EANS-News: Kapsch TrafficCom AG Kapsch improves earnings in the first quarter
of 2015/16 and gains momentum
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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: ir.kapschtraffic@kapsch.net
Press Contact:
Ingrid Lawicka
Spokesperson
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1705
E-mail: ingid.lawicka@kapsch.net
end of announcement euro adhoc
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company: Kapsch TrafficCom AG
Am Europlatz 2
A-1121 Wien
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
mail: ir.kapschtraffic@kapsch.net
WWW: www.kapschtraffic.com
sector: Technology
ISIN: AT000KAPSCH9
indexes: Prime Market
stockmarkets: official market: Wien
language: English