- Sales up 78%
- Earnings up 50%
- $29 million cash on
hand
- $1.1 million cash, net of bank
indebtedness
- EBITDA up 27% to $14.9
million
TORONTO, July 23, 2014 /PRNewswire/ - Exco Technologies
Limited (TSX-XTC) today announced results for its third quarter
ended June 30, 2014. In addition, the
Company announced the quarterly dividend of $0.05 per common share which will be paid on
September 26, 2014 to shareholders of
record on September 12,
2014. 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) |
|
2014 |
2013 |
2014 |
2013 |
Sales |
110,938 |
62,382 |
257,320 |
180,649 |
|
|
|
|
|
Net income |
8,340 |
5,550 |
22,533 |
16,882 |
Basic earnings per
share |
$0.20 |
$0.14 |
$0.54 |
$0.42 |
Diluted earnings per
share |
$0.20 |
$0.14 |
$0.54 |
$0.41 |
|
|
|
|
|
Adjusted Net income |
9,247 |
7,156 |
24,425 |
18,636 |
Basic earnings per
share |
$0.22 |
$0.18 |
$0.59 |
$0.46 |
Diluted earnings per
share |
$0.22 |
$0.17 |
$0.58 |
$0.45 |
|
|
|
|
|
Common shares outstanding |
41,985,534 |
40,697,195 |
41,985,534 |
40,697,195 |
Consolidated sales for the third quarter ended
June 30, 2014 were $110.9 million - an increase of 78% compared to
last year. Year-to-date consolidated sales were $257.3 million - up 42% over last year. The
inclusion in the quarter of Automotive Leather Group (Pty) Company
('ALC') which was acquired by Exco on March
1, 2014 is primarily responsible for the significantly
higher sales in the quarter. However, our existing businesses
also grew by 21% in the current quarter and 15% year-to-date. ALC
is included in the Automotive Solutions segment.
The Automotive Solutions segment reported
significantly higher sales of $66.3
million in the third quarter and $133.9 million year-to-date - increases of 183%
for the quarter and 96% year-to-date. ALC sales in the quarter were
$35.3 million and year-to-date (four
months) was $49.7 million.
The other businesses in this segment experienced
strong growth in both the quarter and year-to-date by 32% and 23%
respectively. Polytech and Neocon sales in North America continued at elevated levels -
sustained by strong vehicle unit sales as well as new product
launches for refreshed, redesigned or entirely new vehicle
models. Polydesign's European sales increased substantially
over prior year as the smooth launch of new programs continued at a
strong pace and European vehicle unit sales improved modestly.
The Casting and Extrusion segment reported sales
of $44.6 million for the third
quarter and $123.4 million
year-to-date - increases of 15% for the quarter and 10%
year-to-date. All businesses in the segment contributed to these
sales increases. Sales at the Extrusion group were supported by
general market improvement in North
America and improving market share at Exco Colombia and
Texas. Sales at the large
mould group and Castool reflected continuing strong market
conditions in North America and
Asia both in the quarter and
year-to-date.
Consolidated net income for the third quarter
was $8.3 million or diluted earnings
of $0.20 per share compared to
consolidated net income of $5.6
million or diluted earnings of $0.14 per share last year - an increase of
50%. Year-to-date consolidated net income was $22.5 million or diluted earnings of $0.54 per common share compared to $16.9 million or diluted earnings of $0.41 per common share last year - an increase of
33%. Included in the current year and prior year were various
significant unusual items consisting of withholding taxes, start-up
losses in Brazil and Thailand and ALC acquisition costs. These
items are detailed in the Company's MD&A at Table A.
Excluding these unusual items, net income in the current quarter
and year-to-date would have been $9.2
million and $24.4 million or
diluted earnings of $0.22 and
$0.58 per common share compared to
$7.2 million and $18.6 million or diluted earnings of $0.17 and $0.45 per
common share in the same periods last year.
These earnings drove strong EBITDA. Consolidated
EBITDA for the third quarter was $14.9
million compared to $11.7
million in the same quarter last year - an increase of
27%. Year-to-date consolidated EBITDA was $38.4 million compared to $31.9 million last year - an increase of 20%.
The Automotive Solutions segment reported higher
pretax profit of $7.0 million in the
third quarter - an increase of 52% over last year. Year-to-date the
segment also reported higher pretax profit of $17.6 million - an increase of 41% above the
prior year. In both Europe and
North America, stronger sales
provided increased earnings. This earnings improvement took
place in spite of elevated inventory, logistics and production
reallocation costs at ALC required to launch the new Mini program
in Bulgaria, South Africa and Lesotho.
The Casting and Extrusion segment reported
pretax profit of $6.5 million in the
third quarter compared to $6.4
million pretax profit in the same quarter last year - an
increase of 1%. Year-to-date the segment reported pretax profit of
$18.2 million - an increase of
$1.4 million or 8% from last year.
These improvements took place in spite of start-up costs at our two
greenfield facilities - Extrusion Brazil and Castool
Thailand. Excluding these start-up costs, which we expect to
recede over the next two quarters, pretax income in the current
quarter and year-to-date for this segment would have been
$7.5 million and $20.1 million compared to $6.5 million and $17.2
million in the same periods last year. This represents an
increase of 15% in the quarter and 17% year-to-date. Our
prospects for new business in the large mould business continue to
be favorable. Recently, Exco was awarded the 10 speed
transmission tooling program by General Motors. This is not
one of Exco's traditional customers and we see this award as a
validation of Exco's competitive position in the large mould market
and a validation of our ability to generate outstanding and
innovative tooling designs on state-of-the-art powertrain
technology.
The outlook for Exco over the near term
continues to remain strong. The economic recovery in
North America - both in the
automotive sector and the greater economy - appears to be intact
and even European automotive sales are showing signs of
improvement. The recent announcement by BMW, Mercedes and VW
to locate further assembly plant capacity in Mexico and the southern US states is also a
welcome development and dovetails with our recent purchase of ALC
which has been serving these customers in Europe for many years.
(For further information and prior year
comparison please refer to the Company's Third Quarter Condensed
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 18 strategic
locations in 10 countries, we employ 4,740 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/1372763/1522251 a few
minutes before 10:00 AM on
July 24, 2014. Microsoft Media
Player is required for access. For those unable to listen on
July 24, 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, the financial
performance of ALC which was acquired in March 2014, managing our order backlog in the
Castool and large mould businesses, impact of our machinery and
equipment investments and greenfield construction, input costs,
operating efficiencies and overhead absorption. 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 in
Europe, the securing of new orders
or renewal of existing orders, the rate of economic growth in
North America, Europe and BRIC countries, investment by OEMs
in drivetrain architecture and structural parts, and currency
fluctuations (particularly with respect to the US dollar, Euro,
Mexican peso and South African rand) and the level of and timing of
integration and production reallocation of the ALC
acquisition. 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