Stock Name: XTC
Amount: CAD 0.03
Announcement Date: 25/01/2012
Record Date: 12/03/2012
Dividend Detail:
Year over year Quarterly Sales increased 29%
Year over year Quarterly Profits increased 157%
Quarter-end Cash on hand $18 million
No bank debt
TORONTO, Jan. 25, 2012 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2011.
In addition, the Company announced that its quarterly cash dividend of
$0.03 per share will be paid on March 30, 2012 to shareholders of
record on March 14, 2012.The dividend is an "eligible dividend" in
accordance with the Income Tax Act of Canada.
| | |
| Three Months ended December 31 ($000s, except per share amounts) | |
| ||
| 2011 | 2010 |
Sales | 58,486 | 45,193 |
Net income | 5,286 | 2,054 |
Basic and diluted earnings per share | $0.13 | $0.05 |
Common shares outstanding | 40,925,227 | 40,912,823 |
Consolidated sales for the first quarter ended December 31, 2011 were
$58.5 million - an increase of $13.3 million or 29% compared to last
year. This quarter's sales growth continues the strong
post-recessionary recovery trend that began in 2010. The Casting and
Extrusion segment reported sales of $36.8 million - an increase of $9.4
million or 34% compared to last year. This growth was fuelled by
strong demand for automotive die cast moulds and die casting equipment
and components as well as improving demand for extrusion dies in North
America. Sales in the Automotive Solutions segment in the first
quarter were $21.7 million - an increase of $3.9 million or 22% over
last year. Growth here was principally driven by stronger vehicle
production volume in North America.
Consolidated net income for the first quarter was $5.3 million or $0.13
per share. This represents an increase of 157% over last year's
consolidated net income of $2.1 million or $0.05 per share. The
improvement in the current year's earnings was led by the Casting and
Extrusion segment with segment pretax income in the first quarter of
$5.4 million compared to segment pretax income of $946 thousand in the
same quarter last year. Within the segment, Edco and Excoeng Mexico
incurred a combined loss of approximately 1 cent per share and Exco
Colombia, where most start-up costs were expensed, incurred another 1
cent loss per share. The Automotive Solutions segment reported segment
pretax income in the first quarter of $3.3 million compared to segment
pretax income of $2.6 million in the same quarter last year.
Consolidated gross margin in the first quarter increased to 28.5% from
24.1% in the same quarter last year mainly from a significant
improvement in the Casting and Extrusion segment where the disruption
and inefficiency from closing an extrusion plant last year is over.
Operating cash flow before net changes in non cash working capital in
the first quarter increased to $6.8 million from $4 million last year.
Working capital in the current quarter has now begun to level off after
a sizeable sale-driven build-up over the last year. The Company's cash
position on December 31, 2011 increased to $18 million from $15.4
million at the beginning of the quarter reflecting improvement in
earnings.
The overall outlook for Exco over the next several quarters has not
materially changed from the last quarter. 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
components businesses, Castool and our large mould businesses. Our
large mould business in particular is experiencing strong demand from
its die cast customers who are themselves experiencing high production
requirements. In Europe the situation is much more subdued as
production volumes are expected to contract in 2012 - although to what
extent is currently unclear. Management also expects to focus on the
development of our new operations in Mexico and Colombia in an effort
to both improve financial performance and develop these dynamic
emerging markets.
The comparative amounts in the above analysis have been adjusted to
reflect the impact of the Company's transition to IFRS effective
October 1, 2010. Refer to Note 13 to the interim consolidated financial
statements for the first quarter for a full reconciliation of the
comparative period's interim consolidated financial statements under
GAAP to IFRS.
(For further information and prior year comparison please refer to the
Company's First Quarter Interim Financial Statements in the Investor
Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com)
Exco Technologies Limited is a global supplier of innovative
technologies servicing the die-cast, extrusion and automotive
industries. Through our 10 strategic locations, we employ 2,112 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=394641&s=1&k=B36B5F254585B38609735F9742575B90a few minutes before 4:30 PM on January 25, 2012. Questions can be
submitted via the Q&A box on the webcast console. Microsoft Media
Player is required for access. For those unable to listen on January
25, 2012, 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 two start-up business units and improvement
in 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 the number of automobile vehicles produced,
investment by OEMs in drivetrain architecture, the state of economic
conditions and currency fluctuations. 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 assumptionsare described in the
Company's Management's Discussion and Analysis included in our 2011
Annual Report, in our 2011 Annual Information Form and, from time to
time, in other reports and filings made by the Company with securities
regulatory authorities.
While the Company believes that the expectations expressed by such
forward-looking information and statements are reasonable, there can be
no assurance that such expectations and assumptions will prove to be
correct. In evaluating forward-looking information and statements,
readers should carefully consider the various factors which could cause
actual results or events to differ materially from those indicated in
the forward-looking information and statements. Readers are cautioned
that the foregoing list of important factors is not exhaustive.
Furthermore, the Company will update its disclosure upon publication of
each fiscal quarter's financial results and otherwise disclaims any
obligations to update publicly or otherwise revise any such factors or
any of the forward-looking information or statements contained herein
to reflect subsequent information, events or developments, changes in
risk factors or otherwise.
For further information:
| Source: | Exco Technologies Limited (TSX-XTC) |
| Contact: | Paul Riganelli, Vice-President, Finance and Chief Financial Officer |
| Telephone: | (905) 477-3065 Ext. 7228 |
| Website: | http://www.excocorp.com |
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