- Sales up 9% in the quarter
- Net Income up 23% in the quarter
- Quarterly dividend raised 17% to $0.07 per common share
- EBITDA up 24% to $21 million
in the quarter
- Net cash position increased to $31
million at quarter end
TORONTO, Feb. 3, 2016 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its first quarter
ended December 31, 2015. In addition,
the Company increased its quarterly dividend by 17% to $0.07 per common share which will be paid on
March 30, 2016 to shareholders of
record on March 16, 2016.
The dividend is an "eligible dividend" in accordance with the
Income Tax Act of Canada.
|
Three months
ended
December
31
|
(in $ thousands
except per share amounts)
|
|
|
|
2015
|
2014
|
Sales
|
$130,901
|
$119,897
|
Net income
|
$11,828
|
$9,638
|
Basic earnings per
share
|
$0.28
|
$0.23
|
Diluted earnings per
share
|
$0.28
|
$0.23
|
Common shares
outstanding
|
42,457
|
42,172
|
Consolidated sales for the first quarter ended December 31, 2015 were $130.9 million compared to $119.9 million in the same quarter last year – an
increase of $11.0 million or 9%. The
Automotive Solutions segment reported sales of $77.7 million in the first quarter – an increase
of $5.2 million or 7% over last
year. The Casting and Extrusion segment reported sales of
$53.2 million for the first quarter –
an increase of $5.8 million or
12%.
Consolidated net income for the first quarter was $11.8 million or basic and diluted earnings of
$0.28 per share compared to
$9.6 million or $0.23 per share in the same quarter last year –
an increase of 23%. Earnings were impacted by a higher effective
consolidated income tax rate of 31% in the current quarter compared
to 26.8% last year.
The Automotive Solutions segment reported pretax profit of
$9.1 million in the first quarter –
an increase of $1.3 million or 16%
over last year. The Casting and Extrusion segment reported pretax
profit of $10.0 million in the first
quarter – an increase of $2.5 million
or 34%. Corporate segment expenses remained unchanged at
$1.8 million in the first quarter
compared to the prior year.
Strong earnings contributed to higher consolidated EBITDA for
the first quarter which totaled $21.0
million compared to $16.9
million in the same quarter last year – an increase of
24%.
Operational achievement was recognized in the quarter with
Neocon receiving Honda's top supplier excellence award and Polytech
receiving the Platinum Toyota Quality Alliance Award.
Over the quarter, the average USD/CAD exchange rate was 17%
higher ($1.34 versus $1.14 last year), contributing $9.6 million in additional sales. The average
EUR/CAD exchange rate was 4% higher ($1.45 versus $1.41
last year), contributing $1.0 million
in sales. Approximately $5.6 million
of this benefit to sales was realized in the Automotive Solutions
segment while $5.0 million was
realized in the Casting and Extrusion segment.
Cash flow from operating activities totalled $17.2 million in the first quarter, including
$0.6 million provided by non-cash
working capital – a substantial improvement over last year. Cash
used in investing activities totalled $9.7
million, mainly for capital equipment purchases. The Company
balance sheet remains strong with cash net of bank debt totalling
$31.0 million at quarter end compared
to $24.5 million as at September 30, 2015.
(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 19 strategic locations in 10
countries, we employ 5,362 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
https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=1107555&sessionid=1&key=012A736AA640DC5C058A2582D9B0618A&sourcepage=register
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 February 3, 2016, an
archived version will be available on the Exco website.
Any 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.
SOURCE Exco Technologies Limited