- Sales up over 50% in the quarter
- Earnings up 46% in the quarter
- $25.3 million cash on
hand
- $6.8 million cash, net of bank
indebtedness
- EBITDA up 60% to record high of $19.9
million in the quarter
TORONTO, April 22, 2015 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its second
quarter ended March 31, 2015. In
addition, the Company announced the quarterly dividend of
$0.06 per common share which will be
paid on June 26, 2015 to shareholders
of record on June 12,
2015. The dividend is an "eligible dividend" in
accordance with the Income Tax Act of Canada.
|
Three Months
Ended
March 31
|
Six Months Ended
March 31
|
(in $ thousands
except per share amounts)
|
|
|
|
|
|
2015
|
2014
|
2015
|
2014
|
Sales
|
$125,484
|
$82,437
|
$245,381
|
$146,382
|
Net income
|
$10,872
|
$7,453
|
$20,510
|
$14,193
|
Basic earnings per
share
|
$0.26
|
$0.18
|
$0.49
|
$0.34
|
Diluted earnings per
share
|
$0.26
|
$0.18
|
$0.48
|
$0.34
|
Common shares
outstanding
|
42,337,862
|
41,938,756
|
42,337,862
|
41,938,756
|
Overall, Exco's sales for the second quarter at $125.5 million continued its growth trend with an
increase of $43.1 million or 52%.
Year-to-date sales were $245.4
million - an increase over last year of $99.0 million or 68%. ALC sales are fully
included in both the quarter and year-to-date compared to only one
month inclusion for both periods last year. This has been a
major contributor to the overall sales growth. However,
combined sales of our other businesses in both segments also grew
dramatically.
The Automotive Solutions segment reported significantly higher
sales of $76.6 million in the second
quarter – an increase of $34.0
million or 80% over last year. Year-to-date, the segment
more than doubled its sales to $149.1
million - an increase of $81.5
million or 121% over last year. As previously indicated ALC
was fully included in both the current quarter and year-to-date
compared to inclusion of only one month of sales last year.
This accounts for the majority of the growth in this segment,
however, the other businesses – particularly Polytech and Neocon in
North America where there are
strong vehicle unit sales and many new product launches - have also
increased sales by over 35% in both the quarter and
year-to-date.
The Casting and Extrusion segment reported sales of $48.9 million in the quarter – an increase of
$9.0 million or 23% over last year.
Year-to-date, the segment also reported higher sales of
$96.3 million - an increase over last
year of $17.4 million or 22%. All
businesses in the segment contributed to this sales increase with
the large mould business leading the segment. This business
group is experiencing strong demand on existing programs combined
with surging demand for both development and production of moulds
on new programs. Sales at the Extrusion group were supported
by strong market conditions in North
America but also by climbing sales at our recently acquired
Texas operation and our greenfield
operation in Brazil which started
commercial production in June 2014. Sales at Castool
reflected continuing strong market conditions in North America and Asia in the quarter as well as strong sales
momentum by our greenfield operation in Thailand which also started commercial
production in June 2014.
Net income for the second quarter was $10.9 million or diluted earnings of $0.26 per share compared to $7.5 million or $0.18 per share last year – an increase of
46%. Year-to-date net income was $20.5
million or diluted earnings of $0.48 per share compared to $14.2 million or $0.34 per share last year – an increase of
45%.
The Automotive Solutions segment reported higher pretax profit
of $8.7 million in the second quarter
– an increase of $2.6 million or 42%
over last year. Year-to-date, the segment also reported higher
pretax profit of $16.5 million – an
increase of $5.9 million or 56% over
last year. The Casting and Extrusion segment also reported
higher pretax profit of $9.1 million
in the second quarter – an increase of $3.2
million or 54% over last year. Year-to-date, the segment
also reported higher pretax profit of $16.5
million – an increase of $4.7
million or 40% over last year.
EBITDA for the second quarter was $19.9
million compared to $12.4
million in the same quarter last year – an increase of 60%.
Year-to-date EBITDA was $36.8 million
compared to $23.5 million – an
increase of 57% over last year. 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. EBITDA should not be
considered in isolation or as a substitute for net income prepared
in accordance with IFRS as issued by International Accounting
Standards Board.
Operating cash flow is strong and the Company remains net bank
debt-free despite $7.8 million in
capital expenditures and $22.5
million invested in non-cash working capital year-to-date
which was required to support our growing businesses. The net
cash position at the close of the second quarter was $6.8 million compared to $3.3 million at the end of the first quarter and
$10.0 million at the end of last
fiscal year (September 30, 2014).
The prospects for the rest of the year continue to remain
good. The economic recovery in North America – both in the automotive sector
and the greater economy – appears to be intact and is expected to
continue at its current level. The European automotive market
seems to be improving, although at a gradual 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 sustain strong long-term demand as well.
This should 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 sales.
Input prices of products such as steel and plastics continue to
moderate however; the strengthening US dollar is increasing the
cost of these inputs at our Canadian and other non-US foreign
operations. While the weak Canadian dollar is expected to
continue to benefit Exco's sales the weakening Euro may erode
Exco's competitive position in North
America as European competitors become increasingly
competitive with the weakening of the Euro.
(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 5,202 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/1510837/1684285 a few
minutes before 10:00 AM on
April 23, 2015. Microsoft Media
Player is required for access. For those unable to listen on
April 23, 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 this news release.
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, Thailand and South
Africa/Lesotho 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