Exco Technologies Limited · TSX:XTC
Exco Technologies — Q1 2021 Earnings Presentation
18 slides from Exco Technologies's earnings presentation, Feb 3, 2021
Slide 1: Q1 F2021 Earnings Call
Q1 F2021 Earnings Call February 3, 2021
Slide 2: Cautionary Statement
Cautionary Statement Information in this presentation relating to projected growth and financial performance of the Company’s business units, contribution of our greenfield business units, margin performance and operating efficiencies are forward-looking statements. Readers are cautioned not to plac
Slide 3: Darren Kirk, Chief Executive Officer
Darren Kirk Chief Executive Officer
Slide 4: Q1 F2021 Operations Overview – Automotive Solutions
Q1 F2021 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Overall industry vehicle production essentially flat in North America and Europe compared to prior year quarter • Volumes were slightly stronger than our expectations going into the quarter • US light vehicle SAAR cu
Slide 5: Q1 F2021 Operations Overview – Automotive Solutions
Q1 F2021 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Segment PTP improved to $11.6M in Q1 F21 compared to $8.0M the prior year quarter due to: • Higher sales coupled with favorable product mix shift • Increased overhead absorption • Cost actions and general efficiency
Slide 6: Q1 F2021 Operations Overview – Automotive Solutions
Q1 F2021 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Combined North America and Europe industry vehicle production expected to be up sharply from prior year levels in Exco’s F21 • Lapping weak volumes the prior year when automotive OEM shut downs occurred due to COVID
Slide 7: Q1 F2021 Operations Overview – Casting & Extrusion
Q1 F2021 Operations Overview Key Highlights in the Quarter – Casting & Extrusion • Casting & Extrusion segment sales down 13% from prior year quarter due to: • Softer general economic conditions arising from the impact of COVID-19 • Delayed impact from OEM production stoppages on Large Mould group,
Slide 8: Q1 F2021 Operations Overview – Casting & Extrusion
Q1 F2021 Operations Overview Key Highlights in the Quarter – Casting & Extrusion • Segment PTP improved to $4.6M in Q1F21 despite the revenue decline due to: • Favorable mix, including increased demand for higher value-add products • Various efficiency improvements across the segment • More balanced
Slide 9: Dividend
Dividend Dividend increased by 5% to an annualized rate of 40 cents per share February 2, 2021 CAD Cents/ Share 40.0 10.5 F2011 F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 EXCO TECHNOLOGIES LIMITED | 9
Slide 10: Matthew Posno, Chief Financial Officer
Matthew Posno Chief Financial Officer
Slide 11: Q1 F2021 Financial Overview
Q1 F2021 Financial Overview Consolidated Results Versus Prior Year Period • Revenue of $121.4M; up $1.0M or basically flat to last year • EBITDA of $19.3; up $3.9M or 25%, • Higher gross margin percentage year over year (24% vs 22%), due to improvement in Auto Solutions • Reduced selling and general
Slide 12: Consolidated Revenue Reconciliation
Q1 F2021 Financial Overview Consolidated Revenue Reconciliation C$ Millions 120 8 (7) 121 Q1 F20 Automotive Solutions Casting & Extrusion Q1 F21 EXCO TECHNOLOGIES LIMITED | 12
Slide 13: Consolidated PTP Reconciliation
Q1 F2021 Financial Overview Consolidated PTP Reconciliation (Before Interest and Other Expense) C$ Millions 3.6 0.3 0.2 14.1 10.0 Q1 F20 Automotive Solutions Casting & Extrusion Corporate Q1 F21 EXCO TECHNOLOGIES LIMITED | 13
Slide 14: Automotive Solutions Segment
Automotive Solutions Segment Segment EBITDA up 34% on strong revenue growth and margin expansion C$ Millions C$ Millions Revenue Segment EBITDA Margin EBITDA 20% 80 11% 220 bp 15 34% 60 15% 10 40 10% 5 20 5% 0 0% 0 Q1 F20 Q1 F21 Q1 F20 Q1 F21 Q1 F20 Q1 F21 EXCO TECHNOLOGIES LIMITED | 14
Slide 15: Casting & Extrusion Segment
Casting & Extrusion Segment Segment EBITDA up on margin enhancement C$ Millions C$ Millions Revenue Segment EBITDA Margin Segment EBITDA 60 20% 10 (13%) 300 bp 4% 40 15% 5 20 0 10% 0 Q1 F20 Q1 F21 Q1 F20 Q1 F21 Q1 F20 Q1 F21 EXCO TECHNOLOGIES LIMITED | 15
Slide 16: Financial Leverage & Liquidity
Financial Leverage & Liquidity Balance Sheet in a $26M Net Cash Position Exco C$26M Net Cash 40 • LTM EBITDA of C$57M • C$50M committed revolver matures February 30 2023; $47M available Bank Indebtedness/ Other • Balance sheet cash of $35M 20 Revolver Borrowings C$ Millions 35 Cash • Significant cus
Slide 17: Questions
Questions EXCO TECHNOLOGIES LIMITED | 17
Slide 18: Exco Technologies Limited – Shaping a Sustainable Future
Technologies Limited Shaping a Sustainable Future