IBC Advanced Alloys Corp. (“
IBC” or the
“
Company”) (
TSX-V: IB; OTCQB:
IAALF) announces its financial results for the year and
quarter ended June 30, 2021. A webcast for investors will be
conducted on Wednesday, Nov. 3, 2021, at 1 PM Eastern, and details
are provided below.
“Revenue continues to strengthen across both divisions, as
demand grows for products made by both our Copper Alloy and
Engineered Materials divisions,” said IBC CEO and Chairman Mark A.
Smith. “Demand from the semiconductor equipment manufacturing
industry for our precision cast beryllium-aluminum products
continues to rise, and we see that as a relatively long-term trend.
On the Copper Alloys side of the business, we very much look
forward to seeing our new casting facility come online and ramp up
production in 2022, which will allow us to expand production
capacity, lower unit costs of production, and potentially expand
into new markets.”
Following are highlights of the quarter and year ended June 30,
2021. Full results can be seen in the Company’s Financial
Statements and Management’s Discussion and Analysis (“MD&A”),
available at Sedar.ca and on the Company’s website at
https://ibcadvancedalloys.com/investors-center/.
- Consolidated sales of $7.0 million
and $21.8 million in the quarter and year ended June 30, 2021,
compared to sales of $5.1 million and $21.1 million, respectively,
in the corresponding prior-year periods, representing a 39%
quarter-over-quarter (“QoQ”) gain and a 3.1% year-over-year (“YoY”)
gain.
- Engineered Materials
(“EM”) division sales of $3.2 million in the
quarter, and $8.6 million in the year, represented increases of
51.7% and 25.3%, respectively, as compared to the comparable
prior-year periods. Copper Alloys (“CA”) sales of
$3.9 million in the quarter were 30.6% higher than sales in the
prior-year period, while fiscal year 2021 sales of $13.2 million
were lower by 7.5% YoY.
- The Company reported $394,000 in
adjusted earnings before interest, taxes, depreciation, and
amortization (“Adjusted EBITDA”)2 for the quarter
ending June 30, 2021, which compared to $455,000 for the prior-year
period. Adjusted EBITDA of $1.2 million in the year ended June 30,
2021, compared to $1.4 million in the comparable prior year. The CA
division’s Adjusted EBITDA rose by 43.2% YoY due to improved
production efficiencies and lower operating costs resulting from
the consolidation of the division’s foundry operations.
- Much of the increase in EM division
sales of cast beryllium-aluminum products continues to be driven by
sharply higher demand for semiconductor chips used in the ongoing
build-out of 5G networks and in vehicles, data centers, appliances,
and other components of the Internet of Things (“IOT”). EM makes
specialized products that are used in the manufacturing of
semiconductor chips.
- Construction of the CA division’s
new foundry facility is nearing completion. Once operational and
ramped up, the facility is expected to increase CA’s production
capacity, cut production costs, and potentially expand the
division’s product line.
- Consolidated gross margin improved
to 16.7% and 19.4%, respectively, in the quarter and year ended
June 30, 2021, as compared to 9.7% and 14% in the comparable
prior-year periods. Gross margin improvement in the CA division in
fiscal year 2021 was mostly driven by improved production
efficiencies, lower labor costs, and lower fixed operating costs
due to the consolidation of the foundry operations. The EM
division’s gross margin strengthened in fiscal year 2021 over 2020
due to fixed costs being spread over higher sales.
- IBC posted a consolidated loss of
$1.5 million for the year, or ($0.02) per share, primarily driven
by lower sales and softened demand in copper alloy markets due to
the COVID-19 pandemic. In the quarter, the EM and CA divisions each
generated comprehensive income of $175,000 and $19,000,
respectively. EM generated income of $755,000 for the year, while
CA generated a loss of $281,000 for the year.
SELECTED RESULTS: Consolidated Operations ($000s)3 |
|
Quarter Ended 6-30-2021 |
Quarter Ended6-30-2020 |
Year Ended 6-30-2021 |
Year Ended 6-30-2020 |
Revenue |
7,042 |
5,056 |
21,809 |
21,148 |
Operating Income (Loss) |
(12) |
(133) |
(253) |
(769) |
Income (loss) for the period |
(402) |
27 |
(1,521) |
(1,122) |
Adjusted EBITDA |
394 |
455 |
1,132 |
1,361 |
SELECTED RESULTS: Copper Alloys ($000s)3 |
|
Quarter Ended 6-30-2021 |
Quarter Ended6-30-2020 |
Year Ended 6-30-2021 |
Year Ended 6-30-2020 |
Revenue |
3,885 |
2,975 |
13,209 |
14,284 |
Operating Income (Loss) |
118 |
(413) |
18 |
(363) |
Income (loss) for the period |
19 |
(473) |
(281) |
(679) |
Adjusted EBITDA |
219 |
(278) |
328 |
229 |
SELECTED RESULTS: Engineered Materials ($000s)3 |
|
Quarter Ended 6-30-2021 |
Quarter Ended6-30-2020 |
Year Ended 6-30-2021 |
Year Ended 6-30-2020 |
Revenue |
3,157 |
2,081 |
8,600 |
6,864 |
Operating Income (Loss) |
207 |
403 |
957 |
488 |
Income (loss) for the period |
175 |
308 |
755 |
365 |
Adjusted EBITDA |
488 |
404 |
1,875 |
1,200 |
LIVE INVESTOR WEBCAST
Mark A. Smith, IBC Board CEO and Chairman, will host a
conference call and live webcast at 1:30 PM Eastern on Wednesday,
November 3, 2021, to discuss the Company’s quarterly and annual
results. To register for the webinar, please go here:
https://attendee.gotowebinar.com/register/4624598002122869259.
A recording of the webcast will be made available on the IBC
website following the event. Those wishing to participate via the
webcast’s listen-only audio line can call these numbers and this
passcode: 452-994-816.
Country |
Toll Number |
United States |
+1 (213) 929-4221 |
Canada |
+1 (647) 497-9368 |
Australia |
+61 2 8355 1054 |
Austria |
+43 7 2081 5505 |
Belgium |
+32 27 00 6376 |
Brazil |
+55 11 4118-4900 |
Bulgaria |
+359 2 906 0607 |
Chile |
+56 2 3214 9682 |
Colombia |
+57 1 600 9957 |
Czech Republic |
+420 2 96 21 62 29 |
Denmark |
+45 32 72 03 83 |
Finland |
+358 923 17 0563 |
France |
+33 170 950 597 |
Germany |
+49 721 6059 6530 |
Greece |
+30 21 0 300 2761 |
Hungary |
+36 1 933 3701 |
Ireland |
353 15 360 736 |
Israel |
+972 3 376 3072 |
Italy |
+39 0 230 57 81 43 |
Luxembourg |
+352 34 2080 9221 |
Malaysia |
+60 3 7724 4061 |
Mexico |
+52 55 5004 8758 |
Netherlands |
+31 202 251 019 |
New Zealand |
+64 9 887 3310 |
Norway |
+47 21 93 37 52 |
Panama |
+507 308 4338 |
Peru |
+51 1 642 9451 |
Romania |
+40 31 780 1160 |
South Africa |
+27 11 259 4926 |
Spain |
+34 932 75 2011 |
Sweden |
+46 853 527 829 |
Switzerland |
+41 225 4599 80 |
Turkey |
+90 216 900 2886 |
United Kingdom |
+44 330 221 9914 |
NON-IFRS MEASURES
To supplement its consolidated financial statements, which are
prepared and presented in accordance with IFRS, IBC uses “operating
income (loss)” and “Adjusted EBITDA”, which are non-IFRS financial
measures. IBC believes that operating income (loss) helps identify
underlying trends in the business that could otherwise be distorted
by the effect of certain income or expenses that the Company
includes in loss for the period, and provides useful information
about core operating results, enhances the overall understanding of
past performance and future prospects, and allows for greater
visibility with respect to key metrics used by management in
financial and operational decision-making. The Company believes
that Adjusted EBITDA is a useful indicator for cash flow generated
by the business that is independent of IBC’s capital structure.
Operating income (loss) and Adjusted EBITDA should not be
considered in isolation or construed as an alternative to loss for
the period or any other measure of performance or as an indicator
of our operating performance. Operating income (loss) and Adjusted
EBITDA presented here may not be comparable to similarly titled
measures presented by other companies. Other companies may
calculate similarly titled measures differently, limiting their
usefulness as comparative measures to IBC’s data.
Operating Income (Loss)
Operating income (loss) represents loss for the quarter and
year, excluding foreign exchange loss, interest expense, interest
income, other income (expense) and income taxes that the Company
does not believe are reflective of its core operating performance
during the periods presented. A reconciliation of the fourth
quarter and full year loss to operating loss follows:
Quarter Ended June 30 |
2021 |
|
2020 |
|
|
($000s |
) |
($000s |
) |
Income (loss) for the period |
(402 |
) |
27 |
|
Foreign exchange gain (loss) |
32 |
|
299 |
|
Interest income (expense) |
346 |
|
306 |
|
Loss on disposal of assets |
- |
|
6 |
|
Other (Income) / Loss |
19 |
|
(784 |
) |
Income tax expense (recovery) |
(7 |
) |
13 |
|
Operating loss |
(12 |
) |
(133 |
) |
Year ended June 30 |
2021 |
|
2020 |
|
|
($000s) |
|
($000s) |
|
Loss for the year |
(1,521 |
) |
(1,122 |
) |
Foreign exchange gain |
7 |
|
11 |
|
Interest income |
1,270 |
|
1,111 |
|
Gain (loss) on disposal of assets |
(2 |
) |
11 |
|
Other Income |
(20 |
) |
(800 |
) |
Income tax expense |
13 |
|
20 |
|
Operating loss |
(253 |
) |
(769 |
) |
Adjusted EBITDA
Adjusted EBITDA represents our income (loss) for the period
before interest, income taxes, depreciation, amortization and
share-based compensation. A reconciliation of the quarter’s and
year’s loss to Adjusted EBITDA follows:
Three months ended June 30 |
2021 |
|
2020 |
|
|
($000s |
) |
($000s |
) |
Income (loss) for the period |
(402 |
) |
27 |
|
Income tax expense (recovery) |
(7 |
) |
13 |
|
Interest expense |
346 |
|
306 |
|
Depreciation, amortization, & impairment |
394 |
|
166 |
|
Stock-based compensation expense (non-cash) |
63 |
|
(57 |
) |
Adjusted EBITDA |
394 |
|
455 |
|
Year ended June 30 |
2021 |
|
2020 |
|
|
($000s |
) |
($000s |
) |
Loss for the year |
(1,521 |
) |
(1,122 |
) |
Income tax expense |
13 |
|
20 |
|
Interest expense |
1,270 |
|
1,111 |
|
Depreciation, amortization, & impairment |
1,183 |
|
1,301 |
|
Stock-based compensation expense (non-cash) |
287 |
|
51 |
|
Adjusted EBITDA |
1,232 |
|
1,361 |
|
For more information on IBC and its innovative alloy products,
go here.
On Behalf of the Board of Directors:
“Mark A. Smith”
Mark A. Smith, CEO & Chairman of the Board
CONTACTS:Mark A. Smith, Chairman of the
BoardJim Sims, Investor and Public RelationsIBC Advanced Alloys
Corp.+1 (303) 503-6203Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com@IBCAdvanced $IB $IAALF
ABOUT IBC ADVANCED ALLOYS CORP.
IBC is a leading beryllium and copper advanced alloys company
serving a variety of industries such as defense, aerospace,
automotive, telecommunications, precision manufacturing, and
others. IBC’s Copper Alloys Division manufactures and distributes a
variety of copper alloys as castings and forgings, including
beryllium copper, chrome copper, and aluminum bronze. IBC’s
Engineered Materials Division makes the Beralcast® family of
alloys, which can be precision cast and are used in an increasing
number of defense, aerospace, and other systems, including the F-35
Joint Strike Fighter. IBC’s has production facilities in Indiana,
Massachusetts, and Pennsylvania. The Company’s common shares are
traded on the TSX Venture Exchange under the symbol “IB” and the
OTCQB under the symbol “IAALF”.
CAUTIONARY STATEMENTS
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy of this news release. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Certain information contained in this news release may be
forward-looking information or forward-looking statements as
defined under applicable securities laws. Forward-looking
information and forward-looking statements are often, but not
always identified by the use of words such as “expect”,
“anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”,
“intend”, “plan”, “seek”, “will”, “may” and “should” and similar
expressions or words suggesting future outcomes. This news release
includes forward-looking information and statements pertaining to,
among other things, the Company’s expectation of further growth in
revenue and market demand, and the ability of the Copper Alloy
division to increase its production capacity, reduce unit costs of
production, expand its product portfolio and expand into new
markets. Forward-looking statements involve substantial known and
unknown risks and uncertainties, certain of which are beyond the
Company’s control including: the impact of general economic
conditions in the areas in which the Company or its customers
operate, including the semiconductor manufacturing and oil and gas
industries, risks associated with manufacturing activities, changes
in laws and regulations including the adoption of new environmental
laws and regulations and changes in how they are interpreted and
enforced, increased competition, the lack of availability of
qualified personnel or management, limited availability of raw
materials, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required
approvals of regulatory authorities. As a result of these risks and
uncertainties, the Company’s future results, performance or
achievements could differ materially from those expressed in these
forward-looking statements. All statements included in this press
release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the
future are forward-looking statements. These statements are based
on assumptions made by the Company based on its experience,
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances.
Please see “Risks Factors” in our Annual Information Form
available under the Company’s profile at www.sedar.com, for
information on the risks and uncertainties associated with our
business. Readers should not place undue reliance on
forward-looking information and statements, which speak only as of
the date made. The forward-looking information and statements
contained in this release represent our expectations as of the date
of this release. We disclaim any intention or obligation or
undertaking to update or revise any forward-looking information or
statements whether as a result of new information, future events or
otherwise, except as required under applicable securities laws.
1 IBC reports non-IFRS measures such as “Adjusted EBITDA” and
“Operating Income.” Please see information on this and other
non-IFRS measures in the “Non-IFRS Measures” section of this news
release and in IBC’s MD&A, available on Sedar.com2 IBC reports
non-IFRS measures such as “Adjusted EBITDA” and “Operating Income.”
Please see information on this and other non-IFRS measures in the
“Non-IFRS Measures” section of this news release and in IBC’s
MD&A, available on Sedar.com3 IBC reports non-IFRS measures
such as “Adjusted EBITDA” and “Operating Income.” Please see
information on this and other non-IFRS measures in the “Non-IFRS
Measures” section of this news release and in IBC’s MD&A,
available on Sedar.com
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