Exco Technologies Limited - Results for First Quarter Ended December 31, 2015, Dividend Raised 17%
TORONTO, Feb. 3, 2016 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2015. In addition, the Company increased its quarterly dividend by 17% to $0.07 per common share which will be paid on March 30, 2016 to shareholders of record on March 16, 2016. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
Consolidated sales for the first quarter ended December 31, 2015 were $130.9 million compared to $119.9 million in the same quarter last year – an increase of $11.0 million or 9%. The Automotive Solutions segment reported sales of $77.7 million in the first quarter – an increase of $5.2 million or 7% over last year. The Casting and Extrusion segment reported sales of $53.2 million for the first quarter – an increase of $5.8 million or 12%.
Consolidated net income for the first quarter was $11.8 million or basic and diluted earnings of $0.28 per share compared to $9.6 million or $0.23 per share in the same quarter last year – an increase of 23%. Earnings were impacted by a higher effective consolidated income tax rate of 31% in the current quarter compared to 26.8% last year.
The Automotive Solutions segment reported pretax profit of $9.1 million in the first quarter – an increase of $1.3 million or 16% over last year. The Casting and Extrusion segment reported pretax profit of $10.0 million in the first quarter – an increase of $2.5 million or 34%. Corporate segment expenses remained unchanged at $1.8 million in the first quarter compared to the prior year.
Strong earnings contributed to higher consolidated EBITDA for the first quarter which totaled $21.0 million compared to $16.9 million in the same quarter last year – an increase of 24%.
Operational achievement was recognized in the quarter with Neocon receiving Honda's top supplier excellence award and Polytech receiving the Platinum Toyota Quality Alliance Award.
Over the quarter, the average USD/CAD exchange rate was 17% higher ($1.34 versus $1.14 last year), contributing $9.6 million in additional sales. The average EUR/CAD exchange rate was 4% higher ($1.45 versus $1.41 last year), contributing $1.0 million in sales. Approximately $5.6 million of this benefit to sales was realized in the Automotive Solutions segment while $5.0 million was realized in the Casting and Extrusion segment.
Cash flow from operating activities totalled $17.2 million in the first quarter, including $0.6 million provided by non-cash working capital – a substantial improvement over last year. Cash used in investing activities totalled $9.7 million, mainly for capital equipment purchases. The Company balance sheet remains strong with cash net of bank debt totalling $31.0 million at quarter end compared to $24.5 million as at September 30, 2015.
(For further information and prior year comparison please refer to the Company's First Quarter Condensed 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 19 strategic locations in 10 countries, we employ 5,362 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 here a few minutes before the event. Questions can be submitted via the Q&A box on the webcast console or by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191. Microsoft Media Player is required for access to the webcast. For those unable to listen on February 3, 2016, an archived version will be available on the Exco website.
Any information in this document relating to projected growth and financial performance of the Company's business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions and operating efficiencies are forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements found mainly in the Outlook section but also elsewhere throughout this document. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, assumptions about the number of automobiles 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, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles, weakening raw material prices, continuing economic recovery, currency fluctuations which may in fact not occur and the rate at which our new operations in Brazil and Thailand achieve profitability. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. For a more extensive discussion of Exco's risks and uncertainties see the 'Risks and Uncertainties' section in this Annual Report, our Annual Information Form ("AIF") and other reports and securities filings made by the Company. This information is available at www.sedar.com.
While Exco believes that the expectations expressed by such forward-looking statements are reasonable, we cannot assure that they will 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
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