- Fiscal Year Sales increased 20%
- Fiscal Year Profits increased 84%
- Fourth Quarter Profits increased 169%
- Quarter-end Cash on hand increased 103% to $31.2 million
- No bank debt
(TSX-XTC)
TORONTO, Nov. 30, 2012 /CNW/ - Exco Technologies
Limited today announced results for its fourth quarter and
fiscal year ended September 30,
2012. In addition, the Company announced the quarterly
dividend of $0.0375 per common share
which will be paid on December 28,
2012 to shareholders of record on December 14, 2012. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of
Canada.
|
Three Months ended
September 30 |
Twelve Months ended
September 30 |
|
($000s,
except per share amounts) |
|
2012 |
2011 |
2012 |
2011 |
Sales |
61,667 |
54,026 |
242,516 |
202,631 |
Net income |
7,147 |
2,660 |
24,449 |
13,263 |
Basic earnings per share |
$0.18 |
$0.06 |
$0.60 |
$0.32 |
Diluted earnings per share |
$0.17 |
$0.06 |
$0.60 |
$0.32 |
Common shares
outstanding |
40,623,011 |
40,961,823 |
40,623,011 |
40,961,823 |
In the fourth quarter consolidated sales were
$61.7 million - a $7.6 million or 14% increase over the prior
year. The Casting and Extrusion segment recorded higher sales
of $40.0 million compared to
$34.4 million last year - an increase
of 16%. The Automotive Solutions segment experienced a 10%
increase in sales from $19.6 million
last year to $21.7 million.
Annual consolidated sales totalled $242.5 million compared to $202.6 million last year - an increase of
$39.9 million or 20% over last
year. The Casting and Extrusion segment reported sales of
$152.5 million - an increase of
$24.2 million or 19% from the prior
year. The Automotive Solutions segment reported sales of
$90.0 million - an increase of
$15.7 million or 21% from the prior
year. This strong sales performance is in line with
management's expectations and was primarily driven by organic
growth in demand for Exco's products by a recovering and
increasingly dynamic North American automotive marketplace.
The Company's fourth quarter consolidated net
income increased to $7.1 million
($0.18 basic earnings per share or
$0.17 diluted earnings per share)
compared to $2.7 million
($0.06 basic and diluted earnings per
share) in fiscal 2011 - an increase of 169%. Fourth quarter
pretax earnings increased significantly in the Casting and
Extrusion segment by $3.9 million or
169% over the same quarter last year. Fourth quarter pretax
earnings also increased in the Automotive segment by $831 thousand or 28% over the same quarter last
year.
The Company reported annual consolidated net
income of $24.4 million or
$0.60 per share compared to
consolidated net income of $13.3
million or $0.32 per share
last year - an increase of 84%. Casting and Extrusion pretax
earnings increased by 99% to $22.4
million from $11.3 million in
the prior year. The Automotive Solutions segment recorded
pretax earnings of $15.3 million for
the year compared to $11.7 million
last year - an increase of 31%. The fourth quarter and full
year earnings exceeded management's guidance and essentially
reflect the impact of climbing sales in a high capacity utilization
and tightly controlled fixed cost environment.
As we look toward the next year we believe the
economic recovery in North American automotive industry should
continue to grow at a slow but steady pace. With US interest
rates now assured to be at historic low levels for numerous years
to come, unit sales of light vehicles should continue to benefit
from cheaper leasing and financing charges despite anaemic growth
in the greater US economy. The elevated age of the average
North American automobile on the road today - in excess of 10 years
- and the better mileage of new vehicles also support stronger
demand for light vehicles. Management believes this will
directly benefit our automotive component businesses which should
continue to experience strong sales and efficient overhead
absorption, as well as, indirectly benefit our large mould
businesses and Castool which sell moulds and consumable
components/tooling to OEMs and their tiers. This relatively
positive outlook may be undermined by political developments in the
US during the first quarter of fiscal 2013 that may result in
simultaneous increases in US taxes and sharply reduced government
spending and the situation in European where fiscal austerity and
recession throughout the Euro zone is so prevalent. However, in
Europe management expects there
will be minimal impact on its consolidated financial performance as
its European operations are a relatively small part of its overall
business.
Our extrusion tooling group is expected to
continue executing its strategy of growing throughout emerging
markets. In addition to its purchase of a tool shop in
Colombia last year, which is now
cashflowing, Exco is pleased to announce that it has purchased land
in Sorocaba, Brazil and will be
constructing a production facility there over the next year.
The estimated cost including equipment is expected to be
approximately $12 million over the
next several years.
Mr. Robbins, President and CEO of Exco says "on
this the 60th anniversary of the firm which my father
created I am very pleased that we have produced the best financial
results in our history. I also strongly support the
reinvestment of some of these resources in the future long term
development of our core businesses in markets which we hope to
dominate with our strong reputation for technology and quality - as
we currently do in our traditional North
America 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 fourth 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 Fourth 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 11 strategic
locations, we employ 2,213 people and service a diverse and broad
customer base.
A conference call to discuss those results will
be held on Monday, December 3, 2012
at 10:00 a.m. (Toronto time) which can be accessed by
dialling (647) 427-7450 for local (Toronto) calls or toll free at (888)
231-8191.
To access the live audio webcast, please log on
to www.excocorp.com, or
http://www.newswire.ca/en/webcast/detail/1065919/1159113 a few
minutes before the event. Real Player is required for
access. For those unable to participate on December 3, 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 sales growth and financial performance
of the Company's business units, absorption of the Company's fixed
costs, contribution of our businesses, input costs and other
aspects of 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 number of extrusion dies required
in North America and South America, the rate of economic growth in
North America and Europe and BRIC countries, investment by OEMs
in drivetrain architecture and structural parts, the likelihood of
austerity measures taken by developed countries (especially the
U.S. and Europe) 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