IBC Advanced Alloys Reports Fiscal 2012 Results
IBC Advanced Alloys Reports Fiscal 2012 Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/30/12 -- 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 i n 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.
Contacts: IBC Advanced Alloys Corp. Ian Tootill Director of Corporate Communications (604) 685-6263 ext 110 email@example.com www.ibcadvancedalloys.com