IBC Advanced Alloys Reports Fiscal Q2 2017 Results
Company Posts Fiscal Q2 Sales and Revenue Gains; Wins Expanded Lockheed Martin Contract; Steadily Progressing Toward Goal of Achieving Cash-Flow Positive Operations
FRANKLIN, IN – February 24, 2017 – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) announces its financial results for fiscal second quarter of 2017. The Company reported higher sales and revenue, an improved gross margin, and a significant narrowing of its operating loss in the quarter ended December 31, 2016, all as compared to the prior-year period.
In a separate announcement (see this), the Company released the details of a $2.6 million production contract from Lockheed Martin. The contract represents a 16% increase over IBC’s previous contract with Lockheed Martin in the number of Beralcast® beryllium-aluminum alloy components IBC will make for use in the F-35 Joint Strike Fighter aircraft.
The Company’s fiscal second quarter 2017 financial statements and management’s discussion and analysis are available for review at www.sedar.com. Below are some highlights of the results.
Fiscal Q2 2017 Highlights
(All financial amounts in US$)
Revenue for the quarter was $3.57 million, a 7.4 percent increase over revenue of $3.32 million in the comparable prior-year period.
The Company recorded a loss for the quarter of $838,000, or ($0.03) per basic and diluted share. That compares to a loss of $1.77 million, or ($0.18) per basic and diluted share, for the comparable prior-year period.
The Engineered Materials division enjoyed a strong quarter, with sales rising to $948,000, an 18.5% increase over sales of $800,000 in the comparable prior-year period. Quarterly sales also rose in the Copper Alloys division to $2.62 million, as compared to $2.54 million in the prior year period.
IBC’s consolidated gross margin in the quarter improved to 8 percent, as compared to consolidated gross margin loss of -24% in the prior-year period.
IBC was awarded a new contract from Lockheed Martin to produce a crucial advanced beryllium-aluminum Beralcast® alloy component for the F-35 Lightning II EOTS system. The new contract represents a 16% increase over the number of EOTS components that IBC is to manufacture for Lockheed Martin in the previous contract, which combined orders for both LRIPs 9 and 10. The total value of the new contract is approximately $2.6 million.
The Company’s Engineered Materials division is seeing stronger-than-expected demand in calendar year 2017 for its Beralcast® beryllium-aluminum alloy products used in the semiconductor manufacturing industry.
Work is continuing under the Company’s joint development agreement with BAE Systems for the production of prototype Beralcast® The Company also is pursuing significant sales opportunities with two other major aerospace companies.
IBC expects near-term sales in its Copper Alloys division to gradually improve as business activity strengthens in copper alloy dependent industries, such as oil and gas.
“I was pleased to see higher sales and revenue numbers in the quarter as we continue to steadily progress toward our goal of achieving cash-flow positive operations in 2017,” said Major General Duncan Heinz (USMC, Ret.), IBC’s President and Chief Executive Officer. “Trends across both business segments are increasingly positive. Demand continues to grow for our innovative Beralcast® products made by our Engineered Materials division, as evidenced by the double-digit increase in parts called for in the new Lockheed Martin contract, as well as in the sharply higher orders we are receiving from the semiconductor manufacturing industry. In our Copper Alloys division, our plastic mold tooling business is showing consistent growth, and we are pleased to see an uptick in orders from the oil and gas industry.”
The General added: “We also are pleased to be approaching the final stages of completing our capital improvements program, which is designed to help us improve yields, boost capacities, lower costs, and open up new sales opportunities.”
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
Duncan Heinz, President, CEO and Director
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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".
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
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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 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 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.