DGAP-News: euromicron AG / Key word(s): Final Results
euromicron AG: 2013 Annual financial statements
31.03.2014 / 07:00
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euromicron AG pushes ahead massively and successfully with the Agenda
500-High expenditures again on integration, consolidation and realignment
impact earnings in 2013
- Adjusted guidance targets achieved: Total operating performance increases
to EUR328.7 million
- Integration costs of EUR5.5 million, special effects from project
valuations of EUR4.9 million and order postponements at the production
companies and project postponements at the system houses totaling almost
EUR7.9 million result in an EBIT of around EUR5.5 million
- Good foundation for further development and expansion created: Orders
books of EUR126.5 million, slightly above the previous year's figure of
EUR125.2 million
Frankfurt/Main, March 31, 2014 - As planned, euromicron AG is pushing
massively ahead with the Group's integration phase ("Agenda 500"), which
has a time frame of 2 to 2 years, and paving the way to achieving its
ambitious growth targets by 2016. These targets are geared toward growth in
sales to around EUR500 million and a return to an EBIT margin of 8% to 11%.
Against this backdrop, euromicron AG used the year of core integration
2013, as announced, to press ahead intensively with consolidation and
realigning the company. So as to prepare the Group for the next major stage
in its growth, the initial integration measures commenced in 2012 were
transitioned to a structured process and a far higher number of projects
were accomplished in 2013. As a consequence, the Group now has more uniform
processes, a broader know-how base, more innovative products, an optimized
IT landscape, more modern locations and more professional structures than
at the start of the integration phase in 2012.
To enable that, a record amount was invested in integration of the company
in 2013. In order to realign euromicron and make it ready for the future,
extensive investments in reducing and restructuring the workforce were
made, just about all IT fields and processes were included in an initial
stage, the divisions were reorganized and a raft of cost-cutting measures
were carried out. As a result, integration and restructuring costs rose
sharply again in 2013, with a total of around EUR5.5 million being spent on
related measures in the year under review, a sum that - as in the previous
year - was funded from the company's operating income.
With the integration measures, the Executive Board of euromicron AG intends
to create a stable, consolidated and streamlined platform for the planned
acquisition and integration of a larger company as of 2015.
In operating business, the mainly politically induced uncertainties as part
of the energy debate, modernization of transport networks, future-oriented
radio technology for public authorities or broadband expansion, above all
for customers from the WAN arena, were reflected in increasingly hesitant
and deferred capital spending. Accompanying that, euromicron's system
houses increasingly had to cope with project delays and postponements in
the course of 2013, which meant a higher cost burden and reduced earnings,
whereas its production companies faced postponements in the call-off of
deliveries by important regular customers and so lost a large part of their
planned income.
Finally, the beginning of December saw a successive pickup in capital
spending, such as by Deutsche Telekom in VDSL2 vectoring, which brought
about a high level of capacity utilization, but was not sufficient for the
company to achieve its customary strong performance of the final quarters
of previous years and compensate for the dual effect of project
postponements and lower call-offs of deliveries. euromicron AG accordingly
adjusted its guidance for the year as whole with its ad-hoc announcement on
December 4, 2013.
Total operating performance and consolidated sales Despite project
postponements and lower call-offs of deliveries, euromicron posted stable
sales at December 31, 2013, of EUR329.4 million, around the same level of
the previous year, but not enough to compensate for the extra costs for the
planned stage of growth in 2013 in terms of earnings. Total operating
performance rose slightly to EUR328.7 million, a year-on-year increase of
1.4%.
Consolidated income Earnings before interest and taxes (EBIT) were EUR5.5
million after integration costs of around EUR5.5 million, special effects
from project valuation (approximately EUR4.9 million) and a loss of EBIT
totaling some EUR7.9 million due to order postponements at the production
companies and project postponements at the system houses. EBITDA was
EUR14.4 million, giving an EBITDA margin of 4.4% compared with 7.6% the
year before. The consolidated net loss for shareholders of euromicron AG in
2013 was EUR -0.9 million compared with consolidated net income of EUR8.6
in the previous year. Undiluted earnings per share were EUR -0.12 versus
EUR1.29 in the previous year.
Order situation at the Group New orders at the euromicron Group from
January 1 to December 31, 2013, were EUR327.7 million and so at the good
level of the previous year (EUR327.8 million). Order books were EUR126.5
million, above the previous year's figure of EUR125.2 million. As a result,
euromicron's production companies in particular are embarking on the next
fiscal year 2014 with well-filled order books following the postponement of
call-of orders in 2013.
Balance sheet structure The euromicron Group's total assets at December 31,
2013, increased by 15.8% to EUR328.9 million compared with EUR283.9 million
in the previous year.
Personnel The average headcount (excluding trainees) at the euromicron
Group in the year under review rose from a total of 1,597 to 1,653.
Personnel costs in fiscal year 2013 increased to EUR99.2 million, mainly as
a result of changes in the consolidated companies, costs for reducing and
restructuring the workforce at the Group and measures to create formalized
structures and Competence Centers. This was countered by initial savings
from the integration and restructuring measures in the area of human
resources.
Equity The euromicron Group's equity and liquidity was strengthened
further as a result of the capital increase in December 2013, which
increased equity by EUR6.8 million, is to be used to fund acquisitions and
is a key component in the euromicron Group's overall financing concept. It
was reduced in fiscal 2013 by the dividend payout, the overall result in
2013 and the change in the majority interest in equity. As a result, equity
at December 31, 2013, was EUR122.6 million, EUR3.6 million above the
previous year's figure of EUR119.0 million. The equity ratio was 37.3%
(previous year: 41.9%), still at a very stable level given the increase in
total assets.
Finances/liquidity As in past years, euromicron's banks again regarded it
as a strong and dependable partner in fiscal year 2013. There is keen
interest on the part of the financial institutes to keep on intensifying
their commitment at euromicron even despite the temporary negative impact
on earnings and balance sheet ratios and to actively accompany the company
on its path toward its sales target of EUR500 million in the coming years.
The key financial indicators, which were adjusted due to the integration
phase effective December 31, 2013, in agreement with the Group's long-term
financing partners, were adhered to.
Share and investor relations euromicron's share started the 2013 stock
market year at a price of EUR18.74 and moved in line with the overall
market in the first two months. In the months subsequent to the
announcement that the dividend would be adjusted in March 2013, the price
largely fluctuated in a range between EUR14 to EUR16. Publication of the
solid semi-annual figures in the third quarter was followed by a positive
trend, with the share touching EUR17.74 at one stage. The share's exit from
the TecDAX in September 2013 had virtually no effect and its positive
performance continued at the start of the fourth quarter. Finally, a
downward trend was initiated with the announcement of the adjusted guidance
in December 2013, coinciding with a phase of stock market weakness. There
was a recovery after the capital increase, when the share stood at
EUR13.86, with the result that at the end of the year it was above the
placement price and was listed at EUR14.35. euromicron's market
capitalization at the end of the year was EUR102.9 million. The volume of
shares traded was around 7.4 million, at the level of the previous year.
The Executive Board and Supervisory Board have agreed to retain liquid
funds within the company for fiscal 2013, the year with the highest
expenditure on integration, restructuring and realignment in the history of
the euromicron Group. Given that the planned positive economic effects of
the Agenda 500 are not yet reflected in the key ratios, but the burdens can
be seen directly in a balance sheet loss for euromicron AG, the Executive
Board and Supervisory Board will propose to the General Meeting on May 14,
2014, to refrain from making a dividend payout for 2013. After completion
of the integration phase, the Executive Board of euromicron AG aims - as in
the years of building the Group - to let all shareholders share in the
anticipated success of the company and to resume paying a dividend on the
basis of achievement of the original quality of earnings of 8% to 11%.
Outlook euromicron AG intends to largely complete the phase of
consolidation and restructuring of the company in 2014 and, on this
optimized platform, to press ahead with enhancing its structures, processes
and financial and human resources. That initially comprises completely
accomplishing the Agenda 500 projects that have been initiated and leading
them to a successful result or transitioning them to a continuous
improvement process. The Executive Board of euromicron AG also plans to
round out the company further in terms of technology, geography or
resources and expertise by acquiring smaller specialist companies.
"With these long-planned strategic steps in the company's development and
the associated integration phases, we will create the basis for our Group's
further organic growth, smooth acquisition and integration of a largish
company and so achievement of the planned quality of earnings of 8% to 11%
on sales of around EUR500 million in 2016," says the Chairman of the
Executive Board of euromicron AG, Dr. Willibald Späth.
The company also reports that 2014 has got off to a very promising start in
operational terms - as evidenced by the level of new orders in the first
months. Order books at February 2014 still have the same high volume of
EUR125 million. "We are also working vigorously to complete the projects
and delivery orders that were postponed in 2013 and have since been placed.
We feel sure that, given an increasingly positive climate for investment,
we will be able to reflect the progress we have made with the Agenda 500 in
our earnings and are aiming in 2014 to grow sales to EUR340 to EUR360
million and achieve an EBITDA margin of around 6% to 8%," adds Späth.
euromicron AG (www.euromicron.de) is an all-round solution provider for
communications, transport, data and security. euromicron's network
infrastructures integrate voice, video and data transport wirelessly, via
copper cable and by means of fiber-optic technologies. euromicron builds
leading applications, such as security, control, healthcare or surveillance
systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic
components, euromicron AG is a strongly growing, highly profitable group
that is listed on the stock market, has a medium-sized character and
focuses on operational growth, integration and further market penetration,
internationalization and expansion.
Contact:
euromicron AG
Investor & Public Relations
Zum Laurenburger Hof 76
60594 Frankfurt/Main
Germany
Phone: +49 (0)69-631583-0
Fax: +49 (0)69-631583-17
E-mail: IR-PR@euromicron.de
http://www.euromicron.de
Securities identification number A1K030
ISIN DE000A1K0300
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Language: English
Company: euromicron AG
Zum Laurenburger Hof 76
60594 Frankfurt am Main
Germany
Phone: +49(0) 69 631583-0
Fax: +49(0) 69 631583-17
E-mail: info@euromicron.de
Internet: www.euromicron.de
ISIN: DE000A1K0300
WKN: A1K030
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
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260460 31.03.2014
DGAP-News: euromicron AG: 2013 Annual financial statements
| Source: EQS Group AG