Author: Exco HO

MARKHAM, Ontario, May 07, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced that Matthew Posno has been appointed to the role of Chief Financial Officer (CFO) and Vice President Finance effective immediately.

Matthew is a member of the Institute of Chartered Accountants of Ontario with a CPA (CA) designation and also has an MBA, Accounting from York University. Matthew was previously chief accountant with Exco before leaving in 2007. Since that time, Matthew has demonstrated continued leadership, providing financial advisory services at the executive level as well as holding the capacity of CFO at various firms.

This appointment fills the vacancy created by the departure of Drew Knight, who is leaving Exco to pursue other interests after four years of trusted and diligent service.  Drew has agreed to continue with Exco through a transition period in order to facilitate an orderly transfer of his responsibilities to Matthew.

Darren Kirk, Exco’s President and CEO stated, “we are delighted that Matthew is rejoining Exco and know he will have much success in his new role.  At the same time, we would like to thank Drew for his valued contributions over the past four years and wish him the best in his future endeavors,” added Kirk.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through 15 strategic locations in 7 countries, Exco employs 5,437 people and services a diverse and broad customer base. 

Source: Exco Technologies Limited (TSX-XTC)

For further information:

• Sales of $123.5 million and EBITDA of $16.3 million
• Adjusted EPS ⁱ of $0.22 including approx $0.04 of strike settlement/ disruption costs
• Quarterly dividend of $0.09 per share declared
• Balance sheet and liquidity remain very strong
• Exco Engineering wins PACE Award for 3D printed die components

TORONTO, May 01, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced results for its second quarter of fiscal 2019 ended March 31, 2019. In addition, the company announced a quarterly dividend of $0.09 per common share which will be paid on June 28, 2019 to shareholders of record on June 12, 2019. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

“Exco confronted a number of challenges during the quarter, which hampered our financial performance,” said Darren Kirk, Exco’s President and CEO. “Nonetheless, our underlying operations remain very sound and we fully expect to demonstrate stronger results in the quarters ahead,” added Kirk.

Consolidated sales for the second quarter ended March 31, 2019 were $123.5 million compared to $148.4 million in the same quarter last year – a decrease of $24.9 million, or 17%. Essentially all of the sales decline during the quarter was driven by the expected deconsolidation of ALC from Exco’s results, as previously disclosed.

The Automotive Solutions segment reported sales of $73.3 million in the second quarter – a decrease of $25.1 million, or 26% from the same quarter last year. Excluding revenues generated by ALC in the prior year quarter as well as foreign exchange rate benefits, segment sales were essentially flat versus the prior year period. During the quarter overall industry vehicle production volumes were modestly lower in both North America and Europe. Segment sales were nonetheless supported by a number of program launches for both new and existing products, particularly at Polydesign and Neocon. More broadly, the group’s four businesses continue to focus their efforts on higher margin activity. Relatedly, the curtailment of uneconomic programs modestly dampened sales during the quarter and year-to-date periods, particularly at AFX. Despite generally softer industry vehicle production levels, management continues to see ample opportunity for future growth supported by robust quoting activity for new programs in both North America and Europe.

The Casting and Extrusion segment reported sales of $50.2 million for the second quarter, which was essentially equal to the prior year period. During the quarter, sales were modestly higher at both the Extrusion and Castool groups helped by generally favorable market conditions, foreign exchange rate movements and continuing product and productivity enhancement initiatives. In particular, the Extrusion group continues to benefit from its ongoing efficiency initiatives and widespread demand growth for aluminum extrusions in North America. The group’s new Extrusion tooling facility in Mexico is now operational, however it only began commercial production on April 1, 2019 and therefore did not contribute sales during the quarter. At Castool, the group continues to experience higher demand for its capital equipment globally. Demand for its consumable products however has been more varied, with modestly softer market demand evident throughout the latest quarter, particularly in Asia. The Large Mould group reported lower sales during the second quarter with the year over year variance mostly attributable to the completion/wind-down of uneconomic programs and customer timing requirements. Within the segment, the pass through of costs related to US steel tariffs continued to have a positive influence on revenues, however certain steel distributors began to receive an exemption of these tariffs during the quarter and the associated reduction in costs is now making its way through the supply chain. Market conditions and quoting activity remain generally solid across the segment, particularly within the Large Mould group. This group is clearly leading the way in industry innovation as evidenced by Exco Engineering’s receipt of a prestigious PACE Award for its 3D printed die components during the quarter.

Consolidated net income for the second quarter was $8.6 million or basic and diluted earnings of $0.21 per share compared to $10.6 million or $0.25 per share in the same quarter last year – a decrease in net income of 19%. Excluding a net expense of $0.3 million of expenses resulting from the deconsolidation of ALC, adjusted net income totaled $8.9 million ($0.22 per basic share) in the quarter, or a 16% reduction in adjusted net income. Exco’s effective income tax rate was 23% during the quarter, which was consistent with the prior year period.

The Automotive Solutions segment reported pretax profit  of $9.1 million in the second quarter – a decrease of $1.6 million or 15% over the same quarter last year. Current period results benefited from the elimination of ALC’s operations, which contributed losses of $2.0 million in the second quarter of fiscal 2018 ($0 in the second quarter of fiscal 2019). Segment pretax profits however were adversely impacted by a number of factors in the current quarter versus the prior year period. In particular, our Polytech and AFX operations were adversely impacted by a widespread labour strike in the city of Matamoros, Mexico that lasted for roughly two weeks in January 2019 associated with annual wage negotiations. While the strike was ultimately settled – and Polytech’s and AFX’s operations have largely returned to normal – higher wages and bonus payments to production staff have suppressed segment profitability. The impact of the bonus payments totaled roughly $1.0 million in the current quarter and will continue through the remainder of Exco’s fiscal year at an approximate cost of $1.5 million in each of the next two quarters. At this time management does not expect similar bonus payments in 2020 and consequently segment profitability will recover by a similar magnitude next year. As well, both AFX and Polytech experienced meaningful freight and overtime costs in the latest quarter associated with lost production days during the strike while severance costs associated with improving future efficiencies within the segment have also increased current period costs. Together, management estimates these factors increased costs by roughly $1.0 million during the quarter. As production levels and inventory levels have now returned to normal, management does not expect these costs will be material beyond the second quarter of fiscal 2019. Lastly, costs in the current quarter were also adversely impacted by front end inefficiencies associated with several new product launches, particularly at Polydesign and Neocon. While such costs may continue into future quarters, management expects they will continue at lower levels than experienced in the current quarter and ultimately support higher segment profitability as the underlying programs mature.

The Casting and Extrusion segment reported $4.6 million of pretax profit in the second quarter – a decrease of $0.4 million or 8% from the same quarter last year. During the quarter, overall gross profit within the segment was up by approximately $0.2 million compared to the prior year. On the same basis, each of the Extrusion, Castool and Large Mould groups recorded relatively stable to higher results. Nonetheless, modestly higher general and administrative costs together with adverse year over year foreign exchange rate movements within the segment caused pre-tax profitability to decline during the current quarter. Management remains focused on reducing its overall cost structure and improving manufacturing efficiencies and expects such activities together with its sales efforts should lead to improved segment profitability through the remainder of the year.

Consolidated adjusted EBITDA for the second quarter totaled $16.3 million compared to $19.0 million in the same quarter last year – a decrease of $2.7 million, or 14%. Adjusted EBITDA as a percentage of sales increased to 13.2% in the current period compared to 12.8% the prior year.

Operating cash flow before net change in non-cash working capital totaled $14.2 million in the second quarter. After changes in non-cash working capital, net cash provided by operating activities amounted to $14.8 million. This cash flow was more than sufficient to fund $0.2 million of net interest expense, $6.3 million of net capital expenditures, $3.7 million of common dividend payments and $1.3 million of share repurchases net of issuance. Exco used its surplus cash flow to further reduce its net debt, which totaled $6.3 million as at March 31, 2019.

For further information and prior year comparison please refer to the Company’s Second Quarter Financial Statements in the Investor Relations section posted at www.excocorp.com.  Alternatively, please refer to www.sedar.com.

Quarterly Conference Call – May 2, 2019 at 10:00 a.m. (Toronto time):

To access the live audio webcast, please log on to www.excocorp.com, or http://edge.media-server.com/m6/p/8pdt2puk a few minutes before the event.  The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 9079468. 

For those unable to participate on May 2, 2019, an archived version will be available on the Exco website.

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 15 strategic locations in 7 countries, we employ 5,437 people and service a diverse and broad customer base.

Notice To Reader:  Forward Looking Statements

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.

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “expect”, “believe”, “estimates” 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 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 throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. 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, raw material prices, economic conditions including the availability and cost of labor, currency fluctuations, trade restrictions, our ability to turnaround, close or otherwise dispose of unprofitable operations in a timely manner, our ability to integrate acquisitions and the rate at which our operations in Brazil and Mexico achieve sustained 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. 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.  For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our 2018 Annual Report, our 2018 Annual Information Form (“AIF”) and other reports and securities filings made by the Company.  This information is available at www.sedar.com.

ⁱ Non-IFRS Measures:  In this News Release, reference is made to EBITDA, Adjusted EBITDA, adjusted EPS and pretax profit which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization and Adjusted EBITDA as EBITDA before other income/expense. Exco calculates adjusted EPS as earnings before other income/expense and pretax profit as earnings before other income/expense, interest and taxes.  EBITDA, Adjusted EBITDA,  adjusted EPS and pretax profit are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies.

TORONTO, Feb. 06, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX: XTC) (“Exco” or the “Company”) today announced that the Toronto Stock Exchange (“TSX”) has approved the Company’s normal course issuer bid (“NCIB”). Under the NCIB, Exco has the right to purchase for cancellation, from February 18, 2019 to February 17, 2020, a maximum of 2,100,000 common shares, representing 9.5% of the 21,998,080 shares forming Exco’s public float as at January 30, 2019.  As of January 30, 2019, Exco had 41,330,881 common shares issued and outstanding.

Any shares purchased by Exco under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading systems, at prevailing market rates and any common shares purchased by the Company will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Exco. Any purchases made by Exco pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.

During the most recently-completed six months, the average daily trading volume for the common shares of Exco on the TSX was 36,026 shares. Consequently, under the policies of the TSX, Exco will have the right to repurchase under its NCIB, during any one trading day, a maximum of 9,006 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,000,000 common shares for the period of February 16, 2018 to February 15, 2019, the Company has purchased 999,900 common shares on the open market as of January 30,2019 at a weighted average purchase price of $9.37 per common share.

Exco’s Board of Directors believes the underlying value of the Company may not be reflected in the market price of its common shares from time to time and that, at appropriate times, repurchasing its shares through the NCIB may represent a good use of Exco’s financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. Thus, the Board has determined that the NCIB is in the best interest of the Company and its shareholders.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 15 strategic locations in 7 countries, we employ 5,350 people and service a diverse and broad customer base.

TORONTO, Jan. 31, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) announced voting results from its 2019 annual meeting of shareholders held on January 30, 2019. A total of 27,646,440 Common Shares or 66.6% of our issued and outstanding Common Shares, were voted in connection with the meeting. Shareholders voted by a show of hands in favour of each item of business. Based on proxies received prior to the meeting, each director nominee was elected by a substantial majority as follows:

Full results of the votes are included as Appendix A to this press release.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 15 strategic locations in 7 countries, we employ 5,350 people and service a diverse and broad customer base.

Appendix A

VOTING RESULTS – 2019 ANNUAL MEETING OF SHAREHOLDERS

Notes:
(1) Based on proxies submitted
(2) 437,006 shares were not voted
(3) 27,609,282 shares (66.5%) were voted by proxy. 37,158 shares (less than 1%) were voted in person at the meeting

Exco Results for First Quarter Ended December 31, 2018

• Sales of $142.1 million and EBITDA of $18.6 million
• Adjusted EPS of $0.24 compared to $0.21 prior year
• Quarterly dividend raised 6% to $0.09 per common share
• ALC Bulgaria operations closed; recorded $6.1 million provision
• Darren Kirk named CEO; Brian Robbins becomes Executive Chair
• Balance sheet and liquidity remain very strong

TORONTO, Jan. 30, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced results for its first quarter of fiscal 2019 ended December 31, 2018. In addition, the Company announced its Board of Directors has appointed Darren Kirk as President and Chief Executive Officer effective immediately, replacing Brian Robbins who has been named Executive Chair. Lastly, Exco announced a 6% increase in its quarterly dividend to $0.09 per common share which will be paid on March 29, 2019 to shareholders of record on March 15, 2019. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

¹ Non-IFRS Measures:  In this News Release, reference is made to adjusted EBITDA, adjusted EPS and pretax profit, which are not measures of financial performance under International Financial Reporting Standards (“IFRS”).  Exco calculates adjusted EBITDA as earnings before other income/ expense, interest, taxes, depreciation and amortization.  Exco calculates adjusted EPS as earnings before other income/expense and pretax profit as earnings before other income/expense, interest and taxes.  Adjusted EBITDA, adjusted EPS and pretax profit are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use them as well.  This measure, as calculated by Exco, may not be comparable to similarly titled measures used by other companies.

“ALC operating losses and $6.1 million charge marred what was otherwise a very solid quarter”, said Darren Kirk, Exco’s new President and CEO, adding that future results will benefit from the closure of ALC’s loss-making operations. Speaking to the management transition, Kirk added, “I am thoroughly excited to take on my new role and look forward to guiding Exco towards further profitable growth in the years ahead”.

Brian Robbins, Executive Chair stated, “My 47 plus years as Exco’s CEO has been an incredible journey. From a small tool shop in my father’s basement, Exco has grown to become a global player with many leading and diverse businesses. But it has come time for a new chapter. As I pass the leadership baton, I am extremely confident that Darren will build-upon the exceptional cultural fabric that has underpinned Exco’s remarkable success – and achieve even greater results in the years ahead”.

Consolidated sales for the first quarter ended December 31, 2018 were $142.1 million compared to $134.9 million in the same quarter last year – an increase of $7.2 million, or 5%. Over the quarter, movements in the USD and Euro exchange rates increased sales by $3.9 million.

The Automotive Solutions segment reported sales of $89.4 million in the first quarter – an increase of $1.1 million, or 1% from the same quarter last year. Excluding foreign exchange rate movements, revenues were modestly lower in North America despite relatively flat overall vehicle production volumes, primarily driven by a focus on higher margin activity. However, the timing of program launches and isolated competitive pricing pressures also impacted revenues. In Europe, segment revenues were mostly stable as the launch of several new programs at Polydesign offset lower revenues at ALC driven by the voluntary wind down of several smaller programs, which ALC began curtailing in the third quarter of fiscal 2018. The volume and mix of BMW Mini seat covers, ALC’s largest revenue source, were relatively stable year over year.

The Casting and Extrusion segment reported sales of $52.7 million for the first quarter – an increase of $6.1 million, or 13%, from the same quarter last year. Sales were up in each of the segment’s three main business groups, with the highest increase recorded in the Large Mould group, reflecting continued deliveries against its firm order backlog. Sales were also up sharply at the Castool group as capital equipment sales continued to improve and demand for consumable components in both the diecast and extrusion end markets were firmer, particularly in the United States and Europe. Sales levels were also higher at the Extrusion group driven by continuing strong overall industry fundamentals and aided by the pass-through of higher raw material costs and tariffs to customers. Market conditions and quoting activity remain uniformly strong across the segment, which should bode well for our future results.

Consolidated net income for the first quarter was $3.8 million or basic and diluted earnings of $0.09 per share compared to $8.9 million or $0.21 per share in the same quarter last year – a decrease in net income of 57%. The latest quarter results include $2.2 million ($0.05 per share) of operating losses at ALC and an additional $6.1 million ($0.15 per share) charge related to the voluntary liquidation of ALC (see below). Neither the operating losses nor the charge can be tax effected, which contributed to a 49% tax rate in the current quarter compared to an effective income tax rate of 26% in the prior year period.  Excluding ALC, the effective income tax rate for the quarter would have been 23.2% compared to 23.3% in the prior year period.  The current year period tax rate was also negatively impacted by a shift in profitability towards operations located in higher tax-rate jurisdictions but modestly benefited from the reduced corporate income tax rate in the US.

With regards to ALC, as Exco management indicated in the past, a permanent price increase from ALC’s primary customer was necessary to restore that entity to sustained profitability, failing which Exco would exit the business. Such price increases occurred on a temporary basis in the third and fourth quarter of fiscal 2018, however ALC’s primary customer declined to provide any similar support in the first quarter of fiscal 2019. ALC continued normal operations through December 31, 2018, incurring $2.2 million of operating losses in the quarter. However, in the absence of ongoing price support, it was apparent ALC would become illiquid in the very near term. Consequently, Exco recorded a $6.1 million provision in ALC at the end of the quarter and ALC subsequently filed a liquidation petition in Bulgaria on January 17, 2019. Exco expects to de-consolidate ALC from its financial statements during the second quarter of fiscal 2019 and does not expect ALC will have a further significant negative impact on its net income or equity position beyond December 31, 2018. The deconsolidation of ALC will eliminate approximately $23.1 million of total assets and $23.1 million of total liabilities from Exco’s balance sheet, including $4.2 million in net debt. ALC generated $19.8 million of revenue in the quarter with 1,439 employees.

The Automotive Solutions segment reported pretax profit of $9.8 million in the first quarter – an increase of $0.3 million or 4% over the same quarter last year. In North America, pretax profits were higher due to increase sales as well as a net improvement in segment margins. Pre-tax profit margins were higher at Polytech, Neocon and AFX by 160 basis points on a combined basis arising from favorable foreign exchange rate movements, positive product mix variance, and cost containment initiatives. These factors more than offset isolated competitive price pressures and isolated raw material cost inflation. In Europe, operating losses at ALC widened to $2.2 million ($0.05 per share) during the quarter from $1.5 million ($0.03 per share) the prior year period due to increased operating costs and reduced overhead absorption. Partially offsetting ALC losses was increased overall profitability at Polydesign which benefited from higher revenues associated with new program launches. The $6.1 million provision related to ALC that is discussed above was recorded outside of the segment results.

The Casting and Extrusion segment reported $5.5 million of pretax profit in the first quarter – an increase of $0.9 million or 18% from the same quarter last year. Margins and overall profitability were higher at the Large Mould group which benefited from stronger overhead absorption rates, improved product mix and increased manufacturing efficiencies associated with prior capex investments, particularly at the group’s plant in Newmarket, Ontario. Castool’s margins and profitability also improved due to higher overhead absorption rates and selective price increases and ongoing efficiency initiatives. The Extrusion group recorded relatively stable profitability despite higher sales due to isolated manufacturing inefficiencies at one of its plants during the quarter. These inefficiencies however have begun to abate and management expects the Extrusion group will resume a trend of profit growth in the quarters ahead.

Consolidated adjusted EBITDA for the first quarter totaled $18.6 million compared to $17.3 million in the same quarter last year – an increase of $1.3 million, or 8%.  Adjusted EBITDA as a percentage of sales increased to 13.1% in the current period compared to 12.8% million the prior year. The adjusted EBITDA margin in the Casting and Extrusion segment declined to 16.4% from 16.8% last year while the adjusted EBITDA margin in the Automotive Solutions segment remained stable at 12.8%. Corporate segment cash expenses decreased to 1.1% of consolidated sales versus 1.3% last year.

Operating cash flow before net change in non-cash working capital totaled $15.2 million in the first quarter. After changes in working capital requirements, net cash provided by operating activities amounted to $5.0 million. This cash flow, together with $6.7 million of net borrowings was more than sufficient to fund $0.3 million of interest expense, $8.6 million of capital expenditures, $3.5 million of common dividend payments and $3.9 million of share repurchases. Exco’s consolidated net debt totaled $12.3 million as at December 31, 2018.

For further information and prior year comparison please refer to the Company’s First Quarter Financial Statements in the Investor Relations section posted at www.excocorp.com.  Alternatively, please refer to www.sedar.com.

Quarterly Conference Call – January 30, 2019 at 4:30 p.m. (Toronto time):

To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/m6/p/qpti4r9y a few minutes before the event.  The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 1999558.  Questions can be submitted via the Q&A box on the webcast console or via the conference call. 

For those unable to participate on January 30, 2019, an archived version will be available on the Exco website.

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 15 strategic locations in 7 countries, we employ 5,350 people and service a diverse and broad customer base.

Notice To Reader:  Forward Looking Statements

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.

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “expect”, “believe”, “estimates” 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 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 throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. 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, raw material prices, economic conditions including the availability and cost of labor, currency fluctuations, trade restrictions, our ability to turnaround, close or otherwise dispose of unprofitable operations in a timely manner, our ability to integrate acquisitions and the rate at which our operations in Brazil and Mexico achieve sustained 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. 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.  For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our 2018 Annual Report, our 2018 Annual Information Form (“AIF”) and other reports and securities filings made by the Company.  This information is available at www.sedar.com.

TORONTO, Jan. 30, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced a quarterly cash dividend of $0.09 per common share to be paid on March 29, 2019 to shareholders of record on March 15, 2019. This dividend represents a 6% increase from previous levels. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Brian Robbins, Executive Chair of Exco said, “I am pleased to announce this dividend increase, which reflects our confidence in Exco’s ability to continue generating significant free cash flow in the years ahead.” The annualized dividend represents 35% of Exco’s trailing twelve month net income. This is the eleventh time Exco has raised its dividend in ten consecutive years during which time the dividend increased 450%.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 15 strategic locations in 7 countries, we employ 5,350 people and service a diverse and broad customer base.

TORONTO, Jan. 21, 2019 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced that its indirect, wholly-owned subsidiary, ALC Bulgaria EOOD (“ALC”, or the company) has voluntarily filed a liquidation petition in Bulgaria. Consequently, all seat cover production at ALC has now ceased and a trustee is expected to be appointed within the next 14 days to liquidate the company.

The liquidation filing was prompted by ongoing operating losses at ALC driven by its failure to reach an agreement with its primary customer for continued price support. Given the increase in local operating costs and change in labor conditions over the last several years, ALC’s operations had become unviable without improved pricing. As previously indicated, Exco would not provide ALC with additional financial support unless it could demonstrate a path to sustained profitability.

“The liquidity filing of ALC is disappointing, however it was the only alternative given the company’s weak liquidity and poor financial prospects,” said Brian Robbins, Exco’s President and CEO. “On the positive side, the elimination of ALC’s loss-making operations will immediately improve our go forward results and free up management time for more productive activities,” added Robbins.

The impact of ALC’s insolvency filing on Exco’s results will be absorbed in its first quarter of fiscal 2019, ended December 31, 2018. This impact is expected to include a non-cash charge of approximately $6.1 million ($0.15 per share) related to the write-off of ALC’s remaining equity and operating losses during the quarter of approximately $2.2 million ($0.05 per share). Exco expects to de-consolidate ALC from its financial statements beginning with its second quarter fiscal 2019 results and does not expect ALC will have a further material impact on its net income, earnings per share, or equity position beyond December 31, 2018. The deconsolidation of ALC will eliminate approximately $23.1 million of total assets and $23.1 million of total liabilities from Exco’s balance sheet, including $4.2 million in net debt. ALC generated revenues of approximately $20 million in the first quarter of fiscal 2019 with 1,439 employees.

Exco will provide additional information with respect to the above in its first quarter results, which will be released after the close of financial markets on Wednesday January 30, 2019.

Source:        Exco Technologies Limited (TSX-XTC)
Contact:      Darren Kirk, Executive Vice President and Chief Operating Officer
Telephone:  (905) 477-3065 Ext. 7233
Website:      https://www.excocorp.com

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 15 strategic locations in 7 countries, we employ 5,350 people and service a diverse and broad customer base.

Notice To Reader:  Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “expect”, “believe”, “estimates” and similar expressions to identify forward-looking information and statements. Information in this document relating to financial performance of the Company’s business units and the projected impact of the liquidation of ALC on Exco’s consolidated results, are forward-looking statements.  Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. These forward-looking statements are based on our plans, intentions or expectations. 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.  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.  For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our 2018 Annual Report, our 2018 Annual Information Form (“AIF”) and other reports and securities filings made by the Company.  This information is available at www.sedar.com.