Mission Critical Alloys TSX-V: IB OTCQB: IAALF

Transcription

1 Mission Critical Alloys TSX-V: IB OTCQB: IAALF

2 LEGAL DISCLAIMER TSX-V: IB OTCQB: IAALF The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. 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. This disclosure contains certain forward-looking statements 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. These statements include: the goal of profitability, improving rate throughput, commercialization of additional Beralcast products, additional funding, improved order bookings, increased sales in the Copper Alloys division, significantly increased output for EMC and the pursuit of other sales opportunities. The ability to achieve the objectives set out in these forward looking statements involves substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: 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, 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. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. As a result, IBC cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements IBC makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in IBC s filings at 2

3 TODAY S PRESENTATION TSX-V: IB OTCQB: IAALF Major General David Duncan Heinz (USMC, ret.) IBC President, CEO, and Director 3

4 KEY POINTS 1 Capital Equipment Upgrades are Complete and are Making a Difference 2 Our Continuing Progress Toward Profitability 3 4 Near-Term Focus: Serving Existing and New Customers With Expanded Product Offering Longer-Term Focus: Building Shareholder Value 4

5 RECENT CAPITAL IMPROVEMENTS: COPPER ALLOYS Solution Annealing Furnace / Quench Tank Helps improve repeatability and product consistency Allows more consistent heat-treated properties from batch to batch Enables us to meet new product specifications and that is resulting in new orders 5

6 RECENT CAPITAL IMPROVEMENTS: ENGINEERED MATERIALS Beryllium-Aluminum VIM Furnace Increases available capacity by 25% Incorporates advanced automation and real-time process monitoring, which enables higher yields and higher throughput Data collection is making a difference in tightening variations and increasing yields 6

7 RECENT CAPITAL IMPROVEMENTS: ENGINEERED MATERIALS Additional EMC System Upgrades Furnace automation and in-process monitoring upgrade Digital radiography helps to improve our cost structure, reduces material cost, and increase throughput for aerospace components Automated tumble blast finishing system enables more hand-free processing Coordinate measuring machine (CMM) upgrade enables elimination of a previously outsourced step for aerospace components Automated part washing station is a health and safety enhancement Induction-coupled plasma machine for analyzing product and remelt chemistry 7

8 KEY POINTS 1 Capital Equipment Upgrades are Complete and are Making a Difference 2 Our Continuing Progress Toward Profitability 3 4 Near-Term Focus: Serving Existing and New Customers With Expanded Product Offering Longer-Term Focus: Building Shareholder Value 8

9 Q FINANCIAL RESULTS: CONSOLIDATED 36% increase in year-on-year (YOY) sales revenue Positive gross margin of 9% (15%) gross margin in the year-ago period 0% gross margin for FY2016 Operating loss narrowed to $0.02 per share ($0.07) in preceding quarter ($0.05) in the year-ago period Significant personnel issues in fiscal Q1 slowed progress toward profitability Company working toward a goal of achieving profitability in the quarter ending March 31,

10 Q FINANCIAL RESULTS: COPPER ALLOYS Sales increased 7% YOY but declined 8% sequentially due to labor shortages and some equipment downtime in the Franklin forging facility early in the quarter Gross margin swung to a positive 8% from a negative 2% Average selling price up 10% YOY Operating losses cut by 46% YOY Cost of sales declined 3.6% YOY Order bookings increased 15% YOY but declined 16% sequentially Order backlog decreased 10% YOY and decreased 20% sequentially 10

11 Q FINANCIAL RESULTS: EMC Sales revenue increased by 142% YOY; up 34% sequentially. Gross profit swung YOY to a positive $175,000 from a loss of $481,000 Gross margin shifted to a positive 12%, compared to negative 70% in the year-ago period and negative 13% in the preceding quarter Operating losses cut by 90% YOY, and 84% sequentially 11

12 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 12

13 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 13

14 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 14

15 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 15

16 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 16

17 CONSOLIDATED REVENUE & NET PROFIT/LOSS TSX-V: IB OTCQB: IAALF $6,000 Revenue & Net Profit/Loss: Trailing 8 Quarters 000s USD $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($1,000) ($2,000) Net Profit/Loss Revenue ($3,000) Q Q Q Q Q Q Q Q (000s USD) Q Q Q Q Q Q Q Q Revenue $3,324 $4,741 $4,077 $3,263 $3,571 $4,695 $4,186 $4,298 Net Profit/Loss ($1,774) ($296) ($1,139) ($1,607) ($838) ($707) ($2,168) ($602) 17

18 EMC SALES / INCOME PERFORMANCE: Q1 FY-2018 TSX-V: IB OTCQB: IAALF $700.0 EMC Sales / Income: Fiscal Q s USD $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 ($100.0) Sales Gross Profit Oper Profit EBITDA ($200.0) July August September (000s USD) July August September Sales $297 $589 $563 Gross Profit/Loss ($90) $123 $142 Operating Profit/Loss ($158) $37 $53 EBITDA ($124) $73 $83 18

19 COPPER SALES / INCOME PERFORMANCE: Q1 FY-2018 TSX-V: IB OTCQB: IAALF Copper Alloys Sales / Income: Fiscal Q s USD $1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 $0.0 ($200.0) Sales Gross Profit Oper Profit EBITDA ($400.0) July August September (000s USD) July August September Sales $719 $1,138 $992 Gross Profit $62 $77 $82 Operating Profit/Loss ($84) ($35) ($150) EBITDA ($53) ($2) ($129) 19

20 CORPORATE EXPENSES TSX-V: IB OTCQB: IAALF $0.0 Corporate Expenses: Fiscal Q ($10.0) ($20.0) 000s USD ($30.0) ($40.0) ($50.0) ($60.0) ($70.0) Operating Profit/Loss EBITDA + Share-based compensation ($80.0) ($90.0) ($100.0) July August September (000s USD) July August September Operating Profit/Loss ($69) ($40) ($89) EBITDA + Share-based compensation ($69) ($40) ($8) 20

21 SALES / INCOME PERFORMANCE: FISCALQ TSX-V: IB OTCQB: IAALF $2,100.0 Consolidated Sales / Income: Fiscal Q s USD $1,600.0 $1,100.0 $600.0 Sales Gross Profit Oper Profit EBITDA $100.0 ($400.0) July August September (000s USD) July August September Sales $1,016 $1,727 $1,555 Gross Profit/Loss ($28) $200 $224 Operating Profit ($311) ($38) ($186) EBITDA + SBC ($246) $31 ($54) 21

22 KEY POINTS 1 Capital Equipment Upgrades are Complete and are Making a Difference 2 Our Continuing Progress Toward Profitability 3 4 Near-Term Focus: Serving Existing and New Customers With Expanded Product Offering Longer-Term Focus: Building Shareholder Value 22

23 UNAUDITED OCTOBER RESULTS October 2017 Copper Alloys Division (000s USD) Sales 1,240 Gross Profit/Loss 194 Operating Profit/Loss 51 EBITDA 84 EMC Division Sales 483 Gross Profit/Loss 37 Operating Profit/Loss (27) EBITDA 9 Corporate Operating Profit/Loss (41) EBITDA (37) IBC Consolidated Sales 1,723 Gross Profit/Loss 231 Operating Profit/Loss (17) EBITDA 63 23

24 EXPECTATIONS FOR Q-2 EMC Division Expected to continue EBITDA positive for remainder of quarter, within an estimated range of $20K to $100K Net profit/loss of between (80K) to 20K Copper Alloys Division Expected to finish EBITDA neutral-to-negative. Estimated EBITDA range is ($100k) to $0 Net profit/loss of between ($185K) to ($85K) Corporate Costs remain low. Estimated range for EBITDA is ($160K) to ($110K) Net profit/loss of between ($180K) to ($130K) Consolidated EBITDA is estimated in the range of ($240K) to ($10K) Net profit/loss of between ($440K) to ($210K) 24

25 EXPECTATIONS FOR FISCAL Q3 Hitting the accelerator now for sales in fiscal Q3. Should know results on several key sales bids for EMC in fiscal Q3. Expect Copper sales to grow but at a slower rate than EMC. Expect Company to be turn profit in fiscal Q3. 25

26 RISKS FOR PROJECTION Material availability Timing of revenue recognition in Q2 Equipment breakdown or labor issues Litigation Cash flow Loan call 26

27 KEY POINTS 1 Capital Equipment Upgrades are Complete and are Making a Difference 2 Our Continuing Progress Toward Profitability 3 4 Near-Term Focus: Serving Existing and New Customers With Expanded Product Offering Longer-Term Focus: Building Shareholder Value 27

28 OUR STRATEGIES FOR GROWING THE BUSINESS Copper Alloys EMC Joint Ventures Acquisition Potentials 28

29 TSX-V: IB OTCQB: IAALF QUESTIONS 29

30 TSX-V: IB OTCQB: IAALF FOR MORE INFORMATION For More Information: Jim Sims, IBC Investor Relations C: