EGIDE S.A. Trappes, Bollène, Cambridge & San Diego, March 27th 2018 - 7:00pm (CET)
2017 Financial Results
- Revenue 2017: 30.89 M€, +39.4% on reported basis; +3.5% on a comparative basis [1]
- EBITDA 2017: +0.40 M€ vs 0.11 M€ in 2016
- Net Result 2017: -0.51 M€
- 2018: well positioned for improved performance
The results presented below are unaudited consolidated financial statements for 2017, but reviewed by the Audit Committee on March 23, 2018; certification of accounts is expected in the coming weeks.
| In million Euros, IFRS | FY 2016 | FY 2017 * | Proforma FY 2017** |
| Revenue | 22.17 | 30.89 | 30.89 |
| EBITDA | +0.11 | +0.40 | +0.65 |
| Operating Result | (0.56) | (0.86) | (0.61) |
| Financial Result | (0.13) | (0.75) | (0.62) |
| Differed tax | (0.00) | +1.10 | +1.10 |
| Net Result | (0.69) | (0.51) | (0.13) |
* unaudited ** without non-recurring items
Consolidated financials 2017
revenue
The unaudited consolidated revenue of the Egide Group grew by +39.4% to €30.89m in 2017 despite the impact of currency effects and a difficult environment in the United States. On a comparative basis (at constant perimeter and constant currency effects), the growth of the 2017 turnover is +3.5%. The successful integration of Santier as of March 1, 2017, makes it possible to post a contribution of 26.2% to total sales in 2017 and sales from the US subsidiaries now represent 49.6% of the group's total sales in the year compared to 36.3% in 2016.
In 2017, the exchange rates impacted the consolidation of the conversion of sales of US subsidiaries with an average exchange rate of 1.129 on the 2017 year (1.107 in 2016) and a 2017 budget which was based on a dollar to 1.05. In the fourth quarter alone, this change negatively impacted sales by 3.9%.
RESULTS AS OF DECEMBER 31, 2017
Operating profit (loss)
2017 showed an operating loss of €0.86 M (loss of €0.56 M in 2016). The rate of consumption of raw materials and supplies slightly decreased, at 40%. Staff costs have increased (43% compared to 41%), due to fixed term contracts at Egide SA for the optronics products. Fixed costs were slightly higher (at a comparable perimeter) whereas allowances for depreciation and amortization increased in 2017, with incorporation of Santier's assets and the beginning of depreciation of Capex done in Bollene and in Cambridge during the year. R&D expenditures amounting to €1.1 M (compared to €1.0 M 2016) were fully expensed in the period.
EBITDA was affected by the following: at Egide SA, there was an increase of labor and tool expenses for the coming optronics business for data centers; at Egide USA, there was an unexpected termination by Textron of the SFW program and continued delays in HTCC qualification at thermal imaging clients; finally, at Santier, revenue and profitability have exceeded the expectations. Overall, the EBITDA for the group in 2017 has grown compared to last year, at +€0.40 M. Taking into account some non-recurring expenses (0.25 M€) mainly there in H1-17, the EBITDA for the year reached +€0.65 M vs +€0.11 M in 2016.
Net financial expense and net income
Borrowing costs linked to the use of factoring by Egide SA and interest expense on loans paid by Egide USA and Santier, increased significantly at €0.31 M. Fluctuations in the Euro/US dollar exchange rate during the year generated a net currency loss of €0.31 M at the Group level. The new financing agreement entered into at the start of the year between Egide USA and Midcap Business Partners, replacing Bank of America, also resulted into non-recurring loan arrangement costs in the amount of €0.13 M. On that basis, net financial expense amounted to €0.75 M at December 31, 2017.
The actual and future profits generated by Santier Inc., as well as Egide USA Inc., both subsidiaries of Egide USA LLC, gave the opportunity to activate the differed tax coming from the losses carryforward of Egide USA. Then, an amount of €1.1 M tax profit has been recorded in 2017; it will offset the income tax to be paid by EGIDE USA, LLC in the future.
As a result, the net loss for 2017 was €0.51 M, representing a small improvement from the prior year with a loss of €0.69 M. Without the non-recurring expenses, the net loss was €0.13 M.
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2017
| ASSETS | LIABILITIES | ||
| Fixed assets | 7.98 | Equity | 12.68 |
| Differed tax asset | 1.10 | Accruals | 0.69 |
| Inventory, AR and other debt | 13.50 | Financial debt (+/- 1 year) | 6.98 |
| Cash | 2.99 | AP and other | 5.22 |
| TOTAL | 25.57 | TOTAL | 25.57 |
Santier Inc.'s entry into the group's scope generated the creation of intangible assets worth €1.29 M (of which more than one million goodwill allocated under the brand, technology and client relationship). For the record, this acquisition was financed by a capital increase of €8.2 M made in early 2017. In addition, the company issued in November a single bond of €0.9 M, repayable monthly on 4 years. Finally, Santier obtained a loan of €0.7 M from a California bank to finance its development.
The working capital requirement amounts to 83 days of turnover, excluding tax receivables and taking into account a turnover of Santier realized over 10 months in 2017.
PERSPECTIVES 2018
· In 2018, two new directors were hired - Eric Delmas as Business Unit Director of the Bollene facility and Chris Kvitek as Business Unit Director of the San Diego facility.
· At Bollene, work will continue on productivity and yield improvements, while pursuing qualification of high speed packages for data center applications using the capex capabilities put in place in 2017.
· Development of the HTCC line at Cambridge continues with the approval by the US Department of State for a Technical Services Agreement to facilitate technical exchanges with Bollene team.
· A new $800k backlog of orders for thermal imaging in Cambridge for HTCC production level quantities with firm deliveries in 2018 has been achieved.
- Santier will expand their machining capabilities with acquisition of new milling machines and inspection equipment, which will also improve productivity.
- A new Procurement Director position has been filled by Didier Martin, to capitalize on group level purchasing volumes, and to incorporate more components manufactured at Santier.
- The commercial activities in Asia will be intensified with new production orders in both thermal imaging in China and microwave in India.
Jim Collins, Chairman and CEO, comments: "The results of 2017 are in line with our long-term objectives of changing the profitability trajectory and culture at EGIDE. The addition of Santier has brought welcomed positive cash flow, and finally the introduction of high temperature cofired ceramic packaging has resulted in production level orders. With the addition of new management in Bollene and San Diego, we are positioned to benefit from the investments made in all three of our manufacturing locations. We expect 2018 to continue the improvements demonstrated in 2016 and 2017".
FINANCIAL AGENDA
April 13, 2018: Q1-18 Revenue
To find out more about Egide: www.egide-group.com
Egide is a group with an international dimension, specialized in the manufacture of hermetic packages for sensitive electronic components. It operates in cutting edge markets with strong technology barriers to entry in all critical industry segments (Infrared, Optronics, Microwave, Power, .). Egide is the only pure player in this market niche with manufacturing bases in France and the United States.
Egide renewed OSEO certification as an innovative company (entreprise innovante) on July 30, 2015
ISO 9001:2008 and ISO 14001:2004 certified quality and environmental management systems
Egide is listed on Euronext Paris(TM)- Segment C - ISIN: FR0000072373 - Reuters: EGID.PA - Bloomberg: GID
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CONTACTS
EGIDE - Finance Department - Philippe Lussiez - +33 1 30 68 81 00 - plussiez@fr.egide-group.com
INBOUND CAPITAL - Investor Relations - Frédéric Portier / David Chermont - +44 7802 533333 - fportier@inbound.capital
FIN'EXTENSO - Press Relations - Isabelle Aprile - +33 1 39 97 61 22 - i.aprile@finextenso.fr
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EGIDE via Globenewswire
