Exco Technologies Limited · TSX:XTC
Exco Technologies — Q2 F2023 Earnings Presentation
16 slides from Exco Technologies's earnings presentation, Apr 28, 2023
Slide 1: Q2 F2023 Earnings Call
Q2 F2023 Earnings Call April 28, 2023
Slide 2: Cautionary Statement
Cautionary Statement This presentation 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", “5-year target” and similar expressions to identif
Slide 3: Operations Review – Darren Kirk, CEO
Darren Kirk Chief Executive Officer Operations Review
Slide 4: Operations Overview: Strategic Growth Initiatives
Q2 F2023 Operations Overview Key Highlights in the Quarter – Strategic Growth Initiatives Castool • Morocco greenfield facility – Ramping up slowly but showing good traction • Heat treatment operations – All equipment installed and operational • Mexico greenfield facility – Initial production is pla
Slide 5: Operations Overview: Casting and Extrusion
Q2 F2023 Operations Overview Key Highlights in the Quarter – Casting and Extrusion • Solid demand for large and complex tooling and related solutions • Accelerating adoption of EVs and broader environmental sustainability movements key drivers • Large Mould seeing very strong demand with record quar
Slide 6: Operations Overview: Automotive Solutions
Q2 F2023 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Overall industry vehicle production estimated up 10% in N.A and up 15% in Europe vs prior year quarter • Production remains constrained by chip shortage and general supply chain issues • Shortages expected to continu
Slide 7: Financial Review – Matthew Posno, CFO
Matthew Posno Chief Financial Officer Financial Review
Slide 8: Financial Overview: Consolidated Results Versus Prior Year
Q2 F2023 Financial Overview Consolidated Results Versus Prior Year Period • Revenue of $155.5M; up $36.2M or 30% compared to $119.3M last year • Revenue was up 18% excluding Halex and FX movements • EBITDA of $17.8M; up 42% from $12.5M last year • Strong improvement from Auto Solutions group as vehi
Slide 9: Financial Overview: Consolidated Results and EPS
Q2 F2023 Financial Overview Consolidated Results Versus Prior Year Period • Casting and Extrusion segment revenues up 42% and EBITDA up 46% (EBITDA Margin improved to 14% from 13%) • Segment revenues up by 12% organically • Margins remain suppressed by start-up costs from significant investment acti
Slide 10: Consolidated Revenue Reconciliation
Q2 F2023 Financial Overview Consolidated Revenue Reconciliation C$ Millions 21 156 15 119 Q2 F22 Automotive Solutions Casting & Extrusion Q2 F23 EXCO TECHNOLOGIES LIMITED | 10
Slide 11: Consolidated EBITDA Reconciliation
Q2 F2023 Financial Overview Consolidated EBITDA Reconciliation C$ Millions 3.6 0.5 (1.6) 17.8 2.8 12.5 Q2 F22 Automotive Casting & Corporate One-Time Cyber Q2 F23 Solutions Extrusion Adjusted Adjusted Costs Corporate and C&E segments adjusted to exclude $1M and $0.6M of one-time cyber incident costs
Slide 12: Automotive Solutions Segment
Automotive Solutions Segment Segment Results increased with higher and more consistent production volumes C$ Millions C$ Millions Revenue Segment EBITDA Margin Segment EBITDA 90 15% 22% 18% 12 35% 75 10 60 10% 8 45 6 30 5% 4 15 2 0 0% 0 Q2 F22 Q2 F23 Q2 F22 Q2 F23 Q2 F22 Q2 F23 EXCO TECHNOLOGIES LIM
Slide 13: Casting & Extrusion Segment
Casting & Extrusion Segment Further Margin Gains Expected as Newer Operations Season C$ Millions C$ Millions Revenue Segment EBITDA Margin Segment EBITDA 80 42% 15% 2% 70 44% 10 60 10% 50 40 5 30 5% 20 10 0 0% 0 Q2 F22 Q2 F23 Q2 F22 Q2 F23 Q2 F22 Q2 F23 EXCO TECHNOLOGIES LIMITED | 13
Slide 14: Financial Leverage & Liquidity
Financial Leverage & Liquidity Net leverage of 1.6x as at March 31, 2023 Exco Net Debt 40 • LTM EBITDA of C$64M Long Term Debt 30 Bank Indebtedness/ Other • C$150M committed revolver matures 20 10 Cash February 2025 13 0 • Balance sheet net debt of $103M 11 -10 C$ Millions -20 • C$48M of Liquidity -
Slide 15: Questions
Questions EXCO TECHNOLOGIES LIMITED | 15
Slide 16: Technologies Limited
Technologies Limited Tradition of Excellence