VANCOUVER, BC – March 3, 2015 – IBC Advanced Alloys Corp. (TSX-V: IB; OTCQX: IAALF) has released its financial results for the period ended December 31, 2014. 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 at www.sedar.com.
Second Quarter Highlights
- Revenue of $5.08 million representing a 9.5% increase over the previous quarter and a 31.5% increase over the same period in the previous fiscal year.
- Copper Alloys revenue of $4.42 million, up 21% over the comparative period.
- Engineered Materials revenue of $672,000, an increase of 226% over the comparative fiscal period.
- Loss for the period was $706,000, representing a 20% improvement compared to the same quarter in the previous fiscal year.
Year to Date Highlights
- Revenue of $9.73 million representing an 11% increase over the same period in the previous fiscal year.
- Copper Alloys revenue of $8.40 million, up 6% over the comparative period.
- Engineered Materials revenue of $1.33 million, an increase of 65% over the comparative fiscal period.
- Loss for the period was $1.23 million, representing an 18.5% improvement compared to the same quarter in the previous fiscal year.
Commentary and Corporate Update
IBC recorded strong sales growth in Q2 with sales up 9.5% from Q1. This is a very favourable result as sales typically decline by between 10% and 20% in Q2 due to the effect of holidays on production and shipping. Both production divisions enjoyed good growth as discussed below.
Anthony Dutton, IBC’s chief executive officer commented “After a long period of business reorganization and investment, it was very gratifying to see strong financial performance in our second fiscal quarter. Our Engineered Materials operations are hitting their stride and, based on our initial success with producing aerospace components, we look forward to expanding defence-sector sales significantly.”
Q2 marked a major milestone for Engineered Materials as it shipped some F-35 components for machining and was able to recognize related contract milestone payments as revenue. Most of the contract revenue and margin from the F-35 components will be recognized in succeeding quarters when final components are to be delivered.
Engineered Materials continues to incur a loss from operations since plant utilization is low and indeed below breakeven, but the division is working to get into additional defence programs.
The strength in Copper Alloys sales was broad based and the division enjoyed increased sales in spite of weak copper prices. Changes in product mix adversely affected margins, but the effect was not significant.
Copper Alloys operating income was helped by a $222 doubtful debt recovery when it collected in full accounts receivable that were fully provided for.
Corporate liquidity remains sensitive as the expansion of Engineered Materials has been cash intensive. The Company is, however, in discussions with several groups regarding preferred financing options but has not yet reached any agreements.
A conference call to discuss the second fiscal quarter results will be held today 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 1-800-319-6413
Outside Canada and USA (direct) 1-604-638-9010
- Code: (followed by the # sign): 1537
Duration: Available until end of day Tuesday, March 17, 2015
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 80 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 OTCQX under the symbol “IAALF.”
|IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext. 110
Email: [email protected]
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Dave Burwell / Brad Dryer
Toll Free: 1-888-221-0915
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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