Fourth Quarter and Fiscal Year ended September 30, 2012
- Fiscal Year Sales increased 20%
- Fiscal Year Profits increased 84%
- Fourth Quarter Profits increased 169%
- Quarter-end Cash on hand increased 103% to $31.2 million
- No bank debt
TORONTO, Nov. 30, 2012 /PRNewswire/ - Exco Technologies Limited today announced results for its fourth quarter and fiscal year ended September 30, 2012. In addition, the Company announced the quarterly dividend of $0.0375 per common share which will be paid on December 28, 2012 to shareholders of record on December 14, 2012. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
Three Months ended
Twelve Months ended
|($000s, except per share amounts)|
|Basic earnings per share||$0.18||$0.06||$0.60||$0.32|
|Diluted earnings per share||$0.17||$0.06||$0.60||$0.32|
|Common shares outstanding||40,623,011||40,961,823||40,623,011||40,961,823|
In the fourth quarter consolidated sales were $61.7 million - a $7.6 million or 14% increase over the prior year. The Casting and Extrusion segment recorded higher sales of $40.0 million compared to $34.4 million last year - an increase of 16%. The Automotive Solutions segment experienced a 10% increase in sales from $19.6 million last year to $21.7 million.
Annual consolidated sales totalled $242.5 million compared to $202.6 million last year - an increase of $39.9 million or 20% over last year. The Casting and Extrusion segment reported sales of $152.5 million - an increase of $24.2 million or 19% from the prior year. The Automotive Solutions segment reported sales of $90.0 million - an increase of $15.7 million or 21% from the prior year. This strong sales performance is in line with management's expectations and was primarily driven by organic growth in demand for Exco's products by a recovering and increasingly dynamic North American automotive marketplace.
The Company's fourth quarter consolidated net income increased to $7.1 million ($0.18 basic earnings per share or $0.17 diluted earnings per share) compared to $2.7 million ($0.06 basic and diluted earnings per share) in fiscal 2011 - an increase of 169%. Fourth quarter pretax earnings increased significantly in the Casting and Extrusion segment by $3.9 million or 169% over the same quarter last year. Fourth quarter pretax earnings also increased in the Automotive segment by $831 thousand or 28% over the same quarter last year.
The Company reported annual consolidated net income of $24.4 million or $0.60 per share compared to consolidated net income of $13.3 million or $0.32 per share last year - an increase of 84%. Casting and Extrusion pretax earnings increased by 99% to $22.4 million from $11.3 million in the prior year. The Automotive Solutions segment recorded pretax earnings of $15.3 million for the year compared to $11.7 million last year - an increase of 31%. The fourth quarter and full year earnings exceeded management's guidance and essentially reflect the impact of climbing sales in a high capacity utilization and tightly controlled fixed cost environment.
As we look toward the next year we believe the economic recovery in North American automotive industry should continue to grow at a slow but steady pace. With US interest rates now assured to be at historic low levels for numerous years to come, unit sales of light vehicles should continue to benefit from cheaper leasing and financing charges despite anaemic growth in the greater US economy. The elevated age of the average North American automobile on the road today - in excess of 10 years - and the better mileage of new vehicles also support stronger demand for light vehicles. Management believes this will directly benefit our automotive component businesses which should continue to experience strong sales and efficient overhead absorption, as well as, indirectly benefit our large mould businesses and Castool which sell moulds and consumable components/tooling to OEMs and their tiers. This relatively positive outlook may be undermined by political developments in the US during the first quarter of fiscal 2013 that may result in simultaneous increases in US taxes and sharply reduced government spending and the situation in European where fiscal austerity and recession throughout the Euro zone is so prevalent. However, in Europe management expects there will be minimal impact on its consolidated financial performance as its European operations are a relatively small part of its overall business.
Our extrusion tooling group is expected to continue executing its strategy of growing throughout emerging markets. In addition to its purchase of a tool shop in Colombia last year, which is now cashflowing, Exco is pleased to announce that it has purchased land in Sorocaba, Brazil and will be constructing a production facility there over the next year. The estimated cost including equipment is expected to be approximately $12 million over the next several years.
Mr. Robbins, President and CEO of Exco says "on this the 60th anniversary of the firm which my father created I am very pleased that we have produced the best financial results in our history. I also strongly support the reinvestment of some of these resources in the future long term development of our core businesses in markets which we hope to dominate with our strong reputation for technology and quality - as we currently do in our traditional North America 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 fourth 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 Fourth 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 2,213 people and service a diverse and broad customer base.
A conference call to discuss those results will be held on Monday, December 3, 2012 at 10:00 a.m. (Toronto time) which can be accessed by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191.
To access the live audio webcast, please log on to www.excocorp.com, or http://www.newswire.ca/en/webcast/detail/1065919/1159113 a few minutes before the event. Real Player is required for access. For those unable to participate on December 3, 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 sales growth and financial performance of the Company's business units, absorption of the Company's fixed costs, contribution of our businesses, input costs and other aspects of 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 number of extrusion dies required in North America and South America, the rate of economic growth in North America and Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts, the likelihood of austerity measures taken by developed countries (especially the U.S. and Europe) 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 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.
SOURCE Exco Technologies Limited