Category: news

TORONTO, July 17, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) issues a correction to the news release published on July 16, 2018.  The earlier news release had an incorrect headline indicating the announcement of second quarter results on August 1, 2018, however, the accurate news release should reflect the announcement of third quarter results on August 1, 2018.  The corrected news release follows in its entirety.

Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the third quarter ended June 30, 2018 after the close of business on Wednesday, August 1, 2018.

A conference call to discuss those results will be held on Thursday, August 2, 2018 at 10:00 a.m. (Eastern time) which can be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 6875219.

To access the live audio webcast, please log on to www.excocorp.com, or  https://edge.media-server.com/m6/p/gtzjx66o a few minutes before the event. 

Questions can be submitted via the conference call. 

For those unable to participate on August 2, 2018, an archived version will be available on the Exco website.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 6,755 people and service a diverse and broad customer base.

TORONTO, July 16, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced that it will report its financial results for the third quarter ended June 30, 2018 after the close of business on Wednesday, August 1, 2018.

A conference call to discuss those results will be held on Thursday, August 2, 2018 at 10:00 a.m. (Eastern time) which can be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 6875219.

To access the live audio webcast, please log on to www.excocorp.com, or  https://edge.media-server.com/m6/p/gtzjx66o a few minutes before the event. 

Questions can be submitted via the conference call. 

For those unable to participate on August 2, 2018, an archived version will be available on the Exco website.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 6,755 people and service a diverse and broad customer base.

• Sales of $148.4 million and EBITDA of $19.0 million
• EPS of $0.25 in the quarter
• Continued sequential improvement in quarterly results
• Quarterly dividend of $0.085 declared
• Balance sheet and liquidity remain very strong

TORONTO, April 25, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced results for its second fiscal quarter ended March 31, 2018. In addition, the Company announced a quarterly dividend of $0.085 per common share which will be paid on June 29, 2018 to shareholders of record on June 14, 2018.   The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

“Exco continued to demonstrate sequential earnings improvement again this quarter”, said Brian Robbins, President and CEO of Exco. “We see many opportunities that will enable us to carry this momentum through the remainder of our fiscal year”, added Robbins.

Consolidated sales for the second quarter ended March 31, 2018 were $148.4 million compared to $153.8 million in the same quarter last year – a decrease of $5.4 million or 4%. Year-to-date sales were $283.3 million compared to $306.9 million – a decrease of $23.6 million or 8%. Over the quarter exchange rates added $0.5 million to revenues reflecting the net impact of a lower US dollar and higher Euro relative to the Canadian dollar.

The Automotive Solutions segment reported sales of $98.4 million in the second quarter – a decrease of $7.9 million or 7% from the same quarter last year. Sales were lower at the company’s North American based operations (Polytech, Neocon and AFX) by 15% in the quarter due in part to an relatively large inventory pipeline fill for certain products which occurred in the prior year quarter. Adverse foreign currency movements, lower vehicle production volumes and isolated pricing pressures also negatively impacted sales again this quarter. The impact of these factors however continues to moderate while new order activity for both new and existing products remains encouraging. These trends are demonstrated by a rise in North American segment sales by 6% on a sequential basis. Sales were higher at the segment’s European operations (ALC and Polydesign) by 7% over the prior year quarter due mainly to favorable foreign currency movements and new program launches at both Polydesign and ALC. Quoting activity within the segment’s European businesses remains very active and management continues to expect an increase in new order wins as the year progresses, particularly at ALC, further to that business’ strategy of increasing its diversity of customers and products. More broadly, management remains focused on exiting or repricing business with inadequate profitability. While this initiative may pressure segment sales in the quarters ahead, it is expected to have a positive impact on segment profitability and margins.

The Casting and Extrusion segment reported sales of $50.0 million for the second quarter – an increase of $2.5 million or 5% from the same quarter last year. Within the segment, sales were higher in each of the Extrusion, Large Mould and Castool group’s during the quarter. Factors behind these increases include higher volumes in the Large Mould group as activity has picked up following recent program awards, market share gains associated with the continued seasoning of Extrusion group greenfield plants and enhanced quality initiatives, a rebound in capital equipment sales at the Castool group, selective price increases and a general improvement in overall market conditions. These factors were partially offset by adverse foreign exchange rate movements as well as continuing pockets of competitive pressures. New order activity remained relatively robust throughout the quarter across most of the segment’s businesses. In anticipation that these trends will continue, management continues to invest significant capital to further improve the efficiency of its operations and its market share potential.

Consolidated net income for the second quarter was $10.6 million or basic and diluted earnings of $0.25 per share compared to $12.6 million or $0.30 per share in the same quarter last year – a decrease in net income of 16%. The effective consolidated income tax rate was 23% in the current quarter compared to 29% in the same quarter last year. The current period tax rate was favorably impacted by a reduction to the corporate income tax rate in the US and shift in profitability towards lower tax-rate jurisdictions.

The Automotive Solutions segment reported pretax profit of $10.7 million in the second quarter – a decrease of $4.3 million or 29% compared to the same quarter last year. In North America, pretax profits were lower due to lost contribution from lower sales as well as a net reduction in segment margins. Pre-tax profit margins were lower at Polytech, Neocon and AFX by 310 basis points on a combined basis compared to the prior year quarter arising from reduced overhead absorption, unfavorable product mix variance, adverse foreign exchange rate movements as well as isolated competitive pricing pressures and isolated raw material cost inflation. The aggregate of these pressures receded from the prior sequential quarter, helped by the implementation of various initiatives, supporting an 11% increase in profitability for the segments’ North American businesses on this basis. In Europe, higher margins and overall profitability were reported at Polydesign which benefited from stronger revenues and reduced operational disruption following a period of exceptional sales growth through most of fiscal 2017. Improved results at Polydesign however were offset by higher operating losses at ALC, which widened to $2.0 million ($0.05 per share) during the quarter from $1.0 million ($0.02 per share) last year due to costs associated with repositioning the business for the launch of several new programs and in anticipation of additional program wins in the quarters ahead. ALC’s results continue to be adversely impacted by one uneconomic program that management expects to terminate or re-price in the very near term. Quoting activity for new business remains robust, which management expects will lead to new program awards and contribute to a steady improvement to ALC’s results over the next year.

The Casting and Extrusion segment reported pretax profit of $4.9 million in the second quarter – a decrease of $0.4 million or 8% from the same quarter last year. During the quarter, essentially all of the reduction in segment profitability occurred within the Castool group which faced higher input costs – particularly for raw materials – coupled with an unfavorable product mix shift and adverse foreign exchange rate movements. Pricing and further efficiency initiatives to offset these pressures have been implemented, however the positive effect only started to become evident near the end of the quarter. Profits in the Extrusion group were stable year over year notwithstanding higher revenue due to ongoing operational investments to harmonize manufacturing processes among the group’s various plants in support of further efficiency improvement. As well, raw material cost inflation has become increasingly pronounced in recent months. While a good portion of these higher costs are being passed on through effective price increases within the Extrusion group, the net effect is a modest drag on profitability and pretax profit margin. The Large Mould group realized stable profitability year over year during the quarter notwithstanding higher revenues associated with the ramp up of activity related to recent program awards. Efficiency benefits from its prior capex project at the group’s plant in Newmarket, Ontario have started to be harnessed and investments in similar equipment are now being made at the group’s two other plants within prior capex guidance. Management notes that profitability of the Large Mould group continues to improve sequentially although margin compression has occurred due to higher input costs and unfavorable product mix associated with customer timing requirements.

Operating cash flow before net change in non-cash working capital totaled $16.0 million in the current quarter. This cash flow funded $8.1 million of working capital investments, $4.7 million in net capital investments and $0.3 million in net interest payments. The remaining cash flow together with $2.0 million in incremental net borrowings was used to fund the company’s quarterly dividend payment ($3.6 million) and repurchase its share capital ($1.3 million net of issuance proceeds). Exco’s net debt totaled $12.8 million as at March 31, 2018. During the quarter, Exco renewed its $50.0 million credit facility for an additional three-year period, extending the maturity date until February 2021.

The Company has also approved an amendment to its by-laws which provide for prior notice to the Company of the nomination of any individual to the Board of the Company. This by-law amendment is effective immediately and will be submitted to the shareholders of the Company at the next annual meeting scheduled to take place in early 2019.

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

Quarterly Conference Call – April 26, 2018 at 10:00 a.m. (Toronto time):

To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/m6/p/pc84jorq a few minutes before the event.  The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 7494289.  Questions can be submitted via the Q&A box on the webcast console or via the conference call. 

For those unable to participate on April 26, 2018, an archived version will be available on the Exco website.

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

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 17 strategic locations in 8 countries, we employ 6,879 people and service a diverse and broad customer base.

Notice To Reader:  Forward Looking Statements

Information in this document relating to projected growth and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions and operating efficiencies are forward-looking statements.

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “expect”, “believe”, “estimates” and similar expressions to identify forward-looking information and statements especially with respect to growth and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions and operating efficiencies are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, assumptions about the number of automobiles produced in North America and Europe, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles, raw material prices, economic conditions, currency fluctuations, trade restrictions, our ability to close or otherwise dispose of unprofitable operations in a timely manner, our ability to integrate acquisitions and the rate at which our operations in Brazil and Bulgaria 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 2017 Annual Report, our 2017 Annual Information Form (“AIF”) and other reports and securities filings made by the Company.  This information is available at 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.

TORONTO, April 11, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced that it will report its financial results for the second quarter ended March 31, 2018 after the close of business on Wednesday, April 25, 2018.

A conference call to discuss those results will be held on Thursday, April 26, 2018 at 10:00 a.m. (Eastern time) which can be accessed by dialling toll free at (866) 572-8261 or internationally at  (703) 736-7448.  The conference ID is 9982117.

To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/m6/p/b6vz7ip3  a few minutes before the event. 

Questions can be submitted via the conference call.

For those unable to participate on April 26, 2018, 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 6,600 people and service a diverse and broad customer base.

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

TORONTO, Feb. 09, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) (“Exco” or the “Company”) today announced that the Toronto Stock Exchange (“TSX”) has approved the Company’s normal course issuer bid (“NCIB”). Under the NCIB, Exco has the right to purchase for cancellation, from February 16, 2018 to February 15, 2019, a maximum of 1,000,000 common shares, representing 3.8% of the 26,281,608 shares forming Exco’s public float as at February 2, 2018.  As of February 2, 2018, Exco had 42,369,381 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 46,264 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 11,566 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,000,000 common shares for the period of February 16, 2017 to February 15, 2018, the Company has purchased, as of February 2, 2018, 336,600 common shares on the open market at a weighted average purchase price of $9.78 per common share.

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

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 17 strategic locations in 8 countries, we employ 6,671 people and service a diverse and broad customer base.

Contact:         Darren Kirk, Chief Operating Officer & Executive Vice-President
Telephone:     (905) 477-3065 ext. 7233
Website:         https://www.excocorp.com

TORONTO, Feb. 01, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) announced voting results from its 2017 annual meeting of shareholders held on January 31, 2018. A total of 24,813,784 Common Shares or 58.46% of our issued and outstanding Common Shares, were voted in connection with the meeting. Shareholders voted by a show of hands in favour of each item of business. Based on proxies received prior to the meeting, each director nominee was elected by a substantial majority as follows:

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

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 17 strategic locations in 8 countries, we employ 6,600 people and service a diverse and broad customer base.

TORONTO, Jan. 31, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced a quarterly cash dividend of $0.085 per common share to be paid on March 29, 2018 to shareholders of record on March 15, 2018. This dividend represents a 6% increase from previous levels. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

Brian Robbins, CEO of Exco said, “I am pleased to announce this dividend increase, which reflects our confidence in Exco’s ability to continue generating significant free cash flow in the years ahead.” The annualized dividend represents 36% of Exco’s trailing twelve month adjusted net income. This is the ninth time Exco has raised its dividend in eight consecutive years during which time the dividend increased well over 300%.

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 6,671 people and service a diverse and broad customer base.

• Sales of $134.9 million and EBITDA of $17.3 million
• EPS of $0.21 in the quarter
• Quarterly dividend raised 6% to $0.085 per common share
• Large mould group signs $18.5 million in new orders raising order backlog to $31.3 million
• Balance sheet and liquidity remain very strong

TORONTO, Jan. 31, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced results for its first fiscal quarter ended December 31, 2017. In addition, the Company announced a 6% increase in its quarterly dividend to $0.085 per common share which will be paid on March 29, 2018 to shareholders of record on March 15, 2018.  The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

“While Exco reported softer revenues and profits in our first fiscal quarter compared to the prior year period, we remain bullish on our prospects for continued sequential improvement through the remainder of the year,” said Brian Robbins, President and CEO of Exco.

Consolidated sales for the first quarter ended December 31, 2017 were $134.9 million compared to $153.1 million in the same quarter last year – a decrease of $18.2 million, or 12%. Over the quarter the average USD/CAD exchange rate was 4% lower from the prior year period ($1.28 versus $1.34), reducing revenue by $4.2 million. The average EUR/CAD exchange rate was higher in the quarter compared to last year ($1.51 versus $1.44), increasing sales by $2.0 million.

The Automotive Solutions segment reported sales of $88.3 million in the first quarter – a decrease of $19.9 million, or 18%, from the same quarter last year. Foreign exchange movements decreased segment sales by $0.7 million, reflecting the net effect of the lower USD/CAD exchange rate on our North American businesses and higher EUR/CAD exchange rate on our European businesses. Lower revenues were primarily driven by a reduction of $11.1 million, or 34%, at ALC due mainly to the permanent closure of the group’s Lesotho operations and the wind down of the BMW 5 Series seat program. The volume and mix of mini seat covers was an added pressure, however this was offset by increased revenues from newer programs and favorable foreign exchange rate movements. Segment sales were also negatively impacted by lower vehicle production levels in North America, which management estimates reduced the combined revenues of Polytech, Neocon and AFX by approximately $5.7 million. The timing of program launches, isolated competitive pricing pressures and adverse foreign exchange rate movements also negatively impacted revenues of the segment’s North American operations. Management believes recent negative vehicle production trends in North America reflect the re-implementation of seasonal production curtailments in the summer and December holiday periods by automotive OEMs as they adjust production to match modestly softer end market demand. With these trends now absorbed in the historical periods, Management does not expect further material year over year vehicle production declines in North America through calendar 2018. Partially offsetting these factors were higher revenues at Polydesign, which increased by 13% due to the continued launch of several new programs and favorable foreign exchange movements.

The Casting and Extrusion segment reported sales of $46.6 million for the first quarter – an increase of $1.7 million, or 4%, from the same quarter last year. Foreign exchange movements decreased segment sales by $1.5 million. Sales were up strongly in the Castool group as capital equipment sales levels improved and demand for consumable components in both the diecast and extrusion end markets were firmer, particularly in Asia and Europe, which contributed to a 61% rise in sales at Castool’s Thailand operations. Sales levels were also higher at the Extrusion group despite adverse foreign exchange rate movements with growth recorded at four of the group’s five operating plants, the exception being its operations in Colombia. The Large mould group recorded modestly lower sales during the quarter driven by customer timing requirements, softness in spare parts sales and adverse foreign exchange rate movements. New awards during the quarter within the Large mould group however totaled a very robust $18.5 million, boosting the group’s order backlog to $31.3 million. As well, quoting activity for additional business remains solid, which management expects will have positive implications for sales in future quarters.

Consolidated net income for the first quarter was $8.9 million or basic and diluted earnings of $0.21 per share compared to $11.5 million or $0.27 per share in the same quarter last year – a decrease in net income of 22%. Net income in the comparative quarter was reduced by $1.2 million ($0.03 per share) related to charges associated with the closure of ALC’s operations in Lesotho which were not tax effected. This contributed to a 31% tax rate in the prior year quarter compared to an effective consolidated income tax rate of 26% in the current year period. The current year period tax rate was also favorably impacted by the reduced corporate income tax rate in the US and a shift in profitability towards operations located in lower tax-rate jurisdictions.

The Automotive Solutions segment reported pretax profit of $9.5 million in the first quarter – a decrease of $5.2 million or 35% over the same quarter last year. In North America, pretax profits were lower due to reduced sales as well as a net reduction in segment margins. Pre-tax profit margins were lower at Polytech, Neocon and AFX by 420 basis points on a combined basis arising from reduced overhead absorption, unfavorable product mix variance, adverse foreign exchange rate movements as well as isolated competitive price pressures and isolated raw material cost inflation. These pressures are being offset with various initiatives, although there is some lag before the associated benefits accrue. In Europe, operating losses at ALC widened to $1.5 million ($0.03 per share) during the quarter from $0.6 million ($0.01 per share) the prior year period due to reduced overhead absorption and costs associated with repositioning the business to accommodate the launch of several new programs. As a result of these initiatives, management expects steady reduction in ALC’s losses as the year progresses. Partially offsetting these factors were higher margins and overall profitability at Polydesign which benefited from higher revenues and reduced operational disruption following a period of exceptional sales growth through most of fiscal 2017. Closure costs associated with Lesotho in the prior year quarter amounted to $1.2 million (including a $0.7 million non-cash asset writedown), which were recorded outside of the segment results.

The Casting and Extrusion segment reported modestly lower pretax profit of $4.7 million in the first quarter – a decrease of $0.3 million or 7% from the same quarter last year. Most of this reduction occurred in the large mould group which had lower absorption rates and was negatively impacted by unfavorable product mix. Efficiencies from the large capex project at the group’s plant in Newmarket, Ontario have started to be harnessed however relatively modest production volumes in the quarter precluded the associated benefit from being realized to a material degree. Management expects such benefit will increasingly accrue as volumes ramp up from recent contract awards, noting that profitability in the large mould group improved sequentially from Q4 fiscal 2017. The Castool group’s profitability was modestly lower despite the higher sales due to a combination of adverse foreign exchange rate movements, competitive pricing pressures, raw material price increases and a mix shift towards lower margin products. Profitability at Castool’s operations in Thailand however improved significantly from prior year levels when a loss was incurred, and the group is undertaking various initiatives aimed at reversing recent profit trends. Profit at the Extrusion group was notably stronger from prior year levels despite adverse foreign exchange rate movements as the group continues to benefit from improved manufacturing efficiencies, price increases and the continued seasoning of its greenfield operations in Texas and Brazil.

The Corporate segment expenses were $1.8 million in the first quarter compared to $1.4 million in the prior year quarter due mainly to $0.2 million of unfavorable foreign exchange rate movements and $0.1 million of incremental non-cash stock based compensation expense related to the Stock Option Plan and the Board of Directors Deferred Stock Unit Plan.

Operating cash flow before net change in non-cash working capital totaled $15.1 million in the first quarter. After changes in working capital requirements, net cash provided by operating activities amounted to $12.3 million in the current quarter. This cash flow was more than sufficient to fund $0.3 million of interest expense and $9.5 million of capital expenditures in the quarter, including $5.1 million for the purchase of the building where AFX’s operations are located. Remaining cash flow contributed to the funding of the company’s quarterly dividend and repurchase of $0.5 million of share capital. Exco’s net debt totaled $12.1 million as at December 31, 2017.

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

Quarterly Conference Call – January 31, 2018 at 4:30 p.m. (Toronto time):

To access the live audio webcast, please log on to www.excocorp.com, or  https://edge.media-server.com/m6/p/pc84jorq a few minutes before the event.  The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 7494289.  Questions can be submitted via the Q&A box on the webcast console or via the conference call. 

For those unable to participate on January 31, 2018, an archived version will be available on the Exco website.

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 17 strategic locations in 8 countries, we employ 6,671 people and service a diverse and broad customer base.

Notice To Reader:  Forward Looking Statements

Information in this document relating to projected growth and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions and operating efficiencies are forward-looking statements.

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “expect”, “believe”, “estimates” and similar expressions to identify forward-looking information and statements especially with respect to growth and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions and operating efficiencies are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, assumptions about the number of automobiles produced in North America and Europe, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles, raw material prices, economic conditions, currency fluctuations, trade restrictions, our ability to close or otherwise dispose of unprofitable operations in a timely manner, our ability to integrate acquisitions and the rate at which our operations in Brazil and Bulgaria 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 2017 Annual Report, our 2017 Annual Information Form (“AIF”) and other reports and securities filings made by the Company.  This information is available at www.sedar.com.

^{_________________
1} Non-IFRS Measures:  In this News Release, reference is made to EBITDA and order backlog, which are not measures 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. Order backlog is the estimate unearned portion of revenues on customer contracts that are in process and have not been completed at the specified date.

TORONTO, Jan. 08, 2018 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced that it will report its financial results for the first quarter ended December 31, 2017 after the close of business on Wednesday January 31, 2018.

The Annual General Meeting of Shareholders of Exco Technologies Limited will also take place on January 31, 2018 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  https://edge.media-server.com/m6/p/pc84jorq a few minutes before the event.  The conference call can be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448.  The conference ID is 7494289.  Questions can be submitted via the Q&A box on the webcast console or via the conference call. 

For those unable to participate on January 31, 2018, an archived version will be available on the Exco website.

• Sales of $131.4 million for the quarter and $584.2 for the year
• EPS of $0.18 in the quarter compared to $0.25 prior year
• Adjusted EPS of $1.03 for the year; unchanged from prior year
• Record free cash flow of $49.0 million for the year
• Balance sheet and liquidity remain very strong

TORONTO, Nov. 29, 2017 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX:XTC) today announced results for its fourth quarter and year ended September 30, 2017. In addition, the Company announced the quarterly dividend of $0.08 per common share which will be paid on December 28, 2017 to shareholders of record on December 13, 2017.   The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada. 

“Exco experienced a challenging quarter in both of its business segments,” said Brian Robbins, CEO of Exco, noting that lower vehicle production volumes in North America, adverse foreign exchange rate movements, higher accruals for inventory obsolescence in its Automotive Solutions segment, and increasingly competitive market conditions were key factors in the results. “While our financial results this quarter are clearly disappointing, we do not believe they are indicative of our future potential,” added Robbins.

“On a brighter note we expect the groundwork laid in fiscal 2017 from our various efficiency initiatives and sales efforts will pave the way for an improvement to our financial results in fiscal 2018. As well, Exco’s financial position remains very strong as we ended the quarter with net debt of just $10.9 million,” added Robbins.

In the fourth quarter, consolidated sales were $131.4 million – a decrease of $31.6 million or 19% from the prior year. Over the quarter the average USD/CAD exchange rate was 5% lower ($1.25 versus $1.31 last year) reducing sales by $4.0 million. The average EUR/ CAD exchange rate was nominally higher ($1.48 versus $1.46 last year) increasing sales by $0.3 million compared to the fourth quarter of fiscal 2016. 

The Automotive Solutions segment experienced a 26% decrease in sales, or $30.6 million, to $87.1 million from $117.7 million in the fourth quarter of 2016. The decline was mainly due to the closure of ALC’s operations in South Africa in late fiscal 2016 and Lesotho in early fiscal 2017 coupled with the wind-down of the BMW 5-Series seat cover program by February 2017 which was only partially compensated by the launch of new programs. AFX also contributed to the lower sales driven by reduced vehicle production volumes of passenger cars in North America. As well, Polytech and Neocon recorded modestly lower combined sales year over year arising mainly from reduced production volumes of light trucks (including SUVs and CUV’s) where each of these businesses have meaningful exposure. These factors were compounded by the timing of program launches at the segment’s various businesses and, management believes, destocking within inventory channels which can occur at the front end of vehicle production declines. Partially offsetting these factors were higher sales at Polydesign due mainly to ongoing program launches. The lower average value of the US dollar compared to the Canadian dollar reduced segment sales by $2.5 million in the current quarter. The higher value of the Euro compared to the Canadian dollar increased segment sales by $0.3 million in the current quarter.

The Casting and Extrusion segment recorded sales of $44.3 million compared to $45.3 million last year – a decrease of $1 million or 2%. This was driven mostly by lower sales from the Castool group arising from reduced demand for capital equipment as well as increased pricing pressure for certain consumable components, particularly in North America. Large mould segment sales were also modestly lower compared to the prior year quarter however sales were higher in the Extrusion group driven by increases from each of that business units five operating plants. The lower average value of the US dollar compared to the Canadian dollar reduced segment sales by $1.5 million in the current quarter. Fluctuations between the Canadian dollar and Euro did not meaningfully impact segment sales in the quarter.

The Company’s fourth quarter consolidated net income decreased to $7.5 million or earnings of $0.18 per share compared to $10.5 million or earnings of $0.25 per share in the same quarter last year – an EPS decrease of 28%. The effective income tax rate was 27.4% in the current quarter compared to 35.0% in the same quarter last year. The effective tax rate in the current period was improved by the proportion of earnings generated in lower tax rate jurisdictions. Also, last years tax expense included withholding taxes of $0.9 million ($0.02 per share).

Fourth quarter pretax earnings in the Automotive Solutions segment totalled $8.9 million, a decrease of $5.5 million or 38% over the same quarter last year. This deterioration was driven primarily by the lower sales volumes compounded by margin weakness caused by reduced absorption of factory overhead expenses, and unfavorable product mix shifts. These trends were particularly evident at AFX and to a lesser extent at Polytech and Neocon during the quarter. As well, ALC losses increased compared to the prior year driven by weaker than expected volumes from the Audi A5 seat cover program, inventory write-down charges and the non-recurring nature of a $0.6 million asset disposal gain recognized in the prior year quarter. Polydesign recorded both strong top line growth and margin expansion during the quarter compared to the same quarter last year which partially offset the foregoing factors.

Fourth quarter pretax earnings in the Casting and Extrusion segment fell by $1.1 million or 29% over the same quarter last year to $2.8 million. The earnings decrease was mainly due to lower sales, unfavorable product mix shifts and reduced absorption of fixed costs in both the Castool and large mould businesses, partially offset by stronger results in the Extrusion group. Casting and Extrusion depreciation and amortization expenses totalled $3.3 million in both the fourth quarter of 2017 and 2016.

The Corporate segment in the fourth quarter recorded expenses of $0.9 million compared to $1.6 million last year with the lower amount mainly due to reduced incentive compensation expense. As a result of the forgoing, EBITDA in the quarter decreased to $15.8 million (12.0% of sales) compared to $22.2 million (13.6% of sales) last year. For the full year, consolidated EBITDA totalled $83.2 million compared to $83.4 million last year. 

Cash provided by operating activities increased to $66.4 million for the year compared to $65.5 million last year as modestly lower net income was offset by improved working capital management. These funds were ample to fund $16.0 million of net capital expenditures, $1.3 million of net interest expense and $13.2 million of dividends for the year. Exco used the remaining amount of cash generated to repurchase its common shares ($1.5 million) and reduce its net debt position to $10.9 million at year-end.

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.

1 Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, adjusted EPS and free cash flow which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before other income/expense, interest, taxes, depreciation and amortization and EBITDA Margin as EBITDA divided by sales. Exco calculates adjusted EPS as earnings before other income/expense and free cash flow as cash provided by operating activities less interest paid less investment in fixed assets net of proceeds of disposal. EBITDA, EBITDA Margin, adjusted EPS and free cash flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.

Quarterly Conference Call:
To access the live audio webcast, please log on to www.excocorp.com or https://edge.media-server.com/m6/p/6sxtbwug a few minutes before the event.  Real Player is required for access.  For those unable to participate on November 30, 2017, an archived version will be available on the Exco website.

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

About Exco Technologies Limited:

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 17 strategic locations in 8 countries, we employ 6,609 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, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles, 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 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 2017 Annual Report, our 2017 Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.