DGAP-News: paragon increases revenue and profit
(firmenpresse) - DGAP-News: paragon AG / Key word(s): Half Year Results
paragon increases revenue and profit
21.08.2013 / 08:23
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Revenue up by 16.2% compared to Q1/2013
Significant earnings improvement in Q2/2013
Placement of bond in difficult financial market
Delbrück, August 21, 2013 - In the first six months of 2013, paragon AG
reported revenue of EUR 35.7 million (H1 2012: EUR 37.6 million) and is
thus meeting its targets. The exchange-listed direct supplier to the
automotive industry was able to confirm its upward trend in the second
quarter of 2013 in which the Company's revenue of EUR 19.2 million
surpassed that of the second quarter of 2012 (EUR 18.7 million).
Although European sales are also lower for the customers of paragon, the
Delbrück-based firm was able to continue its growth path. 'A steady
improvement has been evident since the fourth quarter of 2012. We have
clearly regained ground and have not been infected by the crisis rumors of
many market observers. The Company's development in the first six months of
2013 has confirmed our predictions in full,' said CEO Klaus Dieter Frers.
Compared to the first quarter of this year, paragon increased sales in the
months April to June by 16.2%. In the Annual General Meeting on May 15,
2013, the Managing Board had predicted growth of more than 15%.
Through active cost management, the Company succeeded in achieving
better-than- expected earnings figures overall in the first six months of
2013. Compared to the first quarter of 2013, in the second quarter of 2013
paragon recorded a significant upswing in EBIT (to EUR 2.0 million, up from
EUR 0.9 million) and in EBITDA (to EUR 3.1 million, up from EUR 2.0
million). In the first six months of 2013, the Company reported EBIT of EUR
2.9 million (H1 2012: EUR 5.0 million) and EBITDA of EUR 5.1 million (H1
2012: EUR 7.2 million). The EBIT margin in the first six months of 2013
came to 8.3% (H1 2012: 13.2%); the EBITDA margin was 14.3% (H1 2012:
19.2%).
paragon once again improved its equity position. As of June 30, 2013, the
equity-to-assets ratio rose to 31.7% (June 30, 2012: 31.4%). Free cash flow
on the reporting date June 30, 2013 was EUR 5.5 million (June 30, 2012: EUR
10.8 million), primarily due to the distributions for 2011 and 2012, higher
tax payments that also impacted prior years as well as capital expenditure.
For the same reasons, net debt came to EUR 8.9 million (June 30, 2012: EUR
2.5 million). Interest-bearing liabilities came to EUR 14.4 million (June
30, 2012: EUR 13.4 million).
paragon managed to achieve a turnaround with regard to operating cash flow
in the second quarter of 2013. Following a still negative result in the
first quarter of 2013 (EUR -1.1 million), the Company in Q2 2013 generated
a positive cash flow from operating activities amounting to EUR 0.7
million. In the first six months of 2013, the operating cash flow reached a
value of EUR -0.4 million (H1 2012: EUR 4.1 million) in response to an
increase in tax payments of EUR 0.5 million as compared to H1 2012 as well
as an increase in trade receivables of EUR 0.8 million and a reduction in
current liabilities of EUR 1.1 million.
For the period January 1 to June 30, 2013, paragon recorded net income in
accordance with IFRS of EUR 1.8 million (H1 2012: EUR 3.6 million). This
resulted in earnings per share of EUR 0.43 (H1 2012: EUR 0.88). On a
positive note, the second quarter accounted for the major portion of the
net income (EUR 1.3 million), which confirms the planned upward trend
throughout the year.
As of June 30, 2013 paragon AG employed 377 staff and 46 temporary staff in
Germany. Compared to the prior-year reporting date (June 30, 2012: 378
including 60 temporary staff), the total number of employees decreased
slightly, due in particular to the reduction in temporary staff. Compared
to the prior-year quarter (March 31, 2013: 382 employees including 43
temporary staff), the total number of employees remained nearly constant.
The locations accounted for the following figures (staff/temporary staff)
as of June 30, 2013: Delbrück (94/1), Suhl (202/44), Nuremberg (28/1), and
St. Georgen (53/0).
In June 2013 paragon issued a corporate bond with a fixed annual interest
rate of 7.25% and a term of five years. In light of the extremely difficult
market conditions in the financial markets on the date of issue, the
Managing Board evaluated the placement volume of EUR 10.0 million as
satisfactory, even if only half of the originally planned volume could be
placed. The lower-than-expected proceeds raised will have an impact on the
number and size of the acquisitions to be financed with these proceeds. The
Managing Board is in discussion with various companies that would fit well
with the current business segments of paragon. There is the prospect that
individual acquisition projects may be successfully concluded by year-end
2013. The lower-than-expected proceeds of the bond issue do not have an
impact on other future projects, since the bond was not intended as an
instrument to be used for current business. To strengthen the Body Works
Kinematics business segment, paragon exercised the call option to acquire
KarTec GmbH, Forchheim (3 own workers and 2 temporary staff members) on
July 29, 2013. No other liquid assets were used for this acquisition.
The significant double-digit growth in sales and the positive trend of the
earnings figures in the second quarter leads the Managing Board to reaffirm
its forecast for fiscal 2013. Overall, the Company's management expects 5%
growth in revenue as in 2012 as well as a stable EBIT margin.
CEO Klaus Dieter Frers sees the further development in 2013 as positive:
'Due to the plant holidays of the manufacturers, we expect, as planned, a
slight decline in sales in the third quarter of this year compared to the
previous quarter. From the end of the third quarter, the start of several
new products - including some in the newer business segments of Body Works
Kinematics and Electromobility - will lead to further increases in sales.'
Portrait
Listed in the Prime Standard segment of the German Stock Exchange in
Frankfurt, paragon AG develops, produces and markets innovative solutions
in the field of automotive electronics. The portfolio of the direct
supplier to the automotive industry includes products in the business
segments sensors, acoustics, cockpit, electromobility and body works
kinematics. An outstanding product is the air quality sensor AQS which is
by far the world market leader. In addition to its headquarters in Delbrück
(North Rhine-Westfalia), paragon maintains branches in Suhl (Thuringia),
Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg) and a sales office
in Shanghai (China).
Contact
paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon.ag
E-Mail: info(at)paragon.ag
Contact for local press
Matthias Hack
Tel.: +49 (0) 52 50 - 97 62-141
Mobile: +49 (0) 162 1010724
Fax: +49 (0) 52 50 - 97 62-60
E-Mail: matthias.hack(at)paragon.ag
Contact for financial press / investor relations
Stockheim Media GmbH
Michael Knecht
Tel.: +49 (0) 89 - 200 315 73
Fax: +49 (0) 89 - 813 030 23
E-Mail: mk(at)stockheim-media.com
End of Corporate News
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21.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: paragon AG
Schwalbenweg 29
33129 Delbrück
Germany
Phone: +49 (0)5250 97 62 - 0
Fax: +49 (0)5250 97 62 - 60
E-mail: investor(at)paragon.ag
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A1TND93
WKN: 555869, A1TND9
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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Datum: 21.08.2013 - 08:23 Uhr
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