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EANS-News: Kapsch TrafficCom AG
Kapsch improves earnings in the first quarter
of 2015/16 and gains momentum
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- quarterly report * Revenue remained at the previous year's level, EBIT increased significantly * Positive effects of Program 2020 are increasingly visible in the results * Strategy developed to align the group for future business potential * New major order for traffic management systems (TMS) strengthens the core business 2015/16 Q1: 1 April-30 June 2015 |2015/16 Q1 | +/- % | 2014/15 Q1 ______________________________________|___________|________|___________ Revenues (in million EUR) | 117.1 | -1 % | 118.0 EBIT (in million EUR) | 12.8 | >500 % | 0.6 Profit for the period (in million EUR)| 11.5 | >500 % | 0.3 Vienna, 19 August 2015 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, demonstrated significant successes in the first quarter of the fiscal year 2015/16 that lay groundwork for the future. The first positive effects of Program 2020 for reducing costs and increasing earnings already contributed to improving the results. Strategy 2020 was also passed in order to align the Kapsch TrafficCom Group for future business potential. In addition to the projects obtained in the first quarter, the company succeeded in finalizing the agreement on the extension of the toll system in Belarus and in winning a significant order within the framework of cross-border traffic management systems in England and in the Netherlands in August. The existing installation projects and the new installation projects obtained in the previous year contributed to revenues and earnings during the reporting period. The projects in the U.S.A. also played a significant part, including the order for the Ohio River Bridges obtained in May, which represents the group's first end-to-end solution in this market. This increase in business reflects the size and reputation achieved by Kapsch TrafficCom in North America over the past few years. In Chile, the company received an order in May for a system expansion, and another ITS project was put into operation in Italy, an automated access system in the city of Prato. The existing operation projects exhibited a stable development. An upward trend was observed in the sale of on-board units. After postponements in the previous year, the sales figures for the first quarter returned to the level from before two years ago. Assets, financial and earnings situation At EUR 117.1 million, the revenue in the first quarter of the fiscal year 2015/ 16 was 0.7 % below the previous year's value of EUR 118.0 million. While a decline was once again observed in the segment Road Solution Projects (RSP) due to the lack of new large installation projects, the revenue in the segment Services, System Extensions, Components Sales (SEC) increased particularly due to the strong on-board unit business. The EBIT improved significantly from EUR 0.6 million in the first quarter of the previous year to EUR 12.8 million. The EBIT margin rose from 0.5 % in the previous year to 10.9 %, putting it above the targeted 10 % threshold for the reporting quarter. The initial successes of Program 2020 could be seen in the segment RSP, but the EBIT was still negative at EUR -7.1 million. The positive effects of the implemented measures were also reflected in the segment SEC. In addition, the business in on-board units contributed disproportionately to the increase in the EBIT by 50.5 % to EUR 19.5 million. The result for the period increased from EUR 0.3 million in the comparison quarter of the previous year to EUR 11.5 million. The profit per share, which represents the profit attributable to equity holders, improved significantly from EUR -0.06 to EUR 0.75. The balance sheet figures confirm the strengthening of the Kapsch TrafficCom Group. The net debt was reduced from EUR -67.2 million from the previous year to EUR -25.9 million, and the equity ratio rose from 37.1 % to 44.2 %. The cash and cash equivalents in the amount of EUR 100.4 million and the free cash flow of EUR 14.7 million also demonstrate potential for future projects. Program 2020 and strategy With Program 2020, which was initiated by Kapsch TrafficCom in the previous year, measures with both short- and long-term effect are being implemented to strengthen earnings and prepare for future growth. The first successes made it possible to improve not only profitability but liquidity and balance sheet strength as well. In April, Kapsch TrafficCom passed Strategy 2020, which calls for both operational excellence and a strengthening of the core business. In addition, Kapsch TrafficCom will establish a business in intelligent mobility solutions (IMS) with new business models and integrated multi-application solutions. This will expand the portfolio from the highway into the city, and end-users will be addressed in future alongside public agencies. A first step took place already in April with the acquisition of a majority stake in the Californian pioneer for smart parking solutions, Streetline. In August, Kapsch TrafficCom succeeded in winning a major order that will significantly strengthen the core business. Kapsch TrafficCom has been awarded a contract by the Dutch national road authority and has received the intention to award a contract by the English road authority to supply a traffic management system as part of the collaborative program CHARM. This is Europe's first integrated advanced traffic management system. It is not only the largest order that the group has received in the past two years, it also has strategic significance. With this order, Kapsch TrafficCom attains a globally recognized position in the area of TMS (traffic management systems) alongside the position it already enjoys in the area of ETC (electronic toll collection). Outlook Kapsch TrafficCom is therefore well on the way to implementing its Strategy 2020. Development of the existing projects will continue over the coming months. Continued system expansions in Belarus and in Poland have been ordered, and these will also contribute significantly to revenues and earnings in the current fiscal year 2015/16. In addition, the company expects new invitations to tender and potential contract extensions: In Slovenia, Kapsch TrafficCom is taking part in a new invitation to tender. In Austria, the new invitation to tender for the existing toll system is under way, and an invitation to tender is also in preparation in the Czech Republic. Another major project is currently in the offer phase in the U.S.A., and efforts to actively contact potential customers are being intensified like it was already successfully done in Belarus. The executive board expects the fiscal year 2015/16 to be both challenging and rich in opportunities. The profitability of the core business should offer sufficient freedom for future investments. Notification The report on the first quarter of fiscal year 2015/16 can be found under http:/ /kapsch.net/ktc/investor_relations/reports/download/Quarterly-reports/2015-16/ KTC_IR_Report_FY16-Q1?lang=en-US. Kapsch TrafficCom is a provider of intelligent transportation systems (ITS) in the solution segments of road user charging, urban access and parking, traffic management, road safety enforcement, commercial vehicle operations, electronic vehicle registration and V2X cooperative systems. With end-to-end solutions, Kapsch TrafficCom covers the entire value creation chain of its customers as a one-stop shop, from components and design to the installation and operation of systems. The core business is to design, build and operate electronic toll collection and traffic management systems. References in 44 countries on all continents make Kapsch TrafficCom a recognized ITS provider worldwide. As part of the Kapsch Group, a family-owned Austrian technology group founded in 1892, Kapsch TrafficCom, headquartered in Vienna, Austria, has subsidiaries and offices in 33 countries, has been listed on the Vienna Stock Exchange (KTCG) since 2007, and generated with more than 3,500 employees revenues of EUR 456 million in fiscal year 2014/15. For additional information: www.kapsch.net and www.kapschtraffic.com Follow us on Twitter: twitter.com/kapschnet. Further inquiry note: Investor Contact: Marcus Handl Investor Relations Officer Kapsch TrafficCom AG Am Europlatz 2, 1120 Vienna, Austria Phone: +43 50 811 1120 E-mail: email@example.com Press Contact: Ingrid Lawicka Spokesperson Kapsch AG Am Europlatz 2, 1120 Vienna, Austria Phone: +43 50 811 1705 E-mail: firstname.lastname@example.org end of announcement euro adhoc -------------------------------------------------------------------------------- company: Kapsch TrafficCom AG Am Europlatz 2 A-1121 Wien phone: +43 1 50811 1122 FAX: +43 1 50811 99 1122 mail: email@example.com WWW: www.kapschtraffic.com sector: Technology ISIN: AT000KAPSCH9 indexes: Prime Market stockmarkets: official market: Wien language: English