- Record Sales and Earnings in the quarter
- EPS of $0.30 up 25% adjusted
for non-recurring gain
- AFX acquisition performing strongly
- Financial position and liquidity remain solid
TORONTO, July 27, 2016 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its third quarter
ended June 30, 2016. In addition, the
Company announced a quarterly dividend of $0.07 per common share which will be paid on
September 30, 2016 to shareholders of
record on September 15,
2016. 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
|
(in $ thousands except
per share
amounts)
|
|
|
|
|
|
2016
|
2015
|
2016
|
2015
|
Sales
|
$161,671
|
$121,930
|
$425,955
|
$367,311
|
Net
income
|
$16,226
|
$9,956
|
$37,043
|
$30,466
|
Basic earnings per
share
|
$0.38
|
$0.24
|
$0.87
|
$0.72
|
Diluted earnings per
share
|
$0.38
|
$0.23
|
$0.87
|
$0.72
|
Weighted Basic Common
shares o/s
|
42,426
|
42,349
|
42,497
|
42,284
|
Consolidated sales for the third fiscal quarter ended
June 30, 2016 were a record
$161.7 million – an increase of
$39.7 million or 33% over last year.
The acquisition of AFX Industries LLC ('AFX') closed April 4, 2016 and performed strongly,
contributing $31.0 million to
sales.
Net income was $16.2 million or
$0.38 per share including
$3.4 million from the settlement of a
commercial arbitration. Excluding the gain, EPS was $0.30, up 28% from the third quarter of fiscal
2015.
"During the third quarter, Exco achieved record sales
profitability while also completing the AFX acquisition", said
Brian Robbins, President and CEO.
"As well, the company's financial position remains very strong
given net debt to annualized EBITDA of about 0.6x and solid free
cash flow generation."
The Automotive Solutions segment reported sales of $115.1 million in the quarter – an increase of
$39.5 million or 52% over last year.
The Casting and Extrusion segment reported sales of $46.6 million in the quarter – essentially flat
compared to last year.
The Automotive Solutions segment reported pretax profit of
$13.4 million – an increase of
$3.4 million or 34% over last year.
The increase in the quarter was driven primarily by the inclusion
of AFX and strong results from Polytech. These improvements
occurred despite the amortization of AFX intangible assets
($0.6 million in the quarter). Losses
at ALC South Africa/Lesotho
improved in the third quarter following the closure of the plants
in South Africa in the second
quarter of 2016.
The Casting and Extrusion segment reported pretax profit of
$5.7 million – a decrease of 10%
compared to last year. Most of this reduction occurred in the large
mould business which continued to have lower absorption rates
associated with the transition to new programs and remains impacted
by operational disruption due to the installation of new machinery.
Modestly lower earnings within the Extrusion business were more
than offset by much stronger results generated by the Castool
group. Exco's greenfield operations in Colombia, Texas, Brazil
and Thailand, experienced strong
sales growth and improving contribution when taken
together.
The Company's EBITDA (excluding $3.4
million in non-operating income) totaled $23.3 million in the third quarter – an increase
of 27.5% over last year ($18.2
million).
Cash flow from operations totaled $12.0
million in the quarter after $8.4
million of investments in working capital. Capital
investments totaled $1.9 million
resulting in free cash flow of $10.1
million. Exco ended the quarter with cash of $29.5 million and $35
million of availability under its revolving credit
facility.
(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 6,515 people and service a diverse and broad
customer base.
A conference call to discuss those results will be held on
Thursday, July 28, 2016 at
10:00 a.m. (Toronto time) which can be accessed by
dialling (647) 427-7450 for local (Toronto) calls or toll free at (888)
231-8191.
To access the live audio webcast, please log on to
www.excocorp.com , or
http://event.on24.com/r.htm?e=1224332&s=1&k=C9C9523195970919B12E47DE1D364439
a few minutes before the event. The conference call can be
accessed by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888)
231-8191.
For those unable to participate on July
28, 2016, 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 greenfield business units, financial
performance of acquisitions, operating efficiencies and order
backlogs 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, timing of order
releases 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"), our quarterly filings 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