ADB Group reports its full-year 2011 results
(Thomson Reuters ONE) -
ADB Holdings S.A. /
ADB Group reports its full-year 2011 results
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
* Results broadly in line with expectations
* Gross margin recovered in the H2 2011, reaching 31% for the full year
* Solid cash generation during the second-half
* EBIT before reorganization and M&A costs US$ 7.6 million, or 1.9%
* Reorganization and M&A expenses amounted to US$ 16.3 million
* Reorganization to be completed during H1 2012
Geneva - 22 February 2012
Advanced Digital Broadcast Holdings SA (SIX: ADBN) reported today ADB Group's
unaudited consolidated financial results for the full year 2011.
The full year revenue reached US$ 399.0 million, representing a growth of 12%
compared to 2010. The growth was largely attributable to integration of the new
broadband business, as indicated when reporting the half-year results. The sales
of the digital TV equipment contributed strongly during the second half of the
year, following the usual seasonality cycle of this business. Due to the
consolidation of only one month of the acquired entity business in 2010, year-
on-year results are not directly comparable.
Gross profit amounted to US$ 124.0 million or 31.1% of revenue. This is an
increase from the 29.2% reported in the first half of 2011, and represents the
Group profiting from redirecting its business away from the retail activities,
in accordance with its strategy. The service business still represents a
relatively small portion of the Group revenue, but has grown significantly
compared to previous year.
Operating expenses accounted for US$ 117.4 million with research and development
amounting to US$68.5 million, and operating expenses to US$ 48.8 million. The
decrease in operating expenses as percentage of revenue during the second half
of 2011 is the result of the Group's ongoing streamlining process. Key
contributors have been integration of the Operations, Finance and central R&D,
and overall headcount reduction. The Group has also recorded significantly lower
royalty payments to third parties, as a result of its proactive reviews and
adjustments of the respective licensing agreements. This effort will continue
into 2012 and beyond.
The Earnings Before Interest and Taxes (before reorganization and acquisition
expenses) amounted to US$ 7.6 million, or 1.9% of the revenue, almost in line
with management expectations and represents the increased profitability in the
second half of 2011. The reorganization expenses amounted to US$ 15.4 million,
while the expenses related to the acquisition were US$ 0.9 million, both
slightly higher than anticipated. Consequently, the Group's pro-forma profit
before tax was US$ 2.8 million. Taking the reorganization and acquisition
charges into account, the reported loss for the year amounted to US$ 12.2
million or US$ 2.27 per share.
The net cash position of the Group strengthened significantly during the second
half of 2011, allowing the Group to close the year with a net cash position of
US$ 28.9 million, while the gross cash and treasuries amounted to US$ 56.7
million.
Mr. Andrew Rybicki, Group Chairman and CEO, commented: "We expected the year
2011 to be a year of transformation, and it has certainly been one. We have
changed our organization, integrated the acquired broadband business into the
Group, and streamlined our expenses and processes. Our staff has gone to
extraordinary lengths to make it happen, and I am sure it will support a
continuation of this effort in 2012. Our customers' confidence in our products
and services remains strong, despite certain quality issues we had experienced
during the past year, which we are now correcting. I share this confidence and
am glad to see the company shaping itself up to the new challenges in 2012 and
beyond, particularly in the areas of product quality improvement, the services,
and the focus on complete digital TV and broadband systems, connectivity and
software - the pillars of our new strategy. The outlook for 2012 is definitely
positive, but due to the uncertainty of still persisting unfavorable
macroeconomic situation, the Group has decided not to issue specific guidance
for this year".
Business overview
As the convergence of digital television and broadband connectivity technologies
and services continues, the Group's vision of its future follows the suit. The
connectivity between any and every consumer device, mobile and stationary, will
remain the main theme in the coming years. The Group is today particularly well
equipped to take a prominent position in these developments, owing to its years-
long experience in the digital TV combined with the broadband communication
expertise of the acquired entity, as well as to its successful in-house
development of the service business. Consequently, it will channel this
expertise into creation of complete solutions, which, along with associated
services, will be offered to both the Group's traditional customers - pay-TV and
telco operators - as well as to other interested parties. The Group is confident
that this strategy, supported by over 15-years long success as a supplier of top
performance and competitive end-user products, will make its effort successful
in relatively short time.
The new product and service structure of the Group is reflected already today by
its revenue constitution. Digital TV equipment brought in a total 58%, broadband
products yielded 32%, while the customer care and other services grew to 10% of
the Group 2011 revenue.
Geographically, Western Europe remains the Group's largest and dominating
market, bringing in 66% of the overall revenue. Eastern Europe sales contributed
22%, Americas 6%, Middle-East and Africa 5% and Asia Pacific 1%. Please note
that the comparison to previous years should take into consideration the impact
of the acquisition, as the majority of the broadband products are sold to
Western European customers and therefore that region is now represented more
prominantly.
The year 2011 saw important business development activities making progress.
Opening of the US cable market with Charter Communications and Time Warner Cable
in the commercial market segment was brought into fruition, and is progressing
according to plan. The business in the Nordic countries has grown considerably
as well, and the Group is also pleased to announce its new cable pay-TV customer
in Belgium, Tecteo/VOO TV-NET-TEL ("VOO").
The customer diversification after the acquisition remains largely unchanged.
The top ten customers contributed to 70% of the Group revenue, with no single
customer bringing more than 15.3%. The Group considers this to be healthy and
balanced approach fostering enough cost-efficiencies but diversifying risks
sufficiently.
The Group has also been nominated for "Best Quality Improvement Solution" at the
IP&TV Industry Award with its Epicentro(®)-PMP remote management solution. This
product allows operators manage the entire home network from a distance,
activate services on new devices and fix issues without the end-user even
noticing. It signifies the Group's entry into the business of complete systems
and associates services, very much in line with the Groups new strategy.
Dividend distribution
The Board of Directors have reviewed the Group unaudited financial results of
the year, and have not yet decided on their recommendation for dividend
distribution, which it will make to the Annual General Meeting of Shareholders.
Conference call
Management of ADB Group will hold a conference call to comment on this press
release today at 16:00 CET. Participants shall dial the number +41 (0)
44 580 6398 with pass code "ADB".
This press release and further information on ADB Group can be found on the
Group's website at www.adbholdings.com
For further information please contact:
Tina Nyfors
Investor Relations /Group Communications
Tel: +41 22 592 8433
Fax: +41 22 592 8402
t.nyfors(at)adbglobal.com
-end-
About ADB Group (SIX: ADBN)
ADB Group (www.adbholdings.com) was founded in 1995 and is a leading developer
of solutions required to view and interact with digital TV broadcast through
cable, satellite, terrestrial and IP networks, as well as products and systems
for broadband data communication business. The Group today sells a broad range
of products and services, including connected home multimedia solutions,
software, consumer premises devices, consulting and engineering services and
after sales services for digital Pay TV broadcast operators and broadband
network operators. The Group's sales are conducted through the brand of ADB
(www.adbglobal.com) and the trademarks of i-Can, Epicentro and Carbo.
This press release contains forward-looking statements. You are cautioned that
any such forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially
from those in the forward-looking statements due to various factors, among
which:
* future developments of the world digital TV and broadband markets, in
particular the future demand for digital TV and broadband products in the
key markets and from key customers served by our Group;
* pricing pressures, competitive market situation;
* our and the industry's capability to successfully and timely innovate and
develop challenging technology, and our capability to hire and retain high-
level employees;
* changes in the exchange rates between the US$ and the main other operating
currencies of the Group, including the Euro, Swiss Franc and the Polish
Zloty;
* our ability in an intensive competitive environment, to continue securing
orders from existing or new customers and to achieve our pricing
expectations for products for which we have or are currently investing into
development;
* the ability of our suppliers to meet our demands for supplies, qualitatively
or quantitatively, and to offer competitive pricing;
* our gross margin could vary significantly from expectations based on changes
in revenue levels, product mix and pricing, changes in unit costs, and the
timing and execution of shipments ramp-ups;
* changes in the economic, tax, social or political environment, including
import and other duties, military conflict, terrorist activities, as well as
natural events such as severe weather, health risks, epidemics or
earthquakes in the countries in which we, our key customers and our
suppliers operate;
* our ability to obtain required licenses on third-party intellectual property
on reasonable terms and conditions, the impact of potential claims by third
parties involving intellectual property rights relating to our business, and
the outcome of potential related litigations;
* the results of actions by our competitors, including new product offerings
and our ability to react thereto.
Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly
update or revise any forward-looking statements. Advanced Digital Broadcast
Holdings SA reserves the right to amend the information at any time without
prior notice.
The information contained in this press release may not be considered as being a
substitute for economic, legal, tax or other advice and you are cautioned to
base investment decisions or other decisions on the content of this release. You
are recommended to consult your investment advisers or other advisers prior to
making any decision.
This press release is not an offer of securities for sale or a solicitation to
invest in Advanced Digital Broadcast Holdings SA securities. In particular, it
is not an offer of securities for sale in the United States of America, its
territories and possessions. Securities may not be offered or sold in the
United States absent registration or an exemption from registration under the
U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings SA
does not intend to register its securities in the United States of America.
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
YEARS ENDED 31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
Excluding Reorga- 2011 Excluding Reorga- 2010
reorganisation nisation Total reorganisation nisation Total
$ $ $ $ $ $
Revenue 398,964,653 - 398,964,653 356,619,397 - - 356,619,397
Cost of sales (274,948,521) - (274,948,521) (241,898,796) - (241,898,796)
Gross profit 124,016,132 - 124,016,132 114,720,601 - 114,720,601
Research and
development
expenses (68,526,173) (5,486,658) (74,012,831) (48,918,533) - (48,918,533)
Selling,
general and
administrative
expenses (48,828,569) (3,168,314) (51,996,883) (43,681,682) - (43,681,682)
Other income 2,518,372 - 2,518,372 1,001,534 - 1,001,534
Other expenses (1,554,414) (6,697,902) (8,252,316) (5,378,074) - (5,378,074)
Earnings
(loss) before
interest, tax,
acquisition
and
integration
expenses 7,625,348 (15,352,874) (7,727,526) 17,743,846 - 17,743,846
Acquisition
and
integration
expenses (946,385) (538,539)
(Loss)
earnings
before
interest and
tax (8,673,911) 17,205,307
Finance income 552,232 2,111,027
Finance costs (5,394,495) (4,526,086)
(Loss) profit
before tax (13,516,174) 14,790,248
Income tax
credit
(expense) 1,332,288 (1,883,360)
(Loss) profit
for the year (12,183,886) 12,906,888
(Loss)
earnings per
share
Basic (2.27) 2.55
Diluted (2.27) 2.51
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED 31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
2011 2010
$ $
Movement in available-for-sale investments (123,750) (626,086)
Credit of deferred tax on movement in available-
for-sale investments 872 49,022
Actuarial gain (loss) directly recognised in
equity 65,553 (133,601)
Credit (charge) of deferred tax on direct
recognition of actuarial gain (loss) in equity 14,503 (3,942)
Movement in cash flow hedges 3,904,963 (726,027)
(Charge) credit of deferred tax on movement in
cash flow hedges (450,832) 52,194
Translation adjustments (2,802,697) 307,336
Other comprehensive income for the year 608,612 (1,081,104)
(Loss) profit for the year (12,183,886) 12,906,888
Total comprehensive income for the year (11,575,274) 11,825,784
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
ASSETS 2011 2010
$ $
Non-current assets
Goodwill 25,265,925 25,792,385
Intangible assets 28,059,012 32,784,758
Property and equipment 15,675,281 15,773,046
Deferred income tax assets 6,875,200 4,785,778
Other non-current assets 484,450 1,027,545
Total non-current assets 76,359,868 80,163,512
Current assets
Inventories, net 29,574,748 50,362,159
Other current assets 21,277,001 28,096,129
Trade receivables, net 52,792,516 92,822,350
Treasury investments 14,336,691 14,522,613
Cash and cash equivalents 42,321,383 84,502,898
Total current assets 160,302,339 270,306,149
Total assets 236,662,207 350,469,661
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1,193,563 1,193,563
Share premium 53,371,617 59,786,295
Share-based compensation reserve 4,608,964 4,586,298
Other reserves (7,161,793) (13,102,458)
Retained earnings 6,701,342 19,630,344
Treasury shares (6,734,954) (3,370,395)
Total equity 51,978,739 68,723,647
Non-current liabilities
Long-term bank loans 13,396,924 2,906,044
Retirement benefit obligations 6,796,232 7,243,199
Deferred income tax liabilities 842,432 398,888
Long-term liabilities 1,876,657 8,211,074
Total non-current liabilities 22,912,245 18,759,205
Current liabilities
Bank loans 12,519,810 63,624,901
Current portion of long-term bank loans 1,871,096 904,834
Trade and other payables 107,215,546 144,400,590
Accrued expenses 23,287,029 34,483,385
Provisions 6,963,014 10,868,616
Taxes payable 444,863 515,797
Other current liabilities 9,469,865 8,188,686
Total current liabilities 161,771,223 262,986,809
Total liabilities 184,683,468 281,746,014
Total equity and liabilities 236,662,207 350,469,661
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED 31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
2011 2010
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss) profit for the year (12,183,886) 12,906,888
Adjustments for:
Income tax (credit) expense (1,332,288) 1,883,360
Depreciation 3,806,520 2,394,061
Amortisation 33,888,672 18,031,398
Finance costs 5,394,495 4,526,086
Finance income (552,232) (2,111,027)
Share-based payment expense 352,676 396,223
Provision for inventory 1,258,767 1,473,069
Provision for inventory pursuant to
reorganisation 6,482,451 -
Others 200,197 201,983
Profit before working capital changes 37,315,372 39,702,041
Working capital changes:
Trade and other receivables 40,029,834 29,675,570
Inventories 13,046,193 (21,395,907)
Other current assets 10,090,713 (11,673,027)
Trade and other payables (37,185,044) 4,665,102
Accrued expenses (10,433,945) (13,595,662)
Provisions (3,905,602) (1,068,740)
Other current liabilities (1,163,014) 40,581
Others 1,334,320 967,980
Cash generated by operating activities 49,128,827 27,317,938
Interest paid (4,479,799) (2,965,504)
Tax paid (753,474) (3,942,790)
Net cash provided by operating activities 43,895,554 20,409,644
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property and equipment (5,168,683) (3,979,037)
Proceeds from sale of property and equipment 73,703 116,026
Payments for intangible assets (29,524,173) (23,493,535)
Proceeds from sale of intangible assets 3,194 -
Sale of treasury investments and time deposits 62,172 19,756,904
Interest received 552,802 2,114,303
Payments for acquisition of business (787,394) (8,600,424)
Net cash used in investing activities (34,788,379) (14,085,763)
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED 31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
2011 2010
$ $
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in bank loans (39,647,949) 34,896,180
Share sale pursuant to exercise of stock options 81,567 925,908
Purchase of treasury shares (4,924,611) (8,318,291)
Dividend paid (6,414,678) (13,955,473)
Net cash (used in) provided by financing
activities (50,905,671) 13,548,324
TRANSLATION ADJUSTMENT ON FOREIGN CURRENCY (383,019) (774,340)
NET (DECREASE) INCREASE IN CASH (42,181,515) 19,097,865
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 84,502,898 65,405,033
CASH AND CASH EQUIVALENTS, END OF YEAR 42,321,383 84,502,898
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS
Time deposits 1,668,390 7,521,703
Cash and bank balances 40,652,993 76,981,195
42,321,383 84,502,898
ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED 31 DECEMBER 2011 AND 2010
(Expressed in United States Dollars)
Share-Based
Share Share Compensation Other Retained Treasury Total
Capital Premium Reserve Reserves Earnings Shares Equity
$ $ $ $ $ $ $
Balance at 1
January 2010 1,326,181 76,551,414 4,373,022 (768,854 ) 39,252,110 (42,759,071 ) 77,974,802
Profit for the
year - - - - 12,906,888 - 12,906,888
Other
comprehensive
income - - - (1,081,104 ) - - (1,081,104 )
----------- ------------- -------------- ------------- ------------- ------------- -------------
Total
comprehensive
income - - - (1,081,104 ) 12,906,888 - 11,825,784
Transfer of
treasury shares
pursuant to
acquisition - - - - - 11,247,238 11,247,238
Put option
issued pursuant
to acquisition - - - 282,751 - - 282,751
Liability
arising in case
of exercise of
put option
issued pursuant
to acquisition - - - (11,535,251 ) - - (11,535,251 )
Capital
reduction (132,618 ) - - - (30,645,178 ) 30,777,796 -
Payment of
dividend - (16,765,119 ) - - 2,809,646 - (13,955,473 )
Purchase of
ordinary shares - - - - - (8,617,372 ) (8,617,372 )
Sale of treasury
shares pursuant
to exercise of
stock options - - - - - 1,394,710 1,394,710
Losses on sale
of treasury
shares - - - - (4,876,069 ) 4,586,304 (289,765 )
Share-based
payments - - 213,276 - 182,947 - 396,223
----------- ------------- -------------- ------------- ------------- ------------- -------------
Balance at 31
December 2010 1,193,563 59,786,295 4,586,298 (13,102,458 ) 19,630,344 (3,370,395 ) 68,723,647
Loss for the
year - - - - (12,183,886 ) - (12,183,886 )
Other
comprehensive
income - - - 608,612 - - 608,612
----------- ------------- -------------- ------------- ------------- ------------- -------------
Total
comprehensive
income - - - 608,612 (12,183,886 ) - (11,575,274 )
Reclassification - - - 444,639 (444,639 ) - -
Credit of
deferred tax on
reclassification (45,738 ) (45,738 )
Reduction of
liability of put
option issued
pursuant to
acquisition - - - 4,933,152 - (3,882,965 ) 1,050,187
Payment of
dividend - (6,414,678 ) - - - - (6,414,678 )
Sale of treasury
shares pursuant
to exercise of
stock options - - - - - 81,567 81,567
Losses on sale
of treasury
shares - - - - (630,487) 436,839 (193,648 )
Share-based
payments - - 22,666 - 330,010 - 352,676
----------- ------------- -------------- ------------- ------------- ------------- -------------
Balance at 31
December 2011 1,193,563 53,371,617 4,608,964 (7,161,793 ) 6,701,342 (6,734,954 ) 51,978,739
----------- ------------- -------------- ------------- ------------- ------------- -------------
ADB Group reports full-year 2011 results:
http://hugin.info/136393/R/1588081/498260.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ADB Holdings S.A. via Thomson Reuters ONE
[HUG#1588081]
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Datum: 22.02.2012 - 06:00 Uhr
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News-ID 117067
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