ARQUES Industries AG / Quarter Results
21.05.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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ARQUES generates significant positive operating cash flow in the first
quarter of 2008
- Operating and free cash flow both positive
- Operating development of the portfolio above plan
- Projections for 2008 reaffirmed: Revenues > EUR 6 billion, EBITDA > EUR
275 million
Starnberg, May 21, 2008 - ARQUES Industries AG (ISIN DE0005156004) started
off the fiscal year 2008 with operating profits of its subsidiaries above
budget. Due to the numerous acquisitions effected in the last 12 months,
the consolidated revenues for the first quarter, at EUR 1.35 billion, were
450% higher than the corresponding year-ago figure. The EBITDA (earnings
before interest, taxes, depreciation and amortization) for the first
quarter of 2008 amounted to EUR 15.3 million This figure, which does not
contain any 'bargain purchase' income, clearly demonstrates the earnings
strength of the investment portfolio of ARQUES Industries AG. The
first-quarter EBITDA was less than the corresponding year-ago figure of EUR
27.7 million because the figure for the first quarter of 2008 did not
contain any 'bargain purchase' income, while the year-ago figure contained
such income in the amount of EUR 30.5 million. Another important aspect of
the companys performance in the first quarter of 2008 was the significant
improvement in the operating cash flow, which came to EUR 10.3 million in
the first quarter, as compared with EUR -12.4 million in the year-ago
period. The free cash flow improved from the negative amount of EUR -18.7
million in the year-ago quarter to a positive balance of EUR 3.9 million in
the first quarter of 2008.
The first quarter was characterized in large part by the consolidation of
the companies acquired at the end of December 2007 (Actebis Nordic, NT
plus, Eurostyle, SM Electronic). Despite the difficult conditions in the
capital markets, ARQUES successfully sold the building supplier Missel and
prepared two other exits (Oxiris and Jahnel-Kestermann), which were
completed in the second quarter of 2008. Since the beginning of this year,
ARQUES has generated total proceeds of EUR 40 million on company sales. On
the buying side, ARQUES successfully completed two acquisitions in the
second quarter, one being the Spanish transport services provider ASM and
the other being the precision steel tube manufacturer Carl Froh, which had
been prepared in the first quarter.
In view of the foregoing, ARQUES is projecting a significant earnings
improvement in the second quarter. Accordingly, the company is sticking
with its goals for the full year 2008, which are to generate consolidated
revenues of more than EUR 6 billion and an EBITDA of EUR 275 million. In
addition, the company intends to reduce its debt and generate a significant
level of positive free cash flow.
'ARQUES got off to a great start in fiscal year 2008, despite the difficult
operating conditions. Besides the successful sale of our investment in
Missel, we also prepared four other transactions, which were completed at
the beginning of the second quarter. Therefore, we are confident of being
able to achieve our full-year goal of generating an EBITDA of EUR 275
million in 2008', said Dr. Michael Schumann, Chairman of the Executive
Board of ARQUES Industries AG.
Positive free cash flow of EUR 3.9 million, NAV about EUR 541 million
The net cash flow (from operating activities) of EUR 10.3 million, which
exhibited a significant improvement over the year-ago figure of EUR -12.4
million, was reflective of the proceeds on the sale of Missel (EUR 8.5
million) and the progress that has been made in the restructuring of the
subsidiaries, such that they were able to generate a positive cash flow
despite the restructuring costs incurred. ARQUES likewise achieved a
significant turnaround with respect to its free cash flow, which rose from
EUR 18.7 million in the year-ago period to EUR 3.9 million in the first
quarter of 2008. ARQUES financial position at March 31, 2008 was very
solid, with cash and cash equivalents of EUR 78.1 million. As could be seen
already at the end of 2008, ARQUES total assets rose to the level of
nearly EUR 1.8 billion as a result of the considerably expanded group of
consolidated companies. At 21.9%, the equity ratio was likewise better than
it was at the end of December 2007. The total financial liabilities
decreased somewhat, by EUR 5.8 million, to reach EUR 333.7 million.
At EUR 541.0 million, the net asset value of all the subsidiaries was
slightly increased from the corresponding figure at March 28, 2008 (EUR
540.3 million), even though there have been further successful company
sales that are not added to the net asset value any more.
Confident outlook for 2008 despite the tougher operating conditions
In view of the sharply higher level of transactions, ARQUES anticipates
that its earnings for the second quarter of 2008 will be significantly
higher than the first-quarter figure and the corresponding year-ago period.
This confident outlook is based in part on the sales of the investments
Oxiris and Jahnel-Kestermann, which have already been completed, and in
part on the bargain purchase income from the new acquisitions effected in
the current quarter. Furthermore, ARQUES anticipates a further improvement
in the operating profitability of its subsidiaries.
For the full year 2008, ARQUES is confident of being able to generate
consolidated revenues of more than EUR 6 billion and an EBITDA of EUR 275
million. The precise amount of revenues and earnings will depend very much
on the exact number of company sales and acquisitions effected in the
further course of this year. As in previous years, it can be expected that
ARQUES will be able to generate significant bargain purchase income from
the acquisitions still to be effected in the current year. The acquisition
pipeline is well filled and ARQUES continues to anticipate a total of 10-15
company acquisitions in the current year. On the exit side, ARQUES
anticipates a total of 5-7 company sales in the current year.
The complete report on the first quarter of 2008 can be found at the
companys website www.arques.de.
About ARQUES
ARQUES Industries AG, Starnberg, (www.arques.de) is a partner to large
corporations seeking to spin off companies or business divisions and a
turnaround specialist that focuses on the acquisition and active
restructuring of companies in crisis situations, in order to transform them
into competitive, profitable enterprises through the efforts of ARQUES own
management team and resources. ARQUES revitalizes the value creation
potential of its subsidiaries to the benefit of all their stakeholders,
while living up to the social responsibility that comes with such work. The
shares of ARQUES Industries AG are traded in the Prime Standard segment of
the Frankfurt Stock Exchange under the symbol 'AQU' (ISIN: DE0005156004).
Also, the ARQUES share has been included in the MDAX since October 1, 2007.
Contact
Anke Lüdemann, CEFA/CIIA
Head of Investor Relations &
Corporate Communication
ARQUES Industries AG
Münchner Straße 15a
82319 Starnberg
Germany
P: +49 / (0) 8151 / 651 0
F: +49 / (0) 8151 / 651 500
Email: luedemann@arques.de
DGAP 21.05.2008
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Language: English
Issuer: ARQUES Industries AG
Münchner Str. 15a
82319 Starnberg
Deutschland
Phone: +49 (0)8151 651-0
Fax: +49 (0)8151 651- 500
E-mail: luedemann@arques.de
Internet: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: ARQUES generates significant positive operating cash flow in the first quarter of 2008
| Source: EQS Group AG