- 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.
|
|
|
|
Three Months
ended
September
30
|
Twelve Months
ended
September
30
|
|
(in $ millions
except per share amounts)
|
|
2014
|
2013
|
2014
|
2013
|
Sales
|
$110.9
|
$64.0
|
$368.3
|
$244.6
|
Net income for the
period
|
$8.1
|
$6.8
|
$30.7
|
$23.6
|
Earnings per share
from net income
|
|
|
|
|
|
Basic
|
$0.19
|
$0.17
|
$0.74
|
$0.58
|
|
Diluted
|
$0.19
|
$0.16
|
$0.73
|
$0.58
|
Total
assets
|
$290.6
|
$195.1
|
$290.6
|
$195.1
|
Cash dividend paid
per share
|
$0.05
|
$0.045
|
$0.195
|
$0.173
|
EBITDA
|
$15.6
|
$11.0
|
$53.9
|
$43.0
|
Adjusted net
income
|
$9.2
|
$7.1
|
$34.6
|
$26.0
|
Earnings per share
from adjusted net income
|
|
|
|
|
|
Basic
|
$0.22
|
$0.17
|
$0.83
|
$0.64
|
|
Diluted
|
$0.22
|
$0.17
|
$0.83
|
$0.63
|
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.
|
Q4-2014
|
FY-2014
|
Q4-2013
|
FY-2013
|
Reported Net
income
|
$8,123
|
$30,656
|
$6,750
|
$23,632
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$0.19
|
$0.74
|
$0.17
|
$0.58
|
|
Diluted
|
$0.19
|
$0.73
|
$0.16
|
$0.58
|
Non-operating and/or
unusual items, net of income taxes:
|
|
|
|
|
|
Withholding tax on
dividend repatriation of surplus from subsidiary
|
113
|
220
|
-
|
1,530
|
|
Severance
|
267
|
864
|
231
|
317
|
|
Stock option
expense
|
37
|
638
|
76
|
275
|
|
Brazil and Thailand
start-up losses
|
367
|
1,466
|
62
|
219
|
|
ALC amortization of
customer relationship fair value adjustment
|
293
|
367
|
-
|
-
|
|
ALC due-diligence and
acquisition expenses
|
-
|
390
|
-
|
-
|
|
|
1,741
|
4,609
|
370
|
2,341
|
Adjusted Net
Income
|
$9,200
|
$34,601
|
$7,120
|
$25,973
|
Earnings per
share
|
|
|
|
|
|
Basic
|
$0.22
|
$0.83
|
$0.17
|
$0.64
|
|
Diluted
|
$0.22
|
$0.83
|
$0.17
|
$0.63
|
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.
SOURCE Exco Technologies Limited