1 million or
$0.05 per share. The improvement in the current year's earnings was
led by the Casting and Extrusion segment with segment pretax income
in the first quarter of $5.4 million compared to segment pretax
income of $946 thousand in the same quarter last year. Within
the segment, Edco and Excoeng Mexico incurred a combined loss of
approximately 1 cent per share and Exco Colombia, where most
start-up costs were expensed, incurred another 1 cent loss per
share. The Automotive Solutions segment reported segment pretax
income in the first quarter of $3.3 million compared to segment
pretax income of $2.6 million in the same quarter last year.
Consolidated gross margin in the first quarter increased to 28.5%
from 24.1% in the same quarter last year mainly from a significant
improvement in the Casting and Extrusion segment where the
disruption and inefficiency from closing an extrusion plant last
year is over. Operating cash flow before net changes in non cash
working capital in the first quarter increased to $6.8 million from
$4 million last year. Working capital in the current quarter has
now begun to level off after a sizeable sale-driven build-up over
the last year. The Company's cash position on December 31,
2011 increased to $18 million from $15.4 million at the beginning
of the quarter reflecting improvement in earnings. The overall
outlook for Exco over the next several quarters has not materially
changed from the last quarter. The two major trends of strong
light vehicle production volumes in North America and steady
introduction of new or refreshed vehicles and powertrain systems by
virtually all OEMs remain intact. These trends continue to
benefit our components businesses, Castool and our large mould
businesses. Our large mould business in particular is
experiencing strong demand from its die cast customers who are
themselves experiencing high production requirements. In
Europe the situation is much more subdued as production volumes are
expected to contract in 2012 - although to what extent is currently
unclear. Management also expects to focus on the development
of our new operations in Mexico and Colombia in an effort to both
improve financial performance and develop these dynamic emerging
markets. The comparative amounts in the above analysis have been
adjusted to reflect the impact of the Company's transition to IFRS
effective October 1, 2010. Refer to Note 13 to the interim
consolidated financial statements for the first quarter for a full
reconciliation of the comparative period's interim consolidated
financial statements under GAAP to IFRS. (For further information
and prior year comparison please refer to the Company's First
Quarter Interim Financial Statements in the Investor Relations
section posted at www.excocorp.com. Alternatively, please
refer to www.sedar.com) 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 2,112 people and service a diverse and broad
customer base. To access the live audio webcast, please log on to
www.excocorp.com or directly to the web cast at
http://event.on24.com/r.htm?e=394641&s=1&k=B36B5F254585B38609735F9742575B90 a
few minutes before 4:30 PM on January 25, 2012. Questions can
be submitted via the Q&A box on the webcast console.
Microsoft Media Player is required for access. For
those unable to listen on January 25, 2012, 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. 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,
the state of economic conditions 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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