- Sales up 88% in the quarter
- Earnings up 43% in the quarter
- $24.9
million cash on hand
- $3.3 million
cash, net of bank indebtedness
- EBITDA up 53% to $16.9 million in the quarter
TORONTO, Jan. 28, 2015 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its first quarter
ended December 31, 2014. In addition,
the Company announced a 20% increase in its quarterly dividend to
$0.06 per common share which will be
paid on March 27, 2015 to
shareholders of record on March 13,
2015. The dividend is an "eligible dividend" in
accordance with the Income Tax Act of Canada.
|
Three Months
ended
December
31
|
(in $ millions
except per share amounts)
|
|
|
2014
|
2013
|
Sales
|
$119,897
|
$63,945
|
Net income
|
$9,638
|
$6,740
|
Basic earnings per
share
|
$0.23
|
$0.17
|
Diluted earnings per
share
|
$0.23
|
$0.16
|
Common shares
outstanding
|
42,176,770
|
40,762,821
|
|
|
|
Consolidated sales for the first quarter ended December 31, 2014 were $119.9 million compared to $63.9 million in the same quarter last year – an
increase of $56.0 million or 88%. 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 22% in the current quarter.
The Automotive Solutions segment reported significantly higher
sales of $72.5 million in the first
quarter – an increase of $47.5
million or 190% over last year. This dramatic increase
reflects the inclusion of ALC in the quarter. Excluding the
impact of ALC, the other businesses in this segment also
experienced strong growth in the quarter of 36% over last year.
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 also increased substantially over the prior year as
the smooth launch of new programs continued at a strong
pace.
The Casting and Extrusion segment reported sales of $47.4 million for the first quarter – an increase
of $8.4 million or 22% over last
year. All businesses in the segment contributed to this sales
increase.
Consolidated net income for the first quarter was $9.6 million or diluted earnings of $0.23 per share compared to consolidated net
income of $6.7 million or diluted
earnings of $0.16 per share in the
same quarter last year – an increase of 43%.
Consolidated EBITDA for the first quarter is $16.9 million compared to $11.0 million in the same quarter last year – an
increase of 53%. EBITDA is a non-IFRS measure. Exco calculates
EBITDA as earnings before interest, taxes, depreciation and
amortization. Management believes EBITDA is a useful measure that
facilitates period-to-period operating comparisons and we believe
some investors and analysts use it as well. This measure, as
calculated by Exco, does not have any standardized meaning
prescribed by IFRS and is not necessarily comparable to similar
measure presented by other issuers.
The Automotive Solutions segment reported higher pretax profit
of $7.8 million in the first quarter
– an increase of $3.4 million or 76%
over last year. In both Europe and
North America, stronger sales
provided increased earnings. Earnings at ALC in the current
quarter continued to be impacted by disruption from relocation of
production from South Africa to
Lesotho and BMW's December shut
down in Europe.
The Casting and Extrusion segment also reported higher pretax
profit of $7.4 million in the first
quarter – an increase of $1.6 million
or 26% over last year. This improvement took place in spite of
start-up costs at our greenfield facilities - Extrusion Brazil and
Castool Thailand. Start-up costs at Castool Thailand are receding
and in the quarter it experienced positive cash flow. At
Extrusion Brazil we expect these costs to also recede, although at
a more gradual pace over the rest of the year. Strong sales at the
large mould business and Castool provided better overhead
absorption.
Operating cash flow before net change in non-cash working
capital was strong at $12.7 million
in the first quarter compared to $9.2
million last year. Higher investment in non-cash working
capital amounted to $14.6 million in
the first quarter compared to $3.9
million last year due mainly to higher sales in the current
quarter.
The Company remains net bank debt free despite payment of
$17.3 million to buy ALC,
$3.6 million capital expenditures and
$14.6 million investments in non-cash
working capital to support our growing business. The net cash
position at the close of the first quarter was $3.3 million.
The outlook for Exco over the rest of the year continues to
remain strong. The economic recovery in North America – both in the automotive sector
and the greater economy – appears to be intact and should continue
at a steady pace. The European automotive market seems to be
improving, although at an anemic pace. Unit sales of light
vehicles should continue to benefit from low borrowing costs and
significantly improved mileage of new vehicles should also drive
stronger demand. The announcement by most OEMs in both
North America and Europe of aggressive plans to refresh/redesign
and/or launch entire new models over the next several years should
drive strong long-term demand as well. This will directly benefit
our automotive component businesses which should continue to
experience strong sales and earnings driven by efficient overhead
absorption, as well as, indirectly benefit our large mould
businesses and Castool which sell moulds and consumable
components/tooling to OEMs and their tiers.
Our North American extrusion tooling businesses are experiencing
growing sales and our tool shops in Colombia and Texas are capturing market share in their
regional markets. Extrusion Brazil
and Castool Thailand should also improve as sales continue to ramp
up. All these factors, taken together, should sustain growing
sales momentum.
(For further information and prior year comparison please refer
to the Company's First 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 5,081 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://event.on24.com/r.htm?e=921284&s=1&k=1AED3FC525F557C36A5BA220063AB983
a few minutes before the event. Questions can be
submitted via the Q&A box on the webcast console or by dialling
(647) 427-7450 for local (Toronto)
calls or toll free at (888) 231-8191. Microsoft Media Player
is required for access to the webcast. For those unable to
listen on January 28, 2015, an
archived version will be available on the Exco website.
Information in this document relating to projected
growth and financial performance of the Company's
business units, contribution of our start-up business units,
contribution of awarded programs yet to be launched, margin
performance, financial performance of acquisitions and operating
efficiencies are forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements found mainly in the Outlook section but
also elsewhere throughout this document. These
forward-looking statements are based on our plans, intentions or
expectations which are based on, among other things, assumptions
about the number of automobiles produced in North America and Europe, the number of extrusion dies required
in North America and South America, the rate of economic growth in
North America, Europe and emerging market countries,
investment by OEMs in drivetrain architecture and other initiatives
intended to reduce fuel consumption and/or the weight of
automobiles, weakening raw material prices, continuing economic
recovery, currency fluctuations which may in fact not occur and the
rate at which our new operations in Brazil and Thailand achieve profitability. These
forward-looking statements include known and unknown risks,
uncertainties, assumptions and other factors which may cause actual
results or achievements to be materially different from those
expressed or implied. For a more extensive discussion of
Exco's risks and uncertainties see the 'Risks and Uncertainties'
section in this Annual Report, our Annual Information Form ("AIF")
and other reports and securities filings made by the Company.
This information is available at
www.sedar.com.
While Exco believes that the expectations expressed by such
forward-looking statements are reasonable, we cannot assure that
they will 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