* Revenues Increase 27.3% to EUR 121.4 Million * Proforma Diluted EPS of EUR 0.21 * New Order Bookings of EUR 180.7 Million
MADRID, Spain, May 24, 2007 (PRIME NEWSWIRE) -- Telvent GIT, S.A. (Nasdaq:TLVT), the Global RealTime IT Company, today announced unaudited financial results for the first quarter ended March 31, 2007.
Revenues for the first quarter 2007 were EUR 121.4 million, an increase of 27.3% (19.1% organic), compared to EUR 95.3 million for the first quarter 2006.
Net income for the first quarter 2007 was EUR 5.1 million, an increase of 8.5% versus EUR 4.7 million reported for the first quarter 2006. Diluted EPS for the first quarter 2007 were EUR 0.18, compared to EUR 0.16 in the first quarter 2006.
Proforma net income for the first quarter 2007 was EUR 6.3 million, an increase of 16.7% versus EUR 5.4 million for the first quarter of 2006. Proforma diluted EPS for the first quarter 2007 were EUR 0.21, versus EUR 0.18 in the first quarter 2006.
New order bookings (or new contracts signed) in the first quarter of 2007 were EUR 180.7 million, a 25.7% increase from EUR 143.7 million during the same period in 2006.
Backlog (representing the portion of signed contracts for which performance is pending) was EUR 517.1 million as of March 31, 2007, which reflects 15.8% growth over the EUR 446.7 million in backlog at the end of March 2006.
Pipeline, measured as management's estimates of real opportunities within the next 6 to 12 months, is approximately EUR 1.5 billion.
Manuel Sanchez, Chairman and Chief Executive Officer, said, "Telvent has started the year well and I am pleased with our results. We delivered another strong quarter of organic top-line growth which, combined with the benefits from our successful integration of the Telvent Farradyne acquisition, has driven further expansion of operating margins.
"Our targeted acquisitions are continuing in 2007, with our recent purchase of Caseta Technologies, a leading provider of electronic toll collection solutions and Intelligent Transportation Systems in the U.S. We believe that our strategy of developing a growing portfolio of IT solutions that help to manage the world in a more sustainable and secure way is being recognized by our customers."
Gross margin was 25.3% in the first quarter of 2007, compared to 24.5% in the first quarter of 2006.
Operating expenses, as a percentage of revenues, were 19.4% in the first quarter of 2007, versus 19.1% in the same quarter of 2006.
Proforma operating margin was 7.3% in the first quarter of 2007, compared to 6.9% in the first quarter of 2006.
As of March 31, 2007, cash and cash equivalents were EUR 66.1 million and total debt (including net EUR 20.4 million credit line due to related parties) was EUR 70.2 million, resulting in a net debt position of EUR 4.1 million. As of December 31, 2006, net cash position was EUR 46.7 million.
For the first three months of 2007, cash used in operating activities was EUR 48.2 million compared to EUR 21.8 million used in the same period last year. Cash provided by investing activities in the first three months of 2007 amounted to EUR 29.6 million versus EUR 21.6 million in the same period last year.
Business Highlights
Energy
* Following Telvent's successful implementation of the first phase
of its contract with Swedish electricity company, Vattenfall, for
the supply and management of an Automatic Meter Reading system,
Vattenfall exercised options to extend its agreement with
Telvent. Providing up to a total of 700,000 meters and a
comprehensive range of utility applications, this deployment will
be one of the world's largest AMR systems. The contract extension
was valued at more than EUR 40 million.
* Telvent was awarded a contract with Kinder Morgan, Inc., one of
the largest energy transportation, storage and distribution
companies in North America, to provide it with an OASyS DNA
supervisory control and data acquisition system, which will
control Kinder Morgan Inc.'s newly acquired Cochin Master Site
pipeline.
Transportation
* Telvent successfully launched the "511 Traveler Information
Service" for the San Diego Association of Governments. The
service provides significant travel-related information to
commuters including freeway driving times, transit route and
rideshare information, roadside information and public transport
fare information.
Environment
* Signed a EUR 1.2 million contract with Canada's Alberta
Infrastructure and Transportation for summer maintenance of two
road weather information systems (RWIS). Telvent's technology
will help ensure road maintenance efficiency and traffic safety.
Public Administration
* Telvent is deploying new patient administration, clinical
information, and departmental information systems at the Dr.
Dario Contreras Hospital in the Dominican Republic. Together,
these systems will manage the complete cycle of patient care at
the Hospital, helping to shorten waiting lists and improving
overall patient satisfaction. Total contract amount is
approximately EUR 1 million.
Global Services
* Telvent is deploying a disaster recovery center for critical
services, applications, and communication systems to be used by
the City of Madrid's Regional Transport Consortium. This center
will enable the Consortium to regain access to the data, hardware
and software necessary to resume critical business operations
after a natural or human-induced disaster.
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use certain non-GAAP measures, including proforma net income and EPS. Proforma net income and EPS are adjusted from GAAP-based results to exclude certain costs and expenses that we believe are not indicative of our core operating results. Proforma results are one of the primary indicators management uses for evaluating historical results and for planning and forecasting future periods. We believe proforma results provide consistency in our financial reporting which enhances our investors' understanding of our current financial performance as well as our future prospects. Proforma results should be viewed in addition to, and not in lieu of, GAAP results.
Proforma net income excludes the amortization of intangible assets from the purchase price allocations in our acquisitions, stock compensation plan expenses and mark to market hedging, that Telvent believes are not indicative of its core performance or results. A reconciliation between GAAP, proforma net income and EPS is provided in this release in a table immediately following the condensed consolidated financial statements.
Conference Call Details
Telvent Chairman and CEO, Manuel Sanchez Ortega and Chief Financial Officer and Head of Investor Relations, Ana Plaza, will conduct a conference call to discuss the first quarter 2007 results, which will be simultaneously webcast at 09:00 A.M. Eastern Time / 3:00 P.M. Madrid Time on Friday, May 25, 2007.
To access the conference call, participants in North America should dial 800-374-0724 and international participants should dial +1 (706) 634-1387. A live webcast of the conference call will be available on the investor relations zone of Telvent's corporate web site at www.telvent.com. Please visit the web site at least 15 minutes early to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the web site approximately two hours after the conference call is completed.
About Telvent
Telvent (Nasdaq:TLVT), the Global RealTime IT Company, specializes in high value-added products, services and integrated solutions for the Energy, Transportation, Environment and Public Administration industry segments, as well as Global IT Services. Its innovative technology and client-proven expertise enable the efficient and secure real-time management of operational and business processes for industry-leading companies worldwide. (www.telvent.com)
The Telvent GIT S.A. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3116
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Telvent's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in Telvent's Annual Report on Form 20-F for the year ended December 31, 2006, filed with the Securities and Exchange Commission on March 30, 2007.
Unaudited Consolidated Balance Sheets
(In thousands of Euros, except share and per share amounts)
As of As of
March 31, December 31,
2007 2006
(Unaudited) (Audited)
----------- -----------
Assets:
Current assets:
Cash and cash equivalents 66,130 69,232
Restricted cash -- 8,045
Other short-term investments 450 386
Derivative contracts 1,958 2,814
Accounts receivable (net of allowances of
EUR 2,756 as of March 31, 2007 and EUR
2,719 as of December 31, 2006) 142,781 144,763
Unbilled revenues 134,351 101,317
Due from related parties 24,609 47,958
Inventory 30,994 19,274
Other taxes receivable 14,416 13,258
Deferred tax assets 8,143 3,692
Other current assets 4,417 7,016
----------- -----------
Total current assets 428,249 417,755
Deposits and other investments 1,610 1,795
Property, plant and equipment, net of
accumulated depreciation of EUR 48,250 as
of March 31, 2007 and EUR 46,706 as of
December 31, 2006 51,875 51,215
Long-term receivables and other assets 8,915 11,236
Deferred tax assets 15,786 14,954
Other intangible assets, net of accumulated
depreciation of EUR 15,601 as of March 31,
2007 and EUR 14,908 as of December 31,
2006 22,653 21,260
Goodwill 36,923 37,416
----------- -----------
Total assets 566,011 555,631
=========== ===========
Liabilities and shareholders' equity:
Accounts payable 207,690 216,614
Billings in excess of costs and estimated
earnings 26,281 26,568
Accrued and other liabilities 16,345 10,389
Income and other taxes payable 19,398 26,901
Deferred tax liabilities 6,646 5,347
Due to related parties 36,455 23,512
Current portion of long-term debt 1,709 1,514
Short-term debt 34,856 32,295
Short-term leasing obligations 2,699 2,562
Derivative contracts 2,983 3,269
----------- -----------
Total current liabilities 355,062 348,971
Long-term debt less current portion 13,289 15,188
Long-term leasing obligations 2,194 1,834
Other long term liabilities 5,426 5,716
Deferred tax liabilities 6,590 6,276
Unearned income 1,132 131
----------- -----------
Total liabilities 383,693 378,116
=========== ===========
Minority interest 375 794
Commitments and contingencies
Shareholders' equity:
Common stock, EUR 3.005 par value,
29,247,100 shares authorized, issued and
outstanding, same class and series 87,889 87,889
Additional paid-in-capital 40,771 40,338
Accumulated other comprehensive income (2,485) (2,142)
Retained earnings 55,768 50,636
----------- -----------
Total shareholders' equity 181,943 176,721
----------- -----------
Total liabilities and shareholders'
equity 566,011 555,631
=========== ===========
Unaudited Consolidated Statements of Operations
(In thousands of Euros, except share and per share amounts)
Three Months Ended
March 31,
------------------------
2007 2006
----------- -----------
Revenues 121,362 95,306
Cost of revenues 90,627 71,918
----------- -----------
Gross profit 30,735 23,388
----------- -----------
General and administrative 12,095 8,222
Sales and marketing 4,335 5,070
Research and development 4,566 2,980
Depreciation and amortization 2,571 1,884
----------- -----------
Total operating expenses 23,567 18,156
----------- -----------
Income from operations 7,168 5,232
Financial income 3,277 3,383
Financial expense (5,110) (2,812)
----------- -----------
Total other income (expense) (1,833) 571
----------- -----------
Income before income taxes 5,335 5,803
Income tax expense (benefit) 290 1,198
----------- -----------
Net income before minority interest 5,045 4,605
----------- -----------
Loss/(profit) attributable to minority
interests 87 118
----------- -----------
Net income 5,132 4,723
=========== ===========
Earnings per share
Basic and diluted net income per share 0.18 0.16
=========== ===========
Weighted average number of shares outstanding
Basic and diluted 29,247,100 29,247,100
=========== ===========
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of Euros, except share and per share amounts)
Three Months Ended
March 31,
------------------
2007 2006
------- -------
Cash flow from operating activities:
Net income 5,132 4,723
Adjustments to reconcile net income to net cash
provided by operating activities (2,094) 4,090
Change in operating assets and liabilities, net
of amounts acquired (51,696) (29,326)
Change in operating assets and liabilities due
to temporary joint ventures 439 (1,309)
------- -------
Net cash used in operating activities (48,219) (21,822)
------- -------
Cash flows from investing activities:
Restricted cash - guaranteed deposit of long
term investments and commercial transactions 8,045 3,183
Due from related parties 22,928 24,862
Acquisition of subsidiaries, net of cash (100) (5,731)
Purchase of property, plant & equipment (777) (557)
Acquisition (disposal) of investments (518) (173)
------- -------
Net cash provided by investing activities 29,578 21,584
------- -------
Cash flows from financing activities:
Proceeds from long-term debt 343 495
Repayment of long-term debt (3,089) (4,379)
Proceeds from short-term debt 3,694 968
Repayment of short-term debt (1,133) (1,685)
Due to related parties 15,827 4,319
------- -------
Net cash provided by (used in) financing
activities 15,642 (282)
------- -------
Net decrease in cash and cash equivalents (2,999) (520)
Net effect of foreign exchange in cash and cash
equivalents (103) 313
Cash and cash equivalents at the beginning of
period 60,997 67,796
Joint venture cash and cash equivalents at the
beginning of period 8,235 12,214
------- -------
Cash and cash equivalents at the end of period 66,130 79,803
======= =======
Supplemental disclosure of cash information:
Cash paid for the period:
Interest 2,985 895
Non-cash transactions:
Capital leases 1,540 --
Reconciliation between GAAP and Proforma Income and EPS
(In thousands of Euros, except share and per share amounts)
Three months ended
March 31,
2007 2006
----------- -----------
GAAP basis income before income taxes 5,335 5,803
Adjustments to Net Income
Amortization of intangibles 832 541
Stock compensation plan expenses 434 494
Mark to market derivatives 246 (300)
----------- -----------
Total Adjustments 1,512 735
----------- -----------
Adjusted income before income taxes 6,847 6,538
----------- -----------
Income tax provision (653) (1,282)
Profit attributable to minority interests 87 118
----------- -----------
Proforma Net Income 6,281 5,374
=========== ===========
Earnings per share
Basic and diluted net income per share 0.21 0.18
=========== ===========
Weighted average number of shares
outstanding
Basic and diluted 29,247,100 29,247,100
=========== ===========
Segment Information
(In thousands of Euros, except share and per share amounts)
Three Months Ended
March 31,
-----------------------
2007 2006
--------- ---------
Revenues
Energy 55,356 37,261
Transportation 41,863 35,770
Environment 8,562 9,409
Public Administration 6,744 4,130
Global Services 8,837 8,736
--------- ---------
121,362 95,306
--------- ---------
Gross Margin
Energy % 24.1 % 25.8
Transportation 23.6 20.0
Environment 25.5 28.0
Public Administration 22.7 21.7
Global Services 42.9 35.1
--------- ---------
% 25.3 % 24.5
--------- ---------