* Nine-Month Non-GAAP Revenues Increase 25.1% to EUR 555.7 Million * Nine-Month Adjusted EBITDA of EUR 77.1 Million, an Increase of 109.2% * Continued Strong Operating Margin Expansion * Quarterly Bookings of EUR 310.4 Million, Driving Backlog to +EUR 1 Billion
ROCKVILLE, Md., Nov. 30, 2009 (GLOBE NEWSWIRE) -- Telvent GIT, S.A. (Nasdaq:TLVT), the IT company for a sustainable and secure world, today announced its unaudited consolidated financial results for the third quarter and nine-month periods ended September 30, 2009.
Each of the financial measures described below is a Non-GAAP financial measure and reconciliation of each such measure to the most directly comparable GAAP financial measure is set forth in this release immediately following the unaudited financial statements. Non-GAAP results should be viewed in addition to, and not lieu of, GAAP results:
Revenues for the third quarter of 2009 were EUR 192.7 million, showing a 20.5% increase from EUR 160.0 million in the third quarter of 2008. Revenues for the first nine months of 2009 were EUR 555.7 million, an increase of 25.1%, compared to EUR 444.4 million in the same period of 2008. Excluding the contribution from Telvent DTN, which was acquired in October of 2008, revenues for the first nine months of 2009 grew by 3.3%.
Gross margin was 31.8% for the third quarter of 2009, while gross margin in the third quarter of 2008 was 25.1%. Gross margin for the first nine months of 2009 was 34.9%, compared to 25.3% in the same period of 2008.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2009 were EUR 25.0 million, or 13.0% of total revenues for the period, compared to EUR 13.8 million and 8.7% in the third quarter of 2008. Adjusted EBITDA for the first nine months of 2009 was EUR 77.1 million, or 13.9% of total revenues for the period, compared to EUR 36.9 million and 8.3% in the same period of the prior year.
Operating margin for the third quarter of 2009 was 11.2%, compared to 7.7% in the third quarter of 2008. Income from operations increased 74.2% to EUR 21.5 million in the third quarter of 2009. Operating margin for the first nine months of 2009 was 12.0%, compared to 7.1% in the same period of 2008. Income from operations increased 111.2% to reach EUR 66.5 million in the first nine months of 2009.
Net income attributable to the parent company for the third quarter of 2009 was EUR 11.0 million, 73.0% above the EUR 6.4 million reported in the third quarter of 2008. Basic and diluted earnings per share (EPS) for the third quarter of 2009 were EUR 0.32, compared to EUR 0.22 in the third quarter of 2008. Net income attributable to the parent company for the first nine months of 2009 was EUR 31.5 million, 76.0% above the EUR 17.9 million reported in the same period of 2008. Basic EPS for first nine months of 2009 was EUR 0.93, compared to EUR 0.61 in the same period of 2008, while diluted EPS for first nine months of 2009 was EUR 0.92, compared to EUR 0.61 in the same period of 2008. Basic and diluted EPS were determined by using a weighted average number of shares outstanding in the third quarter of 2009 of 34,033,676 and 34,094,159, respectively, and 34,073,851 and 34,094,159, respectively, for the first nine months of 2009. The weighted average number of shares outstanding in the third quarter and first nine months of 2008 was 29,247,100.
New order bookings, or new contracts signed, during the third quarter of 2009 totaled EUR 310.4 million, an increase of 108.5% versus EUR 148.9 million recorded in the same period of 2008. The accumulated bookings year-to-date were EUR 702.9 million, representing a 47.4% increase from EUR 476.9 million reached in the same period of 2008.
Backlog, representing the portion of signed contracts for which performance is pending, was EUR 1,000.1 million as of September 30, 2009, reflecting 39.0% growth over the EUR 719.4 million in backlog at the end of September 2008 and a 12.6% increase over the EUR 888.5 million as of June 30, 2009.
Pipeline, measured as management's estimates of real opportunities for the following twelve to eighteen months, is approximately EUR 3.6 billion.
As of September 30, 2009, cash and cash equivalents were EUR 46.7 million and total debt, including EUR 75.6 million of net credit line due to related parties, amounted to EUR 360.9 million, resulting in a net debt position of EUR 314.2 million. As of December 31, 2008, the Company's net debt position was EUR 208.6 million.
For the first nine months of 2009, cash used in operating activities was EUR 53.8 million compared to EUR 102.5 million used in operating activities in the same period of 2008. Cash used in investing activities in the first nine months of 2009 amounted to EUR 3.6 million compared to EUR 29.9 million provided by investing activities in the same period of 2008.
Manuel Sanchez, Telvent's Chairman and Chief Executive Officer, said, "I am very pleased to reconfirm our third quarter positive results. We continue to deliver the margin expansion that we had promised and bottom line profitability," he added, "We have also celebrated our one year anniversary of the acquisition of Telvent DTN in October and I can say that we are extremely satisfied with the integration of our businesses and personnel. In these last twelve months, we have become a better company with synergies remaining to exploit."
Business Highlights
Energy
Some of the most relevant projects signed during the third quarter of 2009 were as follows:
* Contract signed with Fortum to design and develop a Smart Meter Management system (SMM), a component of Telvent's comprehensive Smart Grid Solution, in Finland. The project, which is valued at over EUR 120 million, will provide Fortum with real-time intelligence that will revolutionize both the customer relations and operations of its power grid. Telvent will deliver a technologically advanced system that will provide the utility's 550,000 residential and small business customers the ability to manage their individual energy use responsibly. The system will also allow Fortum to administer and operate its power grid more efficiently, securely and cost-effectively. After the system is fully rolled out, which is expected to take approximately three years, Telvent will operate and maintain the system for another six-year period. * New project award from Petrochina to implement our real-time SCADA OASyS, at West-East Gas Pipeline Phase II. Telvent's systems already control Petrochina's crude oil facilities and, with this new contract, Telvent's systems will also manage Petrochina's gas operations. Telvent will ensure the proper operation of an 8,700 kilometer pipeline that will cross the entire country of China by controlling the gas transmission and enhancing accurate and reliable real-time information that are key for decision making. The solution designed by Telvent will be able to incorporate the new gas pipelines that are now under construction. * New project awarded with Guizhou Power, in China, to improve the management of its electric distribution network. Telvent will deploy its proprietary Distribution Management System (DMS) to help Guizhou Power to supply energy across Guizhou province, in southern China, to approximately 40 million inhabitants. DMS is an advanced distribution application system that will help to create a safer and more stable distribution network. Among other benefits, DMS provides our customers with an accurate representation of their network facilities to better manage and maintain them. Telvent's technologies will improve the electric grid performance, reducing power outages and losses.
Transportation
During the third quarter of 2009 some of the significant contracts signed were:
* Contract with Interbiak, in Bilbao (Spain), to install the toll management system for the new Bilbao southern bypass (South Metropolitan Highway). The project, valued at almost EUR 8 million, is intended to improve traffic flow in the Bilbao metropolitan area and reduce traffic congestion, thereby reducing greenhouse gas emissions and driver inconvenience. The system to be installed is mixed; it combines conventional and electronic tolling, including an improvement of two "free flow" gantries to detect the entry point of vehicles. Telvent will also provide tolling equipment that will provide security for collection management processes. * Contract with the New Hampshire Department of Transportation (NHDOT) to implement an Open Road Tolling (ORT) system at the Hampton Mainline Toll Plaza in New Hampshire. The project aims to improve traffic conditions during the peak tourism seasons, while maintaining NHDOT's ability to accurately and reliably collect toll revenue. It will also enhance the efficiency and accuracy of toll operations, increasing NHDOT's toll processing capacity, reducing travel time and minimizing drivers' and workers' inconvenience. * Contract signed with Transurban 895 LLC to upgrade and expand the Pocahontas 895 Electronic Toll Collection system in Virginia (United States). Telvent will implement some of its Telvent SmartMobility(TM) management solutions for highways and tolls to enhance long-term reliability and convenience for Pocahontas' 895 customers. This is expected to also further enhance the efficiency and accuracy of toll operations, reducing travel time, minimizing drivers' and workers' inconvenience and reducing traffic jams and greenhouse gas emissions.
Environment
During the third quarter of 2009, significant contracts signed were:
* Renewal of its contract with the Catalonian Water Agency to carry out maintenance of its hydrological information system. The project, valued at more than E 4 million, places particular emphasis on preventing deterioration, improving and restoring water conditions, reducing pollution from dumping and the emission of hazardous substances, as well as the conservation of protected areas. * Contract with Sedapal, Lima Potable Water and Sewer System Service, to update the system controlling the La Atarjea water treatment plant in Peru to the new OASyS DNA 7.5 version. This project is expected to increase the sustainability of the installations and the service, with more than eight million citizens and businesses to benefit from an improved water supply.
In addition, during the third quarter of 2009, Telvent DTN's environment information business continues to be considered a leading source of real-time weather information services across energy, aviation, transportation, recreation, construction and public safety markets, with customers such as the Tennessee Valley Electric Authority, GE Wind, the Iowa Department of Transportation, US Airways, AirMethods, and the PGA Tour. Retention rates are currently close to 90% in this segment.
Agriculture
All revenues in our Agriculture segment were generated in North America and principally arise from the sale, through subscriptions, of critical agricultural business information, weather and real-time market data solutions to top farm producers and agribusinesses. Our subscription retention rates remain above 90% in our Agriculture segment, which exemplifies the resilience of this business segment.
We have over 630,000 subscribers to our business information in our Agriculture segment, including 40,000 of the largest farm producers who are paying for premium content, 15,000 originators including the top elevators, ethanol plants and feedlots, and over 1,000 agribusiness customers using our risk management platform. Our largest customers include Bunge, FC Stone, John Deere, Con Agra and Cargill along with the majority of the top corn and soybean producers in the United States. During the first nine months of 2009, transactions involving approximately 45 million bushels of grain were transacted through our grains trading portal between our 970 agribusiness portal locations and our over 27,000 registered portal producers.
Global Services
Our Global Services division has achieved the international certification of its procedures related to the Information Security Management System (ISMS), in accordance with UNE-ISO/IEC 27001:2005 for Information Technology Services. The certification is international and illustrates that information security is one of our main priorities.
In addition, during the third quarter, Telvent was included among Fortune's 100 Fastest-Growing Companies. The list includes global companies that had extraordinary growth rates for the past three years in terms of earnings per share, revenue growth and total returns. Telvent ranked 70th in the aggregate list and 15th in the technology space. Finally, at the end of September, Telvent was selected to join the new NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index (Nasdaq:QGRD). This stock index is a new benchmark for the energy market, focusing on companies, like Telvent, that contribute to the development of solutions that enable more efficient and smarter electric grids.
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 non-GAAP net income attributable to the parent company and EPS. Non-GAAP net income attributable to the parent company 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. Non-GAAP results are one of the primary indicators that our management uses for evaluating historical results and for planning and forecasting future periods. We believe that non-GAAP results provide consistency in our financial reporting, which enhances our investors' understanding of our current financial performance as well as our future prospects. Non-GAAP results should be viewed in addition to, and not in lieu of, GAAP results. Reconciliation of each Non-GAAP measure presented to the most directly comparable GAAP measure is provided in this release immediately following the unaudited consolidated financial statements.
The Company provides non-GAAP measures to give investors figures that are most comparable to those used by Management in their evaluation of historical results for planning and forecasting purposes. The adjustments represent the removal of GAAP impacts that Management is not able to forecast (such as JVs and mark-to-market of derivatives and hedged items), that generally have not impacted the Company's cash position in the period (such as stock compensation plan expenses and mark to market of derivatives and hedged items), or that Management believes are extraordinary in nature and thus should be removed from the GAAP results for comparative purposes. Below is an explanation of the nature of each of these adjustments and how Management uses the resulting non-GAAP measures in its management of the business:
-- Joint ventures: The Company, during its normal course of business, and as is customary practice in its industry, participates in joint venture agreements in Spain to bid for and carry on some of its projects in the traffic, energy and environmental segments. These relationships are commonly referred to as "Union Temporal de Empresas" (UTEs). Such UTEs are established for commercial reasons, at the request of the client, and because they are sometimes required when bidding for government related work. A UTE (which is considered a "temporary consortium" under Spanish law) is a form of business cooperation used within the scope of public hiring, with no legal personality, that is established for a certain period of time, definite or indefinite, to carry out work, service or supply in Spain. The terms governing the functioning of a UTE are freely agreed to by the participants provided they are set out in the Articles of Association and conform to applicable law. UTEs are operated through a management committee, comprised of equal representation from each of the venture partners, which makes decisions about the joint venture's activities that have a significant effect on its success. As a result of the adoption of FIN 46R, Consolidation of Variable Interest Entities, in January 2004, these joint ventures were determined to be variable interest entities, as they have no equity, and transfer restrictions in the agreements establish a de facto agency relationship between all venture partners. For this reason, and applying quantitative criteria to determine which partner is the most closely associated with the joint venture, the Company consolidates, on a quarterly basis, the results of such UTEs. However, the Company believes it has no control over most of the joint ventures it consolidates, and therefore is unable to control or predict the results of the UTEs. The Company only has control over its portion of revenues and margins associated with the work it is carrying out through the UTE. In addition, the work carried out by other venture partners in the JV may sometimes be unrelated to Telvent's business, and thus we do not consider that such revenues should be included within Telvent's revenues. For these reasons, Management considers GAAP revenues and cost of revenues, excluding the revenues and cost of revenues attributable to other venture partners, and including revenues and cost of revenues from UTEs that are carried under the equity method. The resulting non-GAAP revenues, cost of revenues and gross margins are the closest indicators to the measures Management uses in its management of the business.
-- Mark to market of derivatives and hedged items: The Company enters into numerous forward exchange contracts to protect against fluctuations in foreign currency exchange rates on long-term projects and anticipated future transactions. In addition, the Company enters into interest rate caps in order to manage interest rate risk on certain long-term variable rate financing arrangements. These transactions have been designated as cash flow hedges and are recorded at fair value in the Company's consolidated balance sheets, with the effective portion of changes in fair value recorded temporarily in equity (other comprehensive income). Such unrealized gains and losses are recognized in earnings, along with the related effects of the hedged item, once the forecasted transaction occurs (e.g. once foreign currency invoices are issued to clients or received from suppliers). Accounts receivables and payables (the "hedged items") denominated in foreign currencies are translated to the functional currency using applicable quarter-end or year-end exchange rates, with variations recorded in earnings for each period. Due to the volume of forward exchange contracts and the number of currencies they cover, the Company does not estimate the unrealized gains and losses arising from the accounting entries required by SFAS 133 at each cut-off date. Rather, the Company estimates and manages exchange rate risk on a project-by-project basis, overseeing and predicting the real cash impact at the end of a project arising from such transactions (both caused by the hedged item and the derivative). For this reason, Management uses internally a non-GAAP measure which is equivalent to GAAP financial income/expense, but which excludes the unrealized gains and losses from recognizing derivatives at fair value and from recording hedged foreign currency receivables and payables at period-end exchange rates.
-- Stock and extraordinary variable compensation plan expenses: The Company has applied SFAS 123R to account for the share acquisition plan established by Abengoa with respect to Abengoa's shares. This plan has been accounted for as an equity award plan under SFAS 123R, and is being treated similar to a stock option plan. A valuation of the plan was performed at the grant date and the corresponding non-cash compensation expense is being recognized over the requisite service period of five years and six months. In addition, the Company has an extraordinary variable compensation plan for members of its senior management team, to be paid partially in Company's ordinary shares at the end of a five year period, based on the accomplishment of certain objectives. The compensation only vests and becomes payable after the end of the fifth year of the plan. Compensation expense is recorded under GAAP for these two plans. The Company provides a non-GAAP measure which excludes the non-cash impact of such plans.
-- Amortization of intangibles arising on acquisitions: The Company records intangible assets during the purchase price allocation process performed on acquisitions. These include customer contract (backlog) and relationships, purchased software technology, trade names and in-process research and development, among others. Such intangible assets are amortized, for GAAP purposes, over their estimated useful lives. When evaluating an acquisition, the Company does not consider the non-cash amortization expense arising from these intangibles in its valuation. Therefore, the Company periodically excludes such impact from its depreciation and amortization (D&A) line to arrive at non-GAAP D&A, which it believes to be useful information for investors.
Conference Call Details
Manuel Sanchez, Chairman and Chief Executive Officer and Barbara Zubiria, Chief Accounting and Reporting Officer and Head of Investor Relations, will conduct a conference call to discuss third quarter 2009 results, which will be simultaneously webcast, at 11:00 A.M. Eastern Time / 5:00 P.M. Madrid Time on Monday, November 30, 2009.
To access the conference call, participants in North America should dial (877) 263-0337 and international participants +1 (706) 758-3263. 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 approximately two hours after the conference call is completed. To access the replay, participants in North America should dial (800) 642-1687 and international participants should dial +1 (706) 645-9291. The passcode for the replay is 41434487.
About Telvent
Telvent (Nasdaq:TLVT) is a global IT solutions and business information services provider that improves the efficiency and reliability of the world's premier organizations. The company serves markets critical to the sustainability of the planet, including the energy, transportation, agriculture, and environmental sectors. (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 preceded 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, 2008, filed with the Securities and Exchange Commission on March 18, 2009 and amended on October 1, 2009, and updated, if applicable, by Telvent's Quarterly Reports on Form 6-K for the quarter ended March 31, 2009, June 30, 2009 and September 30, 2009 filed with the Securities and Exchange Commission on May 21, 2009, August 27, 2009 and November 30, 2009, respectively. Telvent does not intend, and does not assume any obligation, to update or revise the forward-looking statements in this press release after the date it is issued. In light of the risks and uncertainties described above, and the potential for variation of actual results from the assumptions on which certain of such forward-looking statements are based, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this press release may not occur, and that actual results may vary materially from those described herein, including those described as anticipated, expected, targeted, projected or otherwise.
Unaudited Consolidated Balance Sheets
(In thousands of Euros, except share and per share amounts)
As of As of
September 30, December 31,
2009 2008
----------------------------------
Assets:
Current assets:
Cash and cash equivalents 46,748 67,723
Restricted cash -- 18,085
Other short-term investments 698 589
Derivative contracts 2,811 8,046
Accounts receivable (net of
allowances of (EUR) 804 as of
September 30, 2009 and (EUR)
2,386 as of December 31, 2008) 115,065 152,951
Unbilled revenues 338,224 218,271
Due from related parties 14,490 18,322
Inventory 18,817 19,562
Other taxes receivable 17,322 18,565
Deferred tax assets 10,131 5,885
Other current assets 7,565 5,573
-------------- --------------
Total current assets 571,871 533,572
Deposits and other investments 7,553 7,595
Investments carried under the
equity method 6,457 6,596
Property, plant and equipment,
net 73,412 73,861
Long-term receivables and other
assets 10,691 8,586
Deferred tax assets 24,549 26,726
Other intangible assets, net 39,238 48,444
Goodwill 334,748 345,345
Derivative contracts long-term 1,076 498
-------------- --------------
Total assets 1,069,595 1,051,223
============== ==============
Liabilities and equity:
Current liabilities:
Accounts payable 289,200 294,947
Billings in excess of costs
and estimated earnings 44,345 45,253
Accrued and other liabilities 23,629 16,927
Income and other taxes payable 11,295 27,770
Deferred tax liabilities 4,613 2,422
Due to related parties 92,724 29,105
Current portion of long-term
debt 35,167 27,532
Short-term debt 60,075 56,728
Short-term leasing obligations 8,567 8,041
Derivative contracts 7,331 8,694
-------------- --------------
Total current liabilities 576,946 517,419
Long-term debt less current
portion 172,904 193,495
Long-term leasing obligations 14,564 18,599
Derivative contracts long-term 1,734 4,877
Other long term liabilities 39,041 37,745
Deferred tax liabilities 4,793 5,238
Unearned income 1,665 1,233
-------------- --------------
Total liabilities 811,647 778,606
-------------- --------------
Unaudited Consolidated Balance Sheets (continued)
(In thousands of Euros, except share and per share amounts)
As of As of
September 30, December 31,
2009 2008
-----------------------------------
Commitments and contingencies -- --
Redeemable non-controlling
interest -- 20,020
Equity:
Non-controlling interest 308 97
Shareholders' equity:
Common stock, (EUR) 3.00505
nominal par value, 34,094,159
shares authorized, issued,
same class and series 102,455 102,455
Treasury Stock, at cost;
September 11, 2009 - 370,962
shares (4,707) --
Additional paid-in-capital 94,292 89,696
Accumulated other
comprehensive income
(loss) (30,608) (25,363)
Retained earnings 96,208 85,712
-------------- --------------
Total shareholders' equity 257,640 252,500
-------------- --------------
Total Equity 257,948 252,597
============== ==============
Total liabilities
and shareholders' equity 1,069,595 1,051,223
============== ==============
Unaudited Consolidated Statements of Operations
(In thousands of Euros, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues 195,538 169,669 563,584 457,604
Cost of revenues 134,354 128,034 369,505 343,620
---------- ---------- ---------- ----------
Gross profit 61,184 41,635 194,079 113,984
---------- ---------- ---------- ----------
General and
administrative 17,091 85,516 46,244
25,909
Sales and
marketing 7,290 5,054 20,787 17,091
Research and
development 4,351 4,648 12,911 13,740
Depreciation and
amortization 6,510 2,883 20,417 8,485
---------- ---------- ---------- ----------
Total operating
expenses 44,060 29,676 139,631 85,560
---------- ---------- ---------- ----------
Income from
operations 17,124 11,959 54,448 28,424
Interest expense (6,490) (4,798) (23,069) (10,742)
Interest income 124 -- 237 34
Other financial
income (expense),
net (672) 1,869 (4,556) 1,446
Income from
companies carried
under equity
method (404) 183 (224) 309
Other income
(expense), net (293) -- (1,073) --
---------- ---------- ---------- ----------
Total other
income (expense) (7,735) (2,746) (28,685) (8,953)
---------- ---------- ---------- ----------
Income before
income taxes 9,389 9,213 25,763 19,471
Income tax expense
(benefit) 981 1,999 2,783 3,273
---------- ---------- ---------- ----------
Net income 8,408 7,214 22,980 16,198
---------- ---------- ---------- ----------
Loss/(profit)
attributable
non-controlling
interests (9) (1,256) (210) (1,832)
---------- ---------- ---------- ----------
Net income
attributable to
the parent
company 8,399 5,958 22,770 14,366
========== ========== ========== ==========
Earnings per share
Basic net income
attributable to
the parent
company per
share 0.25 0.20 0.67 0.49
========== ========== ========== ==========
Diluted net
income
attributable
to the parent
company per
share 0.25 0.20 0.67 0.49
========== ========== ========== ==========
Weighted average
number of shares
outstanding
Basic 34,033,676 29,247,100 34,073,851 29,247,100
Diluted 34,094,159 29,247,100 34,094,159 29,247,100
========== ========== ========== ==========
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands of Euros, except share and per share amounts)
Nine Months Ended
September 30,
2009 2008
-------- --------
Cash flows from operating activities:
Net income attributable to the
parent company 22,770 14,366
Less (loss)/profit attributable to
non-controlling interest 210 1,832
-------- --------
Net income 22,980 16,198
Adjustments to reconcile net income
attributable to the parent company
to net cash provided by
operating activities: 34,117 10,740
Change in operating assets and
liabilities, net of amounts
acquired (108,211) (129,164)
Change in operating assets and
liabilities due to temporary joint ventures (2,724) (323)
-------- --------
Net cash provided by (used in)
operating activities (53,838) (102,549)
======== ========
Cash flows from investing activities:
Restricted cash - guaranteed
deposit of long term investments
and commercial transactions 17,892 8,590
Due from related parties 12,665 34,115
Acquisition of subsidiaries and
non-controlling interest, net of cash (20,964) (738)
Purchase of property, plant &
equipment (6,692) (5,790)
Investment in Intangible Assets (5,464) (1,284)
Disposal / (Acquisition) of investment (1,000) (4,945)
-------- --------
Net cash provided by (used in)
investing activities (3,563) 29,948
======== ========
Cash flows from financing activities:
Proceeds from long-term debt 25,021 1,331
Repayment of long-term debt (34,460) (1,187)
Proceeds from short-term debt 7,706 66
Repayment of short-term debt (10,407) (21,556)
Due to related parties 67,168 102,658
Dividend paid (12,274) (9,951)
Dividend paid to non controlling interest (1,283) (1,163)
Proceeds (repayments) of government loans (304) (191)
Purchase of Treasury Stock (4,707) --
-------- --------
Net cash provided by (used in)
financing activities 36,460 70,007
======== ========
Net increase (decrease) in cash
and cash equivalents (20,941) (2,594)
Net effect of foreign exchange in
cash and cash equivalents (34) 249
Cash and cash equivalents at the beginning
of period 60,792 68,409
Joint venture cash and cash
equivalents at the beginning of period 6,931 5,346
-------- --------
Cash and cash equivalents at the
end of period 46,748 71,410
======== ========
Segment Information
(In thousands of Euros, except share and per share amounts)
Three months Nine months
ended ended
September 30, September 30,
2009 2008 2009 2008
---------------------------------------------------------------------
Revenues
Energy 51,320 46,291 156,391 126,545
Transportation 70,110 77,064 172,306 183,765
Environment 14,225 8,701 43,934 26,597
Agriculture 18,029 -- 58,531 --
Global Services* 41,854 37,613 132,422 120,697
------- ------- ------- -------
195,538 169,669 563,584 457,604
------- ------- ------- -------
Gross Margin
Energy 31.4% 25.7% 34.2% 23.8%
Transportation 20.6 22.2 23.6 23.3
Environment 29.6 6.1 34.9 22.6
Agriculture 78.9 -- 78.2 --
Global Services* 29.1 32.1 29.5 29.0
------- ------- ------- -------
31.3% 24.5% 34.4% 24.9%
------- ------- ------- -------
* During the fourth quarter of 2008, we changed our business
segments. Our former segment, Public Administration, was combined
with our Global Services segment. In light of our recent
acquisition of DTN, we created a new Agriculture segment. All
prior period results appearing in the segment information table
included in this release have been restated to conform to our new
business segments.
Reconciliations between GAAP and Non-GAAP Measures
(In thousands of Euros, except margins, share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
--------- --------- --------- ---------
Reconciliation of
Non-GAAP Revenues:
Revenues 195,538 169,669 563,584 457,604
Joint Venture adjustment (2,871) (9,714) (7,836) (13,240)
--------- --------- --------- ---------
Non-GAAP Revenues 192,667 159,955 555,748 444,364
Reconciliation of
Non-GAAP Gross
Margin:
Gross Margin % 31.3 % 24.5 % 34.4 % 24.9
Joint Venture adjustment
effect on margin 0.5 0.6 0.5 0.4
--------- --------- --------- ---------
Non-GAAP Gross Margin 31.8 25.1 34.9 25.3
Reconciliation of
Adjusted EBITDA:
Net Income
attributable to
the parent company 8,399 5,958 22,770 14,366
Loss/(profit)
attributable
non-controlling
interests 9 1,256 210 1,832
Income tax
expense (benefit) 981 1,999 2,783 3,273
Other income
(expense), net 293 -- 1,073 --
Income from
companies
carried under
equity method 404 (183) 224 (309)
Other financial
income (expense), net 672 (1,869) 4,556 (1,446)
Interest income (124) -- (237) (34)
Interest expense 6,490 4,798 23,069 10,742
Depreciation and
amortization 6,510 2,883 20,417 8,485
--------- --------- --------- ---------
EBITDA 23,634 14,842 74,865 36,909
Adjustments
Stock compensation
plan expense
adjustment 1,215 452 2,117 1,356
Joint Venture
effect adjustment 165 (1,454) 154 (1,392)
--------- --------- --------- ---------
Adjusted EBITDA 25,014 13,840 77,136 36,873
Reconciliation of
Non-GAAP Income
from Operations:
Income from
Operations 17,124 11,959 54,448 28,424
Joint Venture
adjustment effect 159 (1,454) 210 (1,392)
Stock
compensation
plan expense
adjustment 1,215 452 2,117 1,356
Amortization of
Intangibles
adjustment 3,052 1,413 9,697 3,089
--------- --------- --------- ---------
Non-GAAP Income
from Operations 21,550 12,370 66,472 31,477
Reconciliation of
Non-GAAP Operating
Margin:
Operating Margin % 8.8 % 7.0 % 9.7 % 6.2
Joint Venture
effect 0.2 (0.4) 0.2 (0.1)
Stock
compensation
plan expenses
effect on margin 0.6 0.3 0.4 0.3
Amortization of
Intangibles
effect on margin 1.6 0.8 1.7 0.7
--------- --------- --------- ---------
Non-GAAP Operating Margin 11.2 7.7 12.0 7.1
Reconciliations between GAAP and Non-GAAP Measures (continued)
(In thousands of Euros, except margins, share and per share amounts)
Three months Nine months
ended ended
September 30, September 30,
2009 2008 2009 2008
Reconciliation of Non-GAAP
Net income attributable
to the parent company:
GAAP Net income attributable
to the parent company 8,399 5,958 22,770 14,366
Joint Venture effect 199 (251) 97 (510)
Stock compensation plan expenses 1,215 452 2,117 1,356
Amortization of Intangibles 3,052 1,413 9,697 3,089
Mark to market of derivatives (800) (1,502) 191 174
Fiscal effect of
previous adjustments (1,022) 312 (3,345) (562)
------ ------ ------ ------
Non-GAAP Net income
attributable to the
parent company 11,043 6,382 31,527 17,913
Reconciliation of Non-GAAP
Earnings per Share:
GAAP Earnings per share 0.25 0.20 0.67 0.49
Joint Venture effect on EPS 0.00 (0.01) 0.00 (0.02)
Stock compensation plan
expenses effect on EPS 0.03 0.02 0.06 0.05
Amortization of Intangibles
effect on EPS 0.09 0.05 0.28 0.10
Mark to market of derivatives
effect on EPS (0.02) (0.05) 0.01 0.01
Fiscal effect of previous
adjustments effect on EPS (0.03) 0.01 (0.10) (0.02)
------ ------ ------ ------
Non-GAAP Diluted
Earnings per share 0.32 0.22 0.92 0.61