TECHNICOLOR: FIRST HALF 2017 RESULTS
(Thomson Reuters ONE) -
PRESS RELEASE
Technicolor: FIRST HALF 2017 results
Paris (France), 26 July 2017 - Technicolor (Euronext Paris: TCH; OTCQX: TCLRY)
announces today its results for the first half of 2017.
Frederic Rose, Chief Executive Officer of Technicolor, stated:
"Following a slow start to the year, we saw a marked improvement in the latter
half of the period across all our operating businesses which we expect to carry
through for the rest of the year."
First Half 2017 key highlights
* First half 2017 revenues were at ?2,146 million and the Adjusted EBITDA at
?107 million. This was largely attributed to:
* The Connected Home Adjusted EBITDA decreased year-on-year as a result of
lower revenues versus a very strong first half 2016 performance, which
was exacerbated by the ?30 million negative impact of memory price
increases;
* The Technology segment revenues declined compared to a very strong first
half 2016 performance and due to the expiry of Digital TV agreements in
anticipation of the ramp up of the joint licensing program with Sony.
* Entertainment Services saw a stable Adjusted EBITDA as Production Services
revenue and profit growth was constrained by capacity ramp up and DVD
Services improvement in margin was offset by a mix which was heavily
weighted toward Standard Definition discs;
* Free cash flow excluding cash impacts of the CRT[1] case settlements
amounted to ?(67) million due to the lower Adjusted EBITDA. Group free cash
flow amounted to ?(148) million;
* Technicolor reinforced its cost optimization program while working on
ongoing mitigation actions related to the memory cost impact.
Full Year 2017 objectives confirmed
As a result of the memory price increases affecting Connected Home
profitability, Technicolor expects to deliver an Adjusted EBITDA in the range of
?420 million to ?480 million as announced on June 29, 2017.
The Group confirms its free cash flow objective (in excess of ?150 million
before cash impacts of the CRT cartel case settlements). These cash settlements
amounted to ?81 million and were paid in the first half of 2017.
These objectives are calculated based on constant exchange rates.
Segment review - H1 2017 result highlights
Connected Home revenues amounted to ?1,252 million, down 11.2% year-on-year at
constant rate mainly resulting from a continued weak macro-economic environment
in Latin America and the delayed ramp in the early part of the year of a number
of large contracts in Western Europe. After a slow start in the first quarter,
Connected Home experienced very strong growth in the second quarter,
particularly in North America which represented 63% of total revenues for the
first half.
North America:
* Revenue growth materially accelerated in the second quarter with record
deliveries across several cable customers, fueled in particular by large
volumes of the Worldbox to Charter. As a result, Technicolor substantially
outperformed the overall North American market;
* Twelve new product introductions, both in Video and Broadband are planned in
the second half across North American customers;
* Commercial activity remained strong with a win rate of 76% on different
tender offers.
Europe, Middle East and Africa:
* Revenues were affected by the end of some large deployments in the last part
of 2016 and shipment delays to a large customer.
Latin America:
* Technicolor maintained its leading market share position both in Broadband
and Video. Revenues were affected by continued difficult market conditions
in Mexico which remained the most challenging market. Technicolor saw
stabilization in Brazil and growth in other countries like Argentina and
Chile.
Asia Pacific:
* Revenues were down year-on-year due to lower deliveries in India and
Australia, partly compensated by growth in Japan and South Korea.
Revenue breakdown for Connected Home
| First Half
| | |
In ? million | 2016 | 2017 | Change[2]
----------------------------------------------+-------+-------+-----------
Total revenues | 1,378 | 1,252 | (9.2)%
----------------------------------------------+-------+-------+-----------
By region North America | 724 | 790 | +9.1%
| | |
Europe, Middle-East and Africa | 316 | 193 | (39.1)%
| | |
Latin America | 228 | 168 | (26.2)%
| | |
Asia-Pacific | 110 | 100 | (8.9)%
----------------------------------------------+-------+-------+-----------
By product Video | 790 | 748 | (5.3)%
| | |
Broadband | 588 | 504 | (14.4)%
| | |
Adjusted EBITDA amounted to ?57 million, or 4.6% of revenue, down 310 basis
points compared to last year. The margin decline was driven by the gross margin
squeeze resulting from memory price increases. Excluding the memory cost impact,
Adjusted EBITDA margin would have reached 7.0%.
Gross margin reached 14.1%, down 230 basis points compared to the first half of
2016, mainly due to the negative impact of memory price increases that amounted
to ?30 million. The gross margin excluding the memory cost impact would have
reached 16.5%.
H1 2016 | H1 2017 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported|At constant
million| revenues| million| revenues| | rate
-----------------------+------------+----------+-----------+--------+-----------
Revenues 1,378| | 1,252| | (9.2)%| (11.2)%
-----------------------+------------+----------+-----------+--------+-----------
Adj. EBITDA 106| 7.7%| 57| 4.6%| (46.0)%| (47.6)%
| | | | |
###
Entertainment Services revenues amounted to ?838 million in the first half of
2017, down 3.3% at constant currency compared to the first half of 2016.
* Production Services revenues amounted to ?383 million in the first half of
2017, up 4.9% at constant currency compared to the first half of 2016,
driven by a strong performance in Animation, Games and Post-Production.
The level of activity in VFX for film and TV was sustained with the teams
working on more than 25 Film projects, including Warner Bros. Wonder Woman and
Paramount's Transformers: The Last Knight, and over 10 TV projects, including
season 5 of Vikings (History) and season 2 of The Shannara Chronicles
(MTV/Spike). Several large VFX film projects began in the first half, including
Disney's live-action adaptation of The Lion King. Capacity expansion program
continued through the first half coupled with the hiring of additional creative
talent.
Revenue growth was strong in Animation driven by the delivery of DreamWorks
Animation's Captain Underpants: The First Epic Movie, the ramp-up of several
long form feature animation projects, such as Paramount's Sherlock Gnomes and a
very solid pipeline in content IP.
Post-Production activity experienced growth particularly in the theatrical
sound business and saw growing success with Netflix Originals.
VFX for Advertising was slightly lower compared to the first half of 2016,
which included more VFX-heavy campaigns, resulting in a weaker mix compared to
last year.
* DVD Services revenues reached ?454 million in the first half of 2017, down
c.9% at constant currency compared to the first half of 2016. Overall disc
volumes recorded a year-on-year net increase in the second quarter
compensating the weak performance of the first quarter and resulted in a
reduction of less than 6% year-on-year. This demonstrated resiliency of the
business given the comparative strength of the first half of 2016, which
benefited from a number of major blockbuster releases including Star Wars:
The Force Awakens and a higher number of AAA Games.
Volume trends in the first half of 2017 were driven in large part by robust
DVD back catalog activity in North America, highlighting continued, broad-based
consumer demand for packaged media content. Games volume declined, as there was
only one major Xbox One title release during the first half, and represented
only a very small percentage of total overall disc volume in the period.
Volume data for DVD Services
| First Half
| | |
In million units | 2016 | 2017 | Change
-----------------------------------+-------+-------+---------
Total combined volumes | 609.9 | 573.6 | (5.9)%
-----------------------------------+-------+-------+---------
By format DVD | 424.7 | 409.8 | (3.5)%
| | |
Blu-ray(TM) | 130.2 | 118.6 | (8.9)%
| | |
CD | 55.0 | 45.2 | (17.9)%
-----------------------------------+-------+-------+---------
By segment Theatrical/Broadcast | 527.1 | 507.0 | (3.8)%
| | |
Games | 18.4 | 13.6 | (25.9)%
| | |
Software & Kiosk | 9.4 | 7.8 | (16.4)%
| | |
Music & Audio | 55.0 | 45.2 | (17.9)%
| | |
Adjusted EBITDA reached ?72 million in the first half of 2017, globally stable
compared to the first half of 2016:
* Adjusted EBITDA of Production Services was stable year-on-year as
Technicolor expanded its capacity and hired additional talent to deliver
strong growth in the second half of 2017;
* In DVD Services, year-on-year percentage profitability improved as a result
of cost saving actions directly related to the integration of Cinram North
American assets in 2016. These improvements were, however, globally offset
by product mix impacts.
H1 2016 | H1 2017 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported| At
million| revenues| million| revenues| | constant
| | | | | rate
----------------------------+----------+---------+----------+--------+----------
Revenues 863| | 838| | (2.9)%| (3.3)%
| | | | |
o/w Production 369| 43%| 383| 46%| +4.0%| +4.9%
Services | | | | |
| | | | |
DVD Services 494| 57%| 454| 54%| (8.1)%| (9.4)%
----------------------------+----------+---------+----------+--------+----------
Adj. EBITDA 71| 8.2%| 72| 8.5%| +0.6%| (1.3)%
| | | | |
###
Technology revenues amounted to ?56 million in the first half of 2017, down ?103
million compared to the first half of 2016 excluding MPEG LA revenues. This
significant decline was caused by the strength of the first half of 2016
resulting from the success of our licensing efforts (revenues excluding MPEG LA
were up 58% in that period). These agreements included one-off revenues
including the lump sum payment related to an HEVC licensing deal and several
upfront payments related to other licensing agreements.
In the context of its joint licensing program with Sony in Digital TV,
Technicolor did not renew a number of its agreements in that field to allow the
Group, as agent for the program to start discussions with manufacturers.
Adjusted EBITDA amounted to ?19 million, or a margin of 33.2%. The margin
decline was largely due to the fixed cost structure of the business. Licensing
operations and Research & Innovations spending remained stable year-on-year.
The timeline of its ongoing licensing discussions is expected to result in new
agreements being signed in the second half of 2017.
H1 2016 | H1 2017 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported|At constant
million| revenues| million| revenues| | rate
-----------------------+------------+----------+-----------+--------+-----------
Revenues 177| | 56| | (68,1)%| (68,2)%
-----------------------+------------+----------+-----------+--------+-----------
Adj. EBITDA 130| 73.9%| 19| 33.2%| (85,7)%| (85,8)%
| | | | |
Summary of consolidated results for the first half of 2017 (unaudited)
Summary P&L
First Half | Change YoY
| | |
In ? million 2016| 2017|Reported|At constant rate
Restated[3]| | |
----------------------------------------------+-----+--------+-----------------
Group revenues from continuing 2,420|2,146| (11.3)%| (12.6)%
operations | | |
| | |
Group revenues excluding exited 2,418|2,146| (11.3)%| (12.5)%
activities[4] | | |
----------------------------------------------+-----+--------+-----------------
Adjusted EBITDA from continuing 265| 107| (59.8)%| (60.9)%
operations | | |
| | |
As a % of revenues 11.0%| 5.0%|(6.0)pts|
----------------------------------------------+-----+--------+-----------------
Adjusted EBIT before PPA[5] 179| 22| (87.7)%| ns
amortization | | |
| | |
As a % of revenues 7.4%| -| -|
----------------------------------------------+-----+--------+-----------------
Adjusted EBIT from continuing 152| (4)| ns| ns
operations | | |
| | |
As a % of revenues 6.3%| -| -|
----------------------------------------------+-----+--------+-----------------
EBIT from continuing operations 93| (37)| ns| ns
| | |
As a % of revenues 3.8%| -| -|
----------------------------------------------+-----+--------+-----------------
EBIT excluding PPA(5) amortization 120| (11)| ns| ns
| | |
As a % of revenues 5.0%| -| |
----------------------------------------------+-----+--------+-----------------
Financial result (73)| (62)| +11|
| | |
Income tax (30)| (11)| +19|
| | |
Share of profit/(loss) from 0| 0| 0|
associates | | |
| | |
Profit/(loss) from continuing (10)|(110)| (100)|
operations | | |
----------------------------------------------+-----+--------+-----------------
Profit/(loss) from discontinued (44)| 4| +48|
operations | | |
| | |
Net income (54)|(106)| (52)|
----------------------------------------------+-----+--------+-----------------
Group revenues from continuing operations totaled ?2,146 million in the first
half of 2017, down by 12.6% at constant currency compared to the first half of
2016, resulting mainly from lower revenues in the Connected Home segment and in
DVD Services.
Adjusted EBITDA from continuing operations amounted to ?107 million in the first
half of 2017, down 60.9% at constant currency compared to the first half of
2016. The Adjusted EBITDA margin amounted to 5.0%, down by 6 points year-on-year
due mainly to the margin squeeze in the Connected Home segment due to the memory
cost impact and the much lower contribution of the high-margin Technology
business.
Depreciation and Amortization amounted to ?119 million out of which ?26 million
of amortization was related to purchase price allocation, mostly related to the
2015 acquisitions.
EBIT from continuing operations totaled ?(37) million in the first half of
2017. This was mostly due to the lower Adjusted EBITDA as restructuring costs
and other non-current items recorded a significant decrease compared to last
year. Restructuring provisions were mainly taken in the Connected Home segment
and in DVD Services. Non-current items were much lower notwithstanding some
additional integration fees in the Connected Home segment. Excluding the
purchase price allocation amortization, EBIT from continuing operations was a
loss of ?11 million in the first half of 2017.
The Group's financial result totaled ?(62) million in the first half of 2017
compared to ?(73) million in the first half of 2016, reflecting:
* Net interest costs amounted to ?(24) million in the first half of 2017
compared to ?(44) million in the first half of 2016, reflecting lower
interest expense both related to lower debt (317m? of net repayments done in
2016) and lower average interest rates due to the 2017 refinancing;
* Other financial charges amounted to ?(38) million in the first half of 2017
compared to ?(29) million in the first half of 2016. These charges included
the IFRS adjustment write off for ?27 million, that was generated by the
repayment of the old Term Loan maturing in 2020.
Income tax amounted to ?11 million, lower by ?19 million compared to last year,
mostly due to lower results.
Net income was a loss of ?106 million in the first half of 2017 compared to a
loss of 54 million in the first
half of 2017.
Summary statement of financial position and cash position
First Half | Change
| |
In ? million 2016 | 2017 |
--------------------------------------------------------+-------+--------
Free cash flow excluding CRT settlements 122 | (67) | (189)
| |
Group free cash flow 98 | (148) | (246)
--------------------------------------------------------+-------+--------
Nominal gross debt 1,330 | 1,099 | (231)
| |
Cash position 434 | 183 | (251)
| |
Net financial debt at nominal value (non IFRS) 896 | 916 | +20
--------------------------------------------------------+-------+--------
IFRS adjustment (67) | (7) | +60
| |
Net financial debt (IFRS) 829 | 909 | +80
| |
* Capital expenditures amounted to ?69 million, down by ?5 million year-on-
year;
* Cash outflow for restructuring totaled ?29 million in the first half of
2017, down by ?4 million year-on-year, mainly resulting from lower
restructuring costs in the Technology segment;
* The change in working capital & other assets and liabilities was negative
?29 million in the first half of 2017 mostly driven by the seasonality of
DVD services;
Group free cash flow amounted to ?(148) million in the first half of 2017,
including:
* Financial charges were ?37 million, down by ?10 million year-on-year due to
lower interest expense both related to lower debt (?317million of net
repayments done in 2016) and lower average interest rates due to
refinancing;
* Tax cash inflow was ?3 million, improved by ?43 million year-on-year, due to
lower results and the monetization of research tax credit for around ?10
million;
* Other cash charges reached ?20 million, mainly reflecting pensions for
?12 million and Connected Home integration cash outflow for ?2 million;
* Cash impact of the CRT settlements amounted to ?81 million.
Nominal gross debt totaled ?1,099 million at end June 2017, up ?16 million
versus end December 2016, after partial refinancing of the Group's debt in March
2017.
The Group's cash position amounted to ?183 million at end June 2017, down by
?188 million compared to end December 2016, mainly reflecting the negative free
cash flow and the dividend payment for ?25 million.
Net debt at nominal value amounted to ?916 million at end June 2017, compared to
?712 million at end December 2016 mainly due to the lower cash position.
An analyst audio Webcast hosted by Frederic Rose, CEO, and Esther Gaide, CFO,
will be held Thursday, 27 July 2017 at 9:00 am CEST.
Link to the Audio Webcast
http://www.technicolor.com/webcastH12017 (The presentation slides will be made
available on our website prior to the Webcast)
The replay will be available at the latest by 12pm (CEST) on July 27th until
October 25th, 2017
Financial calendar
+-------------------------+-----------------+
| Q3 2017 business update | 26 October 2017 |
+-------------------------+-----------------+
###
Warning: Forward Looking Statements
This press release contains certain statements that constitute "forward-looking
statements", including but not limited to statements that are predictions of or
indicate future events, trends, plans or objectives, based on certain
assumptions or which do not directly relate to historical or current facts. Such
forward-looking statements are based on management's current expectations and
beliefs and are subject to a number of risks and uncertainties that could cause
actual results to differ materially from the future results expressed,
forecasted or implied by such forward-looking statements. For a more complete
list and description of such risks and uncertainties, refer to Technicolor's
filings with the French Autorité des marchés financiers.
###
About Technicolor
Technicolor, a worldwide technology leader in the media and entertainment
sector, is at the forefront of digital innovation. Our world class research and
innovation laboratories enable us to lead the market in delivering advanced
video services to content creators and distributors. We also benefit from an
extensive intellectual property portfolio focused on imaging and sound
technologies. Our commitment: supporting the delivery of exciting new
experiences for consumers in theaters, homes and on-the-go.
www.technicolor.com - Follow us: (at)Technicolor - linkedin.com/company/technicolor
Technicolor shares are on the NYSE Euronext Paris exchange (TCH) and traded in
the USA on the OTCQX marketplace (OTCQX: TCLRY).
Investor Relations
Emilie Megel: +33 1 41 86 61 48
emilie.megel(at)technicolor.com
Christophe Le Mignan: +33 1 41 86 58 83
christophe.lemignan(at)technicolor.com
Summary of consolidated results as reported (unaudited)
| For the 6-month period
| ended
| June 30,
| | |
In ? million | 2016| 2017| Change[7]
|Restated[6]| |
---------------------------------------------+-----------+-------+-------------
Group revenues from continuing operations | 2,420| 2,146| (11.3)%
| | |
Change at constant currency (%) | |(12.6)%|
---------------------------------------------+-----------+-------+-------------
o/w Connected Home | 1,378| 1,252| (9.2)%
| | |
Entertainment Services | 863| 838| (2.9)%
| | |
Technology | 177| 56| (68.1)%
| | |
Other | 2| 0| ns
---------------------------------------------+-----------+-------+-------------
Adjusted EBITDA from continuing operations | 265| 107| (59.8)%
| | |
Change at constant currency (%) | |(60.9)%|
| | |
As a % of revenues | 11.0%| 5.0%| (6.0)pts
---------------------------------------------+-----------+-------+-------------
o/w Connected Home | 106| 57| (46.0)%
| | |
Entertainment Services | 71| 72| +0.6%
| | |
Technology | 130| 19| (85.7)%
| | |
Other | (42)| (41)| +3.6%
---------------------------------------------+-----------+-------++-------------
Adjusted EBIT from continuing operations | 152| (4)| ns
| | |
Change at constant currency (%) | | ns|
| | |
As a % of revenues | 6.4%| (0.2)%| (6.6)pts
---------------------------------------------+-----------+-------++-------------
EBIT from continuing operations | 93| (37)| ns
| | |
Change at constant currency (%) | | ns|
| | |
As a % of revenues | 3.9%| (1.7)%| (5.6)pts
---------------------------------------------+-----------+-------+-------------
Financial result | (73)| (62)| +11
| | |
Income tax | (30)| (11)| +18
| | |
Share of profit/(loss) from associates | 0| 0| 0
---------------------------------------------+-----------+-------+-------------
Profit/(loss) from continuing operations | (10)| (110)| (100)
---------------------------------------------+-----------+-------+-------------
Profit/(loss) from discontinued operations | (44)| 4| +49
| | |
Net income (loss) | (54)| (106)| (52)
---------------------------------------------+-----------+-------+-------------
Group free cash flow | 98| (148)| (246)
---------------------------------------------+-----------+-------+-------------
Net financial debt at nominal value (non | 896| 916| +20
IFRS) | | |
| | |
Net financial debt (IFRS) | 829| 909| +80
| | |
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
-----------------------------------
For the 6-month period ended June
30,
-----------------------------------
2017 2016
(in ? million) Unaudited Restated[8]
------------------------------------------- ------------- ---------------------
Continuing operations
Revenues 2,146 2,420
Cost of sales (1,848) (1,969)
------------------------------------------- ------------- ---------------------
Gross margin 298 451
------------------------------------------- ------------- ---------------------
Selling and administrative expenses (215) (206)
Research and development expenses (87) (93)
Restructuring costs (22) (39)
Net impairment losses on non-current (4) (8)
operating assets
Other income (expense) (7) (12)
------------------------------------------- ------------- ---------------------
Earnings before interest and tax (EBIT) (37) 93
from continuing operations
------------------------------------------- ------------- ---------------------
Interest income 1 1
Interest expense (25) (45)
Other financial income (expense) (38) (29)
------------------------------------------- ------------- ---------------------
Net financial income (expense) (62) (73)
------------------------------------------- ------------- ---------------------
Share of loss from associates - -
Income tax (11) (30)
------------------------------------------- ------------- ---------------------
Profit (loss) from continuing operations (110) (10)
------------------------------------------- ------------- ---------------------
Discontinued operations
Net gain (loss) from discontinued 4 (44)
operations
------------------------------------------- ------------- ---------------------
Net income (loss) (106) (54)
------------------------------------------- ------------- ---------------------
Attributable to:
- Equity holders (105) (54)
- Non-controlling interest (1) -
-----------------------------------
Six months ended June 30,
-----------------------------------
(in euro, except number of shares) 2017 2016
------------------------------------------- ------------- ---------------------
Weighted average number of shares
outstanding (basic net of treasury shares 412,472,546 411,485,478
held)
------------------------------------------- ------------- ---------------------
Earnings (losses) per share from
continuing operations
- basic (0.26) (0.02)
- diluted (0.26) (0.02)
Earnings (losses) per share from
discontinued operations
- basic 0.01 (0.11)
- diluted 0.01 (0.11)
Total earnings (losses) per share
- basic (0.25) (0.13)
- diluted (0.25) (0.13)
------------------------------------------- ------------- ---------------------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
June 30, December 31,
(in ? million) 2017 2016
---------------------------------------------------- ---------- -------------
ASSETS
Goodwill 971 1,019
Intangible assets 694 771
Property, plant and equipment 257 286
Other operating non-current assets 39 56
---------------------------------------------------- ---------- -------------
Total operating non-current assets 1,961 2,132
---------------------------------------------------- ---------- -------------
Investments and available-for-sale financial assets 19 19
Other non-current financial assets 20 39
---------------------------------------------------- ---------- -------------
Total financial non-current assets 39 58
---------------------------------------------------- ---------- -------------
Investments in associates and joint ventures 2 3
Deferred tax assets 406 423
---------------------------------------------------- ---------- -------------
Total non-current assets 2,408 2,616
---------------------------------------------------- ---------- -------------
Inventories 238 234
Trade accounts and notes receivable 756 806
Other operating current assets 239 284
---------------------------------------------------- ---------- -------------
Total operating current assets 1,233 1,324
---------------------------------------------------- ---------- -------------
Income tax receivable 39 53
Other financial current assets 12 17
Cash and cash equivalents 183 371
---------------------------------------------------- ---------- -------------
Total current assets 1,467 1,765
---------------------------------------------------- ---------- -------------
---------------------------------------------------- ---------- -------------
Total assets 3,875 4,381
---------------------------------------------------- ---------- -------------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
---------- ------------------
June 30, December 31, 2016
(in ? million) 2017
-------------------------------------------------- ---------- ------------------
EQUITY AND LIABILITIES
Common stock 414 413
Treasury shares (158) (157)
Subordinated perpetual notes 500 500
Additional paid-in capital & reserves 60 174
Cumulative translation adjustment (335) ( (229)
-------------------------------------------------- ---------- ------------------
Shareholders' equity attributable to owners of 481 701
the parent
-------------------------------------------------- ---------- ------------------
Non-controlling interest 3 3
-------------------------------------------------- ---------- ------------------
Total equity 484 704
-------------------------------------------------- ---------- ------------------
Retirement benefits obligations 345 376
Provisions 19 35
Other non-current operating liabilities 136 153
-------------------------------------------------- ---------- ------------------
Total operating non-current liabilities 500 564
-------------------------------------------------- ---------- ------------------
Borrowings 1,080 998
Deferred tax liabilities 201 217
-------------------------------------------------- ---------- ------------------
Total non-current liabilities 1,781 1 1,779
-------------------------------------------------- ---------- ------------------
Retirement benefit obligations 28 28
Provisions 98 133
Trade accounts and notes payable 891 992
Accrued employee expenses 137 1 152
Other current operating liabilities 397 504
-------------------------------------------------- ---------- ------------------
Total operating current liabilities 1,551 1,809
-------------------------------------------------- ---------- ------------------
Borrowings 12 52
Income tax payable 41 35
Other current financial liabilities 6 2
-------------------------------------------------- ---------- ------------------
Total current liabilities 1,610 1,898
-------------------------------------------------- ---------- ------------------
-------------------------------------------------- ---------- ------------------
Total liabilities 3,391 3,677
-------------------------------------------------- ---------- ------------------
-------------------------------------------------- ---------- ------------------
Total equity and liabilities 3,875 4,381
-------------------------------------------------- ---------- ------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
---------------------------------
For the 6-month period ended
June 30,
---------------------------------
2017 2016
(in ? million) Restated[9]
--------------------------------------------- ------- -------------
Net income (loss) (106) (54)
Income (loss) from discontinued activities 4 (44)
Profit (loss) from continuing activities (110) (10)
--------------------------------------------- ------- -------------
Summary adjustments to reconcile profit from
continuing activities to cash generated from
continuing operations
Depreciation and amortization 119 106
Impairment of assets 4 8
Net changes in provisions (32) 4
Gain (loss) on asset disposals (2) -
Interest (income) and expense 24 44
Other non-cash items (including tax) 44 46
Changes in working capital and other assets (29) 67
and liabilities
Cash generated from continuing activities 18 265
Interest paid (26) (37)
Interest received 1 2
Income tax paid 3 (40)
Net operating cash generated from continuing (4) 190
activities
Net operating cash used in discontinued (75) (18)
activities
--------------------------------------------- ------- -------------
Net cash from operating activities (I) (79) 172
--------------------------------------------- ------- -------------
Acquisition of subsidiaries, associates and (22) (24)
investments, net of cash acquired
Proceeds from sale of investments, net of 10 18
cash
Purchases of property, plant and equipment (25) (35)
("PPE")
Proceeds from sale of PPE and intangible 1 1
assets
Purchases of intangible assets including (45) (40)
capitalization of development costs
Cash collateral and security deposits (1) (2)
granted to third parties
Cash collateral and security deposits 9 7
reimbursed by third parties
Loans (granted to) / reimbursed by third - -
parties
Net investing cash used in continuing (73) (75)
activities
Net investing cash used in discontinued - -
activities
--------------------------------------------- ------- -------------
Net cash used in investing activities (II) (73) (75)
--------------------------------------------- ------- -------------
Increase of Capital 1 13
Proceeds from borrowings 648 -
Repayments of borrowings (613) (40)
Fees paid linked to the debt (6) (2)
Dividends and distributions paid to Group's (25) (25)
shareholders
Other (19) 2
Net financing cash generated used in (14) (52)
continuing activities
Net financing cash used in discontinued - -
activities
--------------------------------------------- ------- -------------
Net cash used in financing activities (III) (14) (52)
--------------------------------------------- ------- -------------
Cash and cash equivalents at beginning of 371 385
year
--------------------------------------------- ------- -------------
Net increase in cash and cash equivalents (166) 45
(I+II+III)
--------------------------------------------- ------- -------------
Exchange gains/(losses) on cash and cash (22) 4
equivalents
--------------------------------------------- ------- -------------
Cash and cash equivalents at end of year 183 434
--------------------------------------------- ------- -------------
Reconciliation of adjusted indicators (unaudited)
Technicolor is presenting, in addition to published results and with the aim to
provide a more comparable view of the evolution of its operating performance in
the first half of 2017 compared to the first half of 2016 a set of adjusted
indicators, which exclude the following items as per the statement of operations
of the Group's consolidated financial statements:
* Restructuring costs, net;
* Net impairment charges;
* Other income and expenses (other non-current items).
These adjustments, the reconciliation of which is detailed in the following
table, amounted to an impact on Group EBIT from continuing operations of
?(32) million in the first half of 2017 compared to ?(59) million in the first
half of 2016.
| First Half
| | |
In ? million | 2016|2017|Change[11]
|restated[10]| |
---------------------------------------------------+------------+----+----------
EBIT from continuing operations | 93|(37)| (130)
---------------------------------------------------+------------+----+----------
Restructuring charges, net | (39)|(22)| +17
| | |
Net impairment losses on non-current operating | (8)| (4)| +4
assets | | |
| | |
Other income/(expense) | (12)| (7)| +5
---------------------------------------------------+------------+----+----------
Adjusted EBIT from continuing operations | 152| (4)| (156)
| | |
As a % of revenues | 6.3%| -| -
---------------------------------------------------+------------+----+----------
Purchase price allocation ("PPA") amortization | 27| 26| (1)
---------------------------------------------------+------------+----+----------
Adjusted EBIT before PPA amortization | 179| 22| (157)
| | |
As a % of revenues | 7.4%| -| -
---------------------------------------------------+------------+----+----------
Depreciation and amortization ("D&A") | 86| 85| (1)
---------------------------------------------------+------------+----+----------
Adjusted EBITDA from continuing operations | 265| 107| (158)
| | |
As a % of revenues | 11.0%|5.0%| (6.0)pts
| | |
Reconciliation of Group free cash flow (unaudited)
Technicolor defines "Free Cash Flow" as net cash from operating activities plus
proceeds from sales of property, plant and equipment ("PPE") and intangible
assets, minus purchases of PPE, purchases of intangible assets including
capitalization of development costs.
In ? million |December 31, 2016|June 30, 2016|June 30, 2017
| Audited | Unaudited | Unaudited
---------------------------------+-----------------+-------------+--------------
Adjusted EBITDA | 565| 265| 107
---------------------------------+-----------------+-------------+--------------
Changes in working capital and | 106| 67| (29)
other assets and liabilities | | |
| | |
Pension cash usage of the period| (28)| (14)| (13)
(note 8.1) | | |
| | |
Restructuring provisions - cash | (56)| (33)| (28)
usage of the period (note 9.1) | | |
| | |
Interest paid | (74)| (37)| (26)
| | |
Interest received | 3| 2| 1
| | |
Income tax paid | (44)| (40)| 3
| | |
Other items | (26)| (20)| (19)
+--------------------------------+-----------------+-------------+-------------+
|Net operating cash generated | 446| 190| (4)|
|from continuing activities | | | |
+--------------------------------+-----------------+-------------+-------------+
Purchases of property, plant and| (68)| (35)| (25)
equipment (PPE) | | |
| | |
Proceeds from sale of PPE and | 1| 1| 1
intangible assets | | |
| | |
Purchases of intangible assets | | | (45)
including capitalization | (85)| (40)|
of development costs | | |
| | |
Net operating cash used in | (46)| (18)| (75)
discontinued activities | | |
+--------------------------------+-----------------+-------------+-------------+
|Group free cash flow | 248| 98| (148)|
+--------------------------------+-----------------+-------------+-------------+
--------------------------------------------------------------------------------
[1] CRT: Cathode Ray Tubes
[2] Year-on-year change at current currency.
[3] Six months ended June 30, 2016 amounts have been restated due to the
finalization of the 2015 acquisitions purchase price allocation (PPA) in the
second semester of 2016. Selling and administrative expenses have been increased
by ?2 million to adjust the amortization of customer relationships recognized
within these PPA.
[4] Digital Cinema and Distribution Services in the Entertainment Services
segment, IZ-ON, M-GO and Virdata activities in the Other segment.
[5] Purchase Price Allocation.
[6] The amounts for the six months ended June 30, 2016 have been restated due to
the finalization in the second half of 2016 of the purchase price allocation
(PPA) related to the acquisitions made in 2015.
[7] Change at current currency.
[8] The 2016 amounts as of June 30, 2016 have been restated due to the
finalization of the 2015 acquisitions purchase price allocation (PPA) in the
second semester of 2016. Selling and administrative expenses have been increased
by ?2 million to adjust the amortization of customer relationships recognized
within these PPA.
[9] The 2016 amounts as of June 30, 2016 have been restated due to the
finalization of the 2015 acquisitions purchase price allocation (PPA) in the
second semester of 2016.
[10] The 2016 amounts as of June 30, 2016 have been restated due to the
finalization of the 2015 acquisitions purchase price allocation (PPA) in the
second semester of 2016.
[11] Change at current currency.
PDF version:
http://hugin.info/143597/R/2122937/809783.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: TECHNICOLOR via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.07.2017 - 18:15 Uhr
Sprache: Deutsch
News-ID 554027
Anzahl Zeichen: 61135
contact information:
Town:
Issy-les-Moulineaux Cedex
Kategorie:
Business News
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