IBC ADVANCED ALLOYS REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2020
Highlights of the Quarter
(unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars)
Double-Digit Sales Increase for Engineered Materials (“EM”) Division : IBC’s EM division saw its sales rise by 12.8% and 13.1%, respectively, in the three- and six-month periods ended December 31, 2020, as compared to the prior-year periods. Increased sales were driven largely by higher demand for semiconductor chips used in 5G network buildouts and upgrades.
EM Division Defense Business Expanding Significantly: In the quarter, the EM Division was awarded new purchase orders totaling approximately $9.7 million from Lockheed Martin to produce two aerospace-qualified beryllium-aluminum (“BeAl”) components for the F-35 Lightning II aircraft over 26 months. The contract expanded IBC’s work for the F-35 platform to include a second BeAl part for the aircraft, which was previously made by a competitor.
Gross Margin Improves : Consolidated gross margin improved to 17.0% and 15.0%, respectively, in the three- and six-month periods ended Dec. 31. 2020, from 15.2% and 12.8% in the comparable prior-year periods.
EBITDA 1 Growth in the Quarter and YTD Periods: Consolidated adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) grew to $273,000 in the quarter, which compared to a negative Adjusted EBITDA of $52,000 for the prior-year period. Fiscal year-to-date ("YTD") Adjusted EBITDA of $152,000 compared favorably to $81,000 in the comparable prior-year period. Adjusted EBITDA for the EM Division rose by 29.9% and 86.2%, respectively, in the quarter and fiscal YTD periods over the comparable prior-year periods.
Net Income / Loss for the Period: The EM Division posted sharply higher comprehensive income of $173,000 in the quarter, a 253% increase over comprehensive income of $49,000 in the prior-year quarter. On a consolidated basis, IBC recorded a comprehensive loss of $1.26 million in the six-month period ended December 31, 2020, or ($0.02) per share, which compared to a loss of $1.32 million, or ($0.03) per share, in the prior-year period. The loss was driven largely by lower sales and softened demand in copper alloy markets primarily due to the COVID-19 pandemic.
