TORONTO,
July 24, 2013 /PRNewswire/ - Exco
Technologies Limited (TSX: XTC) today announced results for its
third quarter ended June 30, 2013. In
addition, the Company announced the quarterly dividend of
$0.045 per common share which will be
paid on September 27, 2013 to
shareholders of record on September 13,
2013. 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) |
|
2013 |
2012 |
2013 |
2012 |
Sales |
62,382 |
59,213 |
180,649 |
180,849 |
Net income before withholding tax charge on
repatriation of surplus from subsidiary |
7,080 |
5,516 |
18,412 |
17,302 |
Basic earnings before withholding tax per
share |
$0.17 |
$0.14 |
$0.45 |
$0.42 |
Diluted earnings before withholding tax per
share |
$0.17 |
$0.14 |
$0.45 |
$0.42 |
|
|
|
|
|
Net income |
5,550 |
5,516 |
16,882 |
17,302 |
Basic earnings per share |
$0.14 |
$0.14 |
$0.42 |
$0.42 |
Diluted earnings per share |
$0.14 |
$0.14 |
$0.41 |
$0.42 |
Common shares outstanding |
40,697,195 |
40,663,811 |
40,697,195 |
40,663,811 |
Consolidated sales for the third quarter ended
June 30, 2013 were $62.4 million - an increase of $3.2 million or 5% compared to the same quarter
last year and an increase of $2.8
million or 5% over the second quarter.
The Casting and Extrusion segment reported sales
of $38.9 million for the third
quarter - an increase of $2.9 million
or 8% from the same quarter last year. Sales at the large mould
group increased in the current quarter by just over 10%. This
group experienced strong sales as its product mix between higher
priced new dies and lower priced rebuilds/repairs was more
favorable. Sales at Castool increased in the quarter by
approximately 9%. Castool's products are experiencing strong market
acceptance in both their traditional North and South American
markets as well as in newer Asian markets. In the Extrusion Tooling
group, sales were also up approximately 10% from last year as
Extrusion Texas, which was acquired in January of this year, is
contributing to sales and Extrusion Colombia, which started
operating in January 2012, continued
to grow its sales in the third quarter over the prior quarter and
the same quarter last year. Sales in the Automotive Solutions
segment in the third quarter were $23.5
million - an increase of $282
thousand or 1% from the same quarter last year. Sales at
Polytech and Neocon continued at high levels - sustained by strong
unit vehicle sales in North American market. Polydesign sales
have held up well given the difficult market conditions in
Europe and the delayed launch of
several Ford Europe programs.
Consolidated net income for the third quarter
was materially impacted by a withholding tax charge of $1.5 million or $0.04 per share occasioned by the repatriation of
surplus from subsidiary. This tax charge has increased the
consolidated income tax rate for this quarter to 42.9% compared to
30.1% last year. Before this withholding tax charge,
consolidated net income for the quarter was $7.1 million or $0.17 per share compared to $5.5 million or $0.14 per share in the same quarter last year.
Year-to-date consolidated net income before this withholding tax
charge was $18.4 million or
$0.45 per share compared to
$17.3 million or $0.42 per share last year. After this
withholding tax charge, consolidated net income for the third
quarter was $5.6 million or
$0.14 per share compared to
consolidated net income of $5.5
million or $0.14 per share in
the same quarter last year. Year-to-date consolidated net income
was $16.9 million or $0.42 per share (diluted $0.41 per share) compared to $17.3 million or $0.42 per share (diluted $0.42 per share).
The Company continues to push ahead with its
previously announced capital investment plans investing
$6.7 million in the quarter and
$17.5 million year-to-date compared
to $3.0 million and $6.3 million last year. Included in the current
year were $1.5 million for the
acquisition of Extrusion Texas, $4.1
million on the Extrusion Brazil greenfield and $1.3 million on the Castool Thailand
greenfield. Despite significant capital expenditures in the
current quarter and year-to-date, the Company's cash position on
June 30, 2013 was $25.1 million compared to $31.2 million at the beginning of the year.
Gross margin and EBITDA has achieved levels not
seen since 2004 when the Canadian dollar was approximately 40%
weaker than it is today. Gross margin in the third quarter
was up at 30.5% and year-to-date at 29.6%. EBITDA for the quarter
was 18.8% and year-to-date was 17.7%. Gross margin in the
third quarter and year-to-date in both Automotive and Casting and
Extrusion segments remained strong despite some operational
disruptions and non-recurring costs.
The overall outlook for Exco over the next
several quarters remains consistently strong. 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 and the growth in the geographic footprint of the
Extrusion group should continue to grow its sales as well. Design
and technological innovations at Exco have been successful in
materially advancing our prospects as evidenced by significant
silifont die booked business and considerable increase in our
cooperation with OEM's product development for interior trim
components in premium vehicles. 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 and efficiently rolling out our greenfield
projects (Thailand and
Brazil) while continuing to meet
delivery dates in an environment of increasing and fluid
backlog.
In Europe the
market situation, although difficult, is not as problematic for
Polydesign as thought to be at the start of the fiscal year.
The recent and smooth launch of the new sun visor program for Range
Rover is now at full volumes. Several delayed Ford programs
are scheduled to launch over the next two quarters and other new
programs scheduled to launch in 2014 should not only insulate
Polydesign from the worst of European market conditions but also
ensure that its sales and earnings continue to hold up and improve
next year.
Management continues to also look for accretive
'tuck-under' acquisition opportunities - particularly in the
automotive interior trim cut and sew space in Europe where the prospects for such
opportunities are more abundant and promising.
(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 11 strategic
locations, we employ 2,207 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/1185023/1298759 a few
minutes before 10:00 AM on
July 25, 2013. For those unable
to listen on July 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) and Polydesign, 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