TORONTO, Jan. 29, 2014 /PRNewswire/ - Exco Technologies
Limited (TSX-XTC) today announced results for its first quarter
ended December 31, 2013.
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Three Months
ended
December 31 |
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($000s, except per share amounts) |
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2013 |
2012 |
Sales |
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63,945 |
58,686 |
Net income |
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6,740 |
5,787 |
Basic earnings per share |
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$0.17 |
$0.14 |
Diluted earnings per share |
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$0.16 |
$0.14 |
Common shares outstanding |
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40,762,821 |
40,649,195 |
Consolidated sales for the first quarter ended
December 31, 2013 were $63.9 million - an increase of $5.3 million or 9% compared to the same quarter
last year. The Casting and Extrusion segment reported sales
of $39.0 million for the first
quarter - an increase of $2.6 million
or 7% from the same quarter last year. Sales in the Automotive
Solutions segment in the first quarter were $25.0 million - an increase of $2.6 million or 12% from the same quarter last
year.
Consolidated net income for the first quarter
was $6.7 million or basic earnings of
$0.17 per share and diluted earnings
of $0.16 per share compared to
consolidated net income of $5.8
million or basic and diluted earnings of $0.14 per share in the same quarter last year -
an increase of 16%.
The Casting and Extrusion segment reported
pretax profit of $5.9 million in the
first quarter compared to $5.6
million pretax profit in the same quarter last year - an
increase of $274 thousand or 5%. The
Automotive segment reported higher pretax profit of $4.4 million in the first quarter compared to
$3.8 million pretax profit in the
same quarter last year - an increase of $638
thousand or 17%.
Net cash provided by operating activities
increased to $5.3 million compared to
$3.5 million in the same quarter last
year. Cash used in investing activities in the first quarter
totalled $7.1 million compared to
$3.5 million in the same quarter last
year. Capital spending in the current quarter, although
significantly higher, was planned and mostly related to the Casting
and Extrusion segment of which $725
thousand was for investment in the Castool Thailand
greenfield facility and $2.6 million
was for investment in the Extrusion Brazil greenfield facility.
Despite the significantly higher capital
expenditure in the current quarter, the Company's net cash position
at the close of the first quarter ended December 31, 2013 was $24.5 million compared to $26.1 million at the beginning of the fiscal
year.
The outlook for Exco over the next several
quarters remains strong. The economic recovery in
North America - both in the
automotive sector and the greater economy - appears to be robust
and is expected to continue at a steady pace. In Europe,
recession throughout the Euro zone seems to be bottoming out with
most OEMs there projecting higher unit sales in 2014. However
we believe the business environment will continue to be difficult
for several years.
Exco's new extrusion tool shop in Brazil should be complete in the second
quarter of fiscal 2014 and the Castool facility in Thailand is expected to be complete and start
production early in the third quarter of fiscal 2014. These
new facilities will be a drag on our cash and earnings in a few
quarters to come as capital items are paid for and start-up losses
are funded. This is expected to gradually abate once
commercial production begins thereafter.
The significant increase in capital spending in
the first quarter is proceeding as planned and we expect capital
expenditures to continue in accordance with our capital plan for
2014 of $24.5 million. It is expected
that our cash flow from operations will continue to support these
investments. Management also expects to complete the purchase
of Automotive Leather Company Group (PTY) Limited ("ALC") in early
March of next quarter. This will require a cash expenditure
of approximately $17.2 million which
Exco intends to fund by increasing its Canadian operating credit
facility to $30 million from its
current level of $12 million.
With the pending purchase of ALC, management will focus on the
integration of ALC into the Automotive Solutions segment but will
remain receptive to other accretive 'tuck-under' acquisition
opportunities that may arise.
(For further information and prior year
comparison please refer to the Company's First 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 13 strategic
locations, we employ 2,354 people and service a diverse and broad
customer base. Upon completion of the ALC acquisition, Exco will
have 18 locations and employ approximately 5,000 people in 12
countries.
To access the live audio webcast, please log on
to www.excocorp.com or directly to the web cast at
http://event.on24.com/r.htm?e=735734&s=1&k=E33709AC3D35024D318C79FC2396F920
a few minutes before 4:30 PM on
January 29, 2014. Questions can
be submitted via the Q&A box on the webcast console.
Microsoft Media Player is required for access. For
those unable to listen on January 29,
2014, 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 2013 Annual Report, in our 2013 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