Exco Technologies Limited · TSX:XTC
Exco Technologies — Q3 2020 Earnings Presentation
19 slides from Exco Technologies's earnings presentation, Jul 30, 2020
Slide 1: Q3 F2020 Earnings Call
Q3 F2020 Earnings Call July 30, 2020
Slide 2: Cautionary Statement
Cautionary Statement Information in this presentation relating to projected growth and financial performance of the Company’s business units, contribution of our greenfield business units, margin performance and operating efficiencies are forward-looking statements. Readers are cautioned not to plac
Slide 3: Darren Kirk, Chief Executive Officer
Darren Kirk Chief Executive Officer
Slide 4: Q3 F2020 Operations Overview: Automotive Solutions
Q3 F2020 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Overall industry vehicle production down approximately 68% in North America and Europe on a combined basis • Automotive production was at a standstill through April and much of May • Trends were positive during the q
Slide 5: Q3 F2020 Operations Overview: Automotive Solutions
Q3 F2020 Operations Overview Key Highlights in the Quarter – Automotive Solutions • FX Adjusted segment revenue down 62%, which fared better than production due to exposure to accessory sales and prior new program launches • Polytech, AFX and Polydesign were non operational for April and much of May
Slide 6: Q3 F2020 Operations Overview: Automotive Solutions
Q3 F2020 Operations Overview Key Highlights in the Quarter – Automotive Solutions • Segment PTP declined from a profit of $7.9M in Q3 F19 to a loss of $3.8M primarily due to: • Lost absorption due to sales decline • Continuance of wages for employees in Mexico despite shut-down • Tempered by cost ac
Slide 7: IHS North America and Europe Year-over-Year Change
Q3 F2020 Operations Overview Key Highlights in the Quarter – Automotive Solutions IHS North America Yr/ Yr Change IHS Europe Yr/ Yr Change 0% 0% -20% -20% -40% -40% -60% -60% -80% -80% -100% -100% April '20 May '20 June '20 April '20 May '20 June '20 Production Sales Production Sales EXCO TECHNOLOGI
Slide 8: IHS Vehicle Production Expectations C2020
Q3 F2020 Operations Overview Key Highlights in the Quarter – Automotive Solutions IHS Vehicle Production/ Expectations C2020 Yr/Yr Change 0% -20% -40% -60% -80% -100% Q1 C20A Q2 C20E Q3 C20P Q4 C20P North America Europe EXCO TECHNOLOGIES LIMITED | 8
Slide 9: Q3 F2020 Operations Overview: Casting & Extrusion
Q3 F2020 Operations Overview Key Highlights in the Quarter – Casting & Extrusion • Tooling operations performed well, reflecting the long cycle and/or critical nature of our products • Aluminum products feed into a diverse number of essential industries • Order flow slowed to about 75%-80% of normal
Slide 10: Q3 F2020 Operations Overview: Casting & Extrusion
Q3 F2020 Operations Overview Key Highlights in the Quarter – Casting & Extrusion • We believe our multi-plant footprint & harmonized manufacturing methods helped us gain market share • All 11 plants remained operational through the quarter with the exception of Colombia which was shut- down by gover
Slide 11: Matthew Posno, Chief Financial Officer
Matthew Posno Chief Financial Officer
Slide 12: Q3 F2020 Financial Overview
Q3 F2020 Financial Overview Consolidated Results Versus Prior Year Period • Revenue of $71.0M; down $49.0M, or 41% and EBITDA of $4.7M down $9.8M, or 68% • Casting and Extrusion segment revenue down $6.1M, or 12% but segment PTP up $1.0M, or 28% • Relatively strong results reflect long cycle program
Slide 13: Consolidated Revenue Reconciliation
Q3 F2020 Financial Overview Consolidated Revenue Reconciliation C$ Millions 119.9 (43.6) (7.1) 1.8 71.0 Q3 F19 Automotive Solutions Casting & Extrusion (FX Foreign Exchange Q3 F20 (FX Adjusted) Adjusted) EXCO TECHNOLOGIES LIMITED | 13
Slide 14: Consolidated PTP Reconciliation
Q3 F2020 Financial Overview Consolidated PTP Reconciliation (Before Interest and Other Expense) C$ Millions 9.7 (12.0) 0.8 (0.8) 0.7 0.1 Q3 F19 Automotive Casting & Corporate Foreign Exchange Q3 F20 Solutions* Extrusion* * FX Adjusted EXCO TECHNOLOGIES LIMITED | 14
Slide 15: Automotive Solutions Segment
Automotive Solutions Segment EBITDA down on under-absorption of costs/ continuance of wages in Mexico C$ Millions C$ Millions Revenue Segment EBITDA Margin EBITDA 80 15% 10 (60%) 10% 60 5 5% 40 0% 0 20 -5% 0 -10% -5 Q3 F19 Q3 F20 Q3 F19 Q3 F20 Q3 F19 Q3 F20 EXCO TECHNOLOGIES LIMITED | 15
Slide 16: Casting & Extrusion Segment
Casting & Extrusion Segment Segment EBITDA up on margin enhancement C$ Millions C$ Millions Revenue Segment EBITDA Margin Segment EBITDA 60 25% 10 (12%) 18% 530 bp 40 20% 5 20 15% 0 10% 0 Q3 F19 Q3 F20 Q3 F19 Q3 F20 Q3 F19 Q3 F20 EXCO TECHNOLOGIES LIMITED | 16
Slide 17: Financial Leverage & Liquidity
Financial Leverage & Liquidity Balance Sheet in a $24M Net Cash Position Exco C$24M Net Cash • LTM Q3 F2020 EBITDA of C$51M 45 • C$50M committed revolver matures February 35 2023; $27M available Bank Indebtedness/ Other 25 47 • Balance sheet cash of $47M Revolver Borrowings C$ Millions 15 Cash • Rep
Slide 18: Questions
Questions EXCO TECHNOLOGIES LIMITED | 18
Slide 19: Slide 19