- 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 /PRNewswire/ - 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.
SOURCE Exco Technologies Limited