VANCOUVER, BC – March 1, 2016 – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) has released its financial results for the period ended December 31, 2015. For detailed information about IBC’s second fiscal quarter, please read the Company’s financial statements and management’s discussion and analysis which are available on SEDAR.
First Quarter Highlights
- Revenue of $3.32 million, down 21% from the previous quarter.
- Engineered Materials revenue of $800,000, up 19% from the comparative period in 2014.
- Copper Alloys revenue of $2.52 million, down 43% from the comparative period in 2014.
- Loss for the period $1.77 million.
Commentary and Corporate Update
IBC’s fiscal second quarter 2016 results reflect continued weak sales and declining copper prices, experienced by the copper industry overall, mitigated by Engineered Materials’ strengthening operations, for an overall company loss before other items (“operating loss”) of $1.77 million, compared to a loss of $706,000 in the comparative 2014 period. Since many of IBC operating costs are fixed in the short term, the $1.76 million drop in quarterly sales had a materially adverse effect on operating loss.
Anthony Dutton, IBC’s chief executive officer commented “The sales decline in Copper Alloys reflects sector-wide trends to which we have not been immune. While we have endured a tough two quarters, as the numbers reflect, we are seeing growth in our order intake. Accordingly, we are cautiously optimistic moving forward on the Copper Alloys side, and very pleased with the continuing improvements at Engineered Materials. We have undertaken a review of our manufacturing plants and are implementing operating-level changes that we expect will reduce costs while not adversely affecting productive capacity.”
Increased sales in our Engineered Materials division were primarily attributable to deliveries of finished components to Lockheed Martin under its LRIP lots 7/8 contracts, as well as some revenues from LRIP lots 9/10 contracts. We expect existing Lockheed Martin contracts will continue to drive revenues through the first quarter of fiscal 2017. Engineered Materials is still operating below capacity and will benefit from any additional contracts the division secures. We expect that fiscal 2016 sales at Engineered Materials will increase over 2015.
Our second fiscal quarter was exceptionally weak in Copper Alloys sales. Copper Alloys operating results reflected anemic order intake that was exacerbated by a decline in copper prices and very tough market conditions in oil and gas in particular. Third quarter business shows improvement with a return to more historically normal order backlog levels.
IBC second fiscal quarter 2016 results can be viewed here on SEDAR.
A conference call to discuss the second quarter fiscal 2016 results will be held today, Tuesday March 1, 2016 at 1:00 pm ET (10:00 am PT):
- Conference Call Dial-In Numbers:
Canada and USA Toll Free 1-800-319-4610
Outside Canada and USA (direct) 1-604-638-5340
Callers should dial in 5 to 10 minutes before the scheduled start time and simply ask to join the call.
- Conference Call Replay Numbers:
Canada and USA Toll Free 1-855-669-9658
Outside Canada and USA (direct) 1-604-674-8052
- Code: (followed by the # sign): 0037
Duration: Available until end of day Tuesday, March 14, 2016
About IBC Advanced Alloys Corp.
IBC is a leading advanced alloys and precision castings company serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 76 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQB under the symbol “IAALF.”
|IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext. 110
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.
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