Release no. 23/2015
In accordance with the regulations for listed companies’ submission of interim statements, Columbus A/S hereby submits the interim management statement for the period 01.01.2015-30.09.2015 (9 months).
Increased revenue in Q3 due to acquisitions and sale of Columbus Software
Revenue in Q3 YTD amounted to DKK 800.3m (2014: DKK 627.1m), corresponding to an increase of 28% compared to the same period last year. The revenue growth is primarily driven by acquisitions and a significant growth in sale of Columbus Software.
EBITDA* amounted to DKK 51.1m (2014: DKK 45.5m), corresponding to an increase of 12% compared to the same period last year.
Columbus Software: Strong growth contributes to revenue and EBITDA increase
Columbus’ software sale increased YoY by 60%. Both sale of Columbus licenses and Columbus subscriptions increased considerably.
The increase in sale of Columbus Software significantly contributes to the growth in the company’s total revenue and EBITDA in Q3 YTD.
Revenue growth in the consultancy business
The sale of consultancy services increased by 18% in Q3 YTD compared to Q3 YTD 2014. However, the productivity in the consultancy business is at the same level as last year, which is primarily due to operational challenges in Columbus’ Norwegian subsidiary.
Industry solutions in line with expectations
In Q3 YTD, sale of industry solutions to the food, retail and manufacturing industries constituted 78% of the total revenue, which is at the same level as last year. The acquisitions are not yet fully aligned with Columbus’ industry verticalization model. However, the development is in line with expectations and the result satisfactory.
Volume increase in Columbus’ Global Delivery Center
Columbus’ Global Delivery Center shows growth in delivery volume of 38% in Q3 YTD compared to Q3 2015 and delivers 5,887 global delivery days for customer support and implementations.
Acquisitions and organic growth strengthen Columbus’ position in the US
Columbus US subsidiary delivered strong progress in Q3 YTD due to both organic growth and acquisitions. In general , the US subsidiary has experienced increased customer intake during Q3.
On 1 July 2015, Columbus acquired the US consultancy business Sherwood Systems with more than 300 customers. The acquisition of Sherwood System supports Columbus’ strategy to expand and strengthen the company’s positon in the US market, stated earlier this year with the acquisition of the coast-to-coast consultancy InterDyn BMI. The integration of the two businesses are progressing as planned.
Continuous recovery of Columbus Norway
Columbus Norway is still facing operational challenges. Columbus continues to execute recovery plans including re-organization and staff reduction, while keeping a strong focus on increasing sales, and deliver profitable and high quality projects to customers.
Development in revenue
Revenue increased primarily due to the acquisitions and the growth in sale of Columbus Software.
| DKK '000 | YTD 2015 | YTD 2014 | 2014 |
| Columbus licenses | 31,135 | 16,707 | 28,782 |
| Columbus subscriptions | 30,881 | 21,949 | 33,059 |
| External licenses | 66,919 | 46,277 | 73,891 |
| External subscriptions | 131,482 | 83,054 | 124,350 |
| Consultancy | 525,730 | 445,935 | 596,942 |
| Other | 14,166 | 13,153 | 21,267 |
| Net revenue | 800,313 | 627,075 | 878,291 |
| EBITDA before share-based compensation | 51,111 | 45,521 | 81,591 |
| Share-based compensation | -944 | -2,136 | -2,887 |
| EBITDA | 50,167 | 43,385 | 78,704 |
Expectations to revenue and EBITDA are being maintained
The announced expectations to 2015 are being maintained, and thus Columbus expects revenue in the level of DKK 1.03bn and EBITDA* in the level of DKK 94m in 2015.
Latest developments
No events or transactions with a material effect on the company’s financial position have occurred since the balance sheet date.
Ib Kunøe Thomas Honoré
Chairman CEO & President
Columbus A/S Columbus A/S
For further information, please contact:
CEO Thomas Honoré, T: +45 70 20 50 00.
Translation: In the event of any inconsistency between this document and the Danish language version, the Danish language version shall be the governing version.
Income statement
| DKK ´000 | YTD 2015 | YTD 2014 | 2014 | |
| Net revenue | 800,313 | 627,075 | 878,291 | |
| External project costs | -193,139 | -139,176 | -204,491 | |
| Gross profit | 607,174 | 487,899 | 673,800 | |
| Staff expenses and remuneration | -452,212 | -355,284 | -476,614 | |
| Other external costs | -106,322 | -87,677 | -117,004 | |
| Other operating income | 2,494 | 604 | 1,440 | |
| Other operating cost | -23 | -21 | -31 | |
| EBITDA before share-based payment | 51,111 | 45,521 | 81,591 | |
| Share-based payment | -944 | -2,136 | -2,887 | |
| EBITDA | 50,167 | 43,385 | 78,704 | |
| Depreciation | -21,156 | -17,555 | -25,811 | |
| Operating profit (EBIT) | 29,011 | 25,830 | 52,893 | |
| Financial income | 5,142 | 4,942 | 6,371 | |
| Financial expense | -230 | -684 | -564 | |
| Profit before tax | 33,923 | 30,088 | 58,700 |
Balance sheet
| DKK ´000 | YTD 2015 | YTD 2014 | 2014 | |
| ASSETS | ||||
| Goodwill | 314,390 | 187,606 | 198,622 | |
| Other intangible assets | 22,179 | 2,640 | 2,568 | |
| Development projects finalized | 33,283 | 35,116 | 46,970 | |
| Development projects in progress | 21,089 | 11,018 | 1,233 | |
| Intangible assets | 390,941 | 236,380 | 249,393 | |
| Leasehold inprovements | 109 | 161 | 148 | |
| Plant and operating equipment | 12,781 | 7,683 | 8,500 | |
| Tangible assets | 12,890 | 7,844 | 8,648 | |
| Deferred tax assets | 21,745 | 17,885 | 19,400 | |
| Total long-term assets | 425,576 | 262,109 | 277,441 | |
| Inventories | 517 | 153 | 270 | |
| Trade receivables | 134,228 | 117,400 | 144,091 | |
| Contract work in progress | 13,936 | 13,133 | 8,491 | |
| Corporate tax | 6,043 | 40 | 4,106 | |
| Other receivables | 10,320 | 5,718 | 8,024 | |
| Prepayments | 6,518 | 8,090 | 8,777 | |
| Receivables | 171,045 | 144,381 | 173,488 | |
| Cash | 40,802 | 81,788 | 99,018 | |
| Total short-term assets | 212,364 | 226,322 | 272,777 | |
| TOTAL ASSETS | 637,940 | 488,431 | 550,218 |
Balance sheet
| DKK ´000 | YTD 2015 | YTD 2014 | 2014 | |
| EQUITY AND LIABILITIES | ||||
| Share capital | 142,123 | 137,831 | 137,831 | |
| Reserves on foreign currency translation | -8,279 | -9,794 | -12,693 | |
| Retained profit | 216,472 | 171,096 | 186,980 | |
| Proposed dividends | 0 | 0 | 13,783 | |
| Group shareholders equity | 350,316 | 299,133 | 325,901 | |
| Minority interests | 2,135 | 3,357 | 4,233 | |
| Equity | 352,451 | 302,490 | 330,134 | |
| Deferred tax | 421 | 207 | 281 | |
| Provisions | 21,440 | 5,696 | 5,172 | |
| Other liabilities | 0 | 1,270 | 1,270 | |
| Non-current liabilities | 21,861 | 7,173 | 6,723 | |
| Debt to credit institutions | 16,426 | 7,403 | 6 | |
| Client prepayments | 31,862 | 20,339 | 19,542 | |
| Trade accounts payable | 43,727 | 35,267 | 58,620 | |
| Corporate tax | 8,493 | 4,606 | 7,430 | |
| Other liabilities | 138,626 | 91,049 | 102,399 | |
| Accruals | 24,494 | 20,104 | 25,364 | |
| Current liabilities | 263,628 | 178,768 | 213,361 | |
| Total liabilities | 285,489 | 185,941 | 220,084 | |
| TOTAL EQUITY AND LIABILITIES | 637,940 | 488,431 | 550,218 |
Segment data
| In order to support decisions about allocation of resources and assessment of performance of the segments, the Group’s internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments: | ||||||||||||||||||||
| Strategic business areas | Description | Geographical segment | ||||||||||||||||||
| ISV (Independent Software Vendor) | Development and sale of industry-specific software within Columbus' three focus industries: Retail, food and manufacturing | No specific area | ||||||||||||||||||
| Consultancy | Sale and implementation of standard business systems. |
Western Europe Eastern Europe North America |
||||||||||||||||||
| Information about the Group’s segment is stated below. | ||||||||||||||||||||
| Consultancy | ||||||||||||||||||||
| DKK ´000 | ISV |
Western Europe |
Eastern Europe |
North America |
HQ, GDC and Eliminations | Total | ||||||||||||||
| YTD 2015 | ||||||||||||||||||||
| Columbus licenses | 22,766 | 10,689 | 2,484 | 4,597 | -9,401 | 31,135 | ||||||||||||||
| Columbus subscriptions | 24,651 | 9,027 | 808 | 3,950 | -7,555 | 30,881 | ||||||||||||||
| External licenses | 0 | 23,319 | 10,739 | 32,836 | 25 | 66,919 | ||||||||||||||
| External subscriptions | -128 | 49,585 | 16,489 | 65,723 | -187 | 131,482 | ||||||||||||||
| Consultancy | 12,318 | 291,574 | 67,931 | 166,491 | -12,584 | 525,730 | ||||||||||||||
| Other | 463 | 5,771 | 1,360 | 6,487 | 85 | 14,166 | ||||||||||||||
| Total net revenue | 60,070 | 389,965 | 99,811 | 280,084 | -29,617 | 800,313 | ||||||||||||||
| Gross profit | 52,061 | 293,284 | 72,695 | 177,415 | 11,719 | 607,174 | ||||||||||||||
| EBITDA | 28,247 | 30,159 | 5,673 | 7,194 | -21,106 | 50,167 | ||||||||||||||
| Consultancy | ||||||||||||||||||||
| DKK ´000 | ISV |
Western Europe |
Eastern Europe |
North America |
HQ, GDC and Eliminations | Total | ||||||||||||||
| YTD 2014 | ||||||||||||||||||||
| Columbus licenses | 11,807 | 7,599 | 1,835 | 1,583 | -6,117 | 16,707 | ||||||||||||||
| Columbus subscriptions | 18,739 | 6,066 | 642 | 2,464 | -5,962 | 21,949 | ||||||||||||||
| External licenses | 0 | 23,108 | 13,305 | 10,022 | -158 | 46,277 | ||||||||||||||
| External subscriptions | 241 | 43,992 | 15,253 | 24,707 | -1,139 | 83,054 | ||||||||||||||
| Consultancy | 10,471 | 294,025 | 81,689 | 68,573 | -8,823 | 445,935 | ||||||||||||||
| Other | 625 | 7,788 | 2,026 | 2,539 | 175 | 13,153 | ||||||||||||||
| Total net revenue | 41,883 | 382,578 | 114,750 | 109,888 | -22,024 | 627,075 | ||||||||||||||
| Gross profit | 38,029 | 286,548 | 86,949 | 74,171 | 2,202 | 487,899 | ||||||||||||||
| EBITDA | 17,516 | 33,959 | 10,281 | 1,129 | -19,500 | 43,385 | ||||||||||||||
* EBITDA before share-based compensation
