DGAP-News: WashTec AG: Significant earnings growth for the full year 2010 despite difficult environment
(firmenpresse) - WashTec AG / Key word(s): Quarter Results
04.11.2010 07:18
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Press Release
Significant earnings growth for the full year 2010 despite difficult
environment:
- Slight revenue increase to EUR 190.3m in the first three quarters,
comparable third quarter slightly lower than last year
- After nine months, EBIT climbs 65.3% to EUR 11.9m; EBIT margin improves
from 3.9% to 6.3%
- Increase in order backlog compared to prior year results in revenue
growth above prior year level despite continuing investment restraints;
slight increase in revenues and a jump in earnings expected for the
full year 2010
- Confidence for 2011 due to the North American region, no sustained
market recovery in Europe currently in sight
Augsburg, November 04, 2010 - WashTec AG - the leading supplier of
innovative solutions for the carwash business worldwide - is able to report
a slight increase in revenues and a jump in earnings for the first three
quarters of 2010 despite a still challenging environment. Revenues
increased in the reporting period by 2.1% to EUR 190.3m. WashTec was
able to generate revenues above prior year's level in all product
categories. Since the new-equipment business did not enjoy a general market
recovery in the third quarter as well, the growth in revenues came
exclusively from the continuous strengthening of the company's market
position. The revenue growth was generated both by the expansion in
business activities in North America, where service and chemical sales had
been increased significantly in Canada since August of this year, and by
the acquisition in Australia, where revenues stabilized following the
acquisition of a former dealer. Adjusted to account for the net revenue
effect from the acquisitions, the business in the core markets of Europe
was stable over the entire year and was, to the largest extent, at last
year's level. The adjusted revenue in the third quarter was slightly below
the prior year. WashTec was able, however, to improve its market position
by, for example, strengthening market share in Southern Europe and by
increasing chemical sales in various markets. The most recent acquisition
in the chemicals sector in Scandinavia will start to have a favorable
effect on business in 2011. Although the company is currently reporting a
significantly higher order backlog than last year, the increase is
attributable primarily to acquisitions and the penetration of new markets.
Operating result increased by 65.3%
Measures for reducing costs and improving efficiency that were implemented
by WashTec also led in the third quarter to an increase in EBIT. Thus,
after three quarters, earnings increased by 65.3% to EUR 11.9m (prior year:
EUR 7.2m). EBT was almost doubled, from EUR 5.3m to EUR 10.4m. Consolidated
net income rose from EUR 1.8m to EUR 5.2m. Accordingly, earnings per share
rose from EUR 0.13 to EUR 0.37.
Balance sheet continually improving
Due to the positive development in earnings, the most important balance
sheet ratios improved considerably. Thus, for example, the company
succeeded in the period since the end of 2009 in improving its equity ratio
from 42.8% to 43.7%. The basis for this improvement was that equity capital
increased by 3.6% to EUR 88.7m, while the balance sheet total rose only
slightly toEUR 202.9. Because the net finance debt declined by 12.7% from
EUR 37.0m to EUR 32.3m, the company has a gearing - defined as the ratio of
net finance debt to equity capital - of 0.36 (December 31, 2009: 0.43) and
can therefore post a relatively low figure. After three quarters, WashTec
can also report a favorable development in cash flow. Due to the improved
working capital management in the first half of the year, the net operating
cash flow rose by EUR 5.7m to EUR 18.6m (prior year: EUR 12.9m), which was
largely in step with the results.
Outlook: Confidence thanks to leading position in technology and the market
Even though investment restraint still prevails in many markets, the
company expects for the fourth quarter of 2010 an increase in revenue due
to its strengthened market position. Together with the measures implemented
to improve efficiency and the cost structures, this should result in higher
annual revenues and a disproportionately high increase in earnings in 2010
compared to 2009. WashTec's market position, specifically as a result of
acquisitions and market penetration, has further improved.
The international expansion of the sales and service network, the most
recent product innovations in Europe and the United States, and the ongoing
measures to reduce costs and improve efficiency underscore and solidify
WashTec's position as market leader in the car wash industry.
After the financial and economic crisis caused a significant reduction in
revenues in most markets starting at the end of 2008, markets have now
begun to stabilize. To date, however, there have been no signs of a general
recovery of the markets. WashTec does not expect a substantial recovery for
2011. Therefore, from today's perspective, for the coming fiscal year the
company expects - if no substantial changes occur - a slight increase in
revenues in Europe and a significant growth in revenues and earnings in the
North American region based specifically on the Shell tender. Overall, an
above average increase in revenues and an improvement in the EBIT margin to
8-9% are projected for 2011. In the absence of a substantial market
recovery in Europe, the EBIT margin is expected to be 8-10% in the mid- and
long-term. Given a recovery of the European markets, the Company continues
to hold to its previous forecast that in the mid- and long-term, the
revenue growth will be between 4-7% and the EBIT margin may exceed 12%.
As in 2010, WashTec will remain selective in searching out growth
opportunities which serve, on the one hand, to improve the Group's regional
presence and, on the other hand, propel the value added chain into
high-margin business activities. From today's perspective, the financial
resources required for this endeavor can be generated from the Group's own
internal cash flow.
Key figures:
EURm, IFRS Q1 - Q3 2010 Q1 - Q3 2009 Change
Revenues 190.3 186.4 +2%
EBITDA 19.0 14.0 +36%
EBIT 11.9 7.2 +65%
EBIT-margin 6.3% 3.9%
Adjusted EBIT 12.6 8.4 +50%
EBT 10.4 5.3 +96%
Consolidated net income 5.2 1.8 +189%
Earnings per share* 0.37 0.13 +185%
Net cash flow 18.6 12.9 +44%
EURm, IFRS Sep 30, 2010 Dec 31, 2009 Change*: Base: unchanged number of shares: 13,976,970
Balance sheet total 202.9 199.9 +2%
Equity 88.7 85.6 +4%
Equity ratio 43.7% 42.8%
Net finance debt 32.3 37.0 -13%
Gearing** 0.36 0.43
Net working capital*** 63.364.2
Employees 1,642 1,564
**: net liabilities to banks plus long-term and short-term financial lease
liabilities
***: Trade receivables + Inventories - trade payables
The full interim report may be downloaded at www.washtec.de.
Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg
Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135
04.11.2010 07:18 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Language: English
Company: WashTec AG
Argonstraße 7
86153 Augsburg
Deutschland
Phone: +49 (0)821 55 84-0
Fax: +49 (0)821 55 84-1135
E-mail: washtec(at)washtec.de
Internet: www.washtec.de
ISIN: DE0007507501
WKN: 750750
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Berlin, Düsseldorf, Stuttgart
End of Announcement DGAP News-Service
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Datum: 04.11.2010 - 07:18 Uhr
Sprache: Deutsch
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