TORONTO, April 24, 2013 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its second
quarter ended March 31, 2013. In
addition, the Company announced the quarterly dividend of
$0.045 per common share which will be
paid on June 28, 2013 to shareholders
of record on June 14,
2013. 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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2013 |
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2012 |
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2013 |
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2012 |
Sales |
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59,581 |
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63,150 |
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118,267 |
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121,636 |
Net income |
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5,545 |
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6,500 |
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11,332 |
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11,786 |
Basic earnings per share |
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$0.14 |
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$0.16 |
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$0.28 |
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$0.29 |
Diluted earnings per share |
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$0.14 |
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$0.16 |
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$0.28 |
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$0.29 |
Common shares outstanding |
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40,695,195 |
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40,569,811 |
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40,695,195 |
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40,569,811 |
Consolidated sales for the second quarter ended
March 31, 2013 were $59.6 million compared to $63.2 million last year. However, sales
increased $895 thousand or 2% over
the first quarter. Year-to-date consolidated sales were
$118.3 million - a decrease of
$3.4 million or 3% from last year.
Sales were impacted in both segments with the Automotive Solutions
Segment absorbing the impact of poor market conditions in
Europe as well as a return to
normal sales levels at Neocon where last year's unusually high
post-tsunami surge in Japanese OEM demand abated. In the
Casting and Extrusion segment sales were impacted by product mix
and timing of deliveries in the large mould businesses which
exceeded stronger sales at Castool and the extrusion group where
Extrusion Colombia doubled its sales over last year and Extrusion
Texas, which was purchased in the quarter, began to generate
revenue.
Consolidated net income for the second quarter
was $5.5 million or $0.14 per share compared to consolidated net
income of $6.5 million or
$0.16 per share in the same quarter
last year. Year-to-date consolidated net income was $11.3 million or $0.28 per share compared to $11.8 million or $0.29 per share. However, consolidated
gross margin in the second quarter was stronger at 28.2% compared
to 28.1% in the same quarter last year. Year-to-date gross margin
increased to 29.0% from 28.3% last year.
Explaining the difference between gross margin
and pretax profit is travel and start up costs associated with our
numerous greenfield projects (Extrusion Brazil and Castool in
Thailand) and non recurring costs
(acquisition costs for Extrusion Texas and restructuring of Allper)
as well as foreign exchange and scientific research and
experimental development differences. The combined impact of
these various items is approximately 1.5
cents earnings per share in the quarter and 2 cents earnings per share year-to-date.
The Company continues to push ahead with its
previously announced capital investment plans investing
$7.3 million in the quarter and
$10.8 million year-to-date compared
to $1.0 million and $3.3 million last year. Included in the current
quarter were $1.5 million for the
acquisition of Extrusion Texas and $4.3
million in the greenfielding of Extrusion Brazil.
Despite the significantly higher capital expenditure, the Company's
cash position at the close of the second quarter ended March 31, 2013 decreased by only $2.9 million to $28.3
million from $31.2 million at
the beginning of the year.
After the end of the quarter the Company also
spent $1.2 million to purchase the
leased portion of the Extrusion Colombia production facility.
The overall outlook for Exco into the next
several quarters remains consistent with the last two
quarters. 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 automotive solutions segment,
Castool and our large mould businesses. Growth in the
geographic footprint of the extrusion group should continue to grow
its sales as well. The emphasis in the Casting and Extrusion
segment will be to manage several disruptive factors without
eroding our margins and earnings. These factors include
continuing our machinery and equipment upgrade and replacement
program, efficiently rolling out our greenfield projects
(Thailand and Brazil) and acquisitions (Extrusion Texas and
Extrusion Colombia) while continuing to meet delivery dates in an
environment of increasing yet fluid backlog.
In Europe the
market situation, although much impaired, is not as problematic for
Polydesign as thought to be at the start of the fiscal year.
New program launches over the last several quarters have largely
insulated Polydesign from the worst of the market conditions in
Europe and its sales and earnings
are holding up surprisingly well.
The significant increase in capital spending
this year will continue in accordance with our previous
announcements and it is expected that our cashflow from operations
will continue to support these investments.
(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 11 strategic
locations, we employ 2,221 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://www.newswire.ca/en/webcast/detail/1140143/1244449 a few
minutes before 10:00 AM on
April 25, 2013. For those
unable to listen on April 25, 2013,
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 Brazil, Thailand, Texas and Colombia), managing our order backlog in the
Castool and large mould businesses, impact of our machinery and
equipment investments, 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 2012 Annual Report, in our 2012 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