American Marconi Wireless News - IBC Advanced Alloys Reports Financial Results For Quarter Ended March 2025

FRANKLIN, IN / ACCESS Newswire / May 29, 2025 / IBC Advanced Alloys Corp. ("IBC" or the "Company") (TSX-V:IB)(OTCQB:IAALF) announces its financial results for the quarter and nine months ended March 31, 2025.

Sales at IBC's continuing operations¹ (its Copper Alloys Division) in the nine months ended March 31, 2025 declined by 43.4% over the comparative prior-year period, although 89% of this decline was driven by two large, non-recurring orders in the comparative period of 2024 totaling approximately $5.01 million, with the balance due to softer market demand.

The year-over-year ("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 nine months of FY2024.

On a consolidated basis, operating income and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") in the nine months ended March 31, 2025 was lower Y/Y, driven largely by the EM division continuing to incur costs, primarily related to its former manufacturing facility, after the division ceased operations in June 2024.

Alongside reduced sales and lower margin from the Copper Division over the prior- year period, IBC's consolidated loss for the nine months ended March 31, 2025 of $2.3 million was largely due to (1) ongoing closing costs at the EM division, (2) higher-than-historical SG&A costs as corporate costs are no longer split with the EM division, and interest costs. IBC expects that SG&A expenses will remain at current levels until the plant lease expires in January 2026.

"The softer product demand that we have been seeing year to date is largely driven by increased market uncertainty across the economy due to various U.S. and other government policies," said Mark A. Smith, Executive Chairman and CEO of IBC. "It is important to note, however, that 89% of the relative decline in YTD sales was due to two relatively large, non-recurring sales we had in the same period last year."

"Looking ahead, we expect overall global demand for copper and copper alloy products to continue to rise year-over-year given its increasing use in transportation, electronics, energy, electric grid infrastructure, naval defense, and other sectors," Mr. Smith added.

Selected Results

Except as noted, all financial amounts are determined in accordance with IFRS.¹

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/.

¹ We 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

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.

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. 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:

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

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CONTACTS:

Mark A. Smith, Chairman of the Board
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: [email protected]
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. 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, imposition of tariffs, 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

F.Pedersen--AMWN