IBC Advanced Alloys' Reports Financial Results For Quarter Ended September 2024
IBC Advanced Alloys reported financial results for Q3 2024. The Copper Alloys division maintained steady sales of $4.9 million with a gross margin of 17.5%. The company posted a consolidated net loss of $1.2 million ($0.01 per share), primarily due to closing costs at the discontinued Engineered Materials division, higher corporate SG&A expenses, and debt service payments. The Copper Alloys division's operating income slightly decreased to $322,000 from $338,000 year-over-year. The company expects to strengthen its position as EM division closing costs wind down in coming months.
IBC Advanced Alloys ha riportato i risultati finanziari per il terzo trimestre del 2024. La divisione delle leghe di rame ha mantenuto vendite stabili di 4,9 milioni di dollari con un margine lordo del 17,5%. L'azienda ha registrato una perdita netta consolidata di 1,2 milioni di dollari (0,01 dollari per azione), principalmente a causa dei costi di chiusura della divisione Materiali Ingegnerizzati dismessa, delle spese generali e amministrative aziendali più elevate e dei pagamenti del servizio del debito. Il reddito operativo della divisione delle leghe di rame è leggermente diminuito a 322.000 dollari rispetto ai 338.000 dollari dell'anno precedente. L'azienda prevede di rafforzare la propria posizione man mano che i costi di chiusura della divisione EM si attenueranno nei prossimi mesi.
IBC Advanced Alloys informó sobre los resultados financieros del tercer trimestre de 2024. La división de Aleaciones de Cobre mantuvo ventas estables de 4,9 millones de dólares con un margen bruto del 17,5%. La compañía registró una pérdida neta consolidada de 1,2 millones de dólares (0,01 dólares por acción), principalmente debido a los costos de cierre de la división de Materiales Ingenierizados descontinuada, mayores gastos generales y administrativos corporativos, y pagos por servicios de deuda. El ingreso operativo de la división de Aleaciones de Cobre disminuyó ligeramente a 322,000 dólares desde 338,000 dólares en el año anterior. La compañía espera fortalecer su posición a medida que los costos de cierre de la división EM disminuyan en los próximos meses.
IBC Advanced Alloys는 2024년 3분기 재무 결과를 발표했습니다. 구리 합금 부문은 490만 달러의 안정적인 매출과 17.5%의 총 마진을 유지했습니다. 이 회사는 통합 순손실 120만 달러(주당 0.01달러)를 기록했으며, 이는 주로 폐쇄 비용, 증가한 기업 SG&A 비용 및 부채 서비스 비용 때문입니다. 구리 합금 부문의 운영 수익은 전년 대비 33만8천 달러에서 32만2천 달러로 소폭 감소했습니다. 회사는 EM 부문의 폐쇄 비용이 감소함에 따라 향후 몇 달 내에 입지를 강화할 것으로 기대하고 있습니다.
IBC Advanced Alloys a publié ses résultats financiers pour le troisième trimestre de 2024. La division des alliages de cuivre a maintenu des ventes stables de 4,9 millions de dollars avec une marge brute de 17,5%. L'entreprise a enregistré une perte nette consolidée de 1,2 million de dollars (0,01 dollar par action), principalement en raison des coûts de fermeture de la division des matériaux conçus abandonnée, des dépenses générales et administratives corporatives plus élevées et des paiements de services de la dette. Le revenu d'exploitation de la division des alliages de cuivre a légèrement diminué, passant de 338 000 dollars à 322 000 dollars d'une année sur l'autre. L'entreprise s'attend à renforcer sa position à mesure que les coûts de fermeture de la division EM diminuent dans les mois à venir.
IBC Advanced Alloys hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben. Die Kupferlegierungsabteilung erzielte stabile Verkäufe von 4,9 Millionen Dollar mit einer Bruttomarge von 17,5%. Das Unternehmen verzeichnete einen konsolidierten Nettoverlust von 1,2 Millionen Dollar (0,01 Dollar pro Aktie), was hauptsächlich auf Abschlusskosten der stillgelegten Abteilung für technische Materialien, höhere Unternehmens-SG&A-Ausgaben und Zahlungen für den Schuldendienst zurückzuführen ist. Das Betriebsergebnis der Kupferlegierungsabteilung sank leicht von 338.000 Dollar auf 322.000 Dollar im Jahresvergleich. Das Unternehmen erwartet, seine Position zu stärken, während die Abschlusskosten der EM-Abteilung in den kommenden Monaten abnehmen.
- Copper Alloys division maintained stable sales at $4.9 million
- Copper Alloys division maintained healthy gross margin of 17.5%
- Copper Alloys division Adjusted EBITDA remained steady at $479,000
- Consolidated net loss of $1.2 million ($0.01 per share)
- Operating income declined to $322,000 from $338,000 year-over-year
- Higher corporate SG&A costs due to EM division closure
- Ongoing debt service payments impacting financial performance
- Additional charges expected from EM division discontinuation
Highlights of the Quarter Ended September 30, 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 remained steady at
$4.9 million Copper alloys division operations operating income1 dropped slightly to
$322,000 from$338,000 in the prior-year period.Copper Alloys gross margin remained largely unchanged quarter-over-quarter ("Q/Q").
IBC's consolidated net loss of
$1.2 million ($0.01 per share) was driven by continuing closing costs at the EM division discontinued operations, by higher-than-normal corporate SG&A costs (largely due to the EM division closure), and by debt service payments.The Company will host a live investor webcast to discuss these results on Friday, November 29 at 12 Noon Eastern.
FRANKLIN, IN / ACCESSWIRE / November 27, 2024 / IBC Advanced Alloys Corp. ("IBC" or the "Company") (TSXV:IB)(OTCQB:IAALF) announces its financial results for the quarter ended September 30, 2024. The Company will host a live investor webcast to discuss these results on Friday, November 29 at 12 Noon Eastern. To register, please go here: https://events.gov.teams.microsoft.us/event/8c3611f7-e3f7-4d3b-8809-d6f7e9e21916@a7c6e2dc-c188-46da-80af-dd3453bd7361
Sales at IBC's continuing operations1 (its Copper Alloys Division) totaled
Discontinued operations at the IBC's Engineered Materials ("EM") division had no sales, as all contracts were completed in June 2024, but continued to incur closing costs. IBC expects these to wind down in the coming months, potentially putting the company on a substantially stronger footing.
On a consolidated basis, IBC booked a loss of
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.
"In spite of slightly softer quarterly demand in copper alloy markets, our Copper Alloys division continued to drive healthy sales revenue and maintained its gross profit, gross margin, and adjusted earnings as compared to the prior-year period," said Mark A. Smith, Chairman and CEO of IBC. "As closing costs at our discontinued EM division wind down over the coming months, I see IBC moving to a substantially stronger footing with significant opportunity for growth in the Copper Alloys division. On a parallel path, as we continue to pay down debt and strengthen our balance sheet through organic growth, I see a great deal of upside for the Company going forward."
Selected Results
Except as noted, all financial amounts are determined in accordance with IFRS.1
| SELECTED RESULTS: Combined Continuing and Discontinued Operations ( |
| ||||||
| Quarter Ended 9-30-2024 |
|
| Quarter Ended 9-30-2023 |
| |||
| Continuing Operations 1 |
| ||||||
Revenue |
| $ | 4,899 |
|
| $ | 4,905 |
|
Operating loss |
| $ | (226 | ) |
| $ | (179 | ) |
Net Loss |
| $ | (652 | ) |
| $ | (629 | ) |
Adjusted EBITDA |
| $ | 15 |
|
| $ | 57 |
|
Gross Profit |
| $ | 858 |
|
| $ | 864 |
|
Gross Margin |
|
| 18 | % |
|
| 18 | % |
| DISCONTINUED OPERATIONS |
| ||||||
Revenue |
| $ | - |
|
| $ | 1,762 |
|
Operating loss |
| $ | (476 | ) |
| $ | (155 | ) |
Net Loss |
| $ | (563 | ) |
| $ | (305 | ) |
Adjusted EBITDA |
| $ | (463 | ) |
| $ | 62 |
|
| CONSOLIDATED OPERATIONS |
| ||||||
Revenue |
| $ | 4,898 |
|
| $ | 6,667 |
|
Operating loss |
| $ | (702 | ) |
| $ | (334 | ) |
Net Loss |
| $ | (1,215 | ) |
| $ | (934 | ) |
Adjusted EBITDA |
| $ | (448 | ) |
| $ | 119 |
|
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 FRIDAY, NOVEMBER 29, 2024 at 12 NOON EASTERN
IBC will host a live investor webcast on Friday, November 29, 2024 at 12 noon 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/8c3611f7-e3f7-4d3b-8809-d6f7e9e21916@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 Sept. 30 |
| 2024 |
|
| 2023 |
| ||
| ( |
|
| ( |
| |||
Loss for the period |
|
| (652 | ) |
|
| (629 | ) |
Income tax expense (recovery) |
|
| 1 |
|
|
| - |
|
Interest expense |
|
| 464 |
|
|
| 491 |
|
(Gain) loss on revaluation of derivative (non cash) |
|
| - |
|
|
| 1 |
|
Depreciation, amortization, and impairment |
|
| 172 |
|
|
| 158 |
|
Stock-based compensation expense (non-cash) |
|
| 29 |
|
|
| 36 |
|
Adjusted EBITDA |
|
| 14 |
|
|
| 57 |
|
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.
1 IBC reports non-IFRS measures such as "Adjusted EBITDA", "Operating Income," "Continuing Operations," "Discontinued Operations" and "'Combined Continuing and Discontinued Operations." 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.
SOURCE: IBC Advanced Alloys Corp.
View the original press release on accesswire.com
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