IBC Advanced Alloys Reports Financial Results For Quarter Ended December 2024
IBC Advanced Alloys reported financial results for the quarter ended December 31, 2024, showing significant challenges. The Copper Alloys division recorded sales of $7.1 million in the six-month period, a 29.4% decline from $12 million in the prior year. This decrease was attributed to $3.2 million in non-recurring orders from the previous year and softer market demand.
The company's financial performance showed several concerning metrics: The Copper Alloys division posted a YTD operating loss of $654,000 compared to a prior year's operating income of $438,000. Gross profit declined by 44.4% year-over-year, with gross margin softening by 4%. On a consolidated basis, IBC reported a net loss of $2.6 million ($0.02 per share).
The Engineered Materials (EM) division recorded no sales as operations ceased before June 30, 2024. The company expects EM closing costs and SG&A expenses to decline following the completion of all closing activities in December 2024, with only premises lease commitment costs remaining from January 1, 2025.
IBC Advanced Alloys ha riportato i risultati finanziari per il trimestre conclusosi il 31 dicembre 2024, evidenziando sfide significative. La divisione delle leghe di rame ha registrato vendite di 7,1 milioni di dollari nel periodo di sei mesi, con un calo del 29,4% rispetto ai 12 milioni dell'anno precedente. Questa diminuzione è stata attribuita a 3,2 milioni di dollari in ordini non ricorrenti dell'anno precedente e a una domanda di mercato più debole.
Le performance finanziarie dell'azienda hanno mostrato diversi indicatori preoccupanti: la divisione delle leghe di rame ha registrato una perdita operativa YTD di 654.000 dollari rispetto a un reddito operativo di 438.000 dollari dell'anno precedente. Il profitto lordo è diminuito del 44,4% rispetto all'anno precedente, con un margine lordo che si è indebolito del 4%. Su base consolidata, IBC ha riportato una perdita netta di 2,6 milioni di dollari (0,02 dollari per azione).
La divisione dei materiali ingegnerizzati (EM) non ha registrato vendite poiché le operazioni sono cessate prima del 30 giugno 2024. L'azienda si aspetta che i costi di chiusura dell'EM e le spese SG&A diminuiscano dopo il completamento di tutte le attività di chiusura a dicembre 2024, con solo i costi di impegno per l'affitto dei locali che rimarranno a partire dal 1 gennaio 2025.
IBC Advanced Alloys informó sobre los resultados financieros del trimestre que finalizó el 31 de diciembre de 2024, mostrando desafíos significativos. La división de aleaciones de cobre registró ventas de 7,1 millones de dólares en el período de seis meses, una disminución del 29,4% con respecto a los 12 millones del año anterior. Esta disminución se atribuyó a 3,2 millones de dólares en pedidos no recurrentes del año anterior y a una demanda de mercado más débil.
El desempeño financiero de la compañía mostró varios indicadores preocupantes: la división de aleaciones de cobre reportó una pérdida operativa acumulada de 654,000 dólares en comparación con un ingreso operativo de 438,000 dólares del año anterior. El beneficio bruto disminuyó un 44,4% interanual, con un margen bruto que se debilitó en un 4%. En términos consolidados, IBC reportó una pérdida neta de 2,6 millones de dólares (0,02 dólares por acción).
La división de materiales diseñados (EM) no registró ventas ya que las operaciones cesaron antes del 30 de junio de 2024. La empresa espera que los costos de cierre de EM y los gastos SG&A disminuyan tras la finalización de todas las actividades de cierre en diciembre de 2024, quedando solo los costos de compromiso de arrendamiento de locales a partir del 1 de enero de 2025.
IBC Advanced Alloys는 2024년 12월 31일 종료된 분기의 재무 결과를 보고하며 상당한 도전을 보여주었습니다. 구리 합금 부문은 6개월 동안 710만 달러의 매출을 기록했으며, 이는 지난해 1200만 달러에서 29.4% 감소한 수치입니다. 이 감소는 지난해의 비정기적인 주문 320만 달러와 시장 수요의 약세에 기인합니다.
회사의 재무 성과는 여러 가지 우려스러운 지표를 보여주었습니다: 구리 합금 부문은 전년도의 운영 수익 43만8000 달러에 비해 65만4000 달러의 연간 운영 손실을 기록했습니다. 총 이익은 전년 대비 44.4% 감소했으며, 총 마진은 4% 하락했습니다. 통합 기준으로 IBC는 260만 달러의 순손실(주당 0.02 달러)을 보고했습니다.
엔지니어링 소재(EM) 부문은 2024년 6월 30일 이전에 운영이 중단되어 매출이 없었습니다. 회사는 2024년 12월 모든 종료 활동이 완료된 후 EM 종료 비용과 SG&A 비용이 감소할 것으로 예상하며, 2025년 1월 1일부터는 임대료 의무 비용만 남게 됩니다.
IBC Advanced Alloys a annoncé les résultats financiers du trimestre clos le 31 décembre 2024, montrant des défis significatifs. La division des alliages de cuivre a enregistré des ventes de 7,1 millions de dollars au cours de la période de six mois, soit une baisse de 29,4 % par rapport aux 12 millions de dollars de l'année précédente. Cette diminution a été attribuée à 3,2 millions de dollars de commandes non récurrentes de l'année précédente et à une demande de marché plus faible.
La performance financière de l'entreprise a montré plusieurs indicateurs préoccupants : la division des alliages de cuivre a affiché une perte d'exploitation cumulée de 654 000 dollars par rapport à un revenu d'exploitation de 438 000 dollars l'année précédente. Le bénéfice brut a diminué de 44,4 % d'une année sur l'autre, avec une marge brute qui s'est affaiblie de 4 %. Sur une base consolidée, IBC a rapporté une perte nette de 2,6 millions de dollars (0,02 $ par action).
La division des matériaux conçus (EM) n'a enregistré aucune vente car les opérations ont cessé avant le 30 juin 2024. L'entreprise s'attend à ce que les coûts de fermeture de l'EM et les dépenses SG&A diminuent après l'achèvement de toutes les activités de fermeture en décembre 2024, avec seulement des coûts d'engagement de location de locaux restant à partir du 1er janvier 2025.
IBC Advanced Alloys berichtete über die finanziellen Ergebnisse des zum 31. Dezember 2024 abgeschlossenen Quartals und zeigte erhebliche Herausforderungen auf. Die Abteilung Kupferlegierungen verzeichnete im Zeitraum von sechs Monaten einen Umsatz von 7,1 Millionen Dollar, was einem Rückgang von 29,4 % im Vergleich zu 12 Millionen Dollar im Vorjahr entspricht. Dieser Rückgang wurde auf 3,2 Millionen Dollar an nicht wiederkehrenden Aufträgen aus dem Vorjahr und eine schwächere Marktnachfrage zurückgeführt.
Die finanzielle Leistung des Unternehmens zeigte mehrere besorgniserregende Kennzahlen: Die Abteilung Kupferlegierungen wies einen kumulierten Betriebsverlust von 654.000 Dollar im Vergleich zu einem Betriebsgewinn von 438.000 Dollar im Vorjahr aus. Der Bruttogewinn sank im Jahresvergleich um 44,4 %, wobei die Bruttomarge um 4 % nachgab. Auf konsolidierter Basis meldete IBC einen Nettoverlust von 2,6 Millionen Dollar (0,02 Dollar pro Aktie).
Die Abteilung für entwickelte Materialien (EM) verzeichnete keine Verkäufe, da die Geschäfte vor dem 30. Juni 2024 eingestellt wurden. Das Unternehmen erwartet, dass die Schließungskosten der EM und die SG&A-Ausgaben nach Abschluss aller Schließungsaktivitäten im Dezember 2024 zurückgehen, wobei ab dem 1. Januar 2025 nur noch die Mietverpflichtungen bestehen bleiben.
- Expected reduction in expenses as EM division closing costs conclude
- 29.4% decline in Copper Alloys division sales to $7.1M
- Operating loss of $654,000 vs prior year's income of $438,000
- 44.4% decline in gross profit with 4% margin reduction
- $2.6M consolidated net loss ($0.02 per share)
- Ceased operations in EM division
Highlights of the Six Months Ended December 31, 2024
(Unless otherwise noted, all financial amounts in this news release are expressed in U.S. dollars)
IBC is reporting the performance of "continuing operations" at its Copper Alloy division, "discontinued operations" at its Massachusetts facility, and a combination of continued and discontinued operations.1
Copper Alloys division (continuing operations) sales of
$7.1 million in the six-month period ended December 31, 2024, compared to sales of$12 million in the comparable prior-year period.$3.2 million of the relative decline was primarily driven by two large, non-recurring orders in the comparable period of fiscal year 2024, with the balance due to softer market demand. The Company's Engineered Materials ("EM") division, where operations ceased and all contracts were completed before June 30, 2024, recorded no sales.Copper Alloys division's fiscal year to date ("YTD") operating loss1 of
$654,000 compared to operating income of$438,000 in the comparable prior-year period.The Copper Alloys division's YTD gross profit declined by
44.4% year-over-year ("Y/Y") while gross margin softened by4% .IBC reported a consolidated YTD net loss of
$2.6 million ($0.02 per share).The Company will host a live investor webcast to discuss these results on Monday, March 3 at 10 a.m. Eastern.
FRANKLIN, IN / ACCESS Newswire / March 3, 2025 / IBC Advanced Alloys Corp. (TSX-V:IB)(OTCQB:IAALF) announces its financial results for the quarter and six months ended December 31, 2024.
Sales at IBC's continuing operations1 (its Copper Alloys Division) in the 6 months ended December 31, 2024 declined by
The Y/Y decrease in gross profit and gross margin in the Copper Alloys division was driven by higher labor and overhead costs as a proportion of revenue when compared to the comparative quarter.
On a consolidated basis, operating income and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") in the six-months ended December 31, 2024 was lower Y/Y, driven largely by the EM division continuing to incur costs after its discontinuation.
On a consolidated basis, alongside lower margin from the Copper Division over the prior-year period, the consolidated loss for the six months ended December 31, 2024 of
"IBC's Copper Alloys division saw slightly softer market demand in the first half of the fiscal year, although the bulk of the relative decline in sales in the first half of this fiscal year was due to two relatively large, non-recurring sales we had in the same period last year," said Mark A. Smith, Executive Chairman and CEO of IBC. "We saw some increased uncertainty in the market due to the 2024 election period, as did many other industries, but we expect that to sort out over the balance of calendar year 2025."
IBC expects to incur a charge to operations in respect to the discontinuation of the Engineered Materials division's operations and is negotiating with the building landlord to minimize such costs.
1We report non-IFRS measures such as "Adjusted EBITDA". 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 sedarplus.ca
Selected Results
Except as noted, all financial amounts are determined in accordance with IFRS.1
SELECTED RESULTS: ( | ||||||||||||||||
| Quarter |
|
| Quarter |
|
| Six Months |
|
| Six Months |
| |||||
CONTINUING OPERATIONS | ||||||||||||||||
Revenue |
| $ | 3,561 |
|
| $ | 7,082 |
|
| $ | 8,460 |
|
| $ | 11,987 |
|
Operating income (loss) |
| $ | (428 | ) |
| $ | 617 |
|
| $ | (654 | ) |
| $ | 438 |
|
Net income (loss) |
| $ | (1,127 | ) |
| $ | 12 |
|
| $ | (1,779 | ) |
| $ | (617 | ) |
Adjusted EBITDA |
| $ | (396 | ) |
| $ | 837 |
|
| $ | (381 | ) |
| $ | 894 |
|
Gross Profit |
| $ | 562 |
|
| $ | 1,691 |
|
| $ | 1,420 |
|
| $ | 2,555 |
|
Gross Margin |
|
| 16 | % |
|
| 24 | % |
|
| 17 | % |
|
| 21 | % |
DISCONTINUED OPERATIONS | ||||||||||||||||
Revenue |
| $ | - |
|
| $ | 2,968 |
|
| $ | - |
|
| $ | 4,730 |
|
Operating income(loss) |
| $ | (231 | ) |
| $ | 855 |
|
| $ | (707 | ) |
| $ | 700 |
|
Net income (loss) |
| $ | (265 | ) |
| $ | 700 |
|
| $ | (828 | ) |
| $ | 395 |
|
Adjusted EBITDA |
| $ | (230 | ) |
| $ | 1,065 |
|
| $ | (694 | ) |
| $ | 1,127 |
|
CONSOLIDATED OPERATIONS | ||||||||||||||||
Revenue |
| $ | 3,561 |
|
| $ | 10,050 |
|
| $ | 8,460 |
|
| $ | 16,717 |
|
Operating income (loss) |
| $ | (660 | ) |
| $ | 1,472 |
|
| $ | (1,362 | ) |
| $ | 1,138 |
|
Net income (loss) |
| $ | (1,392 | ) |
| $ | 712 |
|
| $ | (2,607 | ) |
| $ | (222 | ) |
Adjusted EBITDA |
| $ | (626 | ) |
| $ | 1,902 |
|
| $ | (1,075 | ) |
| $ | 2,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Full results can be seen in the Company's financial statements and management's discussion and analysis ("MD&A"), available at sedarplus.ca and on the Company's website at https://ibcadvancedalloys.com/investors-center/.
INVESTOR WEBCAST SCHEDULED FOR MONDAY, MARCH 3, 2025 AT 10 A.M. EASTERN
IBC will host a live investor webcast on Monday, March 3, 2025 at 10 a.m. Eastern featuring Mark A. Smith, CEO and Board Chairman, who will discuss the Company's financial results for the quarter. Participants can register to participate by going here: https://events.gov.teams.microsoft.us/event/cd36fc66-139d-42cc-8a34-66dcef3018da@a7c6e2dc-c188-46da-80af-dd3453bd7361
NON-IFRS MEASURES
To supplement its consolidated financial statements, which are prepared and presented in accordance with IFRS, IBC uses "Adjusted EBITDA," which a non-IFRS financial measure. IBC 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.
ADJUSTED EBITDA
Adjusted EBITDA in the Company's continuing operations represents the income (loss) for the period, and year-to-date, before interest, income taxes, depreciation, amortization, and share-based compensation. A reconciliation of the quarter loss to Adjusted EBITDA in IBC's continuing operations follows:
Quarter ended Dec. 31 |
| 2024 |
|
| 2023 |
| ||
| ( |
|
| ( |
| |||
Income (Loss) for the period, net of tax |
|
| (1,127 | ) |
|
| 12 |
|
Income tax expense recovery |
|
| - |
|
|
| 3 |
|
Interest expense |
|
| 540 |
|
|
| 625 |
|
Depreciation, amortization, and impairment |
|
| 163 |
|
|
| 159 |
|
Stock-based compensation expense (non-cash) |
|
| 28 |
|
|
| 38 |
|
Adjusted EBITDA |
|
| (396 | ) |
|
| 837 |
|
Six Months ended Dec. 31 |
| 2024 |
|
| 2023 |
| ||
| ( |
|
| ( |
| |||
Income (loss) for the period, net of tax |
|
| (1,779 | ) |
|
| (617 | ) |
Income tax recovery |
|
| 1 |
|
|
| 4 |
|
Interest expense |
|
| 1,005 |
|
|
| 1,115 |
|
Gain (loss) on revaluation of derivative (non-cash |
|
| - |
|
|
| 1 |
|
Depreciation, amortization, and impairment |
|
| 335 |
|
|
| 317 |
|
Stock-based compensation expense (non-cash) |
|
| 57 |
|
|
| 74 |
|
Adjusted EBITDA |
|
| (381 | ) |
|
| 894 |
|
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
# # #
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
ABOUT IBC ADVANCED ALLOYS CORP.
IBC is a leading advanced copper alloys manufacturer serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. At its vertically integrated production facility in Franklin, Indiana, IBC manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. 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
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, the closure of the Engineered Materials division and the expected charge to operations in connection therewith, and the completion of existing contracts by the 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 risk that the Company may not be able to make sufficient payments to retire its debt, 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.sedarplus.ca, 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.
View the original press release on ACCESS Newswire
FAQ
What caused the 29.4% sales decline in IBC Advanced Alloys (IAALF) Copper Division for December 2024?
How much net loss did IAALF report for the six months ended December 31, 2024?
What happened to IAALF's Engineered Materials (EM) division in 2024?
How did IAALF's Copper Alloys division perform in terms of gross profit for December 2024?
