DGAP-News: euromicron AG: 2013 Annual financial statements

DGAP-News: euromicron AG / Key word(s): Final Results euromicron AG: 2013 Annual financial statements 31.03.2014 / 07:00 --------------------------------------------------------------------- euromicron AG pushes ahead massively and successfully with the Agenda 500-High expenditures again on integration, consolidation and realignment impact earnings in 2013 - Adjusted guidance targets achieved: Total operating performance increases to EUR328.7 million - Integration costs of EUR5.5 million, special effects from project valuations of EUR4.9 million and order postponements at the production companies and project postponements at the system houses totaling almost EUR7.9 million result in an EBIT of around EUR5.5 million - Good foundation for further development and expansion created: Orders books of EUR126.5 million, slightly above the previous year's figure of EUR125.2 million Frankfurt/Main, March 31, 2014 - As planned, euromicron AG is pushing massively ahead with the Group's integration phase ("Agenda 500"), which has a time frame of 2 to 2 years, and paving the way to achieving its ambitious growth targets by 2016. These targets are geared toward growth in sales to around EUR500 million and a return to an EBIT margin of 8% to 11%. Against this backdrop, euromicron AG used the year of core integration 2013, as announced, to press ahead intensively with consolidation and realigning the company. So as to prepare the Group for the next major stage in its growth, the initial integration measures commenced in 2012 were transitioned to a structured process and a far higher number of projects were accomplished in 2013. As a consequence, the Group now has more uniform processes, a broader know-how base, more innovative products, an optimized IT landscape, more modern locations and more professional structures than at the start of the integration phase in 2012. To enable that, a record amount was invested in integration of the company in 2013. In order to realign euromicron and make it ready for the future, extensive investments in reducing and restructuring the workforce were made, just about all IT fields and processes were included in an initial stage, the divisions were reorganized and a raft of cost-cutting measures were carried out. As a result, integration and restructuring costs rose sharply again in 2013, with a total of around EUR5.5 million being spent on related measures in the year under review, a sum that - as in the previous year - was funded from the company's operating income. With the integration measures, the Executive Board of euromicron AG intends to create a stable, consolidated and streamlined platform for the planned acquisition and integration of a larger company as of 2015. In operating business, the mainly politically induced uncertainties as part of the energy debate, modernization of transport networks, future-oriented radio technology for public authorities or broadband expansion, above all for customers from the WAN arena, were reflected in increasingly hesitant and deferred capital spending. Accompanying that, euromicron's system houses increasingly had to cope with project delays and postponements in the course of 2013, which meant a higher cost burden and reduced earnings, whereas its production companies faced postponements in the call-off of deliveries by important regular customers and so lost a large part of their planned income. Finally, the beginning of December saw a successive pickup in capital spending, such as by Deutsche Telekom in VDSL2 vectoring, which brought about a high level of capacity utilization, but was not sufficient for the company to achieve its customary strong performance of the final quarters of previous years and compensate for the dual effect of project postponements and lower call-offs of deliveries. euromicron AG accordingly adjusted its guidance for the year as whole with its ad-hoc announcement on December 4, 2013. Total operating performance and consolidated sales Despite project postponements and lower call-offs of deliveries, euromicron posted stable sales at December 31, 2013, of EUR329.4 million, around the same level of the previous year, but not enough to compensate for the extra costs for the planned stage of growth in 2013 in terms of earnings. Total operating performance rose slightly to EUR328.7 million, a year-on-year increase of 1.4%. Consolidated income Earnings before interest and taxes (EBIT) were EUR5.5 million after integration costs of around EUR5.5 million, special effects from project valuation (approximately EUR4.9 million) and a loss of EBIT totaling some EUR7.9 million due to order postponements at the production companies and project postponements at the system houses. EBITDA was EUR14.4 million, giving an EBITDA margin of 4.4% compared with 7.6% the year before. The consolidated net loss for shareholders of euromicron AG in 2013 was EUR -0.9 million compared with consolidated net income of EUR8.6 in the previous year. Undiluted earnings per share were EUR -0.12 versus EUR1.29 in the previous year. Order situation at the Group New orders at the euromicron Group from January 1 to December 31, 2013, were EUR327.7 million and so at the good level of the previous year (EUR327.8 million). Order books were EUR126.5 million, above the previous year's figure of EUR125.2 million. As a result, euromicron's production companies in particular are embarking on the next fiscal year 2014 with well-filled order books following the postponement of call-of orders in 2013. Balance sheet structure The euromicron Group's total assets at December 31, 2013, increased by 15.8% to EUR328.9 million compared with EUR283.9 million in the previous year. Personnel The average headcount (excluding trainees) at the euromicron Group in the year under review rose from a total of 1,597 to 1,653. Personnel costs in fiscal year 2013 increased to EUR99.2 million, mainly as a result of changes in the consolidated companies, costs for reducing and restructuring the workforce at the Group and measures to create formalized structures and Competence Centers. This was countered by initial savings from the integration and restructuring measures in the area of human resources. Equity The euromicron Group's equity and liquidity was strengthened further as a result of the capital increase in December 2013, which increased equity by EUR6.8 million, is to be used to fund acquisitions and is a key component in the euromicron Group's overall financing concept. It was reduced in fiscal 2013 by the dividend payout, the overall result in 2013 and the change in the majority interest in equity. As a result, equity at December 31, 2013, was EUR122.6 million, EUR3.6 million above the previous year's figure of EUR119.0 million. The equity ratio was 37.3% (previous year: 41.9%), still at a very stable level given the increase in total assets. Finances/liquidity As in past years, euromicron's banks again regarded it as a strong and dependable partner in fiscal year 2013. There is keen interest on the part of the financial institutes to keep on intensifying their commitment at euromicron even despite the temporary negative impact on earnings and balance sheet ratios and to actively accompany the company on its path toward its sales target of EUR500 million in the coming years. The key financial indicators, which were adjusted due to the integration phase effective December 31, 2013, in agreement with the Group's long-term financing partners, were adhered to. Share and investor relations euromicron's share started the 2013 stock market year at a price of EUR18.74 and moved in line with the overall market in the first two months. In the months subsequent to the announcement that the dividend would be adjusted in March 2013, the price largely fluctuated in a range between EUR14 to EUR16. Publication of the solid semi-annual figures in the third quarter was followed by a positive trend, with the share touching EUR17.74 at one stage. The share's exit from the TecDAX in September 2013 had virtually no effect and its positive performance continued at the start of the fourth quarter. Finally, a downward trend was initiated with the announcement of the adjusted guidance in December 2013, coinciding with a phase of stock market weakness. There was a recovery after the capital increase, when the share stood at EUR13.86, with the result that at the end of the year it was above the placement price and was listed at EUR14.35. euromicron's market capitalization at the end of the year was EUR102.9 million. The volume of shares traded was around 7.4 million, at the level of the previous year. The Executive Board and Supervisory Board have agreed to retain liquid funds within the company for fiscal 2013, the year with the highest expenditure on integration, restructuring and realignment in the history of the euromicron Group. Given that the planned positive economic effects of the Agenda 500 are not yet reflected in the key ratios, but the burdens can be seen directly in a balance sheet loss for euromicron AG, the Executive Board and Supervisory Board will propose to the General Meeting on May 14, 2014, to refrain from making a dividend payout for 2013. After completion of the integration phase, the Executive Board of euromicron AG aims - as in the years of building the Group - to let all shareholders share in the anticipated success of the company and to resume paying a dividend on the basis of achievement of the original quality of earnings of 8% to 11%. Outlook euromicron AG intends to largely complete the phase of consolidation and restructuring of the company in 2014 and, on this optimized platform, to press ahead with enhancing its structures, processes and financial and human resources. That initially comprises completely accomplishing the Agenda 500 projects that have been initiated and leading them to a successful result or transitioning them to a continuous improvement process. The Executive Board of euromicron AG also plans to round out the company further in terms of technology, geography or resources and expertise by acquiring smaller specialist companies. "With these long-planned strategic steps in the company's development and the associated integration phases, we will create the basis for our Group's further organic growth, smooth acquisition and integration of a largish company and so achievement of the planned quality of earnings of 8% to 11% on sales of around EUR500 million in 2016," says the Chairman of the Executive Board of euromicron AG, Dr. Willibald Späth. The company also reports that 2014 has got off to a very promising start in operational terms - as evidenced by the level of new orders in the first months. Order books at February 2014 still have the same high volume of EUR125 million. "We are also working vigorously to complete the projects and delivery orders that were postponed in 2013 and have since been placed. We feel sure that, given an increasingly positive climate for investment, we will be able to reflect the progress we have made with the Agenda 500 in our earnings and are aiming in 2014 to grow sales to EUR340 to EUR360 million and achieve an EBITDA margin of around 6% to 8%," adds Späth. euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security. euromicron's network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures. Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion. Contact: euromicron AG Investor & Public Relations Zum Laurenburger Hof 76 60594 Frankfurt/Main Germany Phone: +49 (0)69-631583-0 Fax: +49 (0)69-631583-17 E-mail: IR-PR@euromicron.de http://www.euromicron.de Securities identification number A1K030 ISIN DE000A1K0300 End of Corporate News --------------------------------------------------------------------- 31.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: euromicron AG Zum Laurenburger Hof 76 60594 Frankfurt am Main Germany Phone: +49(0) 69 631583-0 Fax: +49(0) 69 631583-17 E-mail: info@euromicron.de Internet: www.euromicron.de ISIN: DE000A1K0300 WKN: A1K030 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 260460 31.03.2014