FRANKLIN, Ind., Oct. 30, 2017 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V:IB) (OTCQB:IAALF) announces its fiscal fourth quarter 2017 and full-year 2017 financial results.
Revenue for the quarter ended June 30, 2017 was $4.2 million, a 2.4% increase over revenues of $4.1 million in the quarter ended June 30, 2016. The Company reported a loss in the quarter of $2.2 million, or ($0.07) per basic and diluted share, compared to a loss of $1.1 million in the quarter ended June 30, 2016, or ($0.06) per basic and diluted share.
Year-end revenue for fiscal 2017 was reported at $15.7 million, a decline from fiscal 2016 revenue of $16.4 million. The Company reported a fiscal 2017 loss of $5.4 million, representing a loss per share of $0.18, as compared to a fiscal year 2016 loss of $3.9 million, representing a loss per share of $0.33.
Sales in the Engineered Materials division rose 52% in the quarter to $1.1 million, compared to sales in the prior year period of $722,000. Copper Alloys sales for the quarter were $3.1 million, compared to sales of $3.4 million in the quarter ended June 30, 2016.
In the quarter, the Company completed the major components of its capital improvements program launched in 2016. In addition to installing a new beryllium-aluminum casting furnace in its Wilmington, MA facility in May 2017, the Company completed the installation in the quarter of additional equipment associated with that furnace, including digital radiography equipment, automated finished equipment, material handling equipment, and an upgrade to the coordinate measurement machine to accommodate aerospace inspection requirements. While the Company is continuing to fine-tune the functionality of the automation controls of the furnace, IBC now has a fully integrated factory automation system controlling the furnace and cooling equipment.
Also in the quarter, the Company completed the installation and commissioning of a new solution annealing furnace and quench tank at its Franklin, Indiana facility. This furnace features enhanced temperature uniformity throughout the furnace and an attached quench tank. The automated controls provide consistency throughout the heat treat and quenching cycles. These controls allow the Company to certify its materials as conforming to AMS 2750 Rev E, which is required by customers in the aerospace, defense, and oil and gas sectors.
Corporate expenses in the quarter decreased to $32,000 from $230,000 in the quarter ended March 31, 2017, and as compared to $755,000 in the comparable prior-year period. Corporate expenses decreased $1.1 million for fiscal 2017, compared to expenses of $1.7 million in fiscal 2016.
As of June 30, 2017, the Company reported a working capital deficiency of $1.6 million, including cash of $100,000, as compared to working capital of $4.3 million at June 30, 2016. However, the Company estimates that its working capital position improved by $600,000 to a deficiency of $980,000 as of September 30, 2017. This figure is a management estimate only and has not been audited. Further, the Company booked $1.4 million in expenses in the quarter ended June 30, 2017 related to an arbitration award in favor of the former co-owner of Beralcast, which IBC purchased in 2010 and which now serves as the Company’s beryllium-aluminum alloys operating division. IBC vigorously disputes the allegations and has filed an appeal of the arbitrators’ award.
“While we succeeded in completing our capital improvements program in both of our operating divisions in our fiscal fourth quarter, we knew that production would be impacted as a result,” said Major General Duncan Heinz (USMC, Ret.), President, CEO and Director of IBC. “The arbitration award was unexpected as well and we have filed an appeal and intend to vigorously contest that award. We are making progress in our fiscal first quarter of 2018 and orders are strong, which I am pleased to see. We are not yet where I want us to be in terms of execution, and execution is what it is about now for the IBC team.”
The Company’s fiscal fourth quarter 2017 financial statements and management’s discussion and analysis are available for review at www.sedar.com. For more information on IBC and its innovative alloy products, please see www.ibcadvancedalloys.com.
On Behalf of the Board of Directors:
"Duncan Heinz”
Duncan Heinz, President, CEO and Director
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
Contact:
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
Cautionary Statements
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 about the Company’s estimated working capital deficiency and orders expected for the first fiscal quarter of 2018. There can be no assurance that the current working capital deficiency will continue to decline or that order volumes will result in higher revenues. These forward-looking statements 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 or its customers operate, including the semiconductor manufacturing and oil and gas industries, 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, the ability of the Company to generate demand for its products and execute on orders. In addition there are risks and uncertainties associated with manufacturing activities which are beyond the Company’s control.
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. As a result, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. We cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements IBC makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in IBC’s filings at www.sedar.com.