Press release from CNW Group
Exco Technologies Limited - Results for Second Quarter Ended March 31, 2013
Wednesday, April 24, 2013
Exco Technologies Limited - Results for Second Quarter Ended March 31, 201316:30 EDT Wednesday, April 24, 2013
TORONTO, April 24, 2013 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its second quarter ended March 31, 2013. In addition, the Company announced the quarterly dividend of $0.045 per common share which will be paid on June 28, 2013 to shareholders of record on June 14, 2013. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
|Three Months ended
|Six Months ended
|($000s, except per share amounts)|
|Basic earnings per share||$0.14||$0.16||$0.28||$0.29|
|Diluted earnings per share||$0.14||$0.16||$0.28||$0.29|
|Common shares outstanding||40,695,195||40,569,811||40,695,195||40,569,811|
Consolidated sales for the second quarter ended March 31, 2013 were $59.6 million compared to $63.2 million last year. However, sales increased $895 thousand or 2% over the first quarter. Year-to-date consolidated sales were $118.3 million - a decrease of $3.4 million or 3% from last year. Sales were impacted in both segments with the Automotive Solutions Segment absorbing the impact of poor market conditions in Europe as well as a return to normal sales levels at Neocon where last year's unusually high post-tsunami surge in Japanese OEM demand abated. In the Casting and Extrusion segment sales were impacted by product mix and timing of deliveries in the large mould businesses which exceeded stronger sales at Castool and the extrusion group where Extrusion Colombia doubled its sales over last year and Extrusion Texas, which was purchased in the quarter, began to generate revenue.
Consolidated net income for the second quarter was $5.5 million or $0.14 per share compared to consolidated net income of $6.5 million or $0.16 per share in the same quarter last year. Year-to-date consolidated net income was $11.3 million or $0.28 per share compared to $11.8 million or $0.29 per share. However, consolidated gross margin in the second quarter was stronger at 28.2% compared to 28.1% in the same quarter last year. Year-to-date gross margin increased to 29.0% from 28.3% last year.
Explaining the difference between gross margin and pretax profit is travel and start up costs associated with our numerous greenfield projects (Extrusion Brazil and Castool in Thailand) and non recurring costs (acquisition costs for Extrusion Texas and restructuring of Allper) as well as foreign exchange and scientific research and experimental development differences. The combined impact of these various items is approximately 1.5 cents earnings per share in the quarter and 2 cents earnings per share year-to-date.
The Company continues to push ahead with its previously announced capital investment plans investing $7.3 million in the quarter and $10.8 million year-to-date compared to $1.0 million and $3.3 million last year. Included in the current quarter were $1.5 million for the acquisition of Extrusion Texas and $4.3 million in the greenfielding of Extrusion Brazil. Despite the significantly higher capital expenditure, the Company's cash position at the close of the second quarter ended March 31, 2013 decreased by only $2.9 million to $28.3 million from $31.2 million at the beginning of the year.
After the end of the quarter the Company also spent $1.2 million to purchase the leased portion of the Extrusion Colombia production facility.
The overall outlook for Exco into the next several quarters remains consistent with the last two quarters. The two major trends of strong light vehicle production volumes in North America and steady introduction of new or refreshed vehicles and powertrain systems by virtually all OEMs remain intact. These trends continue to benefit our automotive solutions segment, Castool and our large mould businesses. Growth in the geographic footprint of the extrusion group should continue to grow its sales as well. The emphasis in the Casting and Extrusion segment will be to manage several disruptive factors without eroding our margins and earnings. These factors include continuing our machinery and equipment upgrade and replacement program, efficiently rolling out our greenfield projects (Thailand and Brazil) and acquisitions (Extrusion Texas and Extrusion Colombia) while continuing to meet delivery dates in an environment of increasing yet fluid backlog.
In Europe the market situation, although much impaired, is not as problematic for Polydesign as thought to be at the start of the fiscal year. New program launches over the last several quarters have largely insulated Polydesign from the worst of the market conditions in Europe and its sales and earnings are holding up surprisingly well.
The significant increase in capital spending this year will continue in accordance with our previous announcements and it is expected that our cashflow from operations will continue to support these investments.
(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 11 strategic locations, we employ 2,221 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/1140143/1244449 a few minutes before 10:00 AM on April 25, 2013. For those unable to listen on April 25, 2013, 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), managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments, input costs and our operating efficiencies. Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in North America and Europe, the rate of economic growth in North America and Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts and currency fluctuations (particularly with respect to the US dollar, Euro and Mexican Peso). Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur. Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements. These risks, uncertainties and assumptions are described in the Company's Management's Discussion and Analysis included in our 2012 Annual Report, in our 2012 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.
SOURCE: Exco Technologies Limited
For further information:
Paul Riganelli, Senior Vice-President and Chief Operating Officer
(905) 477-3065 Ext. 7228