IBC Advanced Alloys Reports Financial Results for the Quarter ended September 30, 2023
Highlights of the Quarter as Compared to the Prior-Year Period
(Unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars.)
Consolidated sales of $6.7 million were 12.5% higher than the prior-year period, with Copper Alloys division sales rising by 11.4% quarter-over-quarter ("Q/Q") and Engineered Materials ("EM") division sales higher by 15.5% Q/Q.
Gross profit and gross margins improved Q/Q across both divisions largely due to stronger sales.
Consolidated adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") [1] in the quarter swung to a positive adjusted EBITDA as compared to the prior-year period. Adjusted EBITDA increased sharply in the quarter for Copper Alloys.
On a consolidated basis, IBC incurred a loss in the quarter of $934,000 ($0.01 per share), as compared to a loss of $2 million ($0.02) in the quarter ended September 30, 2022.
FRANKLIN, IN / ACCESSWIRE / November 29, 2023 / IBC Advanced Alloys Corp. (" IBC " or the " Company ") (TSXV:IB);(OTCQB:IAALF) announces its financial results for the quarter ended September 30, 2023.
Consolidated sales rose to $6.7 million in the quarter, with both operating divisions booking higher revenue. Gross profit and gross margins also improved across both divisions, as did operating income and Adjusted EBITDA.
"I was very pleased to see stronger financial and operating performance over the prior-year quarter across both of our operating divisions," said Mark A. Smith, Chairman and CEO of IBC. "Demand remained strong in the quarter for our copper alloy products, and our Engineered Materials division improved largely due to more favorable pricing in commercial and defense markets for our products. The entire IBC team is working very hard to put the company on the path to sustained profitability, and I look forward to helping deliver that to both our shareholders and our employees."
Consolidated Results
SELECTED RESULTS: Consolidated Operations ($000s) | |||||||||
Quarter Ended | Quarter Ended | ||||||||
Revenue | $ | 6,667 | $ | 5,928 | |||||
Change | 12.5 | % | |||||||
Operating (loss) 1 | $ | (334 | ) | $ | (1,422 | ) | |||
Adjusted EBITDA 1 | $ | 119 | $ | (942 | ) | ||||
Income (loss) for the period | $ | (934 | ) | $ | (2,014 | ) | |||
Income (loss) per share | $ | (0.01 | ) | $ | (0.02 | ) | |||
Copper Alloys Division
Sales have increased in Copper Alloys in the current-year periods, as compared to the prior-year periods, primarily due to increased market demand for our products, especially from customers in the electronics sector that are manufacturing products related to the rapidly growing network connectivity of consumer goods and the transition to 5G networks. The division's gross margin also strengthened in the year to 17.6%, from 9.7% in the prior year's quarter. Operating performance has remained strong as the division continues to take advantage of lower costs and greater efficiencies resulting from its consolidated foundry and forge operations.
SELECTED RESULTS: Copper Alloys Division ($000s) | |||||||||
Quarter Ended | Quarter Ended | ||||||||
Revenue | $ | 4,905 | $ | 4,402 | |||||
Change | 11.4 | % | |||||||
Operating income (loss) 1 | $ | 337 | $ | (135 | ) | ||||
Adjusted EBITDA 1 | $ | 479 | $ | 4 | |||||
Income (loss) for the period | $ | 103 | $ | (230 | ) | ||||
Engineered Materials Division
Sales increased in the quarter ended September 30, 2023, largely due to more favorable pricing for the division's products in commercial and defense markets. The Engineered Materials division is continuing its efforts to improve yields.
SELECTED RESULTS: Engineered Materials Division ($000s) | |||||||||
Quarter Ended | Quarter Ended | ||||||||
Revenue | $ | 1,762 | $ | 1,526 | |||||
Change | 15.5 | % | |||||||
Operating income (loss) 1 | $ | (330 | ) | $ | (1,169 | ) | |||
Adjusted EBITDA 1 | $ | (113 | ) | $ | (894 | ) | |||
Income (loss) for the period | $ | (480 | ) | $ | (1,229 | ) | |||
Full results can be seen in the Company's financial statements and management's discussion and analysis ("MD&A"), available at Sedar.ca and on the Company's website at https://ibcadvancedalloys.com/investors-center/ .
NON-IFRS MEASURES
To supplement its consolidated financial statements, which are prepared and presented in accordance with IFRS, IBC uses "operating income (loss)" and "Adjusted EBITDA", which are non-IFRS financial measures. IBC believes that operating income (loss) helps identify underlying trends in the business that could otherwise be distorted by the effect of certain income or expenses that the Company includes in loss for the period, and provides useful information about core operating results, enhances the overall understanding of past performance and future prospects, and allows for greater visibility with respect to key metrics used by management in financial and operational decision-making. The Company believes that Adjusted EBITDA is a useful indicator for cash flow generated by the business that is independent of IBC's capital structure.
Operating income (loss) and Adjusted EBITDA should not be considered in isolation or construed as an alternative to loss for the period or any other measure of performance or as an indicator of our operating performance. Operating income (loss) and Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to IBC's data.
OPERATING INCOME (LOSS)
Operating income (loss) represents income or loss for the quarter, excluding foreign exchange loss, interest expense, interest income, other income (expense) and income taxes that the Company does not believe are reflective of its core operating performance during the periods presented. A reconciliation of the quarter and year-to-date loss to operating income (loss) follows:
Three months ended September 30 | 2023 | 2022 | ||||||
($000s) | ($000s) | |||||||
Loss for the period | (934 | ) | (2,014 | ) | ||||
Foreign exchange (gain) loss | 4 | 5 | ||||||
Interest expense | 640 | 620 | ||||||
Loss on disposal of assets | -- | - | ||||||
(Gain) loss on revaluation of derivative | 1 | (30 | ) | |||||
Interest income | - | - | ||||||
Other income | (45 | ) | 1 | |||||
Arbitration award liability | - | - | ||||||
Operating income | (334 | ) | (1,422 | ) | ||||
ADJUSTED EBITDA
Adjusted EBITDA represents our income (loss) for the period before interest, income taxes, depreciation, amortization, and share-based compensation. A reconciliation of the quarter and year-to-date loss to Adjusted EBITDA follows:
Year ended September 30 | 2023 | 2022 | ||||||
($000s) | ($000s) | |||||||
Loss for the period | (934 | ) | (2,014 | ) | ||||
Income tax expense (recovery) | - | (4 | ) | |||||
Interest expense | 640 | 620 | ||||||
(Gain) loss on revaluation of derivative | 1 | (30 | ) | |||||
Depreciation, amortization & impairment | 373 | 410 | ||||||
Stock-based compensation expense (non-cash) | 301 | 76 | ||||||
Adjusted EBITDA | 119 | (942 | ) | |||||
For more information on IBC and its innovative alloy products, go here .
On Behalf of the Board of Directors:
"Mark A. Smith"
Mark A. Smith, CEO & Chairman of the Board
[1] IBC reports non-IFRS measures such as "Adjusted EBITDA" and "Operating Income." Please see information on this and other non-IFRS measures in the "Non-IFRS Measures" section of this news release and in IBC's MD&A, available on Sedar.com# # #
CONTACTS:
Mark A. Smith, Chairman of the Board
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB.TO $IAALF #copper #beryllium #F35
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 Alloys 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 and Massachusetts. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
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.
Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, the Company's expectation of further growth in revenue and market demand, and the ability of the Copper Alloy division to increase its production capacity, reduce unit costs of production, expand its product portfolio and expand into new markets and the Company's efforts to explore strategic options for its Engineered Materials Division. Forward-looking statements 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, risks associated with manufacturing activities, 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. As a result of these risks and uncertainties, 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.
Please see "Risks Factors" in our Annual Information Form available under the Company's profile at www.sedar.com , for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
SOURCE: IBC Advanced Alloys Corp.
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