IBC Advanced Alloys Reports Fiscal Q3 2018 Financial Results
Q3 2018 Highlights
(unless other noted, all financial amounts in this news release are expressed in U.S. dollars)
IBC swung to operating profitability in Q3 2018 for the first time since 2008.
Consolidated sales were up 9.7% year-on-year (“YOY”). In its fiscal 2018 year to date, IBC sales were up by 23%, with Copper Alloy division sales higher by 13.6% and Engineered Materials division sales up 52.8%.
Consolidated gross margin rose 280% over the year-ago quarter. In the fiscal year to date, it has risen to 13%, versus 0% in the comparable year-ago period.
Deliveries of a key beryllium-aluminum product to a commercial customer in the semiconductor equipment manufacturing sector were 66% higher in the quarter sequentially, and 35% higher YOY.
Order bookings in the Copper Alloys division were off 5% sequentially but up 29% YOY.
As announced on May 12, 2018, IBC was awarded by Lockheed Martin a new 3-year contract valued at a minimum of $7.8 million to manufacture a key beryllium-aluminum component for the F-35 Lightning II.
FRANKLIN, IN – (March 30, 2018) – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) announces its financial results for the quarter ended March 31, 2018, which is the Company’s third fiscal quarter of 2018.
The Company swung to operating profitability for the first time since the quarter ended on June 30, 2008, posting increased sales, higher gross profit, and expanded gross margins. The Company’s improved performance was driven by stronger order bookings and improved productivity enabled by previous capital equipment upgrades.
“IBC had an excellent quarter thanks to the hard work of our employees and focus on reducing costs and improving gross margins,” said IBC President and CEO Duncan Heinz (USMC, ret.). “Achieving operational profitability was a key goal for the Company. Further, once we absorb the fundraising expenses we have incurred in the current quarter, I expect continued significant improvement in many areas of operations in the next 12 months, as we look to strengthen our ability to serve a growing customer base as well as look to capitalize on opportunities in existing and new markets.”
The Company posted a 9.7% increase in year-on-year sales for the quarter, with Engineered Materials division sales up 18% and Copper Alloys division sales 6.8% higher. Over the nine months of its fiscal year 2018 to date, IBC’s consolidated sales rose 23% to $14 million compared to the year-ago period sales of $11.5 million. Copper Alloy division sales rose 13.6% and Engineered Materials sales jumped 52.8%.
The Company swung to an operating profit of $62,000 ($0.00 per share) on total revenue of $5.1 million. That compares to a loss in the year-ago period of $707,000 ($0.02/share) on revenue of $4.7 million and a sequential quarterly loss of $402,000 ($0.01/share) on revenue of $4.7 million. The Company cut its losses in the nine months of fiscal year 2018 by 70% to $942,000, compared a comparable year-ago period loss of $3.2 million.
The Company’s consolidated gross margin rose 280% in the quarter to 19%, as compared to a 5% gross margin in the comparable year-ago period. The Company’s nine months of fiscal year 2018 gross margin turned to a positive 13% from a gross margin of 0% in the comparable year-ago period.
Selling, General and Administrative (“SGA”) expenses in the quarter remained relatively flat from the year-ago quarter and have been reduced by 15.0% over the nine months of fiscal year 2018, compared to the comparable year-ago period.
FISCAL Q3-2018 SEGMENT AND CONSOLIDATED OPERATIONS RESULTS
A summary of the Company’s results, on a consolidated and segment-by-segment basis, of operations to loss before other items (“operating income (loss)”) follows:
Consolidated operations highlights for the quarter ended March 31, 2018 include the following:
Sales revenue increased by 9.7%, to $5.1 million from $4.7 million;
Gross profit increased by 340% to $976,000 from $222,000;
Operating loss improved by 119% to income of $122,000 from a loss of $635,000; and
Gross margin increased 280%, moving to 19% from 5%.
Copper Alloy division highlights for the quarter ended March 31, 2018 include the following:
Sales revenue increased by 6.8% to $3.7 million from $3.5 million;
Gross profit increased 120% to $627,000 from $285,000;
Operating profit/loss improved to income of $222,000 from a loss of $101,000;
March 2018 quarterly order bookings decreased 3.8% to $3.1 million from $3.2 million; and
Gross margin increased 113% improving to 17% from 8%.
Engineered Materials division highlights for the quarter ended March 31, 2018 include the following:
Sales revenue increased by 18% to $1.4 million from $1.2 million;
Gross profit swung to a positive $348,000 from a loss of $63,000;
Operating loss improved by 129% to income of $88,000 from a loss of $304,000; and
Gross margin shifted to a positive 24% from a negative 5%.
FISCAL YEAR-TO-DATE SEGMENT AND CONSOLIDATED RESULTS
A summary of IBC’s results of operations to loss before other items (“operating income (loss)”) for the nine months ended March 31, 2018 follows:
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
"Duncan Heinz”
