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IBC Advanced Alloys Announces 2011 Financial Results
IBC Reports Strong Revenue Growth and Improved Gross Profits
VANCOUVER, BC – October 31, 2011 – IBC Advanced Alloys Corp. (TSX-V: IB) ("IBC" or the “Company”), a vertically integrated manufacturer of rare metals (beryllium) based alloys and advanced cast and forged products has released its audited financial results for the year ended June 30, 2011.
Fiscal 2011 Financial Highlights
- Sales increased to $20.45 million, up 37% compared to fiscal 2010;
- Gross profit increased 87% compared to fiscal 2010 on increased sales and improved operating practices;
- Loss for the year was $4.6 million, up 13% from fiscal 2010 reflecting both business expansion and significant unusual charges such as plant relocation expense; and
- Cash and cash equivalents at June 30, 2011 were $7.51 million.
“Over the last four years, IBC has developed and implemented an advanced alloys business to support its mine-to-market business strategy,” commented Simon Anderson, IBC’s CFO. “Our fiscal 2011 revenue growth is clear proof that IBC’s vertically integrated model is sound and that the business has a strong foundation. We have successfully integrated our operating facilities, introduced a range of new high performance alloys and begun business development efforts into several new markets. While the company as a whole is not yet profitable, we were very encouraged by our 2011 financial performance and expected the increased costs in fiscal 2011, which relate to the expansion and upgrading of our manufacturing base to support future revenue growth.”
The Company’s fiscal 2011 operating results reflect IBC’s continued growth with steadily increasing manufacturing revenues and capacity. With the 2010 Engineered Materials purchase and construction of a new factory in Massachusetts, IBC’s operations expanded significantly. While this expansion had a negative effect on operating loss, it is a key component of IBC’s growth plan.
In June 2011, the Company closed a short-form prospectus offering, raising gross proceeds of $8,213,000 to fund Engineered Materials expansion, new business development initiatives and the 2011 Utah mineral exploration program.
In June 2011, IBC signed a strategic memorandum of understanding with its Kazakh suppliers, Ulba Metallurgical Plant, to further advance and strengthen the Company’s relationship and to continue to target emerging opportunities in the global beryllium and rare metals market.
In May 2011 IBC opened a new 63,000 square foot manufacturing facility in Wilmington, MA to support the growth of the Company’s Engineered Materials division and its ultra-lightweight cast alloys.
In May 2011, Major General David Heinz joined IBC’s board as an independent director. Major General Heinz is a highly decorated retired senior U.S. Marine Corps officer whose most recent military assignment was as the Program Executive Officer for the F-35 Lightning II program.
In April 2011, IBC renewed its collaborative research agreements with both Purdue and Texas Engineering Experiment Station, a member institution of the Texas A&M University System, to advance the Company’s beryllium oxide nuclear fuels R&D project.
For full particulars, please refer to IBC’s audited consolidated financial statements, MD&A and annual information form for the year ended June 30, 2011, filed on SEDAR and available at www.sedar.com.
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 industries including nuclear energy , automotive, telecommunications, and a range of industrial applications. IBC has 81 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US covering approximately 6,740 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB”.For additional information please contact:
IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext 110
This news release was prepared by management of IBC, which takes full responsibility for its contents. Neither the 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.
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements including expectations about future operating results and the benefits of relocating our beryllium-aluminum division 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, 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 operations and mineral exploration, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. 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.