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
"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.
IBC Advanced Alloys Corp.
Director of Corporate Communications
(604) 685-6263 ext 110
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