VANCOUVER, BRITISH COLUMBIA--(Marketwire) - IBC Advanced Alloys Corp. (TSX VENTURE:IB)(OTCQX:IAALF) ("IBC" or the "Company") reports its financial results for the year ended June 30, 2012. Highlights include:
- Record annual revenue of $25.5 million, up 13% from fiscal 2011.
- Record quarterly sales of $8.5 million in the fourth quarter, up over 50% from the third quarter.
Full particulars are provided in the Company's financial
statements and related management's discussion and analysis and annual
information form which are available at
www.sedar.com.
IBC is an integrated manufacturer and distributor of
specialty alloys and related products serving a broad range of
industries with production facilities in Indiana, Massachusetts,
Pennsylvania and Missouri. The Company's principal products are copper
alloys and a proprietary cast beryllium-aluminum alloy.
While the Company was adversely affected by a sharp decline
in copper prices in the first fiscal quarter, the loss before other
items ("operating loss") improved in every quarter of fiscal 2012. In
the fourth quarter, IBC saw some of the benefit of investments in plant
capacity and market development with
record revenues representing an
increase in sales of 53% over the preceding quarter. For the first time
since its formation, the Company generated income, rather than a loss,
from operations, even after covering non-manufacturing expenses such as
research, exploration and public company costs.
The Company also made significant progress in fiscal 2012 to
improve the strength of its balance sheet, reducing interest-bearing
debt by $3.3 million over the 12-month period.
To date, IBC has sought to expand plant capacity and develop
new business in order to take advantage of opportunities in the
specialty alloys market. As a result, results of operations have been
characterized by low gross margins and high operating expenses. The
gross margins have been low because of staff, rent and depreciation
expenses in excess of those necessary for current production levels.
IBC's operating expenses have reflected travel and consulting fees to
generate interest for our products in new market segments. The Company
has also invested in research and exploration activities, such as
beryllium oxide enhanced nuclear fuels, not related to core
manufacturing operations.
"I am very happy with the results of operations from our
manufacturing activities."
Simon Anderson, IBC's CFO commented. "Through
a systematic program of process improvement and by
reaching out to new
markets,
we have successfully grown our business and demonstrated the
ability to reliably produce and deliver high quality products. Our
manufacturing operations have matured significantly in response to
investments in equipment, technology and personnel over the last four
years. We now look forward to reaping the benefits of these
investments," he continued.
"The announcement of our results of operations for fiscal
2012 marks a turning point in IBC's development as a business," noted
Anthony Dutton, IBC's CEO. "Over the summer and early fall of 2012, our
board and management have refined our business strategy to concentrate
on those activities that are most likely to lead to the creation of
shareholder value. To that end, we have suspended all exploration
activities and have focused our business development and administrative
activities with the
objective of consistently delivering profits from
operations."
While the Company's loss was disappointing at $5.7 million,
management does not believe this number is indicative of ongoing
operating results. For instance:
- As a result of suspending exploration activities, the
carrying value of exploration and evaluation assets was fully impaired,
incurring a charge of $2.1 million as a consequence. In addition, the
segment operating loss relating to exploration was $372,000. From
November 2012 onwards, exploration expenditures will be insignificant.
- Fiscal 2012 saw a one-time settlement of $208,000
with a supplier to ensure a constant supply of raw materials. The
Company does not expect charges of this type to occur again as this cost
resulted from actions of a previous owner of one of our business
operations.
- IBC incurred higher than normal professional fees as a result of an undertaking a prospectus financing in late 2011.
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 sectors including aerospace, automotive, telecommunications and a
range of industrial applications. IBC has 86 employees and
production
facilities in Indiana, Massachusetts, Pennsylvania and Missouri. IBC is
creating a dynamic global 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".
This news release was prepared by management of IBC, which takes full responsibility for its contents.
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.
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.
Contact Information
IBC Advanced Alloys Corp.
Ian Tootill
Director of Corporate Communications
(604) 685-6263 ext 110
itootill@ibcadvancedalloys.comwww.ibcadvancedalloys.com
Engineered Materials President Chris Huskamp said, "IBC's business development
initiatives focus on expanding our high performance castings product
line while improving margins and operating efficiencies. We have
identified a wide range of new opportunities and are engaged with
several groups. While IBC is currently focusing on the aerospace sector
for its Beralcast®
alloys," continued Huskamp, "high performance manufacturing is a
growing opportunity for IBC. Robotics, precision manufacturing and
automated assembly rely on highly sophisticated materials and IBC sees
many opportunities for Beralcast® where precision, light weight and high modulus are essential operating requirements."
"IBC
is building a strong reputation as a materials solutions provider and
continues to build momentum with both our Copper Alloys division and our
high modulus lightweight Beralcast®
alloys," said Anthony Dutton, President and CEO of IBC Advanced Alloys.
"We are committed to supporting our customers, their commitment to
manufacturing excellence and their need for advanced materials that
exceed critical performance targets."
