Exco Technologies Limited – Results for Fourth Quarter Ended September 30 … – Sacramento Bee

TORONTO, Nov. 26, 2013 — /PRNewswire/ – Exco Technologies Limited (TSX-XTC) today announced results for its fourth quarter ended September 30,
2013. In addition, the Company announced the quarterly dividend of
$0.045 per common share which will be paid on December 27, 2013 to
shareholders of record on December 13, 2013.   The dividend is an
“eligible dividend” in accordance with the Income Tax Act of Canada.

Consolidated sales for the fourth quarter ended September 30, 2013 were
$64.0 million – an increase of $2.3 million or 4% compared to the same
quarter last year and an increase of $1.6 million or 3% over the third
quarter. Annual consolidated sales were $244.6 million – an increase of
$2.1 million or 1% compared to last year.

The Company’s fourth quarter consolidated net income was $6.8 million
(basic $0.17 per share; diluted $0.16 per share) compared to $7.1
million (basic $0.18 per share; diluted $0.17 per share) in the same
quarter last year.  The large mould business experienced
non-recoverable costs associated with new die builds and inefficiencies
with regard to the production of silafont moulds and other new mould
programs. In addition, travel, general and administrative costs
associated with the greenfields in Brazil and Thailand and the
integration of Extrusion Texas also eroded fourth quarter earnings. 
Mr. Robbins, CEO of the Company said “that our earnings in the quarter,
although slightly lower than last year, were off for a very good reason
– we are investing in our future.  Without the new programs, greenfield
facilities and acquisitions we have undertaken we would have had better
earnings than last year but would have no foundation for future
growth.”

For the year the Company reported consolidated net income of $23.6
million or $0.58 per share compared to consolidated net income of $24.4
million or $0.60 per share last year – a decrease of 3%. Net income for
the year was impacted by a $1.5 million withholding tax charge on the
repatriation of surplus from a subsidiary. Excluding this withholding
tax charge, the Company’s consolidated net income for the current year
would have been $25.2 million (basic $0.62 per share; diluted $0.61 per
share) – an increase of 3% from last year.

The Company continues to push ahead with its previously announced
capital investment plans investing $5.7 million in the fourth quarter
and $23.2 million for the full year compared to $1.4 million and $7.7
million last year. Included in the current year were $1.5 million spent
on the acquisition of Extrusion Texas, $1.2 million for the purchase of
the remainder of the Colombian production facility, $5.6 million
investment in the Extrusion Brazil greenfield and $1.3 million
investment in the Castool Thailand greenfield.

Despite significant capital expenditures in the current year, the
Company’s cash position on September 30, 2013 was $26.1 million
compared to $31.2 million at the beginning of the year.

The overall outlook for Exco over the next several quarters remains
consistently strong. The two major trends of strong light vehicle
production volumes in North America and steady introduction of new or
refreshed vehicles and powertrain systems by virtually all OEMs remain
intact.  These trends continue to benefit our Automotive Solutions
Segment, Castool and our large mould businesses and the growth in the
geographic footprint of the Extrusion group should continue to grow its
sales as well. Design and technological innovations at Exco have been
successful in materially advancing our prospects as evidenced by
significant silafont die booked business and considerable increase in
our cooperation with OEM’s product development for interior trim
components in premium vehicles. The emphasis in the Casting and
Extrusion segment will be to manage several disruptive factors without
eroding our margins and earnings. These factors include continuing our
machinery and equipment upgrade and replacement program and efficiently
rolling out our greenfield projects (Thailand and Brazil) while
continuing to meet delivery dates in an environment of increasing order
backlog and tight delivery schedules.

In Europe the market situation, although still problematic, is
improving. Polydesign should experience improving demand in the coming
year. The smooth launch of the new sun visor program for Range Rover is
now at full volumes.  Several delayed Ford programs were launched in
the current quarter and other new programs scheduled to launch in 2014
should not only insulate Polydesign from the worst of European market
conditions but also ensure that its sales and earnings continue to
improve next year.

Management continues to search for an accretive ‘tuck-under’ acquisition
in the European automotive interior trim sector where the prospects for
such opportunities, on reasonable terms, is more promising.

The Company’s operational excellence continues to be recognized by its
many and varied customers.  Polytech in Mexico received the Toyota
Motor Sales Quality Alliance Gold Award and the General Motors Supplier
Excellence Award.  Polydesign in Morocco was awarded the General
Motors/Opel/Vauxhall Supplier Quality Excellence Award and the Johnson
Control Europe Supplier Excellence Award. All of these awards recognize
superior overall supplier performance.

(For further information and prior year comparison please refer to the
Company’s Fourth 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 11 strategic locations, we employ 2,316 people
and service a diverse and broad customer base.

To access the live audio webcast, please log on to www.excocorp.com or directly to the web cast at http://www.newswire.ca/en/webcast/detail/1224599/1348629 a few minutes before 10:00 AM on November 27, 2013.  For those unable
to listen on November 27, 2013, 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 2012 Annual
Report, in our 2012 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

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