Mr. Mark Smith reports

IBC ADVANCED ALLOYS REPORTS PROFITABILITY FOR THE QUARTER ENDED DECEMBER 31, 2023

IBC Advanced Alloys Corp. has released its financial results for the quarter ended Dec. 31, 2023. (Unless otherwise noted, all financial amounts in this news release are expressed in United States dollars.)

Highlights of the quarter and YTD as compared with prior-year periods

• IBC swung to profitability in quarter, driven by a 34.1-per-cent increase in sales over the prior-year period to $10-million. Copper alloys division sales of $7-million were higher by 24.1 per cent quarter over quarter (Q/Q) and engineered materials division sales of $3-million increased by 66 per cent Q/Q.
• On a consolidated basis, IBC booked net income of $712,000 or one cent per share, as compared with a loss of $394,000 or (two cents) per share in the quarter ended Dec. 31, 2023. Consolidated adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) rose to $1.9-million in the quarter, as compared with adjusted EBITDA in the comparable prior-year period of $673,000 and swung to positive adjusted EBITDA of $2.0-million in the six-month period ended Dec. 31, 2022, as compared with adjusted EBITDA of ($269,000) in the comparable prior-year period.
• Operating income in the quarter of $1.5-million and $1.14-million in the year to date, compared with $203,000 and ($1.2-million), respectively, in the comparable prior-year periods.
• Gross profit and gross margins in the quarter improved in both divisions, largely due to higher sales revenue as compared with the prior-year periods resulting in fixed costs forming a lower proportion of sales.

IBC swing to profitability in the quarter, for the first time in seven quarters, recording net income of $712,000, or one cent per share, as compared with a loss of $394,000, or (zero cents) per share, in the quarter ended Dec. 31, 2022. In the six-month period ended Dec. 31, 2023, IBC booked a loss of $222,000 or (zero cents) per share, as compared with a loss of $2.4-million or (three cents) in the comparable prior-year period. This performance was driven largely by increased sales and stronger gross margin performance in the copper alloys division, coupled with higher sales revenue from the engineered materials division of beryllium-aluminum products used in defence markets.

Consolidated sales rose to $10-million in the quarter, a 34.1-per-cent increase over the prior-year period, with both operating divisions booking significantly higher revenue driven by higher sales volumes and improved pricing. Gross profit and gross margins also improved across both divisions, as did operating income and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

"IBC's teams in both operating divisions did a fantastic job to close out calendar 2023 on a high note, and this has provided us with good additional momentum in 2024," said Mark A. Smith, chairman and chief executive officer of IBC. "Increased sales and stronger gross margin performance in the copper alloys division helped to lead the way in the quarter, and higher sales revenue from our engineered materials division of beryllium-aluminum alloy products for defense markets contributed significantly."

IBC is continuing to explore strategic options with potential partners, investors and others regarding the engineered materials division and its Wilmington, Mass., facility. These options include, but are not limited to, pursuit of additional contracts, joint ventures, restructuring, sale of assets, sale of the division or closure of the division, and other possibilities. IBC will update the market as this effort progresses.

Copper alloys division

Sales increased the quarter and six-month period ended Dec. 31, 2023, of copper alloys product lines mostly due to increased demand from customers in the defence and power generation sectors. Gross profit was positively impacted by improved material yield.

Engineered materials division

Sales increased in the quarter and six-month period ended Dec. 31, 2023, largely due to more favourable product pricing in the defence markets. The division is continuing its efforts to improve yields. Gross margin improved from the comparable prior-year periods mostly due to higher sales in defence markets and improved yields on certain products and the reversal of the onerous contracts expense accrual as goods were shipped against related purchase orders.

Full results can be seen in the company's financial statements and management's discussion and analysis (MD&A), available at SEDAR+ and on the company's website.

Investor webcast scheduled for Friday, Feb. 16, 2024

The company will host a live investor webcast on Friday, Feb. 16, 2024, at 12 p.m. Eastern Time, featuring Mark A. Smith, CEO and Board Chairman, and Toni Wendel, Chief Financial Officer. They will discuss the company's financial results for the quarter and six-month periods Dec. 31, 2023. Participants must register in advance for the webcast.

About IBC Advanced Alloys Corp.

IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defence, aerospace, automotive, telecommunications, precision manufacturing and others. IBC's copper alloys division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper and aluminum bronze. IBC's engineered materials division makes the Beralcast family of alloys, which can be precision cast and are used in an increasing number of defence, aerospace and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana and Massachusetts. The company's common shares are traded on the TSX Venture Exchange under the symbol IB and the OTCQB under the symbol IAALF.

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