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IBC Advanced Alloys Reports Financial Results for the Year Ended June 30, 2020


IBC Advanced Alloys

iCrowdNewswire   Oct 29, 2020  1:06 PM ET

IBC Advanced Alloys Corp. announces its financial results for the quarter and year ended June 30, 2020.

Mark A. Smith, IBC CEO and Board Chairman, will host a conference call and webcast on Monday, November 2, 2020 at 12 p.m. Eastern to discuss the Company’s results and its future growth strategies. Details on how to participate in this call / webcast are listed below.

CONSOLIDATED RESULTS

SELECTED RESULTS: Consolidated Operations
($000s)
  Quarter Ended
6-30-2020
Quarter Ended
6-30-2019
Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2019
Sales $ 5,056   $ 4,869   $ 21,148   $ 18,668  
Operating Income (Loss)2 $ (133 ) $ (1,297 ) $ (769 ) $ (3,082 )
Comprehensive Income (Loss) $ 27   $ (1,549 ) $ (1,122 ) $ (4,043 )
Adjusted EBITDA $ 455   $ (1,026 ) $ 1,361   $ (1,905 )

In the quarter, the Company recorded income of $27,000, or $0.00 per share. Profitability was driven by higher revenue and stronger gross margins.

Consolidated sales of $5.1 million in the quarter, and $21.1 million for the year, rose by 4% and 13% YoY, respectively.

Comprehensive gross margin also strengthened, improving in the quarter to 9.7% from (7.1%) in the prior-year period, and rising to 14% for the year, from 5.0% the prior-year period.

The Company recorded a comprehensive loss of $1.1 million for year, but this compared favorably to a loss of $4 million in the prior year.

“IBC was showing marked improvements in performance, sales, and gross margins prior to the onset of the pandemic, and I am very proud of the significant operational and financial improvements that our team achieved in fiscal 2020 over the prior year,” said Mark A. Smith, IBC Board Chairman. “Reduced economic activity driven by the COVID pandemic has tempered the advances we were making, but the IBC team is now focused on building back our pre-COVID momentum and continuing our relentless efforts to improve sales volumes and gross margins while lowering our operating costs and increasing efficiencies across the enterprise.”

ENGINEERED MATERIALS DIVISION RESULTS

SELECTED RESULTS: Engineered Materials
($000s)
  Quarter Ended
6-30-2020
Quarter Ended
6-30-2019
Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2019
Sales $ 2,081 $ 1,160   $ 6,864 $ 5,155  
Operating Income (Loss) $ 403 $ (573 ) $ 488 $ (1,109 )
Comprehensive Income (Loss) $ 308 $ (567 ) $ 365 $ (1,118 )
Adjusted EBITDA $ 404 $ (445 ) $ 1,200 $ (638 )

IBC’s EM division, which produces aerospace-grade beryllium-aluminum (“BeAl”) alloy products, swung to profitability in fiscal year 2020 on higher sales and improved average gross margin.

In the quarter, EM posted comprehensive income of $308,000, compared to a loss of $567,000 in the prior-year period, and comprehensive income for the year of $365,000, compared to a loss of $1.1 million in the prior year.

EM sales in the quarter of $2.1 million were 79% higher than sales of $1.2 million in the prior-year period. Sales for the year of $6.9 million represented a 33% increase over $5.2 million in sales in the prior year. The division’s stronger sales performance was driven largely by increased demand for BeAl products in commercial markets.

Average gross margin in the EM division advanced to 31.9% in the quarter, and to 24.5% in the year, reversing negative gross margins in both periods of the corresponding prior-year periods.

Adjusted EBITDA for the EM division of $404,000 also swung to the positive in the quarter, as compared to Adjusted EBITDA of ($445,000) in the prior-year period. Likewise, Adjusted EBITDA rose to $1.2 million for the year, as compared to Adjusted EBITDA of ($638,000) in the prior year.

COPPER ALLOYS DIVISION RESULTS

SELECTED RESULTS: Copper Alloys
($000s)
  Quarter Ended
6-30-2020
Quarter Ended
6-30-2019
  Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2019
Sales $ 2,975   $ 3,709   $ 14,284   $ 13,513  
Operating Income (Loss) $ (413 ) $ (511 ) $ (363 ) $ (924 )
Comprehensive Income (Loss) $ (473 ) $ (582 ) $ (679 ) $ (1,252 )
Adjusted EBITDA $ 278 ) $ (372 ) $ 229   $ (453 )

IBC’s Copper Alloys division posted a comprehensive loss of $473,000 in the quarter, which narrowed a loss of $582,000 in the prior-year period, and recorded a loss of $679,000 in the year ended June 30, 2020, which compared favorably to a loss of $1.3 million in the prior year.

Sales of $3.0 million in the quarter were 20% lower than sales of $3.7 million in fiscal Q4 of 2019, while sales for fiscal year 2020 of $14.3 million were 6% higher than sales of $13.5 million in the prior year.

Average gross margin in the Copper Alloys division declined to a negative 5.8% in the quarter, from a 1% gross margin in the prior-year period, driven by lower sales as a result of reduced economic activity from the COVID pandemic. However, for the year, average gross margin improved to 8.9% for the year, as compared to 7.8% in fiscal year 2019.

Adjusted EBITDA for the division was ($278,000) in the quarter, which compared favorably to Adjusted EBITDA of ($372,000) in the prior-year period. For the year, Adjusted EBITDA swung to a positive $229,000 from ($453,000) in the prior year.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and webcast on Monday, November 2, 2020  at 12 p.m. Eastern, featuring Mark A. Smith, IBC CEO and Board Chairman, to discuss the Company’s results and its future growth strategies. To call into the webcast on the listen-only phone line, please call +1 (415) 930-5321, access code 277-456-484. A recording of the webcast will be made available on the IBC website following the event.

NON-IFRS MEASURES

To supplement its consolidated financial statements, which are prepared and presented in accordance with IFRS, IBC uses “operating income (loss)” and “Adjusted EBITDA”, which are non-IFRS financial measures. IBC believes that operating income (loss) helps identify underlying trends in the business that could otherwise be distorted by the effect of certain income or expenses that the Company includes in loss for the period, and provides useful information about core operating results, enhances the overall understanding of past performance and future prospects, and allows for greater visibility with respect to key metrics used by management in financial and operational decision-making. The Company believes that Adjusted EBITDA is a useful indicator for cash flow generated by the business that is independent of IBC’s capital structure.

Operating income (loss) and Adjusted EBITDA should not be considered in isolation or construed as an alternative to loss for the period or any other measure of performance or as an indicator of our operating performance. Operating income (loss) and Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to IBC’s data.

Operating Income (Loss)

Operating income (loss) represents loss for the period, excluding foreign exchange loss, interest expense, interest income, other income (expense) and income taxes that the Company does not believe are reflective of its core operating performance during the periods presented. A reconciliation of the fourth quarter loss and the year ended June 30, 2020 income (loss) to operating income follows:

Quarter ended June 30 2020   2019  
  ($000s)   ($000s)  
Income (loss) for the period 27   (1,549 )
Foreign exchange (gain) loss 299   55  
Interest expense 306   217  
Loss on disposal of assets 6    
Interest income    
Other income (784 ) (10 )
Income tax expense (recovery) 13   (10 )
Operating income (loss) (133 ) (1,297 )

 

Year ended June 30 2020   2019  
  ($000s)   ($000s)  
Loss for the period (1,122 ) (4,043 )
Foreign exchange (gain) loss 11   49  
Interest expense 1,111   925  
Loss on disposal of assets 11   20  
Interest income   (7 )
Other income (800 ) (22 )
Income tax expense (recovery) 20   (4 )
Operating loss (769 ) (3,082 )

Adjusted EBITDA

Adjusted EBITDA represents our income (loss) for the period before interest, income taxes, depreciation, amortization and share-based compensation. A reconciliation of our fourth quarter and the year ended June 30, 2020 income (loss) to Adjusted EBITDA follows:

Quarter ended June 30 2020   2019  
  ($000s)   ($000s)  
Income (loss) for the period 27   (1,549 )
Income tax expense (recovery) 13   (10 )
Interest expense 306   217  
Depreciation, & amortization    
  166   237  
Stock-based compensation expense (non-cash) (57 ) 79  
Adjusted EBITDA 455   (1,026 )

 

Year ended June 30 2020   2019  
  ($000s)   ($000s)  
Loss for the period (1,122 ) (4,043 )
Income tax expense (recovery) 20   (4 )
Interest expense 1,111   925  
Depreciation & amortization 1,301   820  
Stock-based compensation expense (non-cash) 51   397  
Adjusted EBITDA 1,361   (1,905 )

 

On Behalf of the Board of Directors:

“Mark A. Smith”

Mark A. Smith, CEO & Chairman of the Board

CONTACTS:

Mark A. Smith, Chairman of the Board
Jim Sims, Investor and Public Relations
IBC Advanced Alloys Corp.

+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com



Contact Information:

Mark A. Smith, CEO & Chairman of the Board








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