- Year-to-date Sales increased 22%
- Year-to-date Profits increased 70%
- Quarter-end Cash on hand increased 45% to $22.4 million
- Quarterly dividend increased by 25%
- No bank debt
TORONTO, April 25, 2012 /PRNewswire/ - Exco
Technologies Limited (TSX-XTC) today announced results for its
second quarter ended March 31,
2012. In addition, the Company announced the increase
of its quarterly dividend from $0.03
per common share to $0.0375 per
common share which will be paid on June 29,
2012 to shareholders of record on June 13, 2012. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of
Canada.
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Three Months
ended
March 31 |
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Six Months ended
March 31 |
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($000s, except per
share amounts) |
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2012 |
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2011 |
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2012 |
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2011 |
Sales |
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63,150 |
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54,229 |
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121,636 |
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99,422 |
Net income |
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6,500 |
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4,861 |
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11,786 |
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6,915 |
Basic and diluted earnings per
share |
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$0.16 |
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$0.12 |
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$0.29 |
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$0.17 |
Common shares outstanding |
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40,569,811 |
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40,926,823 |
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40,569,811 |
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40,926,823 |
Consolidated sales for the second quarter ended
March 31, 2012 were $63.2 million - an increase of $8.9 million or 16.5% compared to last
year. Exco experienced strong demand for its products and
this quarter marks the continuing trend of growing sales over the
last three years. Year-to-date sales were $121.6 - an increase of $22.2 million or 22.3% compared to last year.
During the second quarter, the Casting and
Extrusion segment reported sales of $39.7
million - an increase of $4.9
million or 14.1% compared to the same quarter last year and
sales in the Automotive Solutions segment in the second quarter
were $23.4 million - an increase of
$4.0 million or 20.7% from the same
quarter last year. Sales increased at all business units in
both segments as automotive and industrial markets created strong
demand for our products - particularly in the Americas and
Asia. Underpinning this strong
demand is continued recovery of light vehicle production levels
particularly in North America and
continued launch of new powertrain architectures by most OEMs.
Consolidated net income for the second quarter
was $6.5 million or $0.16 per share compared to consolidated net
income of $4.9 million or
$0.12 per share in the same quarter
last year. Year-to-date consolidated net income was $11.8 million or $0.29 per share compared to consolidated net
income of $6.9 million or
$0.17 per share last year.
Pretax income for the Casting and Extrusion
segment in the second quarter was $5.6
million compared to segment pretax income of $4.6 million in the same quarter last year and
the Automotive Solutions segment reported segment pretax income in
the second quarter of $4.3 million
compared to segment pretax income of $3.4
million in the same quarter last year. Year-to-date,
the Casting and Extrusion segment reported pretax income of
$11.0 million compared to segment
pretax income of $5.5 million last
year and the Automotive segment reported pretax income of
$7.6 million compared to segment
pretax income of $6.0 million last
year. Losses at Edco and our new large mould maintenance facility
in Queretaro, Mexico decreased
significantly in the current quarter due to improved sales and our
start up Exco Colombia operation has successfully commenced
shipping of commercial volumes of quality product in the quarter.
Polydesign continued improving its earnings as new product launches
have provided not only the necessary throughput but also higher
added value product mix than its traditional seat cover program and
the volume reduction on existing European programs has not
materialized to the extent that was expected.
Consolidated gross margin in the second quarter
increased to 28.1% from 27.8% in the same quarter last year.
Year-to-date gross margin also increased to 28.3% from 26.1% last
year. The improvement in the current quarter and year-date was
mainly from the Casting and Extrusion segment and gross margin at
the Automotive Solutions segment remained consistent both in the
current quarter and year-to-date compared to last year.
Cash provided by operating activities increased
to $8.1 million in the second quarter
from $1.3 million last year and
$14.8 million this year-to-date
compared to $823 thousand last
year. These increases are primarily the result of improved
earnings.
The Company's cash position at the close of the
second quarter ended March 31, 2012
increased to $22.4 million from
$15.4 million at the beginning of the
year reflecting continuing improvement of earnings in the current
year. This demonstrates that the build-up in working capital
caused by climbing sales over the last numerous quarters has begun
to level off.
The overall outlook for Exco over the next
several quarters has not materially changed and remains very
positive. 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.
However, the company has also observed a definite improvement in
North American industrial markets which has benefited our extrusion
tooling businesses. In Europe our expectation of weakening
demand for our Polydesign products has not materialized to the
extent anticipated. We remain cautious about the European
automotive market but note that German OEMs do not appear to be
under pressure to the same degree as are other European OEMs.
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 second 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 Second 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 2,169 people and service a diverse and broad
customer base.
To access the live audio webcast, please log on
to www.excocorp.com, or
http://www.newswire.ca/en/webcast/detail/953233/1020755 a few
minutes before the event. Real Player is required for
access. For those unable to participate on April 26, 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