Author: Exco HO

TORONTO, Feb. 16, 2016 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it has signed a conditional purchase agreement to acquire a group of private companies (the “Target”) organized under the laws of Mexico and Michigan, whereby a wholly-owned U.S. subsidiary of Exco intends to acquire all of the shares of the Target.

The agreement is subject to receipt of applicable regulatory approvals and other customary closing conditions, as well as the finalization of certain due diligence items to Exco’s satisfaction. Exco currently anticipates the conditional elements will be satisfied by March 31, 2016 with closing of the transaction expected immediately following, although there can be no assurance this will occur.

Pursuant to the terms of the agreement, the transaction value, excluding assumed debt of US$4 million, totals approximately US$73 million. Assuming the transaction is completed, Exco intends to fund this amount with a combination of cash on hand, part of the proceeds from a new C$100 million committed operating credit facility and notes payable to certain shareholders of the Target, which are due over the subsequent three years. The transaction will not require significant integration or restructuring charges and is expected to be immediately accretive to Exco’s earnings per share. The Target generated revenue of approximately C$115 million (equivalent) in 2015.

Founded in the 1990’s, the Target is a leading tier 2 supplier of interior trim components to a diversified group of North American automotive customers. Additional details, including the name of the Target will be released after closing, until which time they remain subject to a confidentiality agreement.

Exco has gained extensive leather and seat trim expertise over the years, which has enabled it to develop its Automotive Solutions Group into a globally competitive supplier in all manner of fabric, vinyl and leather cut and sewn products. Exco believes the Target’s high quality operations are extremely complementary to its existing automotive interior trim business but will also provide Exco with new capabilities and customer relationships that are expected to translate into additional growth opportunities over time.

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.

Any information in this news release relating to the satisfaction of the conditions, the closing of the transaction or the closing of the committed credit facility are forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements in this news release.  These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, assumptions about the outcome of due diligence which is continuing, possible emergence of material adverse changes which may emerge, and satisfaction of other conditions.

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.

SOURCE Exco Technologies Limited

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TORONTO, Feb. 4, 2016 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced voting results from its 2015 annual meeting of shareholders held on February 3, 2016. A total of 24,390,819 Common Shares or 57.5% of our issued and outstanding Common Shares, were voted in connection with the annual meeting. Shareholders voted by a show of hands in favour of each item of business. Based on proxies received prior to the meeting, each director nominee was elected by a substantial majority as follows:

For additional information, see Appendix A.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 19 strategic manufacturing locations in 10 countries, we employ 5,362 people and service a diverse and broad customer base.

Appendix A

VOTING RESULTS – 2015 ANNUAL MEETING OF SHAREHOLDERS

Notes:

(1) Based on proxies submitted

(2) 120,312 shares were not voted

(3) 24,325,045 shares (57.3%) were voted by proxy. 65,774 shares (less than 1%) were voted in person at the meeting

SOURCE Exco Technologies Limited

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TORONTO, Feb. 3, 2016 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced a quarterly cash dividend of $0.07 per common share to be paid on March 30, 2016 to shareholders of record on March 16, 2016.  This dividend represents a 17% increase. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Brian Robbins, CEO of Exco said, “Strong business fundamentals continue to support our financial performance. In light of this and after having reviewed Exco’s capital needs over the balance of the year together with its liquidity position, I am pleased to announce this dividend increase”. This is the seventh increase in six years over which time the dividend increased 250%.

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.
 
SOURCE Exco Technologies Limited

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• Sales up 9% in the quarter
• Net Income up 23% in the quarter
• Quarterly dividend raised 17% to $0.07 per common share
• EBITDA up 24% to $21 million in the quarter
• Net cash position increased to $31 million at quarter end

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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TORONTO, Jan. 13, 2016 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced that it will report its financial results for the first quarter ended December 31, 2015 after the close of business on Wednesday February 3, 2016.

The Annual General Meeting of Shareholders of Exco Technologies Limited will also take place on February 3, 2016 at 4:30 p.m. (Toronto time) at Exco’s corporate office and management will discuss year-end and first quarter results at that time. Management will also take questions from the public at that time.

To access the live audio webcast, please log on to www.excocorp.com, or http://event.on24.com/r.htm?e=1107555&s=1&k=012A736AA640DC5C058A2582D9B0618A a few minutes before the event.  The conference call can be accessed by dialling (647) 427-7450 for local (Toronto) calls or toll free at (888) 231-8191.

Questions can be submitted via the Q&A box on the webcast console or via the conference call. 
For those unable to participate on February 3, 2016, an archived version will be available on the Exco website.

SOURCE Exco Technologies Limited

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• Sales up 18% in the quarter
• Earnings up 27% in the quarter
• EPS reduced by $0.05 for impact of tax asset write-off
• $24.5 million cash, net of bank indebtedness
• EBITDA up 41% to $21.9 million in the quarter

TORONTO, Dec. 2, 2015 /CNW/ – Exco Technologies Limited (TSX-XTC) today announced results for its fourth quarter and year ended September 30, 2015. In addition, the Company announced the quarterly dividend of $0.06 per common share which will be paid on December 30, 2015 to shareholders of record on December 16, 2015. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

Consolidated sales for the fourth quarter were $131.0 million – an increase of 18% compared to last year. Full year, consolidated sales were $498.3 million – up 35% over last year. Sales from our seat cover business which was acquired by Exco on March 1, 2014 were fully included in both the current and prior year quarters. However, full year sales this year included twelve months of seat cover sales compared to seven months last year. While seat cover sales accounted for a considerable amount of the sales growth Exco’s other businesses also grew by 24% in the quarter and 21% in the year.

The Automotive Solutions segment reported significantly higher sales of $78.5 million in the fourth quarter and $303.1 million for the year – increases of 21% and 52% respectively. Seat cover sales in the quarter were up 6% to $36.3 million and for the year were up 77% to $148.3 million once again reflecting full year inclusion compared to seven months last year. The other businesses in this segment experienced strong growth in both the quarter and the year by 38% and 35% respectively. North American sales continued at elevated levels – sustained by strong vehicle unit sales as well as new product launches for refreshed, redesigned or entirely new vehicle models. European sales increased substantially over prior year as the smooth launch of new programs in Morocco continued at a strong pace and our Bulgarian operation completed the launch of our Mini variants as well as some other non-seat cover programs. Improving European vehicle unit sales have also helped support our sales.

The Casting and Extrusion segment reported sales of $52.5 million for the fourth quarter and $195.2 million for the year – increases of 14% and 15% respectively. All businesses in the segment contributed to these sales increases. Sales in this segment were supported by generally buoyant market conditions in North America and in the case of Castool Europe and Asia as well. Combined sales from our greenfield facilities in Brazil and Thailand contributed modestly at $1.7 million in the quarter ($721 thousand – 2014) and $5.1 million for the year ($758 thousand – 2014).

Consolidated net income for the fourth quarter was $10.3 million or diluted earnings of $0.24 per share compared to consolidated net income of $8.1 million or diluted earnings of $0.19 per share last year – an increase of 27%. Full year consolidated net income was $40.8 million or diluted earnings of $0.96 per common share compared to $30.7 million or diluted earnings of $0.73 per common share last year – an increase of 33%.

The quarter’s earnings were impacted by a 42% effective tax rate compared to 27% last year. In the quarter Exco wrote off $1.9 million in deferred tax assets related to South Africa as the planned closure of that facility renders the utilization of these tax assets unlikely in the future. Without this write-off the tax expense would have been $5.5 million or 31% and earnings would have been $0.29 per share instead of $0.24 per share as reported.

The Automotive Solutions segment reported higher pretax profit of $10.1 million in the fourth quarter – an increase of 59% over last year. For the full year, the segment also reported higher pretax profit of $36.6 million – an increase over last year of 53%. In both Europe and North America, stronger sales provided increased earnings. This earnings improvement took place in spite of continuing weakness at ALC South Africa/Lesotho which experienced higher losses in the quarter as production was moved among plants and as provisions were taken in the run up to the closure of the South Africa facility. These losses amounted to $0.05 per share in the quarter and $0.15 per share in the year.

The Casting and Extrusion segment reported pretax profit of $9.5 million in the fourth quarter compared to $6.8 million last year – an increase of 40%. For the full year, the segment reported pretax profit of $32.4 million compared to $25.0 million last year – an increase of 30%. These improvements took place in spite of start-up costs at our two greenfield facilities – Extrusion Brazil and Castool Thailand. Excluding these start-up costs, which are expected to recede as production increases, pretax income in the current quarter and full year for this segment would have been $10.3 million and $35.4 million compared to $7.2 million and $26.9 million in the same periods last year. This represents an increase of 43% in the quarter and 32% full year.
Consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter increased to $21.9 million compared to $15.6 million last year – an increase of 40%. For the full year, consolidated EBITDA also increased to $77.0 million compared to $53.9 million last year – an increase of 43%.

Cash provided by operating activities increased slightly to $41.2 million compared to $40.4 million last year – a steady level despite funding working capital required to grow sales by 35%. Exco had no net bank debt as at September 30, 2015 and closed the year with net cash deposits of $24.5 million compared to $7.8 million at the end of the 2014 fiscal year.

The outlook for Exco over the near term should continue to remain strong. We continue to see a buoyant and dynamic quoting environment with light vehicle production continuing at least at current levels despite the possibility of moderate interest rate tightening in the US. The European market also seems to be improving with unit vehicle production climbing modestly yet consistently. The Automotive Solutions group is also actively engaged in quoting on both existing programs and new content. Losses will continue at our greenfields in Brazil and Thailand in the near term with gradual improvement as manufacturing capabilities mature and higher production levels help to more efficiently absorb overheads. The expected closure of the South Africa facility in the second fiscal quarter is expected to significantly benefit earnings and enable management to focus on the remaining Lesotho operation.

All our businesses continue experiencing a favorable input cost environment with relatively abundant supply of both tool grade steel and resin sheet and other polymer-based materials. Pricing of these input costs are also stable with little upward pressure as both global sourcing by our business units and persistently low prices for key commodities such as oil and base metals commodities, although partly mitigated by the strengthening US dollar, make it difficult for upward cost momentum to take root.

(For further information and prior year comparison please refer to the Company’s Fourth Quarter Condensed Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com)

Quarterly Conference Call:
To access the live audio webcast, please log on to www.excocorp.com or
http://event.on24.com/r.htm?e=1096759&s=1&k=2C4C114CA78D54EE4ABC2CD04651A2EC a few minutes before the event. Real Player is required for access. For those unable to participate on December 3, 2015, an archived version will be available on the Exco website.

About Exco Technologies Limited:
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 18 strategic locations in 10 countries, we employ 5,302 people and service a diverse and broad customer base.

Notice To Reader: Forward Looking Statements
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 the 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.

1 Non-IFRS Measures: In this News Release, reference is made to EBITDA, which is not a measure of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use them as well. This measure, as calculated by Exco, may not be comparable to similarly titled measures used by other companies.

SOURCE Exco Technologies Limited

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