TORONTO, July 29 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its third quarter ended June 30, 2008. In addition, the Company announced that a quarterly cash dividend of $0.0175 per share will be paid September 30, 2008 to shareholders of record on September 15, 2008. The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.
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9 Months ended 3 Months ended
June 30 June 30
($000s, except per share amounts)
2008 2007 2008 2007
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Sales $151,549 $151,274 $47,677 $51,574
Net income from
continuing operations $7,355 $6,546 $3,147 $2,254
Net loss from discontinued
operations ($111) ($1,411) ($62) ($86)
Net income $7,244 $5,135 $3,085 $2,168
Basic and diluted earnings
per share from continuing
operations $0.18 $0.16 $0.08 $0.05
Basic and diluted loss
per share from
discontinued operations ($0.00) ($0.04) ($0.00) ($0.00)
Basic and diluted earnings
per share $0.18 $0.12 $0.08 $0.05
Common shares outstanding 40,989 41,448 40,989 41,448
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The financial results for the three months ended June 30, 2007 and nine months ended June 30, 2007 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 June 30, 2008 were $47.7 million compared to $51.6 million last year - a decrease of $3.9 million or 7.6%. Year-to-date sales were $151.5 million - an increase of $0.3 million or 0.2% compared to last year. The Canadian dollar was effectively 'at par' with the US dollar during the quarter and year to date. Reported profitability during the quarter demonstrates that the Company's efforts to adapt to the strong Canadian dollar and rising material cost have been taking effect. The timing of shipments in the large mould businesses accounted for most of the sales weakness in the Casting and Extrusion segment and declining production levels among our North American automotive customers impacted sales in the Automotive Solutions segment.
Net income from continuing operations for the quarter was up by 39.6% to $3.1 million or $0.08 per share compared to $2.3 million or $0.05 per share last year. Year-to-date, Exco reported net income from continuing operations of $7.4 million or $0.18 per share compared to a net income of $6.5 million or $0.16 per share in the prior year. Included in the current quarter was a $1.8 million pre-tax gain on the sale of the Extec production facility in Ontario which was closed earlier in the year. Operating losses and shutdown expenses incurred at Extec reduced pre tax consolidated year to date earnings from continuing operations by $873 thousand.
Apart from these non recurring items earnings improved modestly at Castool and at the extrusion die businesses as price increases and cost cutting takes effect. Polydesign earnings have improved on stronger sales and better overhead absorption. Polytech earnings have remained stable as cost reductions have largely mitigated the impact of lower production while the Neocon operations and the remaining two large mould businesses reported modest losses in the quarter due to lower production levels.
Operating cash flow in the current quarter increased to $4.2 million from $2.4 million in the prior year and the Company's bank balances at quarter end totalled $9 million compared to $5.7 million at the beginning of the fiscal year. Exco's net cash position also increased to $6.5 million from $4.5 million over the same period.
While the overall raw material environment continues to be problematic as pricing of steel and resin has continued to rise over the last quarter, there are indications that these prices are levelling off. The combination of price increases, cost reductions and migration of business to our low cost locations should improve our margin. "In spite of current market conditions we continue to be well positioned to capitalize on the opportunities presented by the rapidly changing demand dynamics of the automotive market" said Brian Robbins, President and CEO of Exco. "Our businesses remain leaders in their respective markets and Exco expects to benefit once market conditions stabilize".
(for further information please refer to the Company's Third Quarter Interim Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com after July 29, 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.
Management will hold a conference call to discuss the third quarter results on Wednesday July 30, 2008 at 11:00 am (EST). The local dial in number for the call is (416) 644-3414 or toll free 1-800-733-7571. 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 July 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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