Ibc Advanced Alloys Corp V.IB

Alternate Symbol(s): IAALF

Metals & Mining Industrial Metals & Minerals

IBC Advanced Alloys Corp. is a beryllium and copper advanced alloys company. The Company serves various industries, such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. The Company has two divisions: Copper Alloy and Engineered Materials. The Copper Alloys division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. The Engineered Materials division makes the Beralcast family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. The Company’s products include Beryllium-Aluminum Castings, Beryllium Alloys, Copper Alloy Castings & Forgings, Copper Alloy Fabricated Shapes, Tolling Services and Consulting and Thermal Mold Super. It has production facilities in Indiana and Massachusetts.

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Ibc Advanced Alloys Corp

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Post by Brouwieon Jun 01, 2014 7:47am

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Post# 22618798

Yes we can deliver !!

IBC Advanced Alloys Corp. Management’s Discussion and Analysis Nine Months Ended March 31, 2014

- 10 -

Copper Alloys

 Our gross profit was determined as follows:

$000			Three Months Ended March				Nine Months Ended March
2014		2013			2014			2013
$		$			$			$
Revenue	3,503			4,114		11,432			13,602
Cost of revenue
Materials	1,626			2,924		6,239			8,829
Labour	304			365		1,155			1,504
Overhead	378			457		1,301			1,586
Depreciation	77			93		311			329
Change in finished goods	443			(193)		498			(51)
Total cost of revenue	2,828			3,646		9,504			12,197
Gross profit	674			468		1,927			1,405
Gross margin	19%			11%		17%			10%

Our gross profit margins in the current fiscal year have increased primarily as a result of improved manufacturing practices.

 Salaries, wages, and management fees include the cost of manufacturing personnel other than the cost of manufacturing employees included in the cost of sales.

Engineered Materials

 Our Engineered Materials operations as a whole are operating significantly below capacity but have sizable depreciation charges, so while we report an operating loss, the cash flow performance of our manufacturing operations is significantly better.

 Our gross profit was determined as follows:

$000			Three Months Ended March				Nine Months Ended March
2014		2013			2014			2013
$		$			$			$
Revenue	364			489		1,173			1,418
Cost of revenue
Materials	117			84		298			299
Labour	172			193		640			714
Overhead	246			212		760			724
Depreciation	89			119		266			265
Change in finished goods	(16)			-		(1)			1
Total cost of revenue	608			608		1,963			2,003
Gross loss	(243)			(119)		(789)			(585)
Gross margin	(67%)			(24%)		(67%)			(41%)