MARKHAM, Ontario, Nov. 07, 2017 (GLOBE NEWSWIRE) — Brian Robbins, President and CEO of Exco Technologies Limited (TSX:XTC) is pleased to announce the appointment of Darren Kirk to the role of Chief Operating Officer (COO) effective January 1, 2018. As COO, Darren will have responsibility for overseeing the company’s day to day activities and advancing its strategic priorities. Darren joined Exco in 2015 as Executive Vice President. Since that time, Darren has been engaged in all aspects of the business and has gained a critical understanding of the key factors that drive Exco’s strong operating and financial performance. Darren joined Exco after spending 14 years with Moody’s Canada Inc., where he was Vice President with lead analytical responsibility for various Canadian industrial sectors. Darren has an MBA degree from the Ivey Business School at Western University and is a CFA charterholder.
This appointment fills the vacancy created by the planned retirement of Paul Riganelli on January 1, 2018 upon which time Paul will continue to serve Exco in an advisory role focusing on legal and compliance matters. Paul has been with Exco since 2004, initially as VP Finance and CFO and since 2013 as COO. “Paul’s multifaceted capabilities have made him an invaluable asset in facilitating Exco’s exceptional global growth over the years”, said Robbins. “We are delighted that Paul has agreed to continue serving Exco beyond his retirement from day to day operations”, added Robbins.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 17 strategic locations in 8 countries, we employ 6,609 people and service a diverse and broad customer base.
TORONTO, Oct. 24, 2017 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced that it will report its financial results for the fourth quarter ended September 30, 2017 after the close of business on Wednesday, November 29, 2017.
A conference call to discuss those results will be held on Thursday, November 30, 2017 at 10:00 a.m. (Eastern time) which can be accessed by dialling toll free at (844) 865-3842 or internationally at (612) 979-9903. The conference ID is 3291609.
For those unable to participate on November 30, 2017, an archived version will be available on the Exco website.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 17 strategic locations in 8 countries, we employ 6,609 people and service a diverse and broad customer base.
TORONTO, July 06, 2017 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced that it will report its financial results for the third quarter ended June 30, 2017 before the opening of business on Thursday, August 3, 2017.
A conference call to discuss those results will be held on Friday, August 4, 2017 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.
For those unable to participate on August 4, 2017, an archived version will be available on the Exco website.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 17 strategic locations in 8 countries, we employ 6,594 people and service a diverse and broad customer base.
Quarterly dividend of $0.08 per share payable June 30, 2017
TORONTO, April 26, 2017 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its second quarter ended March 31, 2017. In addition, the Company announced the quarterly dividend of $0.08 per common share which will be paid on June 30, 2017 to shareholders of record on June 15, 2017. 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)
2017
2016
2017
2016
Sales
$153,783
$133,383
$306,880
$264,284
Net income for the period
$12,602
$8,989
$24,065
$20,817
Earnings per share from net income
Basic
$0.30
$0.21
$0.57
$0.49
Diluted
$0.30
$0.21
$0.56
$0.49
EBITDA 1
$23,446
$16,899
$46,788
$37,909
“Both of Exco’s reporting segments demonstrated stronger results in the second quarter allowing our revenue and EBITDA to reach record levels”, said Brian Robbins, Exco’s President and CEO. “Business trends remain encouraging and our prospects for continued robust performance in the second half of the year appear promising”.
Consolidated sales for the second quarter ended March 31, 2017 were $153.8 million compared to $133.4 million in the same quarter last year – an increase of $20.4 million or 15%. Year-to-date sales were $306.9 million compared to $264.3 million last year – an increase of $42.6 million or 16%.
The Automotive Solutions segment reported sales of $106.3 million in the second quarter – an increase of $20.0 million or 23% from the same quarter last year. Year-to-date, segment sales were $214.4 million – an increase of $50.5 million or 31% over last year. AFX, which was acquired on April 4, 2016, contributed most of the sales growth during the quarter and year-to-date periods however sales were also 18% higher at Polytech, Polydesign and Neocon on a combined basis during the quarter and 17% higher on the same basis year-to-date. Sales were lower at ALC by 37% during the quarter and 25% year-to-date driven primarily by the permanent closure of the group’s Lesotho operations at the end of November 2016, the timing of program turnover, and to a lesser extent, adverse currency movements.
The Casting and Extrusion segment reported sales of $47.5 million for the second quarter – an increase of $0.4 million or 1% from the same quarter last year. Year-to-date, the segment reported sales of $92.4 million – a decrease of $7.9 million or 8% compared to last year. Within the segment, sales were down very modestly in the Large Mould group during the quarter compared to the prior year period, which was more than offset by higher sales from both the Extrusion and Castool groups.
Consolidated net income for the quarter was $12.6 million or basic and diluted earnings of $0.30 per share compared to $9.0 million or $0.21 per share in the same quarter last year – an increase in net income of 40%. Year-to-date, consolidated net income was $24.1 million or $0.57 per basic share compared to $20.8 million or $0.49 per basic share last year – an increase in net income of 16%. Net income in the current year-to-date period was adversely impacted by $1.2 million ($0.03 per share) of non-operating costs in the first quarter related to the closure of ALC’s operations in South Africa and Lesotho.
The Automotive Solutions segment reported pretax profit of $15.0 million in the second quarter – an increase of $3.9 million or 35% over the same quarter last year. Year-to-date, the segment reported pretax profit of $29.6 million compared to $20.2 million – an increase of $9.5 million or 47%. AFX drove most of the increase however the segments’ other operations also contributed strongly, aided by the elimination of operating losses at ACL’s operations in South Africa and Lesotho. ALC’s Bulgarian operations were negatively impacted in the current quarter and year-to-date periods by the repositioning of business to accommodate new and outgoing key programs.
The Casting and Extrusion segment reported pretax profit of $5.4 million in the current quarter – an increase of $0.2 million or 4% from the same quarter last year. Year-to-date, the segment reported pretax profit of $10.4 million or 31% below the prior year. Most of the reduction in year-to-date segment profitability occurred in the Large Mould group during the first quarter due to significantly lower absorption rates, pricing pressures and unfavorable product mix. While these pressures persisted during the current quarter, the year over year impact was much less pronounced.
With respect to Exco’s greenfield operations in Colombia, Texas, Brazil and Thailand, sales growth remained strong at each of these locations both during the quarter and year-to-date periods. As well, the collective profitability of these four operations turned positive for the first time during the current quarter with only the operations in Brazil remaining in a loss position.
Consolidated EBITDA for the second quarter totaled $23.4 million compared to $16.9 million in the same quarter last year – an increase of 39%. Year-to-date, consolidated EBITDA totaled $46.8 million compared to $37.9 million – an increase of 23%.
Operating cash flow before net change in non-cash working capital increased to $19.4 million in the current quarter and $37.4 million year-to-date compared to $12.7 million and $29.3 million in the same periods last year. Non-cash working capital consumed $7.5 million of cash in the current quarter and $3.6 million of cash year-to-date compared to a use of $0.7 million and nil in the respective prior year periods. Consequently, net cash provided by operating activities amounted to $11.9 million in the current quarter and $33.8 million year-to-date compared to $11.9 million and $29.3 million the same periods last year.
Cash used in investing activities totaled $3.9 million and $7.1 million in the second quarter and year-to-date periods compared to $6.0 million and $15.7 million in the same respective periods last year. The difference is due to lower spending on machinery and equipment, which is attributable to both timing differences and a modestly lower level of planned capital spending in fiscal 2017 relative to fiscal 2016. Year-to-date capital spending represents approximately 32% of the Company’s planned annual expenditures in fiscal 2017. Free cash flow for the quarter and year-to-date periods totaled $7.5 million and $25.9 million, which was ample to fund the company’s common dividend ($3.4 million in the quarter and $6.4 million year-to-date) with most of the balance directed towards debt reduction.
The Company’s financial position and liquidity remain very strong. Exco’s net debt totaled $27.3 million as at March 31, 2017, down from $44.6 million at September 30, 2016 and approximately $71.0 million when AFX was acquired on April 4, 2016. Exco’s principal sources of liquidity include generated free cash flow, $27.6 million of balance sheet cash, and $65.0 million of unused availability under its $100.0 million committed credit facility, which matures February 2019.
For further information and prior year comparison please refer to the Company’s Second Quarter Condensed 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 is made to EBITDA, which is not a measure of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before other income/ expense, interest, taxes, depreciation and amortization. EBITDA is 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.
Quarterly Conference Call: The conference call can be accessed by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191.
About Exco Technologies Limited: Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 17 strategic locations in 8 countries, we employ 6,594 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 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, 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, Texas and Thailand 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 2016 Annual Report, our 2016 Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com.
TORONTO, March 31, 2017 /CNW/ – Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the second quarter ended March 31, 2017 after the close of business on Wednesday, April 26, 2017.
A conference call to discuss those results will be held on Thursday, April 27, 2017 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.
For those unable to participate on April 27, 2017, an archived version will be available on the Exco website. Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 8 countries, we employ 6,351 people and service a diverse and broad customer base.
TORONTO, Feb. 13, 2017 /CNW/ – 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 16, 2017 to February 15, 2018, a maximum of 1,000,000 common shares, representing 3.8% of the 26,345,698 shares forming Exco’s public float as at February 13, 2017. As of February 13, 2017, Exco had 42,585,491 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 47,740 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 11,935 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. In the previous 12 months, the Company has not repurchased any of its outstanding common shares.
The 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.
About Exco Technologies Limited: Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 8 countries, we employ 6,351 people and service a diverse and broad customer base.
Forward‐Looking Statements and Disclaimer This press release may contain forward‐looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as “about”, “approximately”, “may”, “believes”, “expects”, “will”, “intends”, “should”, “plans”, “predicts”, “potential”, “projects”, “anticipates”, “estimates”, “continues” or similar words or the negative thereof or other comparable terminology. Forward‐looking statements are based on the best estimates available to Exco at this time and involve known and unknown risks, uncertainties and other factors that may cause Exco’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. No assurance can be given that any events anticipated by the forward‐looking information in this press release will transpire or occur, or if any of them do so, what benefits that Exco will derive therefrom. The forward‐looking information contained in this press release is made as of the date hereof and Exco undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward‐looking statements.
Toronto, February 2, 2017 – Exco Technologies Limited (TSX-XTC) announced voting results from its 2016 annual meeting of shareholders held on February 1, 2017. A total of 24,407,453 Common Shares or 57.33% 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:
Votes For
Votes Withheld /Against
Laurie T.F. Bennett
99.6%
0.4%
Edward H. Kernaghan
99.9%
0.1%
Nicole A. Kirk
90.3%
9.7%
Robert B. Magee
99.9%
0.1%
Philip B. Matthews
99.4%
0.6%
Colleen M. McMorrow
94.4%
5.6%
Brian A. Robbins
99.9%
0.1%
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 16 strategic locations in 8 countries, we employ 6,351 people and service a diverse and broad customer base.
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 16 strategic locations in 8 countries, we employ 6,351 people and service a diverse and broad customer base.
Appendix A
VOTING RESULTS – 2016 ANNUAL MEETING OF SHAREHOLDERS
EPS of $0.30 in the quarter excluding ALC S.A. closure costs 1
Quarterly dividend raised 14% to $0.08 per common share
Free cash flow of $18 million during the quarter
Balance sheet and liquidity remain very strong
Toronto, February 1, 2017 – Exco Technologies Limited (TSX-XTC) today announced results for its first fiscal quarter ended December 31, 2016. In addition, the Company announced a 14% increase in its quarterly dividend to $0.08 per common share which will be paid on March 31, 2017 to shareholders of record on March 15, 2017. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.
(in $ thousands except per share amounts)
Three months ended December 31
2016
2015
Sales
$153.1
$130.9
Net income for the period
$11.5
$11.8
Earnings per share
Basic and Diluted – Reported
$0.27
$0.28
Adjusted to exclude ALC S.A. closure costs1
$0.30
$0.28
EBITDA1
$23.3
$21.0
Consolidated sales for the first quarter ended December 31, 2016 were $153.1 million compared to $130.9 million in the same quarter last year – an increase of $22.2 million or 17%. The Automotive Solutions segment reported higher sales of $108.1 million in the first quarter – an increase of $30.4 million or 39% from the same quarter last year. The acquisition of AFX contributed $28.5 million of this increase although sales were higher at most of the segment’s other businesses with the exception of ALC which experienced lower sales due to the closure of its Lesotho operations and previously disclosed wind-down of the BMW 5 Series seat cover program. The Casting and Extrusion segment reported sales of $45.0 million for the first quarter – a decrease of $8.2 million or 15% from the same quarter last year. Most of the sales decline occurred in the Large Mould group arising from reduced demand for certain established programs, the timing of customer releases, and pricing pressures on certain new programs.
Consolidated net income for the quarter was $11.5 million or basic and diluted earnings of $0.27 per share compared to $11.8 million or $0.28 per share in the same quarter last year – a decrease in net income of 3%. Net income in the quarter was adversely affected by $1.2 million ($0.03 per share) of non-operating costs associated with the permanent closure of ALC’s operations in Lesotho, of which $0.7 million was non-cash. Net Income in the quarter was also reduced by $0.02 per share compared to the prior year due to higher amortization expense associated with the AFX acquisition. The effective consolidated income tax rate was relatively stable at 30.9% in the current quarter compared to 31.0% in the same quarter last year. Net income adjusted for the impact of the non-operating costs was $12.7 million, or $0.30 per share.
The Automotive Solutions segment reported significantly higher pretax profit of $14.6 million in the first quarter – an increase of $5.6 million or 61% over the same quarter last year. Contribution from AFX was the largest factor in this increase although Polytech, Neocon and Polydesign also contributed strongly to the increase as each of these businesses experienced margin expansion in addition to solid top line growth. ALC group operating results improved year over year with the closure of both the South Africa and Lesotho operations.
The Casting and Extrusion segment reported lower pretax profit of $5.0 million in the first quarter – a decrease of $5.0 million or 50% from the same quarter last year. Most of this reduction occurred in the Large Mould group which had significantly lower absorption rates and was negatively impacted by unfavorable product mix.
Consolidated EBITDA for the first quarter increased 11% to $23.3 million compared to $21.0 million last year.
Cash provided by operating activities increased to $21.9 million in the quarter compared to $17.3 million last year driven by higher cash earnings and improved working capital management. These funds were ample to fund $3.2 million of capital expenditures and $0.4 million of net interest expense resulting in free cash flow of $18.3 million before $3.0 million of dividend payments. Exco ended the quarter with net debt of $28.9 million compared to $44.6 million as at September 30, 2016 – a reduction of 35%. Exco’s net debt to trailing twelve month EBITDA now stands at 0.3x while its increased quarterly dividend amount of $0.08 per share represents 30% of its net income both during the quarter and on an annualized basis over the last year.
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 is made to EBITDA, which is not a measure of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before other income/ expense, interest, taxes, depreciation and amortization. EBITDA is 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. Further, reference is made herein to certain adjustments to EPS. Such adjustments relate to the exclusion of ALC S.A. closure costs.
Quarterly Conference Call – February 1, 2017 at 4:30 p.m. (Toronto time): The conference call 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=1343365&s=1&k=F7EFF0DC764533CC8F39BE86E94A1218 a few minutes before the event. Real Player is required for access. For those unable to participate on February 1, 2017, an archived version will be available on the Exco website.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 8 countries, we employ 6,351 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 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, 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, Texas and Thailand 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 2016 Annual Report, our 2016 Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com.
Toronto, January 4, 2017 – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the first quarter ended December 31, 2016 after the close of business on Wednesday February 1, 2017.The Annual General Meeting of Shareholders of Exco Technologies Limited will also take place on February 1, 2017 at 4:30 p.m. (Toronto time) at Magna Golf Club, at 14780 Leslie Street, Aurora, Ontario. Management will discuss year-end and first quarter results and will also take questions from the public at that time.To access the live audio webcast, please log on to www.excocorp.com, or http://event.on24.com/r.htm?e=1343365&s=1&k=F7EFF0DC764533CC8F39BE86E94A1218 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. Questions can be submitted via the Q&A box on the webcast console or via the conference call. For those unable to participate on February 1, 2017, an archived version will be available on the Exco website.
EPS of $0.25 in the quarter compared to $0.24 prior year
Lesotho operations permanently closed after quarter end
Balance sheet and liquidity remain very strong
TORONTO, Nov. 30, 2016 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its fourth quarter and year ended September 30, 2016. In addition, the Company announced the quarterly dividend of $0.07 per common share which will be paid on December 29, 2016 to shareholders of record on December 14, 2016. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.
(in $ millions except per share amounts)
Three Months ended September 30
Twelve Months ended September 30
2016
2015
2016
2015
Sales
$163.0
$131.0
$589.0
$498.3
Net income for the period
$10.5
$10.3
$47.6
$40.8
Earnings per share from net income
Basic
$0.25
$0.24
$1.12
$0.96
Diluted
$0.25
$0.24
$1.11
$0.96
Total assets
$452.9
$342.8
$451.3
$342.8
Cash dividend paid per share
$0.07
$0.06
$0.27
$0.23
EBITDA 1
$22.2
$21.9
$83.4
$77.0
Consolidated sales in the quarter were $163.0 million – an increase of $32.0 million or 24% from the fourth quarter of fiscal 2015. Full year sales totalled $589.0 million – up 18% over the prior year. AFX, which was acquired in April 2016, contributed $35.9 million in sales during the quarter and $66.9 million to Exco’s fiscal 2016 results.
The Automotive Solutions segment experienced a 50% rise in sales during the quarter, to $117.7 million up from $78.5 million last year. This increase was primarily driven by contributions from AFX and to a lesser extent by higher sales at ALC, Polydesign and Neocon partially offset by modestly lower sales at Polytech. For the year, Automotive Solutions revenues were up 31%, to $396.8 million compared to $303.1 million last year. Again, the inclusion of AFX drove most of the revenue growth, however sales were higher at each of the segment’s other business units for the year.
The Casting and Extrusion segment recorded sales of $45.3 million compared to $52.5 million last year – a decrease of 14%. The lower sales were driven by a decline in the large mould business and to a lesser extent in the Extrusion group, offset by higher sales at the Castool group. For the year, revenues in the Casting and Extrusion segment were $192.2 million, down 2% from the prior year with higher sales from the Extrusion and Castool groups offsetting most of the decline in the large mould group.
The Company’s fourth quarter consolidated net income increased to $10.5 million or earnings of $0.25 per share compared to $10.3 million or earnings of $0.24 per share in the same quarter last year – an EPS increase of 4%. Consolidated net income for the year totalled $47.6 million or earnings of $1.12 per share compared to $40.8 million or earnings of $0.96 per share in fiscal 2015, an increase of 17%.
In the fourth quarter of fiscal 2016 consolidated net income was reduced by withholding taxes of $0.9 million ($0.02 per share) and an additional $0.3 million of amortization related to an adjustment of AFX’s intangible assets. Last years consolidated net income was negatively impacted by the write-off of $1.9 million ($0.05 per share) in deferred tax assets. Consolidated net income for fiscal 2016 benefited from a $3.4 million gain associated with the settlement of a commercial arbitration in the third quarter of 2016 but also included about $1.0 million of expenses (net of tax) related to the acquisition of AFX.
Fourth quarter pretax earnings in the Automotive Solutions segment totalled $14.4 million, an increase of $4.3 million or 43% over the same quarter last year. This was driven primarily by the acquisition of AFX and improved results at ALC’s South African/Lesotho operations offset by weaker performance at ALC’s Bulgarian operations. The Automotive Solutions segment recorded operating earnings of $48.0 million for the year compared to $36.6 million last year – an increase of $11.5 million or 31%. The acquisition of AFX contributed strongly to the segment’s annual results while earnings were higher at each of Polytech, Neocon and Polydesign. Combined losses at ALC’s South Africa/ Lesotho operations totalled $3.5 million for the year compared to $5.2 million in fiscal 2015.
Fourth quarter pretax earnings fell in the Casting and Extrusion segment by $5.7 million or 59% over the same quarter last year. The earnings decrease was due to lower sales and reduced absorption of fixed costs in the large mould business, margin compression in the Extrusion group due to front end investments associated with harmonizing the production processes of the various facilities, partially offset by stronger results in the Castool group. For the year, Casting and Extrusion operating earnings decreased to $24.7 million from $32.4 million in fiscal 2015 – a difference of $7.7 million or 24%.
Following the end of the quarter, Exco reached an agreement to permanently close its ALC operations in Lesotho and remaining presence in South Africa. No related charges to earnings were incurred during the quarter and it is currently expected that any such charge will be substantially less than $1.0 million and will occur in the first quarter of fiscal 2017.
Consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter increased to $22.2 million compared to $21.9 million last year. For the full year, consolidated EBITDA increased to $83.4 million compared to $77.0 million last year.
Cash provided by operating activities increased to $65.5 million for the year compared to $42.1 million last year driven by both higher net income and improved working capital management. These funds were ample to fund $23.9 million of capital expenditures for the year, $1.3 million of net interest expense and $11.5 million of dividends. Exco used the remaining amount of cash generated together with $7.5 million of its surplus cash and about $44 million of debt to acquire AFX Industries LLC for $82 million during fiscal 2016. At year end Exco’s balance sheet remained solid with net debt totalling $44.6 million.
(For further information and prior year comparison please refer to the Company’s Fourth Quarter Condensed Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.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 16 strategic locations in 9 countries, we employ 6,155 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements Information in this document relating to projected growthand 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, 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, Texas and Thailand 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. 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.
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.
1 Non-IFRS Measures: In this News Release, reference is made to EBITDA, which is not a measure of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before other income, interest, taxes, depreciation and amortization. EBITDA is 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.
