- Year over year Quarterly Sales increased 20%
- Year over year Quarterly Profits increased 50%
- Quarter-end Cash on hand increased 49% to $22.9 million
- No bank debt
TORONTO, July 25, 2012 /PRNewswire/ - Exco Technologies
Limited (TSX-XTC) today announced results for its third quarter
ended June 30, 2012. In
addition, the Company announced the quarterly dividend of
$0.0375 per common share which will
be paid on September 28, 2012 to
shareholders of record on September 14,
2012. The dividend is an "eligible dividend" in
accordance with the Income Tax Act of Canada.
|
Three
Months ended
June 30 |
Nine
Months ended
June 30 |
|
($000s,
except per share amounts) |
|
2012 |
2011 |
2012 |
2011 |
Sales |
59,213 |
49,183 |
180,849 |
148,605 |
Net income |
5,516 |
3,688 |
17,302 |
10,603 |
Basic earnings per share |
$0.14 |
$0.09 |
$0.42 |
$0.26 |
Diluted earnings per share |
$0.14 |
$0.09 |
$0.42 |
$0.26 |
Common shares
outstanding |
40,663,811 |
40,961,823 |
40,663,811 |
40,961,823 |
Consolidated sales for the third quarter ended
June 30, 2012 were $59.2 million - an increase of $10.0 million or 20% compared to last year.
The Company experienced strong demand for its products and this
quarter marks the continuing trend of growing sales started over
three years ago. Year-to-date sales were $180.8 million - an increase of $32.2 million or 22% compared to last year.
During the third quarter, the Casting and
Extrusion segment reported sales of $36.0
million - an increase of $4.2
million or 13% compared to the same quarter last year.
Year-to-date, the segment reported sales of $112.5 - an increase of $18.6 or 20% compared to last year. Sales in the
Automotive Solutions segment in the third quarter were $23.2 million - an increase of $5.8 million or 33% from the same quarter last
year. Year-to-date, the segment reported sales of $68.3 million - an increase of $13.7 million or 25% from last year. Sales
increased at all business units in both business segments.
Growth in extrusion tooling sales continues to point towards a
recovery in industrial activity in North
America. Castool and Exco's large mould
businesses also continue to benefit from the surge in demand for
die cast tooling and consumable components. At Polytech and
Neocon, strong light vehicle production levels in North America, favorable OEM content
positioning and better absorption of tightly controlled
manufacturing overhead costs fuelled growth at these divisions.
Sales at Polydesign have also increased in the quarter and
year-to-date as volumes have held up well, despite difficult
European market conditions.
Consolidated net income for the third quarter
was $5.5 million or $0.14 per share compared to consolidated net
income of $3.7 million or
$0.09 per share last year.
Year-to-date consolidated net income was $17.3 million or $0.42 per share compared to consolidated net
income of $10.6 million or
$0.26 per share last year.
Pretax income for the Casting and Extrusion
segment in the third quarter was $5.2
million compared to segment pretax income of $3.5 million last year. Year-to-date, the
segment reported pretax income of $16.2
million compared to $9.0
million last year. These improvements were led by the large
mould group which continued to benefit from very strong demand for
its powertrain tooling. Edco reported a profit in the
current quarter and losses at Excoeng Mexico, our large mould
maintenance facility in Queretaro
Mexico, decreased significantly in the current quarter
mainly due to growing sales. Year-to-date, losses at Edco and
Excoeng Mexico were approximately 1
cent per share. Earnings at Castool were also significantly
stronger on higher sales in both current quarter and year-to-date.
Extrusion earnings in the current quarter and year-to-date
increased significantly over last year as efficiencies from
operating within the two-plant footprint were realized. The
start-up plant in Colombia, which
started shipping in January 2012,
incurred losses of approximately 1
cent per share in the current quarter and 2 cents year-to-date; however, as a group, the
extrusion businesses outperformed prior year results.
The Automotive Solutions segment reported
segment pretax income in the third quarter of $3.9 million compared to segment pretax income of
$2.7 million in the same quarter last
year. Year-to-date, the segment reported pretax income of
$11.5 million compared to
$8.7 million last year. Program
refreshing and renewal activity has enabled this segment to better
recover raw material cost increases experienced over the last
several years. Strong light vehicle production volume has
also improved overhead absorption. 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 which comes to an end
next quarter. The volume reduction on existing European
programs has not materialized to the extent that was expected.
However, erosion is still expected given current trends in European
automotive sales.
Consolidated gross margin in the third quarter
increased to 28.8% from 27.1% in the same quarter last year.
Year-to-date gross margin also increase to 28.5% from 26.5% last
year. The improvement in the current quarter and year-date was
mainly from; 1) declining losses at Edco and Excoeng Mexico, 2)
operating within a two-plant extrusion footprint and 3) generally
stable yet softening raw material cost environment. Cash
provided by operating activities increased to $4.6 million in the third quarter from
$2.5 million last year and
$19.4 million this year-to-date
compared to $3.3 million last
year. These increases are primarily the result of improved
earnings and stable working capital requirements. This has
caused the Company's cash position at June
30, 2012 to increase to $22.9
million from $15.4 million at
the beginning of the year.
The outlook for Exco for the balance of the year
continues to be promising. North American automotive
production is strong despite the overall lackluster performance of
the US economy. We believe the high average age of North
American vehicles, materially better mileage of new automobiles and
the return of low cost automobile financing and leasing are the
major factors driving this trend. This bodes well for our
automotive components and tooling businesses which are expected to
continue experiencing strong demand for their products.
Recent improvement in US industrial markets, seems to be levelling
off, however, improved demand for our extrusion tooling products
over the last year has been sustained. In Europe the economy is in recession with
automotive production contracting precipitously. Exco's
Polydesign operations are expected to offset any declining volume
on existing programs with the launch of new programs throughout
this year and next. In this way we hope to position ourselves
to take advantage of the recovery which we expect to occur
thereafter. Management also observes a nascent trend in
softening raw material costs. It would appear that global
trends toward more moderate growth particularly among BRIC
countries may cause Exco to obtain relief in the form of better
supply and more stable cost for polymers, steel and other commodity
inputs.
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 Third 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 2,196 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/1007495/1088509 a few
minutes before the event. Real Player is required for
access. For those unable to participate on July 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 businesses
(particularly our start-up business units in Mexico and Colombia), input costs and our 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, among other things, the
number of automobile vehicles produced in North America and Europe, the rate of economic growth in
North America and Europe and BRIC countries, investment by OEMs
in drivetrain architecture and structural parts and currency
fluctuations (particularly with respect to the US dollar, Euro and
Mexican Peso). 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