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Exco Technologies Limited announces award of major seat cover program

TORONTO, Oct. 16, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) is pleased to announce today that its subsidiary Automotive Leather Company (“ALC”) has been awarded a leather seat cover program by a German OEM for a line of premium compact vehicles.  The start of production is expected to be approximately January 2016.  Estimated sales, based on current projected automobile production volumes, is expected to be approximately $35 million per annum.

This award is significant because it is a major step toward achieving Exco’s goal of diversifying its customer base among German OEMs while continuing to focus on servicing its major customer BMW in the luxury premium light vehicle segment.

Exco is also pleased to announce that its quality and operational excellence continues to be recognized by its customers with the recent award to Polytech of the General Motors Supplier Quality Excellence Award.  This is the second consecutive year that Polytech has received this prestigious recognition.  Such awards carry considerable weight among customers when awarding new business.  In the last year, Polytech also received the Toyota Motor Sales Quality Alliance Gold Award and Exco’s Polydesign subsidiary in Morocco received the General Motors/Opel/Vauxhall Supplier Excellence Award and the Johnson Control Europe Supplier Excellence Award.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 18 strategic locations, we employ 4,740 people and service a diverse and broad customer base.

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “expected”, “estimated”, “projected” and similar expressions to identify forward-looking information and statements especially with respect to sales levels and automobile production volumes on the awarded program.  Such forward-looking information and statements are based on assumptions and analyses made by us in light of our discussions with the customer, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in Europe, the rate of economic growth in Europe and currency fluctuations (particularly with respect to the US dollar, Euro and Canadian dollar) and the timing of the launch of the awarded program.  Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur.  Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements.  These risks, uncertainties and assumptions are described in the Company’s Management’s Discussion and Analysis included in our 2013 Annual Report, in our 2013 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.

While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to 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.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited – Results for Third Quarter Ended June 30, 2014

  • Sales up 78%
  • Earnings up 50%
  • $29 million cash on hand
  • $1.1 million cash, net of bank indebtedness
  • EBITDA up 27% to $14.9 million

TORONTO, July 23, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its third quarter ended June 30, 2014. In addition, the Company announced the quarterly dividend of $0.05 per common share which will be paid on September 26, 2014 to shareholders of record on September 12, 2014.  The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

($000s, except per share amounts) Three Months ended
June 30
Nine Months ended
June 30
 2014201320142013
Sales110,93862,382 257,320 180,649
Net income8,3405,55022,53316,882
Basic earnings per share$0.20$0.14$0.54$0.42
Diluted earnings per share$0.20$0.14$0.54$0.41
Adjusted Net income9,2477,15624,42518,636
Basic earnings per share$0.22$0.18$0.59$0.46
Diluted earnings per share$0.22$0.17$0.58$0.45
Common shares outstanding41,985,53440,697,19541,985,53440,697,195

Consolidated sales for the third quarter ended June 30, 2014 were $110.9 million – an increase of 78% compared to last year. Year-to-date consolidated sales were $257.3 million – up 42% over last year.  The inclusion in the quarter of Automotive Leather Group (Pty) Company (‘ALC’) which was acquired by Exco on March 1, 2014 is primarily responsible for the significantly higher sales in the quarter.  However, our existing businesses also grew by 21% in the current quarter and 15% year-to-date. ALC is included in the Automotive Solutions segment.

The Automotive Solutions segment reported significantly higher sales of $66.3 million in the third quarter and $133.9 million year-to-date – increases of 183% for the quarter and 96% year-to-date. ALC sales in the quarter were $35.3 million and year-to-date (four months) was $49.7 million. 

The other businesses in this segment experienced strong growth in both the quarter and year-to-date by 32% and 23% respectively. Polytech and Neocon sales in North America continued at elevated levels – sustained by strong vehicle unit sales as well as new product launches for refreshed, redesigned or entirely new vehicle models.  Polydesign’s European sales increased substantially over prior year as the smooth launch of new programs continued at a strong pace and European vehicle unit sales improved modestly.
The Casting and Extrusion segment reported sales of $44.6 million for the third quarter and $123.4 million year-to-date – increases of 15% for the quarter and 10% year-to-date. All businesses in the segment contributed to these sales increases. Sales at the Extrusion group were supported by general market improvement in North America and improving market share at Exco Colombia and Texas.  Sales at the large mould group and Castool reflected continuing strong market conditions in North America and Asia both in the quarter and year-to-date.

Consolidated net income for the third quarter was $8.3 million or diluted earnings of $0.20 per share compared to consolidated net income of $5.6 million or diluted earnings of $0.14 per share  last year – an increase of 50%. Year-to-date consolidated net income was $22.5 million or diluted earnings of $0.54 per common share compared to $16.9 million or diluted earnings of $0.41 per common share last year – an increase of 33%.  Included in the current year and prior year were various significant unusual items consisting of withholding taxes, start-up losses in Brazil and Thailand and ALC acquisition costs. These items are detailed in the Company’s MD&A at Table A.  Excluding these unusual items, net income in the current quarter and year-to-date would have been $9.2 million and $24.4 million or diluted earnings of $0.22 and $0.58 per common share compared to $7.2 million and $18.6 million or diluted earnings of $0.17 and $0.45 per common share in the same periods last year.

These earnings drove strong EBITDA. Consolidated EBITDA for the third quarter was $14.9 million compared to $11.7 million in the same quarter last year – an increase of 27%.  Year-to-date consolidated EBITDA was $38.4 million compared to $31.9 million last year – an increase of 20%.

The Automotive Solutions segment reported higher pretax profit of $7.0 million in the third quarter – an increase of 52% over last year. Year-to-date the segment also reported higher pretax profit of $17.6 million – an increase of 41% above the prior year. In both Europe and North America, stronger sales provided increased earnings.  This earnings improvement took place in spite of elevated inventory, logistics and production reallocation costs at ALC required to launch the new Mini program in Bulgaria, South Africa and Lesotho.

The Casting and Extrusion segment reported pretax profit of $6.5 million in the third quarter compared to $6.4 million pretax profit in the same quarter last year – an increase of 1%. Year-to-date the segment reported pretax profit of $18.2 million – an increase of $1.4 million or 8% from last year. These improvements took place in spite of start-up costs at our two greenfield facilities – Extrusion Brazil and Castool Thailand.  Excluding these start-up costs, which we expect to recede over the next two quarters, pretax income in the current quarter and year-to-date for this segment would have been $7.5 million and $20.1 million compared to $6.5 million and $17.2 million in the same periods last year. This represents an increase of 15% in the quarter and 17% year-to-date.  Our prospects for new business in the large mould business continue to be favorable.  Recently, Exco was awarded the 10 speed transmission tooling program by General Motors.  This is not one of Exco’s traditional customers and we see this award as a validation of Exco’s competitive position in the large mould market and a validation of our ability to generate outstanding and innovative tooling designs on state-of-the-art powertrain technology.

The outlook for Exco over the near term continues to remain strong.   The economic recovery in North America – both in the automotive sector and the greater economy – appears to be intact and even European automotive sales are showing signs of improvement.  The recent announcement by BMW, Mercedes and VW to locate further assembly plant capacity in Mexico and the southern US states is also a welcome development and dovetails with our recent purchase of ALC which has been serving these customers in Europe for many years.

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

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 18 strategic locations in 10 countries, we employ 4,740 people and service a diverse and broad customer base.

To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://www.newswire.ca/en/webcast/detail/1372763/1522251 a few minutes before 10:00 AM on July 24, 2014.  Microsoft Media Player is required for access.  For those unable to listen on July 24, 2014, an archived version will be available on the Exco website.

This news release contains 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 businesses (particularly our start-up business units in Brazil, Thailand, Texas and Colombia) and Polydesign, the financial performance of ALC which was acquired in March 2014, managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments and greenfield construction, input costs, operating efficiencies and overhead absorption.  Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in North America and in Europe, the securing of new orders or renewal of existing orders, the rate of economic growth in North America, Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts, and currency fluctuations (particularly with respect to the US dollar, Euro, Mexican peso and South African rand) and the level of and timing of integration and production reallocation of the ALC acquisition.  Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur.  Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements.  These risks, uncertainties and assumptions are described in the Company’s Management’s Discussion and Analysis included in our 2013 Annual Report, in our 2013 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.

While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to 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.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited – Results for second quarter ended March 31, 2014

  • Sales up 38%
  • Earnings up 34%
  • ALC acquisition completed
  • $33.7 million cash on hand
  • $5.4 million cash, net of bank indebtedness

TORONTO, April 23, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its second quarter ended March 31, 2014. In addition, the Company announced the quarterly dividend of $0.05 per common share which will be paid on June 27, 2014 to shareholders of record on June 13, 2014.   The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

($000s, except per share amounts) Three Months ended
March 31
Six Months ended
March 31
2014201320142013
Sales82,43759,581146,382118,267
Net income7,4535,54514,19311,332
Basic earnings per share$0.18$0.14$0.34$0.28
Diluted earnings per share$0.18$0.14$0.34$0.28
Net income excluding non-recurring ALC
due-diligent and closing costs
7,8445,54514,58411,332
Basic earnings per share excluding non-recurring
ALC due-diligent and closing costs
$0.19$0.14$0.35$0.28
Diluted earnings per share excluding non-recurring ALC due-diligent and closing costs$0.19$0.14$0.35$0.28
Common shares outstanding41,938,75640,695,19541,938,75640,695,195

Consolidated sales for the second quarter ended March 31, 2014 were $82.4 million – an increase of $22.9 million or 38% compared to last year. Year-to-date consolidated sales were $146.4 million – an increase of $28.1 million or 24% over last year.  The Automotive Solutions segment is primarily responsible for this significant increase with sales of $42.6 million in the second quarter and $67.6 million year-to-date – increases of $20.1 million or 89% for the quarter and $22.7 million or 50% year-to-date. March sales from Automotive Leather Company Group (Pty) Limited (‘ALC’), which was acquired by Exco on March 1, 2014 accounted for $14.4 million of this increase.  The other businesses in this segment (Polytech, Polydesign and Neocon) also experienced strong growth in both the quarter (25%) and year-to-date (18%) as North American sales were sustained by strong vehicle unit production as well as new product launches and Polydesign’s European sales increased substantially over prior year as the smooth launch of new products continued to exceed the impact of relatively anemic European vehicle unit sales.

The Casting and Extrusion segment reported strong sales of $39.9 million for the second quarter and $78.8 million year-to-date – increases of $2.8 million or 8% for the quarter and $5.4 million or 7% year-to-date. The Extrusion group increased sales in the current quarter and year-to-date by 22% and 18% respectively with overall market conditions improving in North America and both Exco Colombia and Texas now growing market share in their respective regional markets after having achieved key quality and delivery benchmarks.

Consolidated net income for the second quarter was $7.4 million or $0.18 per share compared to $5.5 million or $0.14 per share last year – an increase of 34%. Year-to-date consolidated net income was $14.2 million or $0.34 per share compared to $11.3 million or $0.28 per share last year.  Included in the current quarter and year-to-date were $526 thousand of non-recurring ALC due-diligence and closing cost expenses.  Excluding these non-recurring costs consolidated net income would have been $0.01 per share higher – yielding $0.19 per share in the quarter and $0.35 per share year-to-date.

The Automotive Solutions segment reported higher pretax profit of $6.1 million in the second quarter – an increase of $2.1 million or 51% over last year. Year-to-date the segment also reported higher pretax profit of $10.6 million – an increase of $2.7 million or 34% from the prior year.  All businesses in this segment reported increased earnings and the ALC business performed well within management’s expectations during the first month under Exco’s ownership.  The Casting and Extrusion segment also reported strong pretax profit of $5.9 million in the second quarter compared to $4.8 million last year – an increase of $1.1 million or 22%. Year-to-date the segment reported pretax profit of $11.8 million – an increase of $1.3 million or 13% from last year.   These improvements took place in spite of operational disruptions and extra costs caused by the launch of our extrusion greenfield facility in Brazil, which is beginning production this month, and the Castool greenfield facility in Thailand, which is expected to begin production in June.

Earnings were also favorably impacted by climbing earnings at Polydesign in Morocco where the income tax rate is 9% and in Bulgaria where ALC earnings are subject to 10% tax rate.  This trend is expected to continue and become more prevalent as earnings increase from Thailand (which are exempt from income tax for the next 7 years) and other low tax countries where Exco manufactures, such as Colombia (15%).
Operating cash flow before net change in non-cash working capital increased to $10.0 million in the second quarter and $19.3 million year-to-date compared to $8.0 million and $15.9 million in the same periods last year. These increases were primarily the result of improved operating earnings and, even after the net change in non-cash working capital is taken into account, cash provided by operating activities was still dramatically higher than last year both in the quarter and year-to-date.

The ALC acquisition has, after an absence of many years, introduced material bank debt onto Exco’s balance sheet; however, the Company remained net bank debt-free throughout the quarter with a net cash position of $5.4 million at quarter-end despite acquisition financing of $17.3 million and greenfield capital investments of $4.8 million during the quarter.  Management is comfortable that the future performance of ALC and the strong cash provided by operating activities, which far exceeded last year both in the quarter and year-to-date ($16.3 million vs $7.1million in the quarter, $21.6 million vs. $10.5 million year-to-date), will continue to meet and likely exceed our expectations.

The outlook for Exco over the near term continues to remain strong.   The economic recovery in North America – both in the automotive sector and the greater economy – appears to be intact and driving higher sales. European automotive sales – especially at BMW and the other German OEMs – are also firming up and giving some reason for optimism for growth in this long suffering market.

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

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 18 strategic locations, we employ 4,610 people and service a diverse and broad customer base.

To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://www.newswire.ca/en/webcast/detail/1335949/1476661 a few minutes before 10:00 AM on April 24, 2014.  Microsoft Media Player is required for access.  For those unable to listen on April 24, 2014, an archived version will be available on the Exco website.

This news release contains 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 businesses (particularly our start-up business units in Brazil, Thailand, Texas and Colombia) and Polydesign, the financial performance of ALC which was acquired in March, 2014, managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments and greenfield construction, input costs, operating efficiencies and overhead absorption.  Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in North America and in Europe, the rate of economic growth in North America, Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts, and currency fluctuations (particularly with respect to the US dollar, Euro, Mexican peso and South African rand) and the level of and timing of integration of the ALC acquisition.  Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur.  Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements.  These risks, uncertainties and assumptions are described in the Company’s Management’s Discussion and Analysis included in our 2013 Annual Report, in our 2013 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.

While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to 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.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited announces second quarter results on April 23, 2014

TORONTO, April 8, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the second quarter ended March 31, 2014 on Wednesday April 23, 2014.
A conference call to discuss those results will be held on Thursday, April 24, 2014 at 10:00 a.m. (Toronto time) which can be accessed by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191.

To access the live audio webcast, please log on to www.excocorp.com, or http://www.newswire.ca/en/webcast/detail/1335949/1476661 a few minutes before the event.  Real Player is required for access.  For those unable to participate on April 24, 2014, an archived version will be available on the Exco website

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited Announces Completion of Acquisition of Automotive Leather Company Group (Pty) Limited

TORONTO, March 3, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) is pleased to announce today that it has completed the previously announced acquisition of Automotive Leather Company Group (Pty) Limited (“ALC”) by a wholly-owned subsidiary of Exco (see news release dated December 19, 2013).
Pursuant to the terms of the definitive agreement governing the acquisition, the shareholders of ALC received CAD$17.3 million in cash and an aggregate of 973,895 common shares of Exco.

A conference call to discuss the transaction will be held on March 4, 2014 at 10:00 am (Toronto time) and can be accessed by dialing (647) 427-7450 for local (Toronto) calls or toll free 1-888-231-8191. To access the live audio webcast, please log on to www.excocorp.com, or http://www.newswire.ca/en/webcast/detail/1314961/1451965 a few minutes before the event.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 13 strategic locations, we employ 2,354 people and service a diverse and broad customer base. Upon completion of the transaction Exco will have 18 locations and employ approximately 5,000 people in 12 countries.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited Quarterly Dividend Increased by 11%

Toronto, January 29, 2014 – Exco Technologies Limited (TSX-XTC) today announced a quarterly cash dividend of $0.05 per share to be paid March 28, 2014 to shareholders of record on March 14, 2014. This dividend represents an 11% increase. On an annualized basis, the dividend will increase from 18 cents per share to 20 cents per share. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Brian Robbins, CEO of Exco said “strong business fundamentals continue to support our financial performance. In light of this and after having reviewed Exco’s capital needs over the balance of the year, its liquidity position and the pending purchase of Automotive Leather Company Group (PTY) Limited (“ALC”), I am pleased to announce this dividend increase”. This is the fourth increase in four years over which the dividend increased 150%.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 13 strategic locations, we employ 2,354 people and service a diverse and broad customer base. Upon completion of the ALC acquisition, Exco will have 18 locations and employ approximately 5,000 people in 12 countries.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited Results for First Quarter Ended December 31, 2013 Quarterly Dividend Increased 11%

Toronto, January 29, 2014 – Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2013.

($000s, except per share amounts) Three Months ended
December 31
 20132012
Sales63,94558,686
Net income6,7405,787
Basic earnings per share$0.17$0.14
Diluted earnings per share$0.16$0.14
Common shares outstanding 40,762,82140,649,195

Consolidated sales for the first quarter ended December 31, 2013 were $63.9 million – an increase of $5.3 million or 9% compared to the same quarter last year. The Casting and Extrusion segment reported sales of $39.0 million for the first quarter – an increase of $2.6 million or 7% from the same quarter last year. Sales in the Automotive Solutions segment in the first quarter were $25.0 million – an increase of $2.6 million or 12% from the same quarter last year.

Consolidated net income for the first quarter was $6.7 million or basic earnings of $0.17 per share and diluted earnings of $0.16 per share compared to consolidated net income of $5.8 million or basic and diluted earnings of $0.14 per share in the same quarter last year – an increase of 16%.

The Casting and Extrusion segment reported pretax profit of $5.9 million in the first quarter compared to $5.6 million pretax profit in the same quarter last year – an increase of $274 thousand or 5%. The Automotive segment reported higher pretax profit of $4.4 million in the first quarter compared to $3.8 million pretax profit in the same quarter last year – an increase of $638 thousand or 17%.

Net cash provided by operating activities increased to $5.3 million compared to $3.5 million in the same quarter last year. Cash used in investing activities in the first quarter totalled $7.1 million compared to $3.5 million in the same quarter last year. Capital spending in the current quarter, although significantly higher, was planned and mostly related to the Casting and Extrusion segment of which $725 thousand was for investment in the Castool Thailand greenfield facility and $2.6 million was for investment in the Extrusion Brazil greenfield facility.

Despite the significantly higher capital expenditure in the current quarter, the Company’s net cash position at the close of the first quarter ended December 31, 2013 was $24.5 million compared to $26.1 million at the beginning of the fiscal year.

The outlook for Exco over the next several quarters remains strong. The economic recovery in North America – both in the automotive sector and the greater economy – appears to be robust and is expected to continue at a steady pace. In Europe, recession throughout the Euro zone seems to be bottoming out with most OEMs there projecting higher unit sales in 2014. However we believe the business environment will continue to be difficult for several years.

Exco’s new extrusion tool shop in Brazil should be complete in the second quarter of fiscal 2014 and the Castool facility in Thailand is expected to be complete and start production early in the third quarter of fiscal 2014. These new facilities will be a drag on our cash and earnings in a few quarters to come as capital items are paid for and start-up losses are funded. This is expected to gradually abate once commercial production begins thereafter.

The significant increase in capital spending in the first quarter is proceeding as planned and we expect capital expenditures to continue in accordance with our capital plan for 2014 of $24.5 million. It is expected that our cash flow from operations will continue to support these investments. Management also expects to complete the purchase of Automotive Leather Company Group (PTY) Limited (“ALC”) in early March of next quarter. This will require a cash expenditure of approximately $17.2 million which Exco intends to fund by increasing its Canadian operating credit facility to $30 million from its current level of $12 million. With the pending purchase of ALC, management will focus on the integration of ALC into the Automotive Solutions segment but will remain receptive to other accretive ‘tuck-under’ acquisition opportunities that may arise.

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

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 13 strategic locations, we employ 2,354 people and service a diverse and broad customer base. Upon completion of the ALC acquisition, Exco will have 18 locations and employ approximately 5,000 people in 12 countries.

To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://event.on24.com/r.htm?e=735734&s=1&k=E33709AC3D35024D318C79FC2396F920 a few minutes before 4:30 PM on January 29, 2014. Questions can be submitted via the Q&A box on the webcast console. Microsoft Media Player is required for access. For those unable to listen on January 29, 2014, an archived version will be available on the Exco website.

This news release contains 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 businesses (particularly our start-up business units in Brazil, Thailand, Texas and Colombia) and Polydesign, managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments, input costs and our operating efficiencies. Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in North America and Europe, the rate of economic growth in North America and Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts and currency fluctuations (particularly with respect to the US dollar, Euro and Mexican Peso). Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur. Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements. These risks, uncertainties and assumptions are described in the Company’s Management’s Discussion and Analysis included in our 2013 Annual Report, in our 2013 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.

While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to 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.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com
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Exco Technologies Limited Annual General Meeting and announcement of first quarter results on January 29, 2014

TORONTO, Jan. 2, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the first quarter ended December 31, 2013 on Wednesday January 29, 2014.

The Annual General Meeting of Shareholders of Exco Technologies Limited will also take place on January 29, 2014 at 4:30 p.m. at Exco’s corporate office and management will discuss year-end and first quarter results at that time.  Management will also take questions from the public after the Annual General Meeting.

To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://event.on24.com/r.htm?e=735734&s=1&k=E33709AC3D35024D318C79FC2396F920 a few minutes before the event.  Questions can be submitted via the Q&A box on the webcast console.  Microsoft Media Player is required for access. 

For those unable to listen on January 29, 2014, an archived version will be available on the Exco website.

For further information:

Source:Exco Technologies Limited (TSX-XTC)
Contact:Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone:(905) 477-3065 Ext 7228
Website:https://www.excocorp.com