TORONTO, July 29 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its third quarter ended June 30, 2009. In addition, the
Company announced the continuation of its dividend and declared a $0.0175
dividend per share which will be paid on September 30, 2009 to shareholders of
record on September 16, 2009. 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
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($000s, except per share amounts)
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2009 2008 2009 2008
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Sales $106,022 $151,549 $28,345 $47,677
Net income (loss) from
continuing operations ($18,030) $7,355 ($998) $3,147
Net loss from discontinued
operations - ($111) - ($62)
Net income (loss) ($18,030) $7,244 ($998) $3,085
Basic and diluted earnings
(loss) per share ($0.44) $0.18 ($0.02) $0.08
Common shares outstanding 40,666,000 40,989,000 40,666,000 40,989,000
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Consolidated sales from continuing operations for the quarter ended June
30, 2009 were $28.3 million compared to $47.7 million last year - a decrease
of $19.4 million or 41%. Year-to-date sales were $106 million - a decrease of
$45.5 million or 30% compared to last year. This reflects another quarter of
exceptional contraction in global automotive production, commercial
construction and overall industrial output. In addition to poor sales caused
by this recessionary environment, Exco sales in this quarter were disrupted by
the bankruptcies of Chrysler, General Motors and Visteon. Although each
situation was different, in all cases production and releases were disrupted
with the most extreme case being Chrysler which ceased all production in May
and June. This quarter also reflects the cessation of sales to Indalex during
its bankruptcy process and the continuing cessation of Honda CRV and Civic
seat cover sales during April and May.
Net loss from continuing operations for the third quarter was $998
thousand or $0.02 per share compared to net income of $3.1 million or $0.08
per share last year. Year-to-date, Exco reported a net loss from continuing
operations of $18 million or $0.44 per share compared to net income of $7.4
million or $0.18 per share in the prior year. In the quarter low sales at all
business units impacted efficient absorption of overheads and caused loss from
continuing operations. This loss was further widened by severances of $598
thousand, inventory write-downs of $482 thousand and bad debt write offs of
$108 thousand. Offsetting this was a foreign exchange gain from fair valuation
of forwards and collars of $1.15 million. Year to date net loss from
continuing operations was impacted by a goodwill impairment charge of $10.1
million associated with its Polytech business unit. There are no goodwill
remains on the balance sheet of the Company. Year-to-date consolidated pre tax
loss from continuing operations, before the impact of this goodwill charge,
was $9.4 million. Also in the second quarter, Exco determined that the
carrying value of certain assets held for sale and property, plant and
equipment was impaired and a charge of $1.4 million was taken against the
Techmire building and $590 thousand was taken against equipment held at Neocon
USA. All of these charges were non cash in nature and did not affect cash
flow.
