VANCOUVER, BC – October 28, 2014 – IBC Advanced Alloys Corp. (TSX-V: IB; OTCQX: IAALF) today released its financial results for the year ended June 30, 2014, and provided an update on the Company’s activities to date.
Fiscal 2014 was a transitional year with an increasing focus on higher-margin copper alloys, improved production efficiencies and overhead containment resulting in the loss before other items falling 36%. IBC also de-risked its Engineered Materials business and, in September 2014, secured a production contract from Lockheed Martin for aerospace components.
Highlights and Results:
- Copper Alloys: stronger bottom line / weaker top line performance: Fiscal 2014 revenue decreased by $3.9 million or 21% to $15.0 million. The decline was attributable to a combination of lower copper prices, lower demand and changes in product mix. Although Copper Alloys revenue decreased, improved manufacturing processes at Copper Alloys Division resulting in gross margin increasing from 11% to 15% and gross profit in increasing from $2,140,000 to $2,242,000.
- Commercial validation of IBC’s Beralcast® alloys: Lockheed Martin selected Beralcast® for electro-optical targeting system components on the F-35 Lightning II. The Company also delivered demonstration articles to Wyle to be evaluated for potential military drone applications.
- Reduced overhead: With a focus on manufacturing, selling general and administrative expenses decreased 29%.
- Positive financial trends in very challenging capital markets: the company was able to obtain financing in early 2014 at a 50% premium to its last offering in 2013 and has been able to expand its operating credit line as a result of supportive investor and banking relationships.
“Fiscal 2013 and the start of 2014 were a period of considerable challenge and as well as progress for IBC”, said Anthony Dutton, IBC President and CEO. “We reduced our costs and focused on the ongoing development of profitable manufacturing of high performance, high modulus metal alloys. With commercial validation of Beralcast we have de-risked our Engineered Materials division and demonstrated the significant potential for this family of castable beryllium aluminum alloys. Our ongoing commitment,” continued Dutton, “is to improve margins and yields, expand our machining and finishing capacity, introduce new alloys, and to respond to the demands of our distributor network and customer base.”
Key Drivers for Business in 2015:
- Fulfill the previously disclosed Lockheed-Martin contract;
- Introduce Beralcast® to other aerospace programs and to expand into new industries;
- Add new and complementary copper alloys;
- Introduce high margin value add manufacturing capacity.
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] Website: www.ibcadvancedalloys.com |
The Howard Group Inc.
Dave Burwell / Brad Dryer Toll Free: 1-888-221-0915 (403) 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.
To view past news releases go here.
