TORONTO, Jan. 14, 2022 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC) announced that it has corrected the release date of its first quarter results ending December 31, 2021 to after the close of business on Tuesday February 1, 2022 with a conference call on Wednesday February 2, 2022 at 10:00am.
Yesterday’s press release incorrectly stated that Exco’s first quarter results release date would be after the close of business on Wednesday February 2, 2022 with a conference call on Thursday February 3, 2022 at 10:00am.
To access the live audio webcast, please log on to www.excocorp.com, or https://edge.mediaserver.com/mmc/p/s4962zix a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 4594530.
For those unable to participate on February 2, 2022, an archived version will be available until February 10, 2022 on the Exco website or by dialling toll free at (855) 859-2056 or internationally at (404) 537-3406. The conference ID is 4594530.
As a reminder, the Annual Meeting of Shareholders of Exco Technologies Limited will be held virtually on January 26, 2022 at 4:30 p.m. (Toronto time). Participants can access the virtual Annual Meeting through the following link: https://virtual-meetings.tsxtrust.com/1235.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ approximately 4,900 people and service a diverse and broad customer base.
Source: Exco Technologies Limited (TSX-XTC) Contact: Darren Kirk, President & Chief Executive Officer Telephone: (905) 477-3065, Ext 7233 Website: https://www.excocorp.com
TORONTO, Jan. 13, 2022 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the first quarter ended December 31, 2021 after the close of business on Wednesday, February 2, 2022. Exco’s management will hold a conference call to discuss the results on Thursday, February 3, 2022 at 10:00 a.m. To access the live audio webcast, please log on to www.excocorp.com, or https://edge.mediaserver.com/mmc/p/s4962zix a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 4594530.
For those unable to participate on February 3, 2022, an archived version will be available until February 10, 2022 on the Exco website or by dialling toll free at (855) 859-2056 or internationally at (404) 537-3406. The conference ID is 4594530.
As a reminder, the Annual Meeting of Shareholders of Exco Technologies Limited will be held virtually on January 26, 2022 at 4:30 p.m. (Toronto time). Participants can access the virtual Annual Meeting through the following link: https://virtual-meetings.tsxtrust.com/1235.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ approximately 4,900 people and service a diverse and broad customer base.
Source: Exco Technologies Limited (TSX-XTC) Contact: Darren Kirk, President & Chief Executive Officer Telephone: (905) 477-3065, Ext 7233 Website: http://www.excocorp.com
TORONTO, Dec. 20, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF) a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries, today announced it has signed a definitive agreement to acquire the extrusion dies business of Halex Holdings GmbH (“Halex® Extrusion Dies”). The transaction is expected to close in the spring of 2022.
“This acquisition will provide us with well-established and high-quality operations, manufacturing complex extrusion dies in Europe and will also allow us to better support our global customers”, said Nick Gnatyuk, Vice President and General Manager of Exco’s Extrusion Group. “We have been looking to expand into Europe for some time and we see Halex as the perfect fit”.
Halex Extrusion Dies was founded in 1990 and operates four key manufacturing locations – two in Germany and two in the northern industrial region of Italy. The company is the second largest manufacturer of aluminium extrusion dies in Europe and the continent’s leading supplier of complex extrusion dies. Halex will complement Exco’s six existing extrusion die operations, located in Canada, USA (2), Mexico, Colombia and Brazil.
The transaction is valued at €40 million (C$58 million equivalent) on an enterprise value basis and will be funded with a combination of cash on hand and available bank lines. Halex will add almost €40 million in annual sales and is expected to be immediately accretive to Exco’s earnings per share. Exco will report the results of Halex within its Casting and Extrusion segment.
“The acquisition of Halex is a unique opportunity to add a strategic asset that will accelerate Exco’s growth and sustainability objectives”, said Darren Kirk, President and CEO of Exco. “We look forward to welcoming all Halex employees to Exco”.
A conference call to discuss the transaction will be held today at 10:00 am (Toronto time). To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/6idkgeqn a few minutes before the event. . The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 7280532.
Source:
Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF)
Contact:
Darren Kirk, President and Chief Executive Officer
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ about 4,900 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, and similar expressions to identify forward-looking information and statements, especially with respect to sales, earnings per share and transaction closing date. 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. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the ability to successfully close the transaction in the timing as indicated in this release, the current global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results or the future results of Halex. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure periodically 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 a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.
TORONTO, Dec. 02, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF) today announced it has published its inaugural Sustainability Report. This milestone reflects our growing focus on our Environmental, Social and Governance (ESG) priorities, and facilitates a deepening dialogue with our stakeholders about these issues.
“The world is increasingly oriented towards a sustainable future and Exco is committed to doing its part,” said Darren Kirk, President and CEO of Exco. “Our businesses directly support the electric vehicle revolution and the global sustainability movement. This presents significant opportunities for Exco to grow profitably while making a strong and positive contribution to the world in the years ahead,” added Kirk.
As discussed in the report, our ESG strategic priorities are built upon our core values and are designed to ensure that Exco achieves its vision – to be the benchmark for innovation, quality and efficiency in the industries we serve. Looking at our business strategies through the ESG lens is critical to our success in a world where all of our stakeholders are concerned with issues of environmental and social sustainability.
In addition to evolving marketplace dynamics, the report describes our initiatives to protect the environment, support our people, give back to society, and ensure robust corporate governance structures.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ about 4,900 people and service a diverse and broad customer base.
Sales of $106.4 million for the quarter and $461.2 million for the year
EPS of $0.18 for the quarter and $0.98 for the year
EBITDA of $15.3 million and EBITDA margin 14.4% in the quarter
Free Cash Flow of $37.3 million or $0.95 per share in Fiscal 2021
Balance sheet in a $18.6 million net cash position
TORONTO, Dec. 01, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC, OTCQX-EXCOF) today announced results for its fourth quarter and year ended September 30, 2021. In addition, the Company announced the quarterly dividend of $0.10 per common share which will be paid on December 31, 2021 to shareholders of record on December 17, 2021. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.
“Exco completed the final quarter of fiscal 2021 with relatively strong results despite a very challenging environment,” said Darren Kirk, Exco’s President and CEO. “We expect to build on this momentum in the year ahead as industry conditions normalize and recent program launches are fully ramped up. Longer term, our businesses will experience a continuing tailwind from the electric vehicle revolution and worldwide movement towards reducing emissions.”
Fourth quarter consolidated sales were $106.4 million – an increase of $5.7 million or 6% from the prior year. During the quarter, exchange rate movements decreased sales by $5.0 million.
The Automotive Solutions segment experienced a 7% decrease in sales, or a reduction of $4.4 million, to $56.8 million from $61.2 million in the fourth quarter of 2020. Excluding the impact of foreign exchange, segment sales decreased $1.4 million or 2%. The sales decline was driven by materially lower vehicle production volumes in both North America and Europe due to supply chain disruptions including semiconductor chip shortages and logistical constraints. North American vehicle production was down 25% during the quarter compared to a year ago and European vehicle production was down about 30%. The segment’s very modest top line decline in the context of this environment reflects the benefits of sizeable new program launches and favorable product mix, particularly at the segment’s Polytech and Neocon operations. Looking forward, OEM vehicle production volumes are expected to increase as the semiconductor chip availability improves. Exco will benefit from this development as well as the restocking of certain accessory products and higher volumes arising from new/ recent program launches. Quoting activity remains encouraging and we see ample opportunity to maintain our longer-term trend of increasing our content per vehicle across our portfolio of businesses.
The Casting and Extrusion segment recorded sales of $49.6 million in the fourth quarter compared to $39.5 million last year – an increase of $10.1 million or 26%. Excluding the negative impact of foreign exchange movements, the segment’s sales were up 31% for the quarter. The Extrusion group experienced higher sales at all locations, reflecting pricing action, increased demand for extrusion tools across all industry segments and operational improvements that have continued to reduce lead times contributing to market share gains. The Castool group’s revenues were higher for the quarter as demand for die-cast consumable tooling and extrusion products was solid, with a slightly stronger demand for the die-cast consumable tooling solutions leading the quarter. Castool growth was driven by increasing electric vehicle production which compensated for lower overall industry vehicle production. Castool continues to invest in new equipment and advance its proprietary tooling solutions which are increasingly required by customers as their manufactured components increase in size and complexity and as they focus on improving their own productivity and efficiency. The Large Mould group sales were up 34% from the prior year quarter with a mixture of new tools, die rebuilds and solid additive sales representing key drivers of the results. New business from current and new customers was awarded in the quarter; as a result, inventories and backlog continue to grow. Looking forward, quoting activity within all groups in this segment is strong and will benefit as automotive production rebounds.
The Company’s fourth quarter consolidated net income decreased to $7.1 million or earnings of $0.18 per share compared to $10.7 million or earnings of $0.27 per share in the same quarter last year – an EPS decrease of 33%. The effective income tax rate was 27% in the current quarter compared to negative 3% in the same quarter last year. The effective tax rate in the current period reflects the impact of non-taxable expenses in foreign jurisdictions and the payment of franchise and state taxes. The tax rate in the prior year quarter reflects the reversal of $2.3 million of deferred tax liabilities from resolved tax exposures and $0.3 million of R&D tax credits net of certain foreign tax adjustments. Excluding these items, the effective tax rate was 22% in the prior year quarter.
Fourth quarter pre-tax earnings in the Automotive Solutions segment totalled $4.5 million, a decrease of $2.8 million or 38% over the same quarter last year. Included in the prior year quarter was COVID-19 wage subsidies of $1.3 million. Current period profitability was negatively impacted by lower sales volumes and higher costs associated with the semiconductor shortage, which negatively impacted our ability to manage operations efficiently. In particular, order flow across most products was erratic as OEMs constantly reshuffled their own production schedules while our labour other overhead items were geared to a higher level of sales. As well, logistical challenges created increased expedite charges in some cases, we faced raw material cost inflation and also incurred severance costs. Management is optimistic that its overall cost structure will return to relatively normal levels in future quarters as scheduling and predictability improves with strengthening volumes.
Pre-tax earnings in the Casting and Extrusion segment improved by $1.7 million or 40% over the same quarter last year to $5.9 million. Excluding $2.7 million in COVID-19 subsidies received last year, segment profitability improved by $4.4 million. The earnings improvement was mainly driven by increased contributions from the Extrusion group. This group benefited from higher volumes and prices. Direct labour as a function of sales improved and fixed overheads were better absorbed. While higher sales at the Castool and Large Mould groups also positively impacted segment profitability, this benefit was countered by rising raw material prices, cost overruns with certain programs near completion and initial expenses for Castool’s new plant in Morocco.
The Corporate segment in the fourth quarter recorded expenses of $0.7 million compared to $1.1 million last year mainly due to foreign exchange gains in the current quarter compared to losses in the prior year period, partially offset by higher compensation expenses incurred in the current quarter. As a result of the foregoing, consolidated EBITDA in the quarter was $15.3 million (14.4% of sales) compared to $15.8 million (15.7% of sales) last year.
Exco generated cash from operating activities of $7.3 million during the quarter and $3.2 million of Free Cash Flow after $4.0 million in Maintenance Fixed Asset Additions. This cash flow, together with cash on hand was more than sufficient to fund fixed assets for growth initiatives of $7.7 million and $3.8 million of dividends. For the year, Exco generated Free Cash Flow of $37.3 million and returned $15.5 million to shareholders through dividend payments. Exco ended the year with $18.6 million in net cash and $68.6 million in available liquidity, including $24.1 million of balance sheet cash, continuing its practice of maintaining a very strong balance sheet and liquidity position.
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.
Non-IFRS Measures:In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Free Cash Flow and Maintenance Fixed Asset Additions which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation, amortization and other expenses and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes. Free Cash is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions. Maintenance Fixed Asset Additions represents investment in fixed assets that are required to continue current capacity levels. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) through the near term, the Company has modified its calculation of Free Cash Flow. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs.
Quarterly Conference Call: December 2, 2021 10:00 a.m.(Toronto time)
To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/n8go7q8w a few minutes before the event. The conference call can be accessed by dialing toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 5082034.
For those unable to participate on December 2, 2021, 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 16 strategic locations in 7 countries, we employ about 4,900 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, “estimate”, “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook 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, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the outlook for 2026, are forward-looking statements. 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. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current improving global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, 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 in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. 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 a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.
TORONTO, Nov. 16, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC, OTCQX – EXCOF) today announced the opening of its latest production facility by its Castool division in Kenitra, Morocco. This 40,000 sq. ft. building represents the third Castool division facility complementing our existing operations in Uxbridge, Canada and Chon Buri, Thailand.
“We started Castool in Canada in 1986 to support our existing die casting and extrusion customers, to make our customers’ castings and profiles better and faster,” said Paul Robbins, Castool’s Vice President and General Manager. “Since then, Castool has gained acceptance globally as a preferred supplier to many of the global automotive companies, extrusion press/die cast machine manufacturers, extruders and die casters.”
This new facility will enable Castool to better serve its customers in Europe, the Middle East, and Africa. It will also provide increased capacity to meet the growing global demand for larger and more complex tooling driven by the electric vehicle revolution the worldwide movement towards reducing emissions.
“I congratulate Castool on the opening of their facility in Morocco, where I know they will have tremendous success,” said Darren Kirk, President and CEO of Exco. “This represents Exco’s 16th strategic manufacturing facility and it is also an important driver towards achieving our growth targets and advancing our ESG strategic priorities.”
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ approximately 4,900 people and service a diverse and broad customer base.
TORONTO, Nov. 05, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the fourth quarter ended September 30, 2021 after the close of business on Wednesday December 1, 2021.
A conference call to discuss those results will be held on Thursday December 2, 2021 at 10:00 a.m. (Eastern time) which can be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 5082034.
For those unable to participate on December 2, 2021, an archived version will be available on the Exco website. Also, a replay will be available until December 10, 2021 by dialling toll free at (855) 859-2056 or internationally at (404) 537-3406.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 16 strategic locations in 7 countries, we employ approximately 4,800 people and service a diverse and broad customer base.
EBITDA margin of 13.2% compared to 6.6% prior year
EPS of $0.22 compared to ($0.02) prior year
Targets annual EPS of $1.90 by F2026
Quarterly dividend of $0.10 per common share
TORONTO, July 28, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced results for its third quarter of fiscal 2021 ended June 30, 2021. In addition, Exco announced a quarterly dividend of $0.10 per common share which will be paid on September 30, 2021 to shareholders of record on September 16, 2021. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.
“Exco achieved very strong results again this quarter while making tremendous progress advancing our numerous growth initiatives, said Darren Kirk, Exco’s President and CEO. “We are targeting a greater than 50% increase in revenue and net income over the next five years while making a positive contribution to global sustainability goals. In particular, the accelerating adoption of the electric vehicle is a guiding driver behind our capital commitments, business objectives and where market forces align perfectly with our competitive advantages. We have never been more excited for the future”, added Kirk.
Consolidated sales for the third quarter ended June 30, 2021 were $115.0 million compared to $71.0 million in the same quarter last year – an increase of $44.0 million, or 63%. Excluding foreign exchange rate fluctuations sales increased 78% during the quarter.
The Automotive Solutions segment reported sales of $61.0 million in the third quarter – an increase of $32.9 million, or 117% from the prior year quarter. Excluding foreign exchange rate movements, segment revenues would have been $67.2, or up 139% for the quarter. This strong sales growth reflects a normalization of activities compared to the prior year when 3 of our 4 manufacturing plants in this segment were shut down for April and much of May due to COVID-19 government restrictions. Notwithstanding this improvement, growth in the current year periods was hampered by the global microchip supply issues, which management estimates reduced vehicle production volumes and segment sales by between 15% to 20% in the quarter. Segment sales were supported by a number of key program launches for both new and existing products and favourable vehicle mix. The segment received several contract wins during the quarter and management continues to see decent quoting activities for new programs across the segment’s various businesses supporting future growth.
The Casting and Extrusion segment reported sales of $53.9 million for the third quarter – an increase of $11.1 million, or 26%, from the same period last year. Excluding the negative impact of foreign exchange movements, the segment’s sales were up 37% for the quarter and continue to exceed pre-COVID-19 levels. Although the impact of the microchip shortage was not as significant in the Casting and Extrusion segment as it was in the Automotive segment, sales in the Castool and Large Mould groups were negatively impacted from certain customers during the quarter and year-to-date. Third quarter segment sales reflect the third consecutive quarterly increase (10% over F2021 Q2) even with the negative impact of foreign exchange and the microchip issues. The Extrusion group experienced higher sales at all locations, reflecting demand for extrusion tools across all industry segments particularly in the building sector coupled with operational improvements that have continued to reduce lead times contributing to market share gains. At Castool, the group’s revenues were higher for the quarter. Demand for Castool’s die-cast consumable tooling and extrusion products was solid, with a slightly stronger demand for the die-cast consumable tooling solutions leading the quarter. Castool continues to invest heavily in new equipment and advance its proprietary tooling solutions which are increasingly required by customers as their manufactured components increase in size and complexity while they focus on improving their own productivity and efficiency measures. The Large Mould group sales were up 31% from F2021 Q2 with diversity of its customer base and solid additive sales representing key drivers of the results. New business from current and new customers was awarded in the quarter; as a result, inventories and backlog continue to grow.
Consolidated net income for the third quarter was $8.7 million or basic and diluted earnings of $0.22 per share compared to a loss of $0.8 million or $0.02 loss per share in the same quarter last year – an increase in net income of $9.5 million. The consolidated effective income tax rate of 12% in the current quarter compared to 10% in the prior year period. The income tax rate in the current quarter and year was favorably impacted by the recognition of Scientific Research and Experimental Development income tax credits during the quarter.
The Automotive Solutions segment reported pre-tax profit of $5.1 million in the third quarter compared to a loss of $3.8 million in the same quarter last year – an increase of $8.9 million. The segment’s profitability growth reflects three months sales compared to the plant shutdowns in the prior year due to COVID-19. Overall profit margins were lower than expected due to decreased fixed cost absorption from lower sales as a result of the microchip shortage and raw material price increases due to inflationary pressures experienced in most inputs but particularly resin. As well, supply issues persisted across the segment resulting in significant inefficiencies and much higher freight/ transportation costs. Management remains focused on improving the efficiency of its operations and reducing its overall cost structure. Pricing discipline also remains a focus and new program awards include management’s expectations for higher future costs.
The Casting and Extrusion segment reported $7.8 million of pre-tax profit in the third quarter – an increase of $2.8 million or 57% from the same quarter last year. Similar to the Automotive segment, the Casting and Extrusion segment profitability growth over the prior year periods is a result of higher sales due to the impact of COVID-19 last year. This impact, however, was somewhat muted last year by the nature of much of the segment’s tooling products as they feed into many essential industries. Consistent with the higher third quarter sales, segment profitability continued to improve. Quarterly segment pre-tax profit was 5% higher than F2021 Q2 profit. In addition, fixed cost absorption improved and we benefited from greater labour efficiencies reflecting our past and continuing investments in new equipment and processes, as part of our continuous improvement initiatives. These improvements were partially offset by higher freight and raw material input costs.
The Corporate segment expenses were $2.8 million in the second quarter compared to $1.9 million in the prior year quarter. Corporate expenses increased in the quarter due to foreign exchange losses relating to the strengthening Canadian dollar compared to prior periods and increased incentive expenses.
Consolidated EBITDA for the third quarter totaled $15.2 million compared to $4.7 million in the same quarter last year – an increase of $10.5 million. EBITDA as a percentage of sales increased to 13.2% in the current quarter compared to 6.6% the prior year quarter driven by an improvement in the Automotive Solutions segment (11% compared to negative 7%) and Casting & Extrusion segment (21% compared to 20%).
Operating cash flow before net change in non-cash working capital totaled $13.9 million in the third quarter. After changes in working capital requirements, net cash provided by operating activities amounted to $19.0 million. This cash flow, together with cash on hand was more than sufficient to fund $0.1 million of interest expense, $16.7 million of capital expenditures, and $3.9 million of common dividend payments.
As at June 30, 2021, Exco’s consolidated balance sheet had net cash of $26.3 million. Principal sources of liquidity include generated Free Cash Flow, $34.9 million of balance sheet cash and $41.4 million of unused availability under its $50 million committed credit facility, which matures February 2023. Pursuant to the terms of the credit facility, Exco is required to maintain compliance with certain financial covenants, which the Company was in compliance with as at June 30, 2021.
Outlook
The overall outlook is very favorable across Exco’s various businesses. Consumer demand for automotive vehicles is currently outstripping supply in most markets, constrained by a shortage of microchips and to a lesser extent other raw materials and components. Dealer inventory levels are now near record lows, while average transaction prices are at record highs and the average age of the broader fleet has continued to increase to an all-time high. This bodes well for higher levels of future vehicle production and the sales opportunity of Exco’s various automotive components and accessories once supply chains normalize. In addition, OEM’s are increasingly looking to the sale of higher margin accessory products as a means to enhance their own levels of profitability. Exco’s Automotive Solutions segment derives a significant amount of activity from such products and is a leader in the prototyping, development and marketing of the same. Moreover, the rapid movement towards an electrified fleet is enticing new market entrants into the automotive market while causing traditional OEM incumbents to further differentiate their product offerings, all of which is driving above average opportunities for Exco.
With respect to Exco’s Casting and Extrusion segment, the intensifying global focus on environmental sustainability is creating significant growth drivers that are expected to persist through at least the next decade. Automotive OEMs are looking to light-weight metals such as aluminum to reduce vehicle weight and reduce carbon dioxide emissions. This trend is evident regardless of powertrain design – whether internal combustion engines, electric vehicles or hybrids. As well, a renewed focus on the efficiency of OEMs in their own manufacturing process is creating higher demand for advanced tooling that can contribute towards their profitability and sustainability goals. Tesla, in particular, has adopted the approach of utilizing much larger die cast machines to cast entire sub-frames of vehicles out of an aluminum based alloy rather than assemble numerous pieces of separately stamped and welded pieces of ferrous metal. Exco expects traditional OEMs will ultimately follow this trend and is positioning its operations to capitalize accordingly.
On the cost side, inflationary pressures have intensified in recent quarters while prompt availability of various input materials and components has become more challenging. We are offsetting these dynamics through various efficiency initiatives and taking pricing action where possible although there is typically several quarters of lag before the counter measures are evident.
Exco itself is also looking inwards with respect to ESG and sustainability trends to ensure its own operations are sustainable. We are investing significant capital to improve the efficiency of our own operations and lower our own carbon footprint. We expect to update the market on these initiatives over the coming quarters.
Over the next 5 years Exco is currently targeting a compounded average annual growth rate of approximately 10% for revenues and slightly higher levels for EBITDA and Net Income during this timeframe, producing an annual EPS of roughly $1.90 in fiscal 2026. This target is expected to be achieved through the launch of new programs, general market growth, and also market share gains consistent with the Company’s operating history. Capital investments will remain elevated in the next few years in order to position the Company for the significant growth opportunities we see. Capital expenditures are expected to exceed $40 million for fiscal 2021.
To review the Company’s third quarter financial statements and updated investor presentation please refer to the Company’s website at www.excocorp.com. Alternatively, please refer to www.sedar.com.
Non-IFRS Measures:In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Free Cash Flow and Maintenance Fixed Asset Additions which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation, amortization and other expenses and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes. Free Cash is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions. Maintenance Fixed Asset Additions represents investment in fixed assets that are required to continue current capacity levels. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) through the near term, the Company has modified its calculation of Free Cash Flow. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs.
Quarterly Conference Call – July 29, 2021 at 10:00 a.m. (Toronto time):
To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/zmtr7qkc a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 8450289.
For those unable to participate on July 29 2021, 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 16 strategic locations in 7 countries, we employ approximately 4,800 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, “estimate” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook 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, liquidity and operating efficiencies are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current improving global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, 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 in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained 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. 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 a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.
TORONTO, July 06, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the third quarter ended June 30, 2021 after the close of business on Wednesday July 28, 2021.
Exco’s management will hold a conference call to discuss the results on Thursday July 29, 2021 at 10:00 a.m. To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/zmtr7qkc a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 8450289.
For those unable to participate on July 29, 2021, an archived version will be available until August 13, 2021 on the Exco website or by dialling toll free at (855) 859-2056 or internationally at (404) 537-3406. The conference ID is 8450289.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 15 strategic locations in 7 countries, we employ approximately 4,800 people and service a diverse and broad customer base.
EBITDA margin of 17.1% compared to 14.7% prior year
EPS of $0.30 compared to $0.24 prior year; a 25% improvement
Quarterly dividend of $0.10 per common share
TORONTO, April 28, 2021 (GLOBE NEWSWIRE) — Exco Technologies Limited (TSX-XTC) today announced results for its second quarter of fiscal 2021 ended March 31, 2021. In addition, Exco announced a quarterly dividend of $0.10 per common share which will be paid on June 30, 2021 to shareholders of record on June 16, 2021. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.
“Exco’s second quarter results were very strong by almost any measure. Encouragingly we see many opportunities for further gains ahead”, said Darren Kirk, Exco’s President and CEO. “Of course a big thank you goes out to all of our employees for their commitment to working safely through these challenging times.”
Consolidated sales for the second quarter ended March 31, 2021 were $118.4 million compared to $120.2 million in the same quarter last year – a decrease of $1.8 million, or 1%. Excluding foreign exchange rate fluctuations sales increased 4% during the quarter.
The Automotive Solutions segment reported sales of $69.3 million in the second quarter – a decrease of $4.1 million, or 6% from the prior year quarter. Excluding foreign exchange rate movements on Exco’s results, segment revenues were lower by $0.6 million, or 1% during the quarter. After adjusting for the impact of foreign exchange rate movements, the segment continues to perform above IHS vehicle production estimates of negative 5% in North America and negative 1% in Europe in the quarter representing content per vehicle growth. This segment’s sales were favourable when considering the negative impact from the global microchip shortage, continued COVID-19 lockdowns, the Texas snowstorm, and shipping delays from congested ports which reduced vehicle production in the quarter. Segment sales were supported by a number of program launches for both new and existing products and favourable vehicle mix. The segment has received multiple contract wins during the quarter and management continues to see decent quoting activities for new programs across the segment’s various businesses supporting future growth.
The Casting and Extrusion segment reported sales of $49.1 million for the second quarter – an increase of $2.3 million, or 5%, from the same period last year. Excluding the negative impact of foreign exchange movements, the segment’s sales were up 11% and continue to rebound and exceed pre-COVID-19 levels. Segment sales continued the quarterly progression from the low in Q4 F2020 especially in the Extrusion and Castool groups. Extrusion group sales were higher during the quarter as sales at all 6 locations were strong, reflecting high demand for extrusion tools across North and South America across all industry segments. At Castool, the group’s revenues were also higher for the quarter and year-to-date. Demand for Die-Cast consumable tooling has been the primary driver of Castool’s strong sales, but orders for larger capital goods in extrusion end markets increased through the second quarter. The Large Mould group sales were down in the quarter as customers delayed shipping dates on existing programs, however inventories increased in the quarter and new business from current and new customers continues to outpace shipments for this group.
Consolidated net income for the second quarter was $11.7 million or basic and diluted earnings of $0.30 per share compared to $9.5 million or $0.24 per share in the same quarter last year – an increase in net income of 23%. Year-to-date, consolidated net income was $22.7 million or $0.58 per basic share compared to $17.6 million or $0.44 per basic share last year – an increase in net income of 29%. The consolidated effective income tax rate of 22% in the current quarter was the same as the prior year period and the first quarter F2021.
The Automotive Solutions segment reported pre-tax profit of $9.4 million in the second quarter – consistent with the same quarter last year. For the quarter, the segment maintained traditional profitability despite the slight sales decline through continued cost discipline. In addition, new product launches and a favourable sales mix were offset by ramp-up costs for future programs, supply chain challenges, raw material cost inflation, and fluctuations with customer releases caused by uncertainty due to the microchip shortage. Management remains focused on improving the efficiency of its operations and reducing its overall cost structure. Pricing discipline also remains a focus and new program awards include management’s expectations for higher future costs.
The Casting and Extrusion segment reported $7.4 million of pre-tax profit in the second quarter – and increase of $2.9 million or 65% from the prior year quarter. The segment’s profitability improvement was driven by strong efficiency gains in both material and labour usage coupled with greater overhead absorption. This, in turn, reflects our past and ongoing investments in new equipment and processes as part of our various continuous improvement initiatives. Of note, the profitability improvement occurred despite rising input cost inflation, supply chain bottlenecks and current restrictions on travel, which greatly impede management’s ability to operate its various global manufacturing facilities at optimal levels of efficiency.
Consolidated EBITDA for the second quarter totaled $20.2 million compared to $17.6 million in the same quarter last year – an increase of $2.6 million, or 15%. Year-to-date, consolidated EBITDA totaled $39.6 million compared to $33.0 million last year – an increase of $6.6 million, or 20%. For the quarter, EBITDA as a percentage of sales increased to 17.1% compared to 14.7% the prior year driven by an improvement in segment margins in both the Casting & Extrusion segment (22% compared to 17%) and the Automotive Solutions segment (16% compared to 15%).
Operating cash flow before net change in non-cash working capital totaled $17.3 million in the second quarter. After changes in working capital requirements, net cash provided by operating activities amounted to $11.9 million. This cash flow, together with cash on hand was more than sufficient to fund $0.1 million of interest expense, $5.1 million of capital expenditures, and $3.9 million of common dividend payments.
As at March 31, 2021, Exco’s consolidated balance sheet had net cash of $28.4 million. Principal sources of liquidity include generated Free Cash Flow, $37.9 million of balance sheet cash and $40.5 million of unused availability under its $50 million committed credit facility, which matures February 2023. Pursuant to the terms of the credit facility, Exco is required to maintain compliance with certain financial covenants, which the Company was in compliance with as at March 31, 2021.
For further information and prior year comparison please refer to the Company’s Second Quarter Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com.
Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, Pre-tax Profit and Free Cash Flow which are not measures of financial performance under International Financial Reporting Standards (“IFRS”). Exco calculates EBITDA as earnings before interest, taxes, depreciation, amortization and other expenses and EBITDA Margin as EBITDA divided by sales. Exco calculates Pre-tax Profit as segmented earnings before other income/expense, interest and taxes. Free Cash Flow is calculated as cash provided by operating activities less interest paid less investment in fixed assets net of proceeds of disposal. EBITDA, EBITDA Margin, Pre-tax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.
Quarterly Conference Call – April 29, 2021 at 10:00 a.m. (Toronto time):
To access the live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/hkbh522a a few minutes before the event. The conference call can also be accessed by dialling toll free at (866) 572-8261 or internationally at (703) 736-7448. The conference ID is 7124339.
For those unable to participate on April 29 2021, 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 15 strategic locations in 7 countries, we employ approximately 4,800 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. This press release may contain 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 start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity and operating efficiencies are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current uncertain global economic impact of the COVID-19 pandemic or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, 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 in response to rising climate risks, raw material prices, economic conditions, currency fluctuations, trade restrictions, our ability to close or otherwise dispose of unprofitable operations in a timely manner, our ability to integrate acquisitions and the rate at which our operations in Brazil, and Mexico achieve sustained 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. 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 a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.
