Exco Technologies Limited - Second Quarter ended March 31, 2012
April 23 2012 - 4:36AM
PR Newswire (Canada)
-- 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 /CNW/ - 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. Three
Months ended Six Months ended March 31 March 31 ($000s,except per
share amounts) 2012 2011 2012 2011 Sales 63,150 54,229 121,636
99,422 Net income 6,500 4,861 11,786 6,915 Basic and $0.16 $0.12
$0.29 $0.17 diluted earnings per share Common 40,569,811 40,926,823
40,569,811 40,926,823 shares outstanding 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. Exco Technologies Limited CONTACT: Source: Exco
Technologies Limited (TSX-XTC)Contact: Paul Riganelli,
Vice-President, Finance and Chief FinancialOfficerTelephone: (905)
477-3065 Ext. 7228Website: http://www.excocorp.com
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