- Record annual sales and earnings
- Sales up 24% in the quarter; 18% for the year
- EPS of $0.25 in the quarter
compared to $0.24 prior year
- Lesotho operations
permanently closed after quarter end
- Balance sheet and liquidity remain very strong
TORONTO, Nov. 30, 2016 /CNW/ - Exco Technologies
Limited (TSX-XTC) today announced results for its fourth
quarter and year ended September 30,
2016. In addition, the Company announced the quarterly
dividend of $0.07 per common share
which will be paid on December 29,
2016 to shareholders of record on December 14, 2016. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of
Canada.
|
|
|
|
Three Months
ended
September 30
|
Twelve Months
ended
September 30
|
|
(in $ millions
except per share amounts)
|
|
2016
|
2015
|
2016
|
2015
|
Sales
|
$163.0
|
$131.0
|
$589.0
|
$498.3
|
Net income for the
period
|
$10.5
|
$10.3
|
$47.6
|
$40.8
|
Earnings per share
from net income
|
|
|
|
|
|
Basic
|
$0.25
|
$0.24
|
$1.12
|
$0.96
|
|
Diluted
|
$0.25
|
$0.24
|
$1.11
|
$0.96
|
Total
assets
|
$452.9
|
$342.8
|
$451.3
|
$342.8
|
Cash dividend paid
per share
|
$0.07
|
$0.06
|
$0.27
|
$0.23
|
EBITDA
1
|
$22.2
|
$21.9
|
$83.4
|
$77.0
|
Consolidated sales in the quarter were $163.0 million – an increase of $32.0 million or 24% from the fourth quarter of
fiscal 2015. Full year sales totalled $589.0
million – up 18% over the prior year. AFX, which was
acquired in April 2016, contributed
$35.9 million in sales during the
quarter and $66.9 million to Exco's
fiscal 2016 results.
The Automotive Solutions segment experienced a 50% rise in sales
during the quarter, to $117.7 million
up from $78.5 million last year. This
increase was primarily driven by contributions from AFX and to a
lesser extent by higher sales at ALC, Polydesign and Neocon
partially offset by modestly lower sales at Polytech. For the year,
Automotive Solutions revenues were up 31%, to $396.8 million compared to $303.1 million last year. Again, the inclusion of
AFX drove most of the revenue growth, however sales were higher at
each of the segment's other business units for the year.
The Casting and Extrusion segment recorded sales of $45.3 million compared to $52.5 million last year – a decrease of 14%. The
lower sales were driven by a decline in the large mould business
and to a lesser extent in the Extrusion group, offset by higher
sales at the Castool group. For the year, revenues in the Casting
and Extrusion segment were $192.2
million, down 2% from the prior year with higher sales from
the Extrusion and Castool groups offsetting most of the decline in
the large mould group.
The Company's fourth quarter consolidated net income increased
to $10.5 million or earnings of
$0.25 per share compared to
$10.3 million or earnings of
$0.24 per share in the same quarter
last year – an EPS increase of 4%. Consolidated net income for the
year totalled $47.6 million or
earnings of $1.12 per share compared
to $40.8 million or earnings of
$0.96 per share in fiscal 2015, an
increase of 17%.
In the fourth quarter of fiscal 2016 consolidated net income was
reduced by withholding taxes of $0.9
million ($0.02 per share) and
an additional $0.3 million of
amortization related to an adjustment of AFX's intangible assets.
Last years consolidated net income was negatively impacted by the
write-off of $1.9 million
($0.05 per share) in deferred tax
assets. Consolidated net income for fiscal 2016 benefited from a
$3.4 million gain associated with the
settlement of a commercial arbitration in the third quarter of 2016
but also included about $1.0 million
of expenses (net of tax) related to the acquisition of AFX.
Fourth quarter pretax earnings in the Automotive Solutions
segment totalled $14.4 million, an
increase of $4.3 million or 43% over
the same quarter last year. This was driven primarily by the
acquisition of AFX and improved results at ALC's South
African/Lesotho operations offset
by weaker performance at ALC's Bulgarian operations. The Automotive
Solutions segment recorded operating earnings of $48.0 million for the year compared to
$36.6 million last year – an increase
of $11.5 million or 31%. The
acquisition of AFX contributed strongly to the segment's annual
results while earnings were higher at each of Polytech, Neocon and
Polydesign. Combined losses at ALC's South Africa/ Lesotho operations totalled $3.5 million for the year compared to
$5.2 million in fiscal 2015.
Fourth quarter pretax earnings fell in the Casting and Extrusion
segment by $5.7 million or 59% over
the same quarter last year. The earnings decrease was due to lower
sales and reduced absorption of fixed costs in the large mould
business, margin compression in the Extrusion group due to front
end investments associated with harmonizing the production
processes of the various facilities, partially offset by stronger
results in the Castool group. For the year, Casting and Extrusion
operating earnings decreased to $24.7
million from $32.4 million in
fiscal 2015 – a difference of $7.7
million or 24%.
Following the end of the quarter, Exco reached an agreement to
permanently close its ALC operations in Lesotho and remaining presence in South Africa. No related charges to earnings
were incurred during the quarter and it is currently expected that
any such charge will be substantially less than $1.0 million and will occur in the first quarter
of fiscal 2017.
Consolidated earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the fourth quarter increased to
$22.2 million compared to
$21.9 million last year. For the full
year, consolidated EBITDA increased to $83.4
million compared to $77.0
million last year.
Cash provided by operating activities increased to $65.5 million for the year compared to
$42.1 million last year driven by
both higher net income and improved working capital management.
These funds were ample to fund $23.9
million of capital expenditures for the year, $1.3 million of net interest expense and
$11.5 million of dividends. Exco used
the remaining amount of cash generated together with $7.5 million of its surplus cash and about
$44 million of debt to acquire AFX
Industries LLC for $82 million during
fiscal 2016. At year end Exco's balance sheet remained solid with
net debt totalling $44.6 million.
(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=1315863&s=1&k=9DFA077B26080BB1FB046506355E8795
a few minutes before the event. Real Player is required for
access. For those unable to participate on December 1, 2016, 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 9 countries,
we employ 6,155 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, 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, Texas and Thailand 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. 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.
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 other
income, 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