VANCOUVER, BC – May 31, 2016 – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALD) has released its financial results for the period ended March 31, 2016. For detailed information about IBC’s fiscal third quarter 2016 results, please read the Company’s financial statements and management’s discussion and analysis which are available on the Company website and SEDAR.
Third Quarter Highlights
- Total revenues up up 43% sequentially and up 6% over the comparable period in 2015.
- Quarterly loss ($296K) down 49% from the comparative period in 2015 and down 83% from the preceding quarter.
- Engineered Materials division posts record quarterly sales ($1.85M).
- Copper Alloys division saw sales rise sequentially, after a very weak Q2, and higher demand is seen for copper-based semi-finished and finished products.
- Cost-cutting measures reduced SG&A expenses in the quarter by 23% YOY.
- As a result of its recently closed private placement (C$7.46M gross proceeds, approximately $5.7M), the Company is now engaged in upgrading equipment and expanding production capacity in both divisions.
Commentary and Corporate Update
IBC’s fiscal third quarter 2016 results reflect improved sales, including record quarterly sales for the EMC division. Overall Q3 revenues rose 43% sequentially, although Q2 2016 sales were unusually weak. Cost-cutting measures reduced SG&A expenses in the quarter by 23% over the same quarter in 2015. These and other factors allowed the Company to reduce its overall loss before other items (“operating loss”) to $239,000, compared to a loss of $783,000 in the comparative 2015 period.
“Our third quarter results were a welcome improvement over the preceding two quarters, in which the Company faced serious headwinds that were largely driven by industry-wide trends,” said Major General Duncan Heinz (USMC, Ret.), IBC’s President and Chief Executive Officer. “I was especially pleased to see the Engineered Materials division put up record sales for the quarter. We also are seeing signs of rising demand for copper-based products, which should bode well for revenue from our Copper Alloys division.”
“Our successful capital raise has now empowered us to focus on upgrading equipment and boosting production capacity across the Company,” said General Heinz. “This should position us to improve production rates and yields, decrease outsourcing, increase sales of existing lines, and continue to bring new materials online for the next phase in our growth.”
Third fiscal quarter sales were the highest for the EMC division since that business was acquired in 2010. The higher sales resulted in part through recognition of a significant proportion of revenues from both the ramp up production period for the first two Lockheed Martin F-35 Lightning ll program contracts. IBC supplies Beralcast® beryllium-aluminum cast parts for Lockheed Martin. While manufacturing activity on these contracts has been fairly evenly spread over the period from September 2014 to date, revenue recognition rules have resulted in some revenues from earlier production not being recognized until the current period.
While Q3 2016 sales in the Cooper Alloys division improved over the preceding quarter, they have not yet returning to historical levels. However, the division’s order backlog has returned to normal levels. Furthermore, the recently completed private placement will fund the purchase of equipment that the Company expects will lead to improved revenues and margins from the division.
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC’s Copper Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC’s Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC’s has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQX under the symbol “IAALF”.
IBC Advanced Alloys Corp.
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company’s future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
This release does not constitute an offer to sell or a solicitation of an offer to buy of any of the Company’s securities in the United States. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom.
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