TORONTO, Jan. 29, 2014 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2013.
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Consolidated sales for the first quarter ended December 31, 2013 were $63.9 million - an increase of $5.3 million or 9% compared to the same quarter last year. The Casting and Extrusion segment reported sales of $39.0 million for the first quarter - an increase of $2.6 million or 7% from the same quarter last year. Sales in the Automotive Solutions segment in the first quarter were $25.0 million - an increase of $2.6 million or 12% from the same quarter last year.
Consolidated net income for the first quarter was $6.7 million or basic earnings of $0.17 per share and diluted earnings of $0.16 per share compared to consolidated net income of $5.8 million or basic and diluted earnings of $0.14 per share in the same quarter last year - an increase of 16%.
The Casting and Extrusion segment reported pretax profit of $5.9 million in the first quarter compared to $5.6 million pretax profit in the same quarter last year - an increase of $274 thousand or 5%. The Automotive segment reported higher pretax profit of $4.4 million in the first quarter compared to $3.8 million pretax profit in the same quarter last year - an increase of $638 thousand or 17%.
Net cash provided by operating activities increased to $5.3 million compared to $3.5 million in the same quarter last year. Cash used in investing activities in the first quarter totalled $7.1 million compared to $3.5 million in the same quarter last year. Capital spending in the current quarter, although significantly higher, was planned and mostly related to the Casting and Extrusion segment of which $725 thousand was for investment in the Castool Thailand greenfield facility and $2.6 million was for investment in the Extrusion Brazil greenfield facility.
Despite the significantly higher capital expenditure in the current quarter, the Company's net cash position at the close of the first quarter ended December 31, 2013 was $24.5 million compared to $26.1 million at the beginning of the fiscal year.
The outlook for Exco over the next several quarters remains strong. The economic recovery in North America - both in the automotive sector and the greater economy - appears to be robust and is expected to continue at a steady pace. In Europe, recession throughout the Euro zone seems to be bottoming out with most OEMs there projecting higher unit sales in 2014. However we believe the business environment will continue to be difficult for several years.
Exco's new extrusion tool shop in Brazil should be complete in the second quarter of fiscal 2014 and the Castool facility in Thailand is expected to be complete and start production early in the third quarter of fiscal 2014. These new facilities will be a drag on our cash and earnings in a few quarters to come as capital items are paid for and start-up losses are funded. This is expected to gradually abate once commercial production begins thereafter.
The significant increase in capital spending in the first quarter is proceeding as planned and we expect capital expenditures to continue in accordance with our capital plan for 2014 of $24.5 million. It is expected that our cash flow from operations will continue to support these investments. Management also expects to complete the purchase of Automotive Leather Company Group (PTY) Limited ("ALC") in early March of next quarter. This will require a cash expenditure of approximately $17.2 million which Exco intends to fund by increasing its Canadian operating credit facility to $30 million from its current level of $12 million. With the pending purchase of ALC, management will focus on the integration of ALC into the Automotive Solutions segment but will remain receptive to other accretive 'tuck-under' acquisition opportunities that may arise.
(For further information and prior year comparison please refer to the Company's First Quarter Interim Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com)
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 13 strategic locations, we employ 2,354 people and service a diverse and broad customer base. Upon completion of the ALC acquisition, Exco will have 18 locations and employ approximately 5,000 people in 12 countries.
To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://event.on24.com/r.htm?e=735734&s=1&k=E33709AC3D35024D318C79FC2396F920 a few minutes before 4:30 PM on January 29, 2014. Questions can be submitted via the Q&A box on the webcast console. Microsoft Media Player is required for access. For those unable to listen on January 29, 2014, an archived version will be available on the Exco website.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We use words such as "anticipate", "plan", "may", "will", "should", "expect", "believe", "estimate" and similar expressions to identify forward-looking information and statements especially with respect to growth and financial performance of the Company's business units, contribution of our businesses (particularly our start-up business units in Brazil, Thailand, Texas and Colombia) and Polydesign, managing our order backlog in the Castool and large mould businesses, impact of our machinery and equipment investments, input costs and our operating efficiencies. Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. These assumptions include, among other things, the number of automobile vehicles produced in North America and Europe, the rate of economic growth in North America and Europe and BRIC countries, investment by OEMs in drivetrain architecture and structural parts and currency fluctuations (particularly with respect to the US dollar, Euro and Mexican Peso). Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur. Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements. These risks, uncertainties and assumptions are described in the Company's Management's Discussion and Analysis included in our 2013 Annual Report, in our 2013 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.
While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. In evaluating forward-looking information and statements, readers should carefully consider the various factors which could cause actual results or events to differ materially from those indicated in the forward-looking information and statements. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the Company will update its disclosure upon publication of each fiscal quarter's financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise.
SOURCE: Exco Technologies Limited
For further information:
Exco Technologies Limited (TSX-XTC)
Contact: Paul Riganelli, Senior Vice President and Chief Operating Officer
Telephone: (905) 477-3065 Ext. 7228