Exco Technologies Limited - Results for Fourth Quarter Ended September 30, 2013
TORONTO, Nov. 26, 2013 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its fourth quarter ended September 30, 2013. In addition, the Company announced the quarterly dividend of $0.045 per common share which will be paid on December 27, 2013 to shareholders of record on December 13, 2013. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
Consolidated sales for the fourth quarter ended September 30, 2013 were $64.0 million - an increase of $2.3 million or 4% compared to the same quarter last year and an increase of $1.6 million or 3% over the third quarter. Annual consolidated sales were $244.6 million - an increase of $2.1 million or 1% compared to last year.
The Company's fourth quarter consolidated net income was $6.8 million (basic $0.17 per share; diluted $0.16 per share) compared to $7.1 million (basic $0.18 per share; diluted $0.17 per share) in the same quarter last year. The large mould business experienced non-recoverable costs associated with new die builds and inefficiencies with regard to the production of silafont moulds and other new mould programs. In addition, travel, general and administrative costs associated with the greenfields in Brazil and Thailand and the integration of Extrusion Texas also eroded fourth quarter earnings. Mr. Robbins, CEO of the Company said "that our earnings in the quarter, although slightly lower than last year, were off for a very good reason - we are investing in our future. Without the new programs, greenfield facilities and acquisitions we have undertaken we would have had better earnings than last year but would have no foundation for future growth."
For the year the Company reported consolidated net income of $23.6 million or $0.58 per share compared to consolidated net income of $24.4 million or $0.60 per share last year - a decrease of 3%. Net income for the year was impacted by a $1.5 million withholding tax charge on the repatriation of surplus from a subsidiary. Excluding this withholding tax charge, the Company's consolidated net income for the current year would have been $25.2 million (basic $0.62 per share; diluted $0.61 per share) - an increase of 3% from last year.
The Company continues to push ahead with its previously announced capital investment plans investing $5.7 million in the fourth quarter and $23.2 million for the full year compared to $1.4 million and $7.7 million last year. Included in the current year were $1.5 million spent on the acquisition of Extrusion Texas, $1.2 million for the purchase of the remainder of the Colombian production facility, $5.6 million investment in the Extrusion Brazil greenfield and $1.3 million investment in the Castool Thailand greenfield.
Despite significant capital expenditures in the current year, the Company's cash position on September 30, 2013 was $26.1 million compared to $31.2 million at the beginning of the year.
The overall outlook for Exco over the next several quarters remains consistently strong. The two major trends of strong light vehicle production volumes in North America and steady introduction of new or refreshed vehicles and powertrain systems by virtually all OEMs remain intact. These trends continue to benefit our Automotive Solutions Segment, Castool and our large mould businesses and the growth in the geographic footprint of the Extrusion group should continue to grow its sales as well. Design and technological innovations at Exco have been successful in materially advancing our prospects as evidenced by significant silafont die booked business and considerable increase in our cooperation with OEM's product development for interior trim components in premium vehicles. The emphasis in the Casting and Extrusion segment will be to manage several disruptive factors without eroding our margins and earnings. These factors include continuing our machinery and equipment upgrade and replacement program and efficiently rolling out our greenfield projects (Thailand and Brazil) while continuing to meet delivery dates in an environment of increasing order backlog and tight delivery schedules.
In Europe the market situation, although still problematic, is improving. Polydesign should experience improving demand in the coming year. The smooth launch of the new sun visor program for Range Rover is now at full volumes. Several delayed Ford programs were launched in the current quarter and other new programs scheduled to launch in 2014 should not only insulate Polydesign from the worst of European market conditions but also ensure that its sales and earnings continue to improve next year.
Management continues to search for an accretive 'tuck-under' acquisition in the European automotive interior trim sector where the prospects for such opportunities, on reasonable terms, is more promising.
The Company's operational excellence continues to be recognized by its many and varied customers. Polytech in Mexico received the Toyota Motor Sales Quality Alliance Gold Award and the General Motors Supplier Excellence Award. Polydesign in Morocco was awarded the General Motors/Opel/Vauxhall Supplier Quality Excellence Award and the Johnson Control Europe Supplier Excellence Award. All of these awards recognize superior overall supplier performance.
(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 2,316 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/1224599/1348629 a few minutes before 10:00 AM on November 27, 2013. For those unable to listen on November 27, 2013, 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 growth and financial performance of the Company's business units, contribution of our businesses (particularly our start-up business units in Brazil, Thailand, Texas and Colombia) and Polydesign, managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments, input costs and 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 rate of economic growth in North America and Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts 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 2012 Annual Report, in our 2012 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.
For further information:
|© 2017 All rights reserved|