DGAP-News: SMARTRAC reports fiscal year 2010 results: Sales of EUR 180.1 million, EBITDA of EUR 19.7 million
(firmenpresse) - DGAP-News: SMARTRAC N.V. / Key word(s): Final Results
SMARTRAC reports fiscal year 2010 results: Sales of EUR 180.1 million,
EBITDA of EUR 19.7 million
31.03.2011 / 07:14
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SMARTRAC reports fiscal year 2010 results: Sales of EUR 180.1 million,
EBITDA of EUR 19.7 million
- Sales 2010: EUR 180.1 million, representing an increase of 41 percent
as compared with EUR 127.9 million reported in 2009
- EBITDA 2010: EUR 19.7 million compared to EUR 15.9 million in 2009,
profitability at 11 percent EBITDA margin
- Balance sheet 2010: Equity increased by 30 percent to EUR 161.6 million
compared to EUR 124.6 million in 2009, equity ratio at 65 percent
(2009: 60 percent)
- Outlook 2011: Group sales expected to grow to EUR 200 million, EBITDA
profitability to come back closer to past levels
- Dr. Christian Fischer, CEO: 'As a result of the strong market upturn
and based on our dedicated business model, we were able to even exceed
market dynamics in 2010. The strong growth, however, also posed
challenges for our organization. For 2011, we expect further growth and
aim to re-focus on our goal of improving efficiency and profitability
of the company.'
Amsterdam, March 31, 2011 - SMARTRAC N.V., a leading developer,
manufacturer and supplier of RFID transponders, today announces financial
figures for the fiscal year 2010. SMARTRAC considers 2010 to be another
successful year for the company. The strong recovery of the industry
resulted in high production and shipment levels as well as a continued high
utilization level of the company's global production capacity in 2010. To
keep pace with the high demand, the SMARTRAC Management initiated the
largest investment program in the company history to expand the overall
manufacturing capacity and speed up lead times. The strong growth, however,
also posed challenges to the company's organization. Key topics of the 2010
development:
Keeping Pace with the Strong Market Upturn
Based on initial positive signs at the end of 2009, SMARTRAC started
confident into the year. The stabilization of the global economy at the
beginning of 2010 and resumption of the technology shift toward contactless
technologies soon turned into a strong recovery of the industry. As a
result of the company's unique position in the RFID value chain and its
focused RFID strategy, SMARTRAC was not only able to substantially benefit
from the strong market upturn, but to even exceed market dynamics. All four
business units experienced high customer demand on a global scale. As a
result, SMARTRAC reported one production and sales record after the next on
the basis of business with established markets as well as on business with
new products and customers. The lastingly high order entry allowed SMARTRAC
to increase revenues by 41 percent to EUR 180.1 million in fiscal year
2010.
Enlarging and Improving the Global Production Network
The ever-increasing customer demand led to a continued high utilization
level of SMARTRAC's worldwide production network in 2010. The successful
integration of inlay production assets from MCT contributed positively to
the company's production capacity. The market growth was, however, much
stronger than expected. Therefore, the SMARTRAC Management initiated the
largest investment program in the company history to expand overall
manufacturing capacity and speed up lead times.
Both, the high utilization level of the core factories and the increase of
production capacity, strained the organizational and operational set-up of
the company and required the full attention of the teams. As a result, the
operations project launched in 2009 to leverage untapped efficiency
potentials received less attention in 2010 than planned. The initiated
operational measures therefore require additional time to unfold their full
potential.
Securing SMARTRAC's Proven Strategy and Financial Flexibility
On August 30, 2010, SMARTRAC and One Equity Partners (OEP) announced the
signing of a foundation agreement to enter into a strategic cooperation.
OEP as a long-term committed, strong financial partner and anchor investor
is considered to be an ideal partner for SMARTRAC to support the company's
proven strategy and business model as well as to back up the company's
further growth.
As part of the foundation agreement, SMARTRAC conducted a 10 percent
capital increase on October 15, 2010, which was fully signed by OEP
Technologie B.V. SMARTRAC received gross proceeds of approximately EUR 26.0
million.
With the transactions, SMARTRAC further improved its sound financial
position and strengthened its equity base. The company considers its
financial position to be one of the strongest in the RFID industry and the
ideal basis for the company's growth strategy for the future.
Financial year 2010
Key financial Consolidated 12 months Consolidated 12 months ChangeGroup revenues
figures
in thousands ended December 2010 ended December 2009 in %
of EUR
Consolidated income
statement
Revenues 180,111 127,862 40.9
EBITDA 19,725 15,933 23.8
Net profit 6,073 5,060 20.0
Financial position
and liquidity
Cash flow from 1,940 6,063 (68.0)
operating activities
Working capital 43,722 31,037 40.9
Capital expenditure 18,207 9,673 88.2
Total Assets 248,457 208,345 19.3
Operating Figures
Basic earnings per 0.41 0.38 7.9
share (EUR)
Operating cash flow 0.13 0.45 (71.1)
per share (EUR)
Equity ratio (%) 65.0 59.8 8.7
Headcount (at month's 3,488 2,734 27.6
end)
The SMARTRAC Group generated revenues of EUR 180.1 million in 2010. This
represents an increase of 41 percent from the previous year figure of EUR
127.9 million. All business units were able to benefit from the strong
market demand and contributed to the growth of the Group.
On the basis of business with established customers as well as on business
from new projects and customers, sales in the Security Segment increased by
43 percent and amounted to EUR 136.3 million in 2010 compared to sales of
EUR 95.5 million a year ago.
Sales in the Industry Segment accounted for EUR 42.5 million in 2010
representing an increase of 38 percent compared to sales of EUR 30.7
million in 2009. Growth resulted from the stable demand in the automotive
business, additional projects in the non-automotive business as well as
increased sales in the tickets and labels business.
Group EBITDA
The Group EBITDA (including EBITDA from other operations) increased by 24
percent to EUR 19.7 million in 2010 compared to EBITDA of EUR 15.9 million
in 2009 as a result of the strong market demand. EBITDA, as per definition,
for 2010 excludes extraordinary legal and financial costs relating to the
strategic partnership with One Equity Partners (OEP). In total, the EBITDA
remained clearly behind the Company's potential. Among other factors,
significant reasons for this development are the further change in the
product mix and the ongoing costs related to the ramp up of volume
production in Malaysia. The Group EBITDA margin amounted to 11 percent in
2010, as compared with 13 percent one year ago.
In the fiscal year 2010, the Security Segment reported EBITDA of EUR 16.5
million. Compared to EBITDA of EUR 16.9 million achieved in 2009, this
represents a decrease of 2 percent. The EBITDA margin of 12 percent (2009:
18 percent) was burdened by the ongoing high proportion of microchip
sourcing to accommodate shortages in the semiconductor industry as well as
by the identified operational inefficiencies which became particularly
noticeable due to the high utilization level of the global production
capacities in the period under review.
The Industry Segment accounted for EBITDA of EUR 2.1 million and thus more
than doubled compared to EBITDA of EUR 1.0 million reported in 2009. The
EBITDA margin of 5 percent (2009: 3 percent) is still significantly
burdened by the ramp-up cost for the production facility in Malaysia and
nonrecurring restructuring cost related to the technology transfer from
Germany to Malaysia.
Net profit
Profit for the fiscal year 2010 amounted to EUR 6.1 million compared to EUR
5.1 million in 2009 representing an increase of 20 percent on the previous
year's result.
Financial position
As of December 31, 2010, total assets of the consolidated balance sheet
amounted to EUR 248.5 million, representing an increase of 19 percent
compared to the previous year figure of EUR 208.3 million. This increase
mainly resulted from the equity increase carried out in 2010.
The increase of 30 percent in total equity attributable to equity holders
to a total of EUR 161.6 million primarily resulted from the capital
increase conducted in October 2010, the sale of treasury stock as well as
from the net profit of EUR 6.1 million. The equity ratio increased from 60
percent at the end of 2009 to 65 percent as of the 2010 reporting date,
providing a solid financial structure for future growth.
Net cash provided by operating activities amounted to EUR 1.9 million in
2010, compared to EUR 6.1 million in the previous year. Despite a higher
net profit of EUR 6.1 million in 2010, compared to EUR 5.1 million in 2009,
the decrease in the operating cash flow mainly resulted from the increase
of the working capital position in 2010. In particular, inventories
increased significantly by EUR 12.1 million in 2010 (2009: increase by EUR
1.8 million) to match the strong order entry on customer side. Among other
things, safety stock for microchip integrated circuits (ICs) was increased
to cope with the shortage in the semiconductor industry.
As a result of the investment program initiated by the management in the
course of the year to enlarge overall production capacity, net cash used in
investing activities increased to EUR 19.4 million as of December 31, 2010,
compared with net cash used of EUR 5.5 million for the same period of 2009.
As of December 31, 2010, SMARTRAC employed a total workforce of 3,488
people compared to 2,734 employees as of December 31, 2009.
Business outlook
The RFID market offers strong growth potential. SMARTRAC expects that
growth rates will, however, return to a much more moderate level than the
levels seen in the post-crisis market growth of 2010. It is the company's
declared aim to grow steadily and robustly and to improve profitability to
create value for employees, shareholders, customers, business partners, and
the company itself.
For this reason, the management team will work on improving processes,
efficiency, and structures within SMARTRAC and on maintaining and expanding
the company's leading market position in the global RFID industry. For
fiscal year 2011, the SMARTRAC Management is confident of being able to
achieve growth as well as an improvement in profitability.
'The year 2010 was an exceptional one for SMARTRAC. We have accomplished
several strategic milestones and shaped the foundations for the future of
our company,' said Dr. Christian Fischer. 'However, we are also aware of
the fact that certain challenges remained unsolved in 2010 and will requireour full attention in 2011. For 2011, we expected Group sales to grow to
EUR 200 million. In terms of profitability, we are working hard to achieve
Group EBITDA margins which come back closer to past levels.'
The SMARTRAC 2010 Annual Report has been published today and is available
for download on the company's website at www.smartrac-group.com. The 2010
financial statements will be presented to the Annual General Meeting of
Shareholders in Amsterdam on May 31, 2011 for adoption. KPMG ACCOUNTANTS
N.V. issued an unqualified auditor's report in relation to the financial
statements 2010.
About SMARTRAC:
SMARTRAC is a leading developer, manufacturer, and supplier of RFID
components for a broad bandwidth of applications in all current frequency
standards. The company produces ready-made as well as customized
transponders for public transport, access control, RFID-based car
immobilizers, animal identification, libraries, industry, and logistics.
SMARTRAC is the global market leader in high-quality RFID inlays for
electronic passports (e-Passports) and contactless credit cards (e-Payment)
as well as for RFID transponders for public transport applications.
SMARTRAC was founded in 2000, went public in July 2006, and trades as a
stock corporation under Dutch law with its registered headquarters in
Amsterdam. The company currently employs nearly 3,500 employees and
maintains a global research and development, production, and sales network.
Contact:
Tanja Moehler
Head of Corporate Communications
SMARTRAC N.V.
Phone: +31 20 30 50 157
Email: tanja.moehler(at)smartrac-group.com
Internet: www.smartrac-group.com
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.
End of Corporate News
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Language: English
Company: SMARTRAC N.V.
Strawinskylaan 851
1077 XX Amsterdam
Niederlande
Phone: +31 20 30 50 157
Fax: +31 20 30 50 155
E-mail: investor.relations(at)smartrac-group.com
Internet: www.smartrac-group.com
ISIN: NL0000186633
WKN: A0JEHN
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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Datum: 31.03.2011 - 07:14 Uhr
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