Exco Technologies Limited - Second Quarter ended March 31, 2008 - Quarterly Dividend Declared and Normal Course Issuer Bid Renewal
TORONTO, Apr. 23 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its second quarter ended March 31, 2008. In addition, the Company announced that a quarterly cash dividend of $0.0175 per share will be paid June 30, 2008 to shareholders of record on June 16, 2008. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
------------------------------------------------------------------------- 6 Months ended 3 Months ended March 31 March 31 ($000s, except per share amounts) 2008 2007 2008 2007 ---- ---- ---- ---- Sales $103,872 $99,700 $55,898 $53,249 Net income from continuing operations $4,208 $4,292 $2,844 $2,521 Net loss from discontinued operations ($49) ($1,325) $- ($662) Net income $4,159 $2,967 $2,844 $1,859 Basic and diluted earnings per share from continuing operations $0.10 $0.11 $0.07 $0.07 Basic and diluted (loss) per share from discontinued operations $0.00 ($0.04) $0.00 ($0.03) Basic and diluted earnings per share $0.10 $0.07 $0.07 $0.04 Common shares outstanding 41,020,000 41,406,000 41,020,000 41,406,000 -------------------------------------------------------------------------
The financial results for the three months ended March 31, 2007 and six months ended March 31, 2007 have been restated to reflect the classification of Exco's Techmire business as a discontinued operation.
Consolidated sales from continuing operations for the quarter ended March 31, 2008 were $55.9 million compared to $53.2 million last year - an increase of $2.7 million or 5%. Year-to-date sales were $103.9 million - an increase of $4.2 million or 4.2% compared to last year. The Canadian dollar was 17 cents stronger against the US dollar in the quarter and year-to-date compared to last year, reducing sales by approximately $5.2 million in the quarter and $9.8 million year-to-date. Given the magnitude of the Canadian dollar appreciation and declining production levels among our North American automotive OEM customers, management is pleased with the sales performance of its operations.
Net income from continuing operations for the quarter was up by 12.8% to $2.8 million or $0.07 per share compared to $2.5 million or $0.07 per share last year. The strong Canadian dollar, higher steel and oil based resin costs and freight costs at our North American operations continued to exert pressure on consolidated gross margin, however, lower selling, general and administrative expenses and strong sales to Europe from our Moroccan subsidiary contributed to higher consolidated earnings.
Exco's performance for the balance of the year will be impacted by the generally weak economic environment. The present weakness in the North American automotive and construction industries suggests that the economic environment for industrial and automotive components will likely remain soft for the balance of 2008. "I believe we are responding to these issues in a proactive and strategic manner" said Brian Robbins, President and CEO of Exco. "We continue to rationalize our North American operations while growing our Mexican and Moroccan presence."
The Company also announced that it will be renewing its normal course issuer bid for an additional twelve month period until May 7, 2009. Under the terms of the renewed bid, Exco may acquire up to 2,000,000 common shares, representing approximately 4.9% of Exco's currently issued and outstanding common shares. All purchases will be made through the facilities of, and in accordance with the rules of the Toronto Stock Exchange. All shares purchased under the bid will be cancelled. Under Exco's current normal course issuer bid which expires on May 7, 2008, Exco has to date purchased 458,100 common shares at an average price per share of $3.55. The Board of Directors of Exco believes that, given the Exco's strong cash position, the purchase of shares under the bid is an appropriate and desirable use of available funds.
(for further information please refer to the Company's Second Quarter Interim Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com after April 23, 2008.)
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 2,050 people and service a diverse and broad customer base.
Management will hold a conference call to discuss the second quarter results on Thursday April 24, 2008 at 10:00 am (EST). The local dial in number for the call is (416) 644-3417 or toll free 1-800-732-9307. To access the live audio webcast, please log on to www.excocorp.com or www.q1234.com a few minutes before the event. Real Player is required for access. For those unable to participate on April 24, 2008 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. 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. 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 2007 Annual Report, in our 2007 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 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 (TSX-XTC)
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