SMARTRAC N.V. / Key word(s): Quarter Results
03.11.2010 07:31
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PRESS RELEASE
SMARTRAC reports on first nine months 2010: Growth of 42 percent in sales
and increase of sales guidance for the full-year 2010
- Sales 9M 2010: EUR 130.9 million accounted for an increase of 42
percent on the EUR 92.2 million generated in 9M 2009
- EBITDA 9M 2010: Increase of 43 percent to EUR 15.7 million compared to
EUR 10.9 million in 9M 2009, profitability at 12 percent EBITDA margin
- Outlook 2010: Management increased the guidance today and expects
full-year sales to exceed EUR 175 million (previously: EUR 165 million)
- Dr. Christian Fischer, CEO: 'We achieved several milestones in the
development of SMARTRAC in the third quarter. For the first time, we
were able to report over 50 million EUR sales in a single quarter and
we gained One Equity Partners as anchor investor to support our
successful path of profitable growth.'
Amsterdam, November 3, 2010 - The TecDAX listed company SMARTRAC N.V. today
announced financial figures for the nine-month period ended September 30,
2010. SMARTRAC continued to show strong development and reported a sales
growth of 42 percent from EUR 92.2 million in 9M 2009 to EUR 130.9 million
in 9M 2010. After nine month of the financial year 2010, SMARTRAC was
already able to exceed the 2009 full-year sales figure of EUR 127.9 million
and achieved over EUR 50 million sales in a single quarter (Q3 2010: EUR
50.2 million). EBITDA for the first nine months increased by 43 percent
from EUR 10.9 million in 2009 to EUR 15.7 million in 2010. 9M EBITDA margin
2010 was unchanged at 12 percent compared to 2009. Profit for the period
amounted to EUR 5.9 million compared to EUR 3.1 million a year ago.
SMARTRAC financial figures at a glance:
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Key data
In thousands Consolidated 9 months Consolidated 9 months Change
of EUR ended September 30, ended September 30, in %
2010 2009
Consolidated income
statement
Revenues 130,928 92,194 42
EBITDA 15,656 10,916 43
Profit for the period 5,926 3,094 92
Financial position and
liquidity
Net cash flow provided 2,798 4,873 (43)
by operating
activities
Working capital 40,810 28,625 43
Capital expenditure 12,092 5,551 118
Total Assets 222,865 180,048 24
Operating Figures
Basic earnings per 0.40 0.23 74
share (EUR)
Operating cash flow 0.19 0.37 (49)
per share (EUR)
Equity ratio (%) 60 57 5
Headcount (at month's 3,435 2,670 29
end)
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Group revenues
The SMARTRAC Group generated revenues of EUR 130.9 million in the first
nine months of 2010. This represents an increase of 42 percent from the
previous year figure of EUR 92.2 million. Main drivers for the strong
development were the Business Unit Industry & Logistics with a powerful
performance in the automotive and non-automotive businesses, the Business
Unit eID, among other positive effects, with the successful ramp-up of a
volume project related to the De La Rue framework agreement, as well as the
Business Unit Cards with continued high order receipt in the e-Payment
business.
Sales in SMARTRAC's Security segment (Business Units Cards and eID)
amounted to EUR 98.2 million in 9M 2010 representing an increase of 41
percent compared to sales of EUR 69.7 million in the same period of 2009.
In 9M 2010, the Security Segment accounted for 75 percent of total Group
sales compared to 76 percent a year ago.
Sales in the Industry segment (Business Units Industry & Logistics and
Tickets & Labels) accounted for EUR 31.9 million in 9M 2010 representing an
increase of 47 percent compared to sales of EUR 21.7 million in 9M 2009.
The 2010 sales represented a 24 percent share in total sales of the Group
unchanged to the figure a year ago.
Group EBITDA
The Group EBITDA of EUR 15.7 million increased by 43 percent on previous
year figure of EUR 10.9 million. EBITDA margin was unchanged at 12 percent.
According to the company's definition of EBITDA, the Group EBITDA excluded
EUR 0.13 million extraordinary legal and financial costs related to the
foundation agreement with One Equity Partners. Despite strong sales growth,
the profitability development remained behind the company's possibilities.
SMARTRAC's profitability was again burdened by the dilution effect of a
continued high, customer-driven microchip sourcing, as well as by the
ongoing ramp-up of operations in Malaysia. The measures taken by the
management team to address the identified operational inefficiencies in
SMARTRAC's core production plants in Thailand started to deliver first
positive effects. Nevertheless, the implemented measures will require
additional time to unfold their full potential.
The Security segment accounted for an EBITDA of EUR 13.4 million in the
first nine months of 2010. This represents an increase of 14 percent
compared to EBITDA of EUR 11.7 million a year ago. Customer-driven,
increased microchip sourcing especially in the Business Unit eID resulted
in a sub-proportional development of the segment EBITDA.
The Industry segment reported an EBITDA of EUR 2.1 million in 9M 2010
compared to an EBITDA of EUR 1.1 million recorded in the same period of
2009. The strong performance of the Business Unit Industry & Logistics
supported the EBITDA margin of the Industry segment, but the negative
result from the production facility in Malaysia continued to significantly
burden the profitability of the segment and the company in total.
Profit for the period
At EUR 5.9 million, profit for the nine-month period in 2010 increased by
92 percent on the previous year's EUR 3.1 million. The total comprehensive
income for the period including translation effects of foreign exchange
rates amounted to EUR 7.6 million in 9M 2010 and EUR 2.6 million,
respectively.
Financial position
Accounting for EUR 222.9 million, the total assets of the consolidated
interim balance sheet as
of September 30, 2010 were 7 percent above the year-end figure 2009 of EUR
208.3 million. The balance sheet as of September 30, 2010 showed equity of
EUR 132.6 million, representing a 6 percent increase compared to EUR 124.6
million as of December 31, 2009. SMARTRAC's equity ratio remained at 60
percent.
As of September 30, 2010, the net debt position amounted to EUR 22.3
million. Subsequent to the reporting period, SMARTRAC successfully executed
a capital increase signed by OEP Technologie B.V. on October 15, 2010 to
generate gross proceeds of approximately EUR 26.0 million. Taking the
capital increase into consideration, the equity ratio would have amounted
to 64 percent with a net cash position.
Net cash provided by operating activities in the first nine months of 2010
amounted to EUR 2.8 million compared to EUR 4.9 million a year ago. Despite
an increased net profit in the first nine months 2010 compared to 2009, the
disproportionately higher increase in Working Capital compared to the sales
growth in the nine-month period 2010 resulted in a lower cash flow from
operating activities in 2010 compared to 2009.
Net cash used in investing activities amounted to EUR 13.5 million as of
September 30, 2010, compared to net cash used of EUR 0.2 million for the
same period of 2009. This development in 2010 was predominantly affected by
capital expenditure related to capacity increase in several production
sites and the construction work for the enlargement of the site in
Reichshof-Wehnrath, Germany.
Business outlook
Due to market dynamics and the continued strong business development in the
first nine months of 2010, the Management is confident with regard to the
final quarter of 2010 and the year 2011. SMARTRAC will benefit from its
leading position as developer, manufacturer and supplier of RFID
transponders and the investments in additional capacity. Therefore, the
Management today increases its sales guidance for 2010 once more. Sales for
the full year 2010 are expected to exceed EUR 175 million (previously: EUR
165 million) projecting at least 37 percent growth compared to sales of EUR
127.9 million in 2009.
The Management is convinced to be able to report improvements of the
operational performance in the last quarter of 2010. However, it is
currently difficult to foresee when the adjustments and adopted measures
will positively affect SMARTRAC's overall profitability. Therefore, the
Management expects an EBITDA for the fourth quarter 2010 to be reported in
the range of the third quarter 2010. According to the company's definition
of EBITDA, extraordinary non-recurring legal and financial costs (i.e.
related to the public tender offer by OEP Technologie B.V.) will be
excluded. The Management is convinced that the projected improvement in
profitability will only be postponed until the operational and
organizational measures unfold their full potential and that the strong
top-line performance will be turned into profitability in the coming
quarters of 2011.
'SMARTRAC is very well positioned to further benefit from the strong demand
and to transform the favorable market development into profitable growth,'
said Dr. Christian Fischer. 'With One Equity Partners as a strong financial
partner, we will continue to work intensely on the opportunities provided
by the global RFID market as well as on the consolidation of our industry.
We have the financial strength, the proven business model and the perfect
team to execute our strategy.'
The SMARTRAC Interim Report for the nine month period ended September 30,
2010 has been published today and is available for download on the
company's website at www.smartrac-group.com.
About SMARTRAC N.V.
SMARTRAC is a leading developer, manufacturer, and supplier of RFID
components for a broad bandwidth of applications in all current frequency
standards. The company produces ready-made as well as customized
transponders for public transport, access control, RFID-based car
immobilizers, animal identification, libraries, industry, and logistics.
SMARTRAC is the global market leader in high-quality RFID inlays for
electronic passports (e-Passports) and contactless credit cards (e-Payment)
as well as for RFID transponders for public transport applications.
SMARTRAC was founded in 2000, went public in July 2006, and trades as a
stock corporation under Dutch law with its registered headquarters in
Amsterdam. Since December 2008, SMARTRAC has been a member of the TecDAX,
Germany's leading share index for companies in the technology sector. The
company currently employs some 3,300 employees and maintains a global
research and development, production, and sales network.
Forward-looking statements
To the extent that this press release contains forward-looking statements,
such statements are based on assumptions, planning and forecasts at the
time of publication of this press release. Forward-looking statements
always involve uncertainties. Business and economic risks and developments,
the conduct of competitors, political decisions and other factors may cause
the actual results to be materially different from the assumptions,
planning and forecasts at the time of publication of this press release.
Therefore, SMARTRAC N.V. does not assume any responsibility relating to
forward-looking statements contained in this press release. Furthermore,
SMARTRAC N.V. does not assume any obligation to update the forward-looking
statements contained in this press release.
Andreas Schwarzwälder
Investor Relations
Tel: +31 20 30 50 156
Email: andreas.schwarzwaelder@smartrac-group.com
Tanja Möhler
Corporate Communications
Tel: +31 20 30 50 157
Email: tanja.moehler@smartrac-group.com
03.11.2010 07:31 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: SMARTRAC N.V.
Strawinskylaan 851
1077 XX Amsterdam
Niederlande
Phone: +31 20 30 50 156
Fax: +31 20 30 50 155
E-mail: investor.relations@smartrac-group.com
Internet: www.smartrac-group.com
ISIN: NL0000186633
WKN: A0JEHN
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Berlin, Düsseldorf, Stuttgart
End of Announcement DGAP News-Service
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DGAP-News: SMARTRAC N.V.: SMARTRAC reports on first nine months 2010
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