Evertz Technologies Second Quarter Fiscal 2013 Revenue and Earnings Up 18%
BURLINGTON, ONTARIO, Dec 4, 2012 (Menafn - Marketwire via COMTEX) --Attention Business/Financial Editors:
Evertz Technologies Limited , a global leader in video infrastructure solutions for production, playout and delivery systems for television broadcasters, telecom and multi-system operators, today reported that revenue and earnings per share rose 18% in its results for the second quarter of its fiscal 2013 year.
Quarterly Highlights
--Revenue of 83.2 million, an increase of 18% year over year for the
quarter
--US/Canada region revenue was up 10.8 million or 30% compared to a year
ago
--Revenue in the International region rose 5% compared to a year ago, to
36.4 million
--Gross margin rose to 59%
--Fully diluted earnings per share increased 18% to 0.26 for the quarter
as compared to 0.22 a year ago
--Cash and instruments held for trading increased to over 215 million
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except per share amounts)
Q2 ' 13Q2 ' 12
--------------------
Revenue83,15870,487
Gross margin48,86040,376
Earnings from operations25,89421,983
Net earnings19,09216,097
Fully-diluted earnings per share0.260.22
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
Q2 ' 13YE ' 12
--------------------
Cash and instruments held for trading 215,342 185,669
Working capital349,281325,677
Total assets446,714431,864
Shareholders' equity402,075378,417
Revenue
For the quarter ended October 31, 2012, revenues were 83.2 million, an increase of 12.7 million or 18% as compared to revenues of 70.5 million for the quarter ended October 31, 2011. For the quarter, revenues in the United States/Canada region were 46.7 million, an increase of 10.8 million or 30% when compared to the same quarter last year. The International region had revenues of 36.4 million, an increase of 5% when compared to the same quarter last year.
Gross Margin
For the quarter ended October 31, 2012 gross margin was 48.9 million compared to 40.4 million in the same quarter last year. Gross margin percentage was approximately 59% compared to 57% for the quarter ended October 31, 2011.
Earnings
For the quarter ended October 31, 2012 net earnings were 19.1 million as compared to 16.1 million in the corresponding period last year.
For the quarter ended October 31, 2012, earnings per share on a fully-diluted basis were 0.26 as compared to 0.22 in the same period in 2011.
Operating Expenses
For the quarter ended October 31, 2012 selling and administrative expenses were 13.1 million compared to 11.7 million for the quarter ended October 31, 2011. Selling and administrative expenses represented approximately 16% of revenue in the quarter compared to 17% for the same period last year.
For the quarter ended October 31, 2012 gross research and development expenses increased by 2.6 million or 26% as compared to the corresponding period in 2011. Gross research and development expenses represented approximately 15% of revenue for the quarter ended October 31, 2012.
Liquidity and Capital Resources
The Company's working capital as at October 31, 2012 was 349.3 million as compared to 325.7 million on April 30, 2012.
Cash and instruments held for trading were 215.3 million as at October 31, 2012 as compared to 185.7 million on April 30, 2012.
Cash provided by operations was 46.4 million for the quarter ended October 31, 2012 as compared to 22.3 million for the quarter ended October 31, 2011. Before taking into account the changes in non-cash working capital, the Company generated 22.5 million from operations for the quarter ended October 31, 2012 compared to 19.0 million for the same period last year.
The Company spent 1.4 million on the purchase of capital assets for the quarter ended October 31, 2012 and 3.4 million for the quarter ended October 31, 2011.
For the quarter ended October 31, 2012, the Company used cash from financing activities of 11.0 million which was principally a result of the payment of dividends of 10.6 million.
Shipments and Backlog
Purchase order backlog at the end of November 2012 was in excess of 41 million and shipments during the month of November 2012 exceeded 21 million.
Dividend Declared
Evertz Board of Directors declared a dividend on December 4, 2012 of 0.14 per share.
The dividend is payable to shareholders of record on December 14, 2012 and will be paid on or about December 21, 2012.
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Three month periodSix month period
endedended
October 31,October 31,
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2012201120122011
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Revenue83,15870,487 179,119 145,615
Cost of goods sold34,29830,11174,60462,392
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Gross margin48,86040,376104,51583,223
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Expenses
Selling and administrative13,09011,73925,45922,121
General1,4491,7892,8973,098
Research and development12,61210,04124,40420,360
Investment tax credits(2,864)(2,454)(6,050)(4,736)
Foreign exchange gain(1,321)(2,722)(1,323)(3,065)
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22,96618,39345,38737,778
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Earnings before undernoted25,89421,98359,12845,445
Finance income428453877876
Finance costs(78)(46)(166)(97)
Other income and expenses(119)(242)(4)(225)
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Earnings before income taxes26,12522,14859,83545,999
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Provision for income taxes
Current6,3246,12615,31213,481
Deferred709(75)672(1,203)
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7,0336,05115,98412,278
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Net earnings for the period19,09216,09743,85133,721
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Net earnings attributable to
non-controlling interest185101355198
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Net earnings attributable to
shareholders18,90715,99643,49633,523
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Net earnings for the period19,09216,09743,85133,721
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Earnings per share
Basic0.260.220.590.45
Diluted0.260.220.590.45
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Consolidated Balance Sheet DataAs atAs at
October 31, 2012April 30, 2012
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Cash and instruments held for trading215,342185,669
Inventory107,927109,211
Working capital349,281325,677
Total assets446,714431,864
Shareholders' equity402,075378,417
Number of common shares outstanding:
Basic73,172,98673,225,786
Fully -diluted77,924,58677,904,086
Weighted average number of shares
outstanding:
Basic73,166,07273,612,759
Fully -diluted73,382,08373,812,767
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Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on December 4, 2012 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 1-416-849-6166 or toll-free (North America) 1-866-250-6267.
For those unable to listen to the live call, a rebroadcast will also be available until January 4, 2013. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 235180.
About Evertz
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television ("HDTV") broadcast environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.
FOR FURTHER INFORMATION PLEASE CONTACT: Evertz Technologies Limited Anthony Gridley Chief Financial Officer (905) 335-7580 ir@evertz.com
SOURCE: Evertz Technologies Limited
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