ibc advanced alloys - tsx-v: ib | otcqb: iaalf...mission critical alloys tsx-v: ib | otcqb: iaalf...

Mission Crit ical Al loysTSX-V: IB | OTCQB: IAALF

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 www.sedar.com.

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LEGAL DISCLAIMER

http://www.sedar.com/


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TODAY’S PRESENTATION

Major General David “Duncan” Heinz (USMC, ret.)IBC President, CEO, and Director

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KEY POINTS

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Our Continuing Progress Toward Profitability

Longer-Term Focus: Building Shareholder Value

Capital Equipment Upgrades are Complete and are Making a Difference

2Near-Term Focus: Serving Existing and New Customers With Expanded Product Offering

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

RECENT CAPITAL IMPROVEMENTS: COPPER ALLOYS

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

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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 re-melt chemistry

7

RECENT CAPITAL IMPROVEMENTS: ENGINEERED MATERIALS

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KEY POINTS

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• 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, 2018

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Q1 2018 FINANCIAL RESULTS: CONSOLIDATED

• 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

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Q1 2018 FINANCIAL RESULTS: COPPER ALLOYS

• 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

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Q1 2018 FINANCIAL RESULTS: EMC


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CONSOLIDATED REVENUE & NET PROFIT/LOSS

($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD

Revenue & Net Profit/Loss: Trailing 8 Quarters

Net Profit/Loss

Revenue

(000s USD) Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018Revenue $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)


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($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD


Net Profit/Loss

Revenue



14


($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD


Net Profit/Loss

Revenue



15


($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD


Net Profit/Loss

Revenue



16


($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD


Net Profit/Loss

Revenue



17


($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018

000s

USD


Net Profit/Loss

Revenue



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EMC SALES / INCOME PERFORMANCE: Q1 FY-2018

($200.0)

($100.0)

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

July August September

000s

USD

EMC Sales / Income: Fiscal Q1 21018

Sales

Gross Profit

Oper Profit

EBITDA

(000s USD) July August SeptemberSales $297 $589 $563 Gross Profit/Loss ($90) $123 $142 Operating Profit/Loss ($158) $37 $53 EBITDA ($124) $73 $83


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COPPER SALES / INCOME PERFORMANCE: Q1 FY-2018

($400.0)

($200.0)

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0


000s

USD

Copper Alloys Sales / Income: Fiscal Q1 2018

Sales

Gross Profit

Oper Profit

EBITDA

(000s USD) July August SeptemberSales $719 $1,138 $992 Gross Profit $62 $77 $82 Operating Profit/Loss ($84) ($35) ($150)EBITDA ($53) ($2) ($129)


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CORPORATE EXPENSES

(000s USD) July August SeptemberOperating Profit/Loss ($69) ($40) ($89)EBITDA + Share-based compensation ($69) ($40) ($8)

($100.0)

($90.0)

($80.0)

($70.0)

($60.0)

($50.0)

($40.0)

($30.0)

($20.0)

($10.0)

$0.0


000s

USD

Corporate Expenses: Fiscal Q1 2018

Operating Profit/Loss

EBITDA + Share-based compensation


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SALES / INCOME PERFORMANCE: FISCAL Q1 2018

($400.0)

$100.0

$600.0

$1,100.0

$1,600.0

$2,100.0


000s

USD

Consolidated Sales / Income: Fiscal Q1 2018

Sales

Gross Profit

Oper Profit

EBITDA

(000s USD) July August SeptemberSales $1,016 $1,727 $1,555 Gross Profit/Loss ($28) $200 $224 Operating Profit ($311) ($38) ($186)EBITDA + SBC ($246) $31 ($54)

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KEY POINTS

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UNAUDITED OCTOBER RESULTS

October 2017Copper Alloys Division (000s USD)

Sales 1,240Gross Profit/Loss 194Operating Profit/Loss 51EBITDA 84

EMC DivisionSales 483Gross Profit/Loss 37Operating Profit/Loss (27)EBITDA 9

CorporateOperating Profit/Loss (41)EBITDA (37)

IBC ConsolidatedSales 1,723Gross Profit/Loss 231Operating Profit/Loss (17)EBITDA 63

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)


Consolidated– EBITDA is estimated in the range of ($240K) to ($10K)


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EXPECTATIONS FOR Q-2

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.

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EXPECTATIONS FOR FISCAL Q3

• Material availability

• Timing of revenue recognition in Q2

• Equipment breakdown or labor issues

• Litigation

• Cash flow

• Loan call

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RISKS FOR PROJECTION

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KEY POINTS

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• Copper Alloys

• EMC

• Joint Ventures

• Acquisition Potentials

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OUR STRATEGIES FOR GROWING THE BUSINESS


29

QUESTIONS


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FOR MORE INFORMATIONFor More Information:

Jim Sims, IBC Investor RelationsC: [email protected]

ibc advanced alloys - tsx-v: ib | otcqb: iaalf...mission critical alloys tsx-v: ib | otcqb: iaalf...

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