* Six-month Pro Forma Revenues of EUR 284 million
* Increase in Six-month Pro Forma Income from Operations of 13.9%
* Six-month Pro Forma Diluted EPS of EUR 0.40
* New Order Bookings of EUR 159 million
MADRID, Spain, Aug. 28, 2008 (GLOBE NEWSWIRE) -- Telvent GIT, S.A. (Nasdaq:TLVT), the IT company for a sustainable and secure world, today announced unaudited financial results for the second quarter and six-month periods ended June 30, 2008.
Pro forma revenues for the second quarter 2008 were EUR 148.3 million (EUR 152.0 million excluding foreign currency exchange translation impact), compared to EUR 150.5 million in the second quarter of 2007. Pro forma revenues for the first six months of 2008 were EUR 284.4 million (EUR 291.6 million excluding foreign currency exchange translation impact), an increase of 6.5%, compared to pro forma revenues of EUR 267.0 million for the first six months of 2007.
Pro forma gross margin was 24.5% for the second quarter of 2008, compared to 21.7% in the second quarter of 2007. Pro forma gross margin for the first six months of 2008 was 25.5%, compared to 23.8% in the same period of 2007.
Pro forma operating margin for the second quarter 2008 was 5.6%, compared to 5.5% in the second quarter 2007. Pro forma operating margin was 6.7% for the first six months of 2008, showing an improvement of 40 basis points, from 6.3% in the first six months of 2007. Pro forma income from operations has increased by 13.9% in the first six months of 2008, compared to the same period of the prior year.
Pro forma net income for the second quarter 2008 was EUR 4.6 million, compared to EUR 5.2 million in the second quarter 2007. Pro forma EPS for the second quarter 2008 was EUR 0.16, compared to EUR 0.18 in the second quarter 2007. Pro forma net income for the first six months of 2008 was EUR 11.8 million, versus EUR 11.5 million for the first six months of 2007. Pro forma EPS for the first six months of 2008 was EUR 0.40, versus EUR 0.39 for the same period in 2007.
New order bookings (or new contracts signed) during the second quarter of 2008 totaled EUR 159.2 million. The accumulated bookings year-to-date were EUR 328.0 million.
Backlog (representing the portion of signed contracts for which performance is pending) was EUR 583.3 million as of June 30, 2008, reflecting a 7.7% growth over the EUR 541.5 million in backlog at the end of June 2007. In addition, soft backlog (representing pending performance on multi-year frame contracts for which there is no contractual obligation on the part of the client to fulfill the full contract amount) was EUR 145.9 million as of June 30, 2008.
Pipeline, measured as management's estimates of opportunities for the following twelve months, is expected to approximate EUR 3.2 billion.
As of June 30, 2008, cash and cash equivalents were EUR 63.7 million and total debt (including EUR 77.2 million of net credit line due to related parties) amounted to EUR 157.0 million, resulting in a net debt position of EUR 93.3 million. As of December 31, 2007, the Company's net debt position was EUR 0.5 million.
For the first six months of 2008, cash used in operating activities was EUR 80.2 million compared to EUR 76.8 million used in the same period last year. Cash provided by investing activities in the first three months of 2008 amounted to EUR 38.2 million, compared to EUR 21.8 million provided in the same period of 2007.
Manuel Sanchez, Telvent's Chairman, said, "I am satisfied that we are managing to maintain our top line growth and increase in margins in the first half of this year despite a challenging economic environment, a Spanish presidential election process and the weakness of the U.S. Dollar currency. Our customers continue to rely on our technology solutions for a sustainable and secure world, as demonstrated by our bookings. These solid bookings and backlog, along with the strong pipeline, also give us confidence for the rest of 2008."
"I am particularly content with the improvements we continue to achieve in operating margins. We are demonstrating our ability to grow while building a more efficient company. We also continue seeing the positive benefits derived from our successful integration of the Matchmind acquisition," he concluded.
Business Highlights
Energy
Some of the most relevant projects signed during the second quarter of 2008 were as follows:
* The project awarded by Sinopec (China Petroleum & Chemical
Corporation), in China, for supplying technological systems that
will control the Sichuan-East China gas pipeline. The project
involves Telvent's delivery of a turnkey solution adapted to the
control and supervision needs and requirements of Sinopec's gas
pipeline. This solution will provide Sinopec with accurate data on
the entire process of gas transportation, thereby ensuring
optimization of China's natural gas resources. The data acquisition
and control solution will be implemented in the main control center
and the emergency control center, where the 20 data acquisition
stations and the 25 communication stations will be controlled. In
addition, Telvent will handle system design, integration with the
existing systems, testing, installation, start-up, training and
maintenance.
Transportation
During the second quarter some of the significant contracts signed were:
* Contract signed with Metropolitan Transportation Authority (MTA),
in the United States, for the Maintenance and Repair of the
Electronic Toll Registry System for the MTA Bridges & Tunnels
E-ZPass System. The contract is valued at approximately EUR 18
million. The contract involves the upgrade, enhancement, and
maintenance of an E-ZPass electronic toll collection system, with
electronic E-ZPass and manual collection lanes. Telvent will
implement its Remote Operations and Maintenance System (ROMS), a
monitoring tool that will improve maintenance and operations
efforts, further increasing system availability for MTA Bridges &
Tunnels E-ZPass patrons.
Environment
During the second quarter, significant contracts signed were:
* Contract with the Andalusian Water Agency of the Council for the
Environment, in Andalusia (Spain), for the maintenance, the update,
and exploitation of the Automated Hydrological Information System
(AHIS) of the Andalusian Mediterranean Basin (AMB). The goal of the
contract is to set the maintenance works for the SAIH-South network
in order to achieve proper and permanent functioning over the
course of its duration. This network is located within the so-
called Andalusian Mediterranean Basin (approximately 18,000 square
kilometres). This contract strengthens our relationship with the
Andalusian Water Agency.
Public Administration
Significant projects awarded in the second quarter 2008, among others, included:
* Contract signed with the Andalusian Health Service, in Spain, to
develop and implement its corporate information system for
specialized care throughout the entire hospital network.
Global Services
During June of 2008, Telvent obtained certification in compliance with the ISO 20000-1:2005 standard for the Information Technologies Services Management System (ITSMS) of its Global Services division, through the external audit conducted by the British Standard Institute (BSI) firm. This certification acknowledges the high quality of Telvent's IT service management solutions, based on ITIL (Information Technology Infrastructure Library) practices, the most widely recognized international standard for managing and operating IT infrastructure.
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 pro forma net income and EPS. Pro forma 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. Pro forma results are one of the primary indicators management uses for evaluating historical results and for planning and forecasting future periods. We believe pro forma results provide consistency in our financial reporting which enhances our investors' understanding of our current financial performance as well as our future prospects. Pro forma results should be viewed in addition to, and not in lieu of, GAAP results.
Pro forma 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. Reconciliation between GAAP, pro forma net income and EPS is provided in this release in a table immediately following the condensed consolidated financial statements.
Conference Call Details
Manuel Sanchez, Telvent's Chairman and Chief Executive Officer and Barbara Zubiria, Chief Financial Reporting Officer and Head of Investor Relations, will conduct a conference call to discuss the second quarter 2008 results, which will be simultaneously webcast at 2:00 P.M. Eastern Time / 8:00 P.M. Madrid Time on Thursday, August 28, 2008.
To access the conference call, participants in North America should dial (800) 374-0724 and international participants +1 (706) 634-1387. A live webcast of the conference call will be available at the Investor Relations page of Telvent's corporate website at www.telvent.com. Please visit the website at least 15 minutes prior to the start of the call to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the website approximately two hours after the conference call is completed.
About Telvent
Telvent (Nasdaq:TLVT) is a unique global company listed on the NASDAQ Stock Exchange and a component of the CleanTech Index(tm) -- the first and only stock market index of leading clean technology ("cleantech") companies.
Telvent, the IT Company for a sustainable and secure world, specializes in high-value-added products, services and integrated solutions in the Energy, Transportation, Environmental and Public Administration industry segments, as well as Global Services. Its innovative technology and proven experience help ensure secure and efficient management of the operating and business processes of the world's leading companies. (www.telvent.com)
The Telvent GIT S.A. logo is available at http://www.globenewswire.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 proceeded 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, 2007, filed with the Securities and Exchange Commission on March 10, 2008 and Telvent's Quarterly Report on Form 6-K for the quarter ended March 31, 2008, filed with the Securities and Exchange Commission on May 22, 2008.
Unaudited Consolidated Balance Sheets
(In thousands of Euros, except share and per share amounts)
As of As of
June 30, December 31,
2008 2007
(Unaudited) (Audited)
--------- ---------
Assets:
Current assets:
Cash and cash equivalents 63,742 73,755
Restricted cash -- 8,590
Other short-term investments 600 461
Derivative contracts 3,163 3,544
Accounts receivable (net of allowances of
EUR 574 as of June 30, 2008 and EUR 639
as of December 31, 2007) 117,497 143,261
Unbilled revenues 230,704 196,307
Due from related parties 10,180 38,773
Inventory 28,497 21,194
Other taxes receivable 8,874 9,309
Deferred tax assets 2,093 2,399
Other current assets 5,445 3,476
--------- ---------
Total current assets 470,795 501,069
Deposits and other investments 7,145 7,103
Investments carried under the equity
method 6,458 219
Derivative contracts 154 --
Property, plant and equipment, net of
accumulated depreciation of EUR 48,824
as of June 30, 2008 and EUR 45,915 as
of December 31, 2007 53,809 52,975
Long-term receivables and other assets 8,646 8,605
Deferred tax assets 19,817 16,529
Other intangible assets, net of
accumulated amortization of EUR 17,211
as of June 30, 2008 and EUR 16,373
as of December 31, 2007 18,960 22,381
Goodwill 55,926 64,638
--------- ---------
Total assets 641,710 673,519
========= =========
Liabilities and shareholders' equity:
Accounts payable 189,973 252,624
Billings in excess of costs and estimated
earnings 24,373 35,501
Accrued and other liabilities 24,887 13,668
Income and other taxes payable 13,638 21,452
Deferred tax liabilities 4,155 2,546
Due to related parties 92,283 25,315
Current portion of long-term debt 1,418 3,488
Short-term debt 43,000 63,998
Short-term leasing obligations 7,507 7,075
Derivative contracts 4,108 3,686
--------- ---------
Total current liabilities 405,342 429,353
Long-term debt less current portion 12,192 12,230
Long-term leasing obligations 20,888 22,959
Other long term liabilities 11,147 8,198
Deferred tax liabilities 2,472 6,361
Unearned income 1,018 409
Derivative contracts 615 --
--------- ---------
Total liabilities 453,674 479,510
--------- ---------
Unaudited Consolidated Balance Sheets
(In thousands of Euros, except share and per share amounts)
As of As of
June 30, December 31,
2008 2007
(Unaudited) (Audited)
--------- ---------
Minority interest 4,216 3,889
Commitments and contingencies
Shareholders' equity:
Common stock, EUR 3.005 nominal par value,
29,247,100 shares authorized, issued and
outstanding, same class and series 87,889 87,889
Additional paid-in-capital 42,190 42,072
Deferred compensation -- --
Accumulated other comprehensive income (10,176) (5,294)
Retained earnings 63,917 65,453
--------- ---------
Total shareholders' equity 183,820 190,120
--------- ---------
Total liabilities and shareholders' equity 641,710 673,519
========= =========
Unaudited Consolidated Statements of Operations
(In thousands of Euros, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenues 149,254 156,597 287,935 277,959
Cost of revenues 112,926 124,277 215,586 214,904
---------- ---------- ---------- ----------
Gross profit 36,328 32,320 73,349 63,055
---------- ---------- ---------- ----------
General and
administrative 14,821 14,322 29,153 26,417
Sales and marketing 6,967 3,912 12,037 8,247
Research and
development 4,585 5,193 9,092 9,759
Depreciation and
amortization 2,891 2,592 5,602 5,163
---------- ---------- ---------- ----------
Total operating
expenses 29,264 26,019 55,884 49,586
---------- ---------- ---------- ----------
Income from operations 7,064 6,301 16,465 13,469
Financial income
(expense), net (3,787) (3,091) (6,333) (4,924)
Income from companies
carried under equity
method (114) 126
---------- ---------- ---------- ----------
Total other income
(expense) (3,901) (3,091) (6,207) (4,924)
---------- ---------- ---------- ----------
Income before income
taxes 3,163 3,210 10,258 8,545
Income tax expense
(benefit) 334 (57) 1,274 233
---------- ---------- ---------- ----------
Net income before
minority interest 2,829 3,267 8,984 8,312
---------- ---------- ---------- ----------
Loss/(profit)
attributable to
minority interests (325) 266 (576) 352
---------- ---------- ---------- ----------
Net income 2,504 3,533 8,408 8,664
========== ========== ========== ==========
Earnings per share
Basic and diluted net
income per share 0.09 0.12 0.29 0.30
========== ========== ========== ==========
Weighted average number
of shares outstanding
Basic and diluted 29,247,100 29,247,100 29,247,100 29,247,100
========== ========== ========== ==========
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of Euros, except share and per share amounts)
Six months ended
June 30,
2008 2007
-------- --------
Cash flows from operating activities:
Net income 8,408 8,664
Adjustments to reconcile net income to net
cash provided by operating activities: 6,985 (906)
Change in operating assets and liabilities, net
of amounts acquired: (92,947) (81,944)
Change in operating assets and liabilities due
to temporary joint ventures (2,623) (2,627)
Net cash provided by (used in) operating
activities (80,177) (76,813)
-------- --------
Cash flows from investing activities:
Restricted cash -- guaranteed deposit of long
term investments and commercial transactions 8,590 8,045
Due from related parties 34,724 22,916
Acquisition of subsidiaries, net of cash (738) (7,018)
Purchase of property, plant & equipment (2,861) (2,223)
Purchase of software technology (383)
Disposal / (acquisition) of investment (1,555) 503
Net cash provided by (used in) investing
activities 38,160 21,840
-------- --------
Cash flows from financing activities:
Proceeds from long-term debt 595 23
Repayment of long-term debt (2,703) (3,944)
Proceeds from short-term debt 1,905 17,533
Repayment of short-term debt (21,440) (814)
Due to related parties 64,676 42,408
Dividend paid (9,944) (8,774)
Proceeds (repayments) of long term liabilities 99 (914)
Net cash provided by (used in) financing
activities 33,188 45,518
-------- --------
Net increase (decrease) in cash and cash
equivalents (8,829) (9,455)
Net effect of foreign exchange in cash and cash
equivalents (1,184) 42
Cash and cash equivalents at the beginning of
period 68,409 60,997
Joint venture cash and cash equivalents at the
beginning of period 5,346 8,235
Cash and cash equivalents at the end of period 63,742 59,819
-------- ========
Supplemental disclosure of cash information:
Cash paid for the period:
Interest 5,944 5,855
======== ========
Non-cash transactions:
Capital leases 1,898 2,575
Reconciliation between GAAP and Pro forma Income and EPS
(In thousands of Euros, except share and per share amounts)
Three months ended June 30, 2008
---------------------------------
GAAP Adjustments Pro forma
---------- ----------- ----------
Revenues 149,254 952 (1) 148,302
Cost of revenues 112,926 893 (1) 112,033
---------- ----------- ----------
Gross profit 36,328 59 36,269
---------- ----------- ----------
General and administrative 14,821 454 (2) 14,367
Sales and marketing 6,967 6,967
Research and development 4,585 4,585
Depreciation and amortization 2,891 829 (3) 2,062
Total operating expenses 29,264 1,283 27,981
---------- ----------- ----------
Income from operations 7,064 (1,224) 8,288
Financial (expense), net (3,787) (1,167)(4) (2,620)
Income from companies under equity
method (114) (114)(1) 0
---------- ----------- ----------
Total other income (expense) (3,901) (1,281) (2,620)
---------- ----------- ----------
Income before income taxes 3,163 (2,505) 5,668
Income tax expense (benefit) 334 (392)(5) 726
---------- ----------- ----------
Net income before minority interest 2,829 (2,113) 4,942
---------- ----------- ----------
Loss/(Profit) attributable to
minority interests (325) 38 (1) (363)
---------- ----------- ----------
Net income 2,504 (2,075) 4,579
========== =========== ==========
Earnings per share
Basic and diluted net income per
share 0.09 0.16
========== ==========
Weighted average number of shares
outstanding
Basic and diluted 29,247,100 29,247,100
========== ==========
Six months ended June 30, 2008
---------------------------------
GAAP Adjustments Pro forma
---------- ----------- ----------
Revenues 287,935 3,526 (1) 284,409
Cost of revenues 215,586 3,588 (1) 211,998
---------- ----------- ----------
Gross profit 72,349 (62) 72,411
---------- ----------- ----------
General and administrative 29,153 904 (2) 28,249
Sales and marketing 12,037 12,037
Research and development 9,092 9,092
Depreciation and amortization 5,602 1,676 (3) 3,926
---------- ----------- ----------
Total operating expenses 55,884 2,580 53,304
---------- ----------- ----------
Income from operations 16,465 (2,642) 19,107
Financial (expense), net (6,333) (1,676)(4) (4,657)
Income from companies under equity
method 126 126 (1) 0
---------- ----------- ----------
Total other income (expense) (6,207) (1,550) (4,657)
---------- ----------- ----------
Income before income taxes 10,258 (4,192) 14,450
Income tax expense (benefit) 1,274 (874)(5) 2,148
---------- ----------- ----------
Net income before minority interest 8,983 (3,318) 12,301
---------- ----------- ----------
Loss/(Profit) attributable to
minority interests (576) (45)(1) (531)
---------- ----------- ----------
Net income 8,408 (3,363) 11,771
========== =========== ==========
Earnings per share
Basic and diluted net income per
share 0.29 0.40
========== ==========
Weighted average number of shares
outstanding
Basic and diluted 29,247,100 29,247,100
========== ==========
Adjustments to reconcile GAAP with Pro forma:
(1) Joint ventures
(2) Stock compensation plan expenses
(3) Amortization of intangibles
(4) Mark to market derivatives
(5) Fiscal effect of previous adjustments
Reconciliation between GAAP and Pro Forma Income and EPS
(In thousands of Euros, except share and per share amounts)
Three months ended June 31, 2007
--------------------------------
GAAP Adjustments Pro forma
---------- ----------- ----------
Revenues 156,597 6,063 150,534
Cost of revenues 124,277 6,345 (1) 117,932
---------- ----------- ----------
Gross profit 32,320 (282) 32,602
---------- ----------- ----------
General and administrative 14,322 947 (2) 13,375
Sales and marketing 3,912 3,912
Research and development 5,193 5,193
Depreciation and amortization 2,592 716 (3) 1,876
---------- ----------- ----------
Total operating expenses 26,019 1,663 24,356
---------- ----------- ----------
Income from operations 6,301 (1,945) 8,246
Financial (expense), net (3,091) (805)(4) (2,286)
Income from companies under equity
method 0 0 0
---------- ----------- ----------
Total other income (expense) (3,091) (805) (2,286)
---------- ----------- ----------
Income before income taxes 3,210 (2,750) 5,960
Income tax expense (benefit) (57) (923)(5) 866
---------- ----------- ----------
Net income before minority interest 3,267 (1,827) 5,094
---------- ----------- ----------
Loss/(Profit) attributable to
minority interests 266 159 (1) 107
---------- ----------- ----------
Net income 3,533 (1,668) 5,201
========== =========== ==========
Earnings per share
Basic and diluted net income per
share 0.12 0.18
========== ==========
Weighted average number of shares
outstanding
Basic and diluted 29,247,100 29,247,100
========== ==========
Six months ended June 30, 2007
---------------------------------
GAAP Adjustments Pro forma
---------- ----------- ----------
Revenues 277,959 10,957 (1) 267,002
Cost of revenues 214,904 11,336 (1) 203,568
---------- ----------- ----------
Gross profit 63,055 (379) 63,434
---------- ----------- ----------
General and administrative 26,417 1,381 (2) 25,036
Sales and marketing 8,247 8,247
Research and development 9,759 9,759
Depreciation and amortization 5,163 1,548 (3) 3,615
---------- ----------- ----------
Total operating expenses 49,586 2,929 46,657
---------- ----------- ----------
Income from operations 13,469 (3,308) 16,777
Financial (expense), net (4,924) (1,051)(4) (3,873)
Income from companies under equity
method 0 0 0
---------- ----------- ----------
Total other income (expense) (4,924) (1,051) (3,873)
---------- ----------- ----------
Income before income taxes 8,545 (4,359) 12,904
Income tax expense (benefit) 233 (1,287)(5) 1,520
---------- ----------- ----------
Net income before minority interest 8,312 (3,072) 11,384
---------- ----------- ----------
Loss/(Profit) attributable to
minority interests 352 256 (1) 96
---------- ----------- ----------
Net income 8,664 (2,816) 11,480
========== =========== ==========
Earnings per share
Basic and diluted net income per
share 0.30 0.39
========== ==========
Weighted average number of shares
outstanding
Basic and diluted 29,247,100 29,247,100
========== ==========
Adjustments to reconcile GAAP with Pro forma:
(1) Joint ventures
(2) Stock compensation plan expenses
(3) Amortization of intangibles
(4) Mark to market derivatives
(5) Fiscal effect of previous adjustments
Segment Information
(In thousands of Euros, except share and per share amounts)
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
---------------------------------------------------------------------
Revenues
Energy 39,518 57,016 80,254 112,372
Transportation 59,457 62,363 106,702 104,226
Environment 9,448 10,935 17,896 19,497
Public Administration 6,093 15,313 18,012 22,057
Global Services 34,738 10,970 65,071 19,807
-------- -------- -------- --------
149,254 156,597 287,935 277,959
-------- -------- -------- --------
Gross Margin
Energy 21.4% 17.4% 22.7% 20.7%
Transportation 22.2 20.4 24.1 21.7
Environment 37.9 29.0 30.7 27.5
Public Administration 10.4 12.4 12.6 15.6
Global Services 30.1 41.7 31.7 42.2
-------- -------- -------- --------
24.3% 20.6% 25.1% 22.7%
-------- -------- -------- --------
CONTACT: Telvent GIT, S.A.
Investor Relations Contact:
Barbara Zubiria
+34 902 335599
barbara.zubiria@telvent.com
Grayling Global
Lucia Domville
+1 646 284 9416
ldomville@hfgcg.com
|
| Symbol: |
TLVT |
| Last Trade: |
30.75
(11/20/2009 ET)
|
| Change: |
-0.06
(-0.194742%)
|
| Day's Range: |
30.19 -
30.9275 |
| Open: |
30.44 |
| Previous Close: |
30.81 |
| TSO: |
33,723,000 |
| Market Cap: |
1.04B |
| Day's Volume: |
37,044 |
|
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