Category: news

TORONTO, Jan. 29, 2015 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced voting results from its 2014 annual meeting of shareholders held on January 28, 2015. A total of 25,127,204 Common Shares or 59.6% of our issued and outstanding Common Shares, were voted in connection with the annual 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:

For additional information, see Appendix A.

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 5,081 people and service a diverse and broad customer base.

Appendix A

VOTING RESULTS – 2014 ANNUAL MEETING OF SHAREHOLDERS

Notes:

(1) Based on proxies submitted
(2) 33,280 shares were not voted
(3) 24,903,669 shares (59.1%) were voted by proxy. 223,535 shares (less than 1%) were voted in person at the meeting

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TORONTO, Jan. 28, 2015 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced a quarterly cash dividend of $0.06 per share to be paid March 27, 2015 to shareholders of record on March 13, 2015. This dividend represents a 20% increase. 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 and its liquidity position, I am pleased to announce this dividend increase”. This is the sixth increase in five years over which the dividend increased 200%.

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 5,081 people and service a diverse and broad customer base.

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• Sales up 88% in the quarter
• Earnings up 43% in the quarter
• $24.9 million cash on hand
• $3.3 million cash, net of bank indebtedness
• EBITDA up 53% to $16.9 million in the quarter

TORONTO, Jan. 28, 2015 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2014. In addition, the Company announced a 20% increase in its quarterly dividend to $0.06 per common share which will be paid on March 27, 2015 to shareholders of record on March 13, 2015. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Consolidated sales for the first quarter ended December 31, 2014 were $119.9 million compared to $63.9 million in the same quarter last year – an increase of $56.0 million or 88%. 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 22% in the current quarter.

The Automotive Solutions segment reported significantly higher sales of $72.5 million in the first quarter – an increase of $47.5 million or 190% over last year. This dramatic increase reflects the inclusion of ALC in the quarter. Excluding the impact of ALC, the other businesses in this segment also experienced strong growth in the quarter of 36% over last year. 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 also increased substantially over the prior year as the smooth launch of new programs continued at a strong pace.

The Casting and Extrusion segment reported sales of $47.4 million for the first quarter – an increase of $8.4 million or 22% over last year. All businesses in the segment contributed to this sales increase.
Consolidated net income for the first quarter was $9.6 million or diluted earnings of $0.23 per share compared to consolidated net income of $6.7 million or diluted earnings of $0.16 per share in the same quarter last year – an increase of 43%.

Consolidated EBITDA for the first quarter is $16.9 million compared to $11.0 million in the same quarter last year – an increase of 53%. EBITDA is a non-IFRS measure. Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization. Management believes EBITDA is a useful measure that facilitates period-to-period operating comparisons and we believe some investors and analysts use it as well. This measure, as calculated by Exco, does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measure presented by other issuers.

The Automotive Solutions segment reported higher pretax profit of $7.8 million in the first quarter – an increase of $3.4 million or 76% over last year. In both Europe and North America, stronger sales provided increased earnings. Earnings at ALC in the current quarter continued to be impacted by disruption from relocation of production from South Africa to Lesotho and BMW’s December shut down in Europe.

The Casting and Extrusion segment also reported higher pretax profit of $7.4 million in the first quarter – an increase of $1.6 million or 26% over last year. This improvement took place in spite of start-up costs at our greenfield facilities – Extrusion Brazil and Castool Thailand. Start-up costs at Castool Thailand are receding and in the quarter it experienced positive cash flow. At Extrusion Brazil we expect these costs to also recede, although at a more gradual pace over the rest of the year. Strong sales at the large mould business and Castool provided better overhead absorption.

Operating cash flow before net change in non-cash working capital was strong at $12.7 million in the first quarter compared to $9.2 million last year. Higher investment in non-cash working capital amounted to $14.6 million in the first quarter compared to $3.9 million last year due mainly to higher sales in the current quarter.

The Company remains net bank debt free despite payment of $17.3 million to buy ALC, $3.6 million capital expenditures and $14.6 million investments in non-cash working capital to support our growing business. The net cash position at the close of the first quarter was $3.3 million.

The outlook for Exco over the rest of the year continues to remain strong. The economic recovery in North America – both in the automotive sector and the greater economy – appears to be intact and should continue at a steady pace. The European automotive market seems to be improving, although at an anemic pace. Unit sales of light vehicles should continue to benefit from low borrowing costs and significantly improved mileage of new vehicles should also drive stronger demand. The announcement by most OEMs in both North America and Europe of aggressive plans to refresh/redesign and/or launch entire new models over the next several years should drive strong long-term demand as well. This will directly benefit our automotive component businesses which should continue to experience strong sales and earnings driven by efficient overhead absorption, as well as, indirectly benefit our large mould businesses and Castool which sell moulds and consumable components/tooling to OEMs and their tiers.

Our North American extrusion tooling businesses are experiencing growing sales and our tool shops in Colombia and Texas are capturing market share in their regional markets. Extrusion Brazil and Castool Thailand should also improve as sales continue to ramp up. All these factors, taken together, should sustain growing sales momentum.

(For further information and prior year comparison please refer to the Company’s First 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 5,081 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://event.on24.com/r.htm?e=921284&s=1&k=1AED3FC525F557C36A5BA220063AB983 a few minutes before the event. Questions can be submitted via the Q&A box on the webcast console or by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191. Microsoft Media Player is required for access to the webcast. For those unable to listen on January 28, 2015, an archived version will be available on the Exco website.

Information in this document relating to projected growth and financial performance of the Company’s business units, contribution of our 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, weakening raw material prices, continuing economic recovery, currency fluctuations which may in fact not occur and the rate at which our new operations in Brazil and Thailand achieve profitability. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in this Annual Report, our Annual Information Form (“AIF”) 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.

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TORONTO, Jan. 5, 2015/CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the first quarter ended December 31, 2014 after the close of business on Wednesday January 28, 2015.

The Annual General Meeting of Shareholders of Exco Technologies Limited will also take place on January 28, 2015 at 4:30 p.m. (Toronto time) 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 at that time.

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=921284&s=1&k=1AED3FC525F557C36A5BA220063AB983 a few minutes before the event. Questions can be submitted via the Q&A box on the webcast console or by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191. Microsoft Media Player is required for access to the webcast. For those unable to listen on January 28, 2015, an archived version will be available on the Exco website.

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• Sales up 73% in the quarter
• Earnings up 20% in the quarter
• $31.2 million cash on hand
• $10.0 million cash, net of bank indebtedness
• EBITDA up 41% to $15.6 million in the quarter

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

Consolidated sales for the fourth quarter ended September 30, 2014 were $110.9 million – an increase of 73% compared to last year. Full year, consolidated sales were $368.3 million – up 51% 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. However, Exco’s other businesses also grew by 20% in the quarter and 16% in the year.

The Automotive Solutions segment reported significantly higher sales of $64.9 million in the fourth quarter and $198.8 million for the year – increases of 173% and 116% respectively. ALC sales in the quarter were $34.3 million and for the year (7 months) were $83.9 million. The other businesses in this segment experienced strong growth in both the quarter and the year by 29% and 25% 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 $46.0 million for the fourth quarter and $169.4 million for the year – increases of 14% for the quarter and 11% for the year. 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 the year.

Consolidated net income for the fourth quarter was $8.1 million or diluted earnings of $0.19 per share compared to consolidated net income of $6.8 million or diluted earnings of $0.16 per share last year – an increase of 20%. Full year consolidated net income was $30.7 million or diluted earnings of $0.73 per common share compared to $23.6 million or diluted earnings of $0.58 per common share last year – an increase of 30%.

The table below includes adjusted net income and adjusted earnings per share, which are non-IFRS measures, and reconciles reported net income and reported earnings per share to adjusted net income and adjusted earnings per share, where the adjustments are for non-operational expenses and expenses higher than historical levels. Management believes adjusted net income and adjusted earnings per share are useful measures that facilitate period-to-period operating comparisons. Adjusted net income and adjusted earnings per share do not have any standardized meanings prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.

The adjusted net income in the current quarter and for the full year were $9.2 million and $34.6 million or adjusted diluted earnings of $0.22 and $0.83 per common share.

Notably, start-up losses at our greenfield facilities in Brazil and Thailand were almost completely offset by improvement in earnings at our two recently acquired extrusion tooling operations in Colombia and Texas.
The Automotive Solutions segment reported higher pretax profit of $6.3 million in the fourth quarter – an increase of 41% over last year. For the full year, the segment also reported higher pretax profit of $23.9 million – an increase over last year of 41% as well. In both Europe and North America, stronger sales provided increased earnings. This earnings improvement took place in spite of relatively weak performance at ALC South Africa/Lesotho which experienced elevated inventory, logistics and production relocation costs. ALC is currently launching the Mini seat cover program, relocating production from South Africa to Lesotho and in the fourth quarter has absorbed the impact of customer summer shutdowns in August.

The Casting and Extrusion segment reported pretax profit of $6.8 million in the fourth quarter compared to $5.1 million pretax profit quarter last year – an increase of 34%. For the full year, the segment reported pretax profit of $25.0 million compared to $21.9 million last year – an increase of 14%. 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 are expect to recede over the next two quarters, pretax income in the current quarter and full year for this segment would have been $7.3 million and $27.0 million compared to $5.2 million and $22.2 million in the same periods last year. This represents an increase of 42% in the quarter and 21% full year.

Consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter was $15.6 million compared to $11.0 million in the same quarter last year – an increase of 41%. For the full year, consolidated EBITDA was $53.9 million compared to $43.0 million last year – an increase of 26%.
Operating cash flow before net changes in non-cash working capital increased this year to $42.0 million from $32.1 million in fiscal 2013. Net change in non-cash working capital was $1.6 million cash used compared to $9.2 million cash used last year. Cash provided by operating activities increased to $40.4 million compared to $22.9 million last year – an increase of 77%. Exco had no net bank debt as at September 30, 2014 even after spending $17.3 in cash for the ALC acquisition and closed the year with net cash deposits of $10.0 million compared to $5.4 million upon closing of the ALC acquisition in Q2 and $26.1 million at last year end.
The outlook for Exco over the near term should continue to remain strong. We continue to see a buoyant and dynamic quoting environment. In addition to the recently announced 10 speed transmission tooling program for General Motors, there are numerous small cylinder powertrain programs and structural parts coming up for quote. Demand for extrusion dies and Castool consumable componentry is also expected to remain strong as both these business groups expand from their traditional base in North America to South American and Asian markets. The Automotive Solutions group is also actively engaged in quoting on both existing programs and new content as well. The recent award of a $35 million seat cover program for Audi in Europe is a very favorable development which helps balance our ALC customer base. Management expects other businesses in this group to also benefit from this vibrant quoting environment.

All our businesses are experiencing a favorable input cost environment with relatively abundant supply of both tool grade steel and resin sheet and other polymer-based materials. Pricing is also stable with little upward pressure as both global sourcing by our business units and falling prices for key commodities such as oil and base metals commodities, although mitigated by the strengthening US dollar, take effect.
(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)

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 5,009 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/1437209/1597379 a few minutes before 10:00 AM on November 27, 2014. Microsoft Media Player is required for access. For those unable to listen on November 27, 2014, an archived version will be available on the Exco website.

Information in this document relating to projected growth and financial performance of the Company’s business units, contribution of our 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, weakening raw material prices, continuing economic recovery, currency fluctuations which may in fact not occur and the rate at which our new operations in Brazil and Thailand achieve profitability. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in this Annual Report, our Annual Information Form (“AIF”) 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.

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TORONTO, Nov. 3, 2014 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the fourth quarter ended September 30, 2014 on Wednesday November 26, 2014.

A conference call to discuss those results will be held on Thursday, November 27, 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/1437209/1597379 a few minutes before the event. Real Player is required for access. For those unable to participate on November 27, 2014, an archived version will be available on the Exco website.

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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.

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• 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.

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.

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• 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.

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.

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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

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