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Exco Technologies Limited Announces Normal Course Issuer Bid

TORONTO, Feb. 05, 2021 (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, 2021 to February 17, 2022, a maximum of 1,960,000 common shares, representing 9.5% of the 20,575,656 shares forming Exco’s public float as at February 3, 2021. As of February 5, 2021, Exco had 39,268,997 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 37,714 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 9,428 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 2,000,000 common shares for the period of February 18, 2020 to February 17, 2021, the Company has purchased 625,366 common shares on the open market as of February 5, 2021 at a weighted average purchase price of $6.78 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 about 4,800 people and service a diverse and broad customer base.

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

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news

Exco Technologies Limited 2020 Annual Meeting Results

TORONTO, Feb. 03, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) announced voting results from its 2020 annual meeting of shareholders held on February 2, 2021. A total of 25,898,338 Common Shares or 65.95% of our issued and outstanding Common Shares, were voted in connection with the meeting. Based on proxies received prior to the meeting, each director nominee was elected by a substantial majority as follows:

 Votes
For
Votes
Withheld/Against
Edward H. Kernaghan94.3% 5.7% 
Darren M. Kirk99.6% 0.4% 
Robert B. Magee99.7% 0.3% 
Colleen M. McMorrow99.6% 0.4% 
Paul E. Riganelli86.4% 13.6% 
Brian A. Robbins95.1% 4.9% 
Anne Marie Turnbull99.7% 0.3% 

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 approximately  4,800 people and service a diverse and broad customer base.

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

Appendix A
VOTING RESULTS – 2020 ANNUAL MEETING OF SHAREHOLDERS

Votes ForVotes
Withheld/ Against
Resolution#%#%
Elect Edward H. Kernaghan as Director24,259,47294.3%1,476,8545.7%
Elect Darren M. Kirk as Director25,634,41899.6%101,9080.4%
Elect Robert B. Magee as Director25,662,30299.7%74,0240.3%
Elect Colleen M. McMorrow as Director25,643,47499.6%92,8520.4%
Elect Paul E. Riganelli as Director22,231,14786.4%3,505,17913.6%
Elect Brian A. Robbins as Director24,465,38995.1%1,270,9374.9%
Elect Anne Marie Turnbull as Director25,668,46199.7%67,8650.3%
Appointment of Ernst & Young, LLP as Auditors25,810,21799.7%88,1210.3%

Notes:

(1) Based on proxies submitted 
(2) 162,012 shares were not voted for Directors
(3) 25,898,338 shares (65.95%) were voted by proxy.
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news

Exco Results for First Quarter Ended December 31, 2020


• Consolidated Sales of $121.4 million
• EBITDA of $19.3 million compared to $15.4 million prior year
• EBITDA margin of 15.9% compared to 12.8% prior year
• EPS of $0.28 compared to $0.20 prior year
• Quarterly dividend raised 5% to $0.10 per common share
• Financial position and liquidity remain strong with $26.5 million net cash

TORONTO, Feb. 02, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced results for its first quarter of fiscal 2021 ended December 31, 2020. In addition, Exco announced a 5% increase in its quarterly dividend to $0.10 per common share which will be paid on March 31, 2021 to shareholders of record on March 17, 2021. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.


“Exco achieved very strong results in our first quarter of fiscal 2021”, said Darren Kirk. “We are optimistic this performance will continue, supporting our Board’s decision to increase our dividend for the 12th consecutive year”, added Kirk.

Consolidated sales for the first quarter ended December 31, 2020 were $121.4 million compared to $120.4 million in the same quarter last year – an increase of $1.0 million or less than 1%. The impact of a strengthening Canadian dollar compared to the USD and Euro was essentially flat.

The Automotive Solutions segment reported sales of $76.1 million in the first quarter – an increase of $7.8 million, or 11% from the same quarter last year. Foreign exchange rate movements increased sales in this segment by $0.6 million. The segment’s sales increase compares favorably to overall industry vehicle production volumes in North America and Europe which were relatively flat in the quarter. Segment sales were supported by a number of program launches for both new and existing products, higher order volumes as OEMs continue to fill the pipeline and adjust safety stock levels due to the impact of COVID -19, favourable product mix and higher tooling sales. The segment has received multiple contract wins during the quarter and management continues to see strong quoting activities for new potential programs across the segment’s various business
supporting future growth.

The Casting and Extrusion segment reported sales of $45.3 million in the quarter – a decrease of $6.8 million, or 13%, from the same period last year. Excluding modest foreign exchange rate movements, segment sales were lower due to the deterioration of economic conditions due to COVID-19 compared to the first quarter 2020, changes in product mix and delivery timing as well as lower steel costs. Sales at Extrusion and Castool were marginally lower than the prior year quarter and the Large Mould group continues to build new tools and win contracts, however, shipments were lower compared to the prior year quarter. First quarter 2021 sales were down compared to the first quarter 2020, however, sequentially sales are up $5.8 million or 15% compared to the fourth quarter 2020. This 15% quarter over quarter increase reflects increased demand across the Large Mould, Extrusion and the Castool groups. This segment continued to receive considerable quotation requests and order input remains strong particularly within the die-cast end markets where the Large Mould and Castool groups are winning new orders from existing and new customers.

Consolidated net income for the first quarter was $10.9 million or basic and diluted earnings of $0.28 per share compared to $8.1 million or $0.20 per share in the same quarter last year – an increase in net income of 35%. The consolidated effective income tax rate for the current quarter was 22% compared to 18% the prior year period. The income tax rate in the prior year quarter was favorably impacted by the recognition of deferred tax assets and an increase in earnings in jurisdictions with lower tax rates. Excluding the recognition of the deferred tax assets, the effective income tax rate for the prior year quarter was 20%.

The Automotive Solutions segment reported pre-tax profit of $11.6 million in the quarter – an increase of $3.6 million or 45% over the same quarter last year. The key factors in this segment’s improved margins include improved cost absorption with higher sales, lower costs due to management’s actions associated with the pandemic which improved operational efficiencies, and favourable product mix. In addition, the prior year quarter segment pre-tax profits were negatively impacted by adverse foreign exchange rate movements, the impact of the strike at General Motors and certain program launch costs inefficiencies.

Management remains focused on improving the efficiency of its operations and reducing its overall cost structure. Pricing discipline also remains a focus and new program awards embed management’s expectations for higher future costs.

The Casting and Extrusion segment reported $4.6 million of pretax profit in the quarter – an increase of $0.3 million or 7% from the same quarter last year. The Extrusion group’s profits benefited from a balanced sales performance across all locations and lower steel costs. The Castool group benefited from lower selling costs and a shift to higher margin products. Although quoting activity and new business awards were strong in the quarter in the Large Mould Group, actual shipments of tools were dampened due to the impact of COVID-19 in the prior quarters.

Additionally, Large Mould costs were impacted by new work on several new programs. Margins tend to be lower at the front end and improve as incremental moulds are completed. As the backlog continues to increase, these timing issues are expected to reverse in the following quarters. The Corporate segment expenses were $2.2 million in the quarter compared to $2.4 million in the prior year quarter.

Consolidated EBITDA for the first quarter totaled $19.3 million compared to $15.4 million in the same quarter last year – an increase of 25%. EBITDA as a percentage of sales increased to 15.9% in the current quarter compared to 12.8% the prior year. The EBITDA margin in the Casting and Extrusion segment increased to 18.0% from 14.8% last year while the EBITDA margin in the Automotive Solutions segment increased to 17.5% compared to 14.5% last year.

Operating cash flow before net change in non-cash working capital totaled $16.4 million in the first quarter. After changes in working capital requirements, net cash provided by operating activities amounted to $9.6 million. This cash flow, together with cash on hand was used to fund $0.1 million of interest expense, $5.1 million of capital expenditures and $3.7 million of common dividend payments. As at December 31, 2020, Exco’s consolidated balance sheet was in a $26.5 million net cash position.

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.

1 Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation, amortization and other expenses and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes. Free Cash Flow is calculated as cash provided by operating activities less interest paid less investment in fixed assets net of proceeds of disposal. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow 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 issuers.

Quarterly Conference Call – February 3, 2021 at 10:00am. (Toronto time):

To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/edwdo9co 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 4574609.

For those unable to participate on February 3, 2021, an archived version will be available on the Exco website.

Source: Exco Technologies Limited (TSX-XTC)
Contact: Darren Kirk, President and CEO
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 about 4,800 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 may contain 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 start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity 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 our plans, intentions or expectations which are based on, among other things, the current uncertain global economic impact of the COVID-19 pandemic or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, 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 in response to rising climate risks, raw material prices, economic conditions, currency fluctuations, trade restrictions, our ability to 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 latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com

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news

Exco Quarterly Dividend Raised 5.3%


TORONTO, Feb. 02, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced a quarterly cash dividend of $0.10 per common share to be paid on March 31, 2021 to shareholders of record on March 17, 2021. This dividend represents a 5.3% increase from previous levels. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Darren Kirk, Exco’s President and CEO, “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 36% of Exco’s trailing twelve-month free cash flow. This is the thirteenth time Exco has increased its dividend in twelve consecutive years.

Source: Exco Technologies Limited (TSX-XTC)
Contact: Darren Kirk, Executive President and Chief Executive 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 about 4,800 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 may contain 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 start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity 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, the current uncertain global economic impact of the COVID-19 pandemic or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, 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 in response to rising climate risks, raw material prices, economic conditions, currency fluctuations, trade restrictions, our ability to 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 latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.

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Quarterly Reports

1st Quarter 2021

Interim Report to the Shareholders
For the Three Months Ended December 31, 2020

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news

Exco Technologies Limited Annual General Meeting and Announces First Quarter Results on February 2, 2021

TORONTO, Jan. 06, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the first quarter ended December 31, 2020 after the close of business on Tuesday February 2, 2021.

Exco’s management will hold a conference call to discuss the results on Wednesday February 3, 2021 at 10:00 a.m. To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/edwdo9co a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 4574609.

For those unable to participate on February 3, 2021, an archived version will be available until February 10, 2021 on the Exco website or by dialling toll free at (855) 859-2056 or internationally at (404) 537-3406. The conference ID is 4574609.

As a reminder, the Annual Meeting of Shareholders of Exco Technologies Limited will be held virtually on February 2, 2021 at 4:30 p.m. (Toronto time). Participants can access the virtual Annual Meeting through the following link: https://web.lumiagm.com/268494078.

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 approximately 4,800 people and service a diverse and broad customer base.

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

2020 AIF

2020 Annual Information Form for the Fiscal Year Ended September 30, 2020

These documents contain forward-looking statements within the meaning of applicable securities laws. Statements relate to future events, plans and projections of our future performance, including in respect of projected growth, changing market conditions, improvements in productivity and future results and the assumptions underlying same. All statements other than statements of historical fact are forward-looking statements.

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Information Circular

2020 Management Informational Circular

Information contained herein is given as of December 7, 2020. The management of the Corporation knows of no matter to come before the Meeting of shareholders other than the matters referred to in the Notice of Meeting. The contents and the sending of this management information circular have been approved by the Board of Directors of the Corporation.

Additional financial information is provided in the Corporation’s comparative financial statements and Management Discussion & Analysis for fiscal 2020. Further information relating to the Corporation is available on SEDAR at ‘www.sedar.com’. Security holders may request copies of the Corporation’s financial statements and management discussion and analysis for fiscal 2020 by contacting the Corporation.

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Quarterly Reports

4th Quarter 2020

Interim Report to the Shareholders
For the Twelve Months Ended September 30, 2020

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Annual Report

Annual Report 2020

Annual Report 2020