TORONTO, Jan. 30 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2007. In addition, the Company announced a 17% increase in its quarterly cash dividend to $0.0175 per share which will be paid March 31, 2008 to shareholders of record on March 14, 2008. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
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3 Months ended
December 31
($000s, except per share amounts)
2007 2006
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Sales $47,974 $46,451
Net income from continuing operations $1,364 $1,771
Net loss from discontinued operations ($49) ($663)
Net income $1,315 $1,108
Basic and diluted earnings per share from
continuing operations $0.03 $0.04
Basic and diluted (loss) per share from
discontinued operations $0.00 ($0.01)
Basic and diluted earnings per share $0.03 $0.03
Common shares outstanding 41,258,000 41,445,000
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The financial results for the first quarter ended December 31, 2006 have been restated to reflect the classification of Exco's Techmire business as a discontinued operation.
Consolidated sales from continuing operations for the quarter ended December 31, 2007 were $48.0 million compared to $46.5 million last year - an increase of $1.5 million or 3%. The Canadian dollar was 16 cents stronger against the US dollar in the quarter ($0.98) compared to last year ($1.14) reducing sales by approximately $4.6 million. Given the magnitude of the Canadian dollar appreciation management is pleased with the sales performance of its operations and is comfortable that its business units are performing well in their respective markets.
Net income from continuing operations for the period is $1.4 million or $0.03 per share compared to $1.8 million or $0.04 per share last year. Earnings in the Casting and Extrusion segment were down as a result of slow sales in the large mould business and lower margins in our extrusion die businesses. Shipments against our order book of previously announced large mould orders will begin at the end of the fiscal year. This segment was also impacted by severances associated with the closure of a large mould facility in Markham, Ontario. Earnings in the Automotive Solutions segment increased by 40% as our Moroccan operation delivered improved earnings on significantly higher sales.
The Company further announces its intention to establish a new large mould facility in Mexico in order to service its customer base located there. The facility will be largely equipped with machinery and equipment from the Markham facility which was closed in December and will allow Exco to more effectively and efficiently serve our customers mould rebuilding and servicing requirements. This initiative, combined with our expansion of our Moroccan facility which is currently underway, will further enhance our competitive position in our key markets.
(for further information please refer to the Company's First Quarter Interim Financial Statements in the Investor Relations section posted at www.excocorp.com after January 30, 2008. Alternatively, please refer to www.sedar.com after January 30, 2008.)
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 10 strategic locations, we employ 2,050 people and service a diverse and broad customer base.
The Annual Meeting of Shareholders of Exco Technologies Limited will be held at 4:30 pm (EST) on January 30, 2008 and will be simultaneously webcast. Management will discuss year-end and first quarter results. To access the live audio webcast, please log on to www.excocorp.com or www.q1234.com a few minutes before the event. Real Player is required for access. For those unable to participate on January 30, 2008, 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. 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. 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 2007 Annual Report, in our 2007 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 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.
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