TORONTO,
Nov. 26, 2013 /CNW/ - Exco
Technologies Limited (TSX-XTC) today announced results for its
fourth quarter ended September 30,
2013. In addition, the Company announced the quarterly
dividend of $0.045 per common share
which will be paid on December 27,
2013 to shareholders of record on December 13, 2013. 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) |
|
2013 |
2012 |
2013 |
2012 |
Sales |
63,961 |
61,667 |
244,610 |
242,516 |
Net income before withholding tax on repatriation
of
surplus from subsidiary |
6,750 |
7,147 |
25,162 |
24,449 |
Basic earnings before withholding tax per
share |
$0.17 |
$0.18 |
$0.62 |
$0.60 |
Diluted earnings before withholding tax per
share |
$0.16 |
$0.17 |
$0.61 |
$0.60 |
Net income |
6,750 |
7,147 |
23,632 |
24,449 |
Basic earnings per share |
$0.17 |
$0.18 |
$0.58 |
$0.60 |
Diluted earnings per share |
$0.16 |
$0.17 |
$0.58 |
$0.60 |
Common shares outstanding |
40,714,833 |
40,623,011 |
40,714,833 |
40,623,011 |
Consolidated sales for the fourth quarter ended
September 30, 2013 were $64.0 million - an increase of $2.3 million or 4% compared to the same quarter
last year and an increase of $1.6
million or 3% over the third quarter. Annual consolidated
sales were $244.6 million - an
increase of $2.1 million or 1%
compared to last year.
The Company's fourth quarter consolidated net
income was $6.8 million (basic
$0.17 per share; diluted $0.16 per share) compared to $7.1 million (basic $0.18 per share; diluted $0.17 per share) in the same quarter last
year. The large mould business experienced non-recoverable
costs associated with new die builds and inefficiencies with regard
to the production of silafont moulds and other new mould programs.
In addition, travel, general and administrative costs associated
with the greenfields in Brazil and
Thailand and the integration of
Extrusion Texas also eroded fourth quarter earnings. Mr.
Robbins, CEO of the Company said "that our earnings in the quarter,
although slightly lower than last year, were off for a very good
reason - we are investing in our future. Without the new
programs, greenfield facilities and acquisitions we have undertaken
we would have had better earnings than last year but would have no
foundation for future growth."
For the year the Company reported consolidated
net income of $23.6 million or
$0.58 per share compared to
consolidated net income of $24.4
million or $0.60 per share
last year - a decrease of 3%. Net income for the year was impacted
by a $1.5 million withholding tax
charge on the repatriation of surplus from a subsidiary. Excluding
this withholding tax charge, the Company's consolidated net income
for the current year would have been $25.2
million (basic $0.62 per
share; diluted $0.61 per share) - an
increase of 3% from last year.
The Company continues to push ahead with its
previously announced capital investment plans investing
$5.7 million in the fourth quarter
and $23.2 million for the full year
compared to $1.4 million and
$7.7 million last year. Included in
the current year were $1.5 million
spent on the acquisition of Extrusion Texas, $1.2 million for the purchase of the remainder of
the Colombian production facility, $5.6
million investment in the Extrusion Brazil greenfield and
$1.3 million investment in the
Castool Thailand greenfield.
Despite significant capital expenditures in the
current year, the Company's cash position on September 30, 2013 was $26.1 million compared to $31.2 million at the beginning of the year.
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
silafont 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 order backlog and tight
delivery schedules.
In Europe the
market situation, although still problematic, is improving.
Polydesign should experience improving demand in the coming year.
The smooth launch of the new sun visor program for Range Rover is
now at full volumes. Several delayed Ford programs were
launched in the current quarter 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 improve next year.
Management continues to search for an accretive
'tuck-under' acquisition in the European automotive interior trim
sector where the prospects for such opportunities, on reasonable
terms, is more promising.
The Company's operational excellence continues
to be recognized by its many and varied customers. Polytech
in Mexico received the Toyota
Motor Sales Quality Alliance Gold Award and the General Motors
Supplier Excellence Award. Polydesign in Morocco was awarded the General
Motors/Opel/Vauxhall Supplier Quality Excellence Award and the
Johnson Control Europe Supplier Excellence Award. All of these
awards recognize superior overall supplier performance.
(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 2,316 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/1224599/1348629 a few
minutes before 10:00 AM on
November 27, 2013. For those
unable to listen on November 27,
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