SMARTRAC N.V. / Quarter Results
12.05.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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SMARTRAC reports on first quarter results 2009: Growth of 8 percent in
sales with profitability at 12 percent EBITDA margin
- Sales Q1 2009: EUR 29.4 million, representing an increase of 8 percent
on the EUR 27.1 million generated in Q1 2008
- EBITDA Q1 2009: Decline to EUR 3.5 million compared to EUR 6.8 million
in Q1 2008, profitability at 12 percent EBITDA margin
- Outlook 2009: Management confirms guidance to grow the business
organically
- Dr. Christian Fischer, CEO: 'The SMARTRAC Group performed reasonably
well in a very challenging economic environment. Our dedicated RFID
business model is able to balance significant declines in product
lines and still deliver top-line growth.'
Amsterdam, May 12, 2009 - The TecDAX listed company SMARTRAC N.V. today
announces financial figures for the first quarter 2009. In a very
challenging economic environment, SMARTRAC reports an increase of 8 percent
in sales from euro 27.1 million in Q1 2008 to euro 29.4 million in Q1 2009.
SMARTRAC's diversified technology portfolio and a broad product range was
able to balance significant demand driven decline in the U.S. passport
business and in the automotive sector. The first quarter was affected by a
cautious order behavior across all business lines with significant effects
on the utilization and efficiency of SMARTRAC's global production network.
In combination with a change in product mix and an increased level of
microchip sourcing EBITDA decreased by 48 percent from euro 6.8 million to
euro 3.5 million. Profit for the period amounted to euro 1.6 million
compared to euro 4.5 million a year ago.
SMARTRAC financial figures at a glance:<pre>
Key data
In thousands of Consolidated 3 Consolidated 3 Change
euro months ended 31 months ended 31 in %
March 2009 March 2008
Consolidated income
statement
Revenues 29,369 27,127 8
EBITDA 3,526 6,801 (48)
Profit for the period 1,584 4,486 (65)
Financial position and
liquidity
Net cash flow used by (293) 6,125 (105)
(provided from) operating
activities
Working capital 27,612 18,454 50
Capital expenditure 2,563 2,321 10
Total Assets 175,485 114,688 53
Operating Figures
Basic earnings per share 0.12 0.34 (65)
(euro)
Operating cash flow per (0.02) 0.46 (105)
share (euro)
Equity ratio (%) 57 75 (24)
Headcount (at month's end) 2,604 2,666 (2)</pre>
Group revenues
The SMARTRAC Group generated revenues of euro 29.4 million in the first
quarter 2009. This represents an increase of 8 percent from the previous
year figure of euro 27.1 million. The increase stems from the favorable
performance of the Cards business unit and Industry & Logistics business
unit. The Industry & Logistics business unit includes revenues from Sokymat
Automotive GmbH. Sokymat Automotive GmbH is consolidated since 26 September
2008.
Revenue in SMARTRAC's Security segment (Cards and eID business unit)
amounted to euro 22.8 million, which is equivalent to a decrease of 7
percent compared to sales of euro 24.4 million in 2008. The decline is due
mainly to a further significant demand driven decline in deliveries to the
U.S. ePassport project which could not be fully offset by new project wins
in the other ePassport and eID projects and a 24 percent growth in the
Cards business unit. In Q1 2009 the Security Segment accounted for 78
percent of total Group revenue compared to 90 percent a year ago.
Revenue in the Industry segment (Industry & Logistics and Tickets & Labels
business unit) amounted to euro 6.4 million in Q1 2009 representing an
increase of 243 percent compared to sales of euro 1.9 million in Q1 2008.
The 2009 sales represent a 22 percent share in the overall sales of the
company compared to 7 percent a year ago. Beside organic growth, this
increase is a result of the consolidation of Sokymat Automotive GmbH.
Group EBITDA
The Group EBITDA of euro 3.5 million (Q1 of previous year: euro 6.8
million) is equivalent to an EBITDA margin of 12 percent. The decline was
prompted to fluctuations in the utilization of the production due to
cautious order behavior in the value chain as well as a change in product
mix and an further increased level of microchip sourcing in the revenues.
The Security segment reached an EBITDA of euro 4.4 million. This represents
a decrease of 37 percent compared to EBITDA of euro 6.9 million a year ago.
A higher proportion of microchip sourcing and significant lower U.S.
ePassport sales are the reasons for the disproportionate development.
The Industry segment reported an EBITDA of euro 0.05 million in Q1 2009
compared to an EBITDA of euro - 0.1 million recorded in the same period
2008. Cost measures have balanced to a certain extend the significant
decline in the automotive industry but the segment profitability is
affected by ramp-up costs for the production in Malaysia.
Profit for the period
At euro 1.6 million, profit for the period was down 65 percent on the
previous year's euro 4.5 million. The total comprehensive income for the
period including translation effects of foreign exchange rates amount to
euro 1.5 million in Q1 2009 and euro 4.3 million, respectively.
Financial position
Accounting for euro 175.5 million, the consolidated interim balance sheet
total as at 31 March 2009 was more or less unchanged on the year-end figure
2008 of euro 177.4 million. The consolidated interim balance sheet shows
equity of euro 100.2 million, representing a 2 percent increase compared to
euro 98.2 million at 31 December 2008.
With an equity ratio of 57 percent and net debt of euro 25.2 million,
SMARTRAC possesses a solid financial basis to surmount the current economic
recession.
Net cash flow from operating activities in the first quarter of 2009 was
negative euro 0.3 million compared to a positive inflow of euro 6.1 million
a year ago. The decrease of operating cash flow is mainly due to
anunfavorable development in working capital due to the shift in sales
towards the end of the reporting period.
Business outlook
SMARTRAC is confronted with continued challenges, but also opportunities.
The deep global economic recession continues to affect SMARTRAC's business
and the business of SMARTRAC's customers. The cautious order behavior of
SMARTRAC's customers implies low short-term visibility and a difficult
environment in the second quarter. But there are also a few first signs of
recovery which make the Management confident that business will improve in
the second half of 2009. Taking the continuing challenges of the market
environment into account and analyzing SMARTRAC's performance in the first
quarter 2009, the Management confirms the guidance for the full fiscal year
2009: SMARTRAC will continue to be a profitable and cash generating company
and the Management is confident to grow the business organically in the
course of 2009.
'We had a reluctant start into the business year 2009,' said Dr. Christian
Fischer. 'We face a demanding second quarter, but we are confident that we
will enhance the business in the second half of the year and achieve our
targets for 2009.'
The SMARTRAC Q1 Interim Report 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 manufacturer and supplier of RFID (Radio Frequency
Identification) transponders for a broad bandwidth of applications in all
current frequencies. The company produces ready-made as well as customized
transponders for public transport, access control, automotive, animal
identification, industry and logistics. SMARTRAC is the global leader in
high-quality RFID inlays for passports with integrated, contactless chips
(ePassports) and contactless credit cards (ePayment). SMARTRAC was founded
in 2000 and since going public in July 2006 has been trading as a stock
corporation under Dutch law with its registered headquarters in Amsterdam.
The company currently employs some 2.600 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.
SMARTRAC N.V.
Andreas Schwarzwälder
Investor Relations
Phone: +31 20 30 50 156
E-Mail: investor.relations(at)smartrac-group.com
DGAP 12.05.2009
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Language: English
Issuer: 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 Berlin, Düsseldorf, München, Stuttgart
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DGAP-News: SMARTRAC N.V.: SMARTRAC reports on first quarter results 2009
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