Exco Technologies Limited - Third Quarter ended June 30, 2008 - Quarterly Dividend Declared

TORONTO, July 29 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its third quarter ended June 30, 2008. In addition, the
Company announced that a quarterly cash dividend of $0.0175 per share will be
paid September 30, 2008 to shareholders of record on September 15, 2008. The
dividend is an "eligible dividend" in accordance with the Income Tax Act of
Canada.
 
            <<
            -------------------------------------------------------------------------
                                            9 Months ended          3 Months ended
                                                June 30                 June 30
 
                                              ($000s, except per share amounts)
 
                                            2008        2007        2008        2007
                                            ----        ----        ----        ----
            Sales                       $151,549    $151,274     $47,677     $51,574
            Net income from
             continuing operations        $7,355      $6,546      $3,147      $2,254
            Net loss from discontinued
             operations                    ($111)    ($1,411)       ($62)       ($86)
            Net income                    $7,244      $5,135      $3,085      $2,168
            Basic and diluted earnings
             per share from continuing
             operations                    $0.18       $0.16       $0.08       $0.05
            Basic and diluted loss
             per share from
             discontinued operations      ($0.00)     ($0.04)     ($0.00)     ($0.00)
            Basic and diluted earnings
             per share                     $0.18       $0.12       $0.08       $0.05
            Common shares outstanding     40,989      41,448      40,989      41,448
            -------------------------------------------------------------------------
            >>
 
            The financial results for the three months ended June 30, 2007 and nine
months ended June 30, 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
June 30, 2008 were $47.7 million compared to $51.6 million last year - a
decrease of $3.9 million or 7.6%. Year-to-date sales were $151.5 million - an
increase of $0.3 million or 0.2% compared to last year. The Canadian dollar
was effectively 'at par' with the US dollar during the quarter and year to
date. Reported profitability during the quarter demonstrates that the
Company's efforts to adapt to the strong Canadian dollar and rising material
cost have been taking effect. The timing of shipments in the large mould
businesses accounted for most of the sales weakness in the Casting and
Extrusion segment and declining production levels among our North American
automotive customers impacted sales in the Automotive Solutions segment.
            Net income from continuing operations for the quarter was up by 39.6% to
$3.1 million or $0.08 per share compared to $2.3 million or $0.05 per share
last year. Year-to-date, Exco reported net income from continuing operations
of $7.4 million or $0.18 per share compared to a net income of $6.5 million or
$0.16 per share in the prior year. Included in the current quarter was a
$1.8 million pre-tax gain on the sale of the Extec production facility in
Ontario which was closed earlier in the year. Operating losses and shutdown
expenses incurred at Extec reduced pre tax consolidated year to date earnings
from continuing operations by $873 thousand.
            Apart from these non recurring items earnings improved modestly at
Castool and at the extrusion die businesses as price increases and cost
cutting takes effect. Polydesign earnings have improved on stronger sales and
better overhead absorption. Polytech earnings have remained stable as cost
reductions have largely mitigated the impact of lower production while the
Neocon operations and the remaining two large mould businesses reported modest
losses in the quarter due to lower production levels.
            Operating cash flow in the current quarter increased to $4.2 million from
$2.4 million in the prior year and the Company's bank balances at quarter end
totalled $9 million compared to $5.7 million at the beginning of the fiscal
year. Exco's net cash position also increased to $6.5 million from
$4.5 million over the same period.
            While the overall raw material environment continues to be problematic as
pricing of steel and resin has continued to rise over the last quarter, there
are indications that these prices are levelling off. The combination of price
increases, cost reductions and migration of business to our low cost locations
should improve our margin. "In spite of current market conditions we continue
to be well positioned to capitalize on the opportunities presented by the
rapidly changing demand dynamics of the automotive market" said Brian Robbins,
President and CEO of Exco. "Our businesses remain leaders in their respective
markets and Exco expects to benefit once market conditions stabilize".
            (for further information please refer to the Company's Third Quarter
Interim Financial Statements in the Investor Relations section posted at
www.excocorp.com. Alternatively, please refer to www.sedar.com after July 29,
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 third quarter
results on Wednesday July 30, 2008 at 11:00 am (EST). The local dial in number
for the call is (416) 644-3414 or toll free 1-800-733-7571. 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 July 30, 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)
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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