Earnings Release • Mar 7, 2011
Earnings Release
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| Earnings Data | FY11 Q1-Q3 | FY10 Q1-Q3 | +/- % | FY10 | ||||
|---|---|---|---|---|---|---|---|---|
| Revenues | in million EUR | 258.5 | 149.0 | 74 % | 216.0 | |||
| EBITDA | in million EUR | 31.7 | 12.3 | >100 % | 32.0 | |||
| EBITDA margin | in % | 12.3 | 8.3 | 14.8 | ||||
| EBIT | in million EUR | 23.2 | 6.6 | >100 % | 24.5 | |||
| EBIT margin | in % | 9.0 | 4.4 | 11.4 | ||||
| Profit before tax | in million EUR | 23.6 | 23.0 | 3 % | 43.9 | |||
| Profit after tax | in million EUR | 16.8 | 21.7 | -22 % | 36.5 | |||
| Earnings per share 1 | in EUR | 1.09 | 1.47 | -26 % | 2.64 | |||
| Free cash flow 2 | in million EUR | 16.3 | 31.3 | -48 % | 41.6 | |||
| Capital expenditure 3 | in million EUR | 5.8 | 6.7 | -13 % | 4.8 | |||
| Employees 4 | 1,756 | 990 | 77 % | 1,023 | ||||
| On-board units delivered | in million units | 2.88 | 2.51 | 15 % | 3.54 | |||
| Business Segments | FY11 Q1-Q3 | FY10 Q1-Q3 | +/- % | FY10 | ||||
| Road Solution Projects (RSP): | ||||||||
| Revenues (percentage of Revenues) | in million EUR | 105.9 | (41.0%) | 25.2 | (16.9 %) | >100 % | 45.8 (21.2 %) | |
| EBIT (EBIT margin) | in million EUR | -4.5 | (-4.3 %) | -21.3 | (-84.6 %) | -79 % | -20.9 (-45.6 %) | |
| Services, System Extensions, Components Sales (SEC): | ||||||||
| Revenues (percentage of Revenues) | in million EUR | 147.8 | (57.2%) | 117.5 | (78.9 %) | 26 % | 161.9 | (75.0 %) |
| EBIT (EBIT margin) | in million EUR | 27.4 (18.5 %) | 27.9 | (23.7 %) | -2 % | 45.3 | (28.0 %) | |
| Others (OTH): | ||||||||
| Revenues (percentage of Revenues) | in million EUR | 4.7 | (1.8%) | 6.3 | (4.2 %) | -24 % | 8.3 | (3.8 %) |
| EBIT (EBIT margin) | in million EUR | 0.3 | (6.8 %) | 0.1 | (0.9 %) | >100 % | 0.2 | (1.9 %) |
| Regions | FY11 Q1-Q3 | FY10 Q1-Q3 | +/- % | FY10 | ||||
| Austria – Revenues (percentage of Revenues) | in million EUR | 26.9 | (10 %) | 26.0 | (17 %) | 3 % | 42.4 | (20 %) |
| Europe (excl. Austria) – Revenues | ||||||||
| (percentage of Revenues) | in million EUR | 121.4 | (47 %) | 95.5 | (62 %) | 31 % | 117.1 | (54 %) |
| Americas – Revenues (percentage of Revenues) | in million EUR | 11.4 | (4 %) | 7.1 | (5 %) | 62 % | 12.1 | (5 %) |
| Rest of World – Revenues (percentage of Revenues) | in million EUR | 98.8 | (38 %) | 23.4 | (16 %) | >100 % | 44.5 | (21 %) |
| Balance Sheet Data | 31 December 2010 | 31 December 2009 | +/- % | 31 March 2010 | ||||
| Total assets | in million EUR | 432.9 | 289.4 | 50 % | 295.1 | |||
| Total equity 5 | in million EUR | 176.4 | 151.3 | 17 % | 168.2 | |||
| Equity ratio 5 | in % | 40.8 | 52.3 | 57.0 | ||||
| Net assets | in million EUR | -9.5 | 31.0 | <-100 % | 35.3 | |||
| Capital employed | in million EUR | 270.2 | 175.3 | 54 % | 187.5 | |||
| Net working capital | in million EUR | 129.6 | 101.6 | 28 % | 104.6 | |||
| Stock Exchange Data |
| Number of shares 6 | in million | 12.2 | Closing price 6 | in EUR | 72.0 |
|---|---|---|---|---|---|
| Free float 6 | in % | 31.6 | Market capitalization 6 | in million EUR | 878.4 |
| Trading volume in FY11-Q3 7 | in shares | 45,231 | Share performance in FY11-Q37 | in % | 84.3 |
1 earnings per share relate to 12.2 million shares
2 operating cashflow minus capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
3 capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
4 as of end of period
7 average daily trading volume (double counting) and share performance, each in the third quarter of fiscal year 2010/11
Certain statements contained in this report constitute "forward-looking statements." These statements, which contain the words "believe", "intend", "expect" and words of similar meaning, reflect management's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.
5 incl. minority interests 6 as of 31 December 2010; for additional information on the share see page 5
Georg Kapsch, Chief Executive Officer
The Kapsch TrafficCom Group generated revenues of EUR 258.5 million in the first three quarters of the current fiscal year 2010/11 (1 April 2010 to 31 December 2010). This is an increase of 74 % compared with the same period during the previous fiscal year. Hence, revenues after nine months already exceeded the full last fiscal year (EUR 216.0 million). With EUR 23.2 million, EBIT more than tripled after nine months compared with the same period during the previous fiscal year and almost reached the full last fiscal year (EUR 24.5 million). In relation to revenues, the Kapsch TrafficCom Group generated an EBIT margin of 9.0 % compared with 4.4 % during the same period in the previous fiscal year.
By segment, the segment SEC (Services, System Extensions, Components Sales), which accounts for the recurring part of the business of the Kapsch TrafficCom Group, showed an excellent performance. With EUR 147.8 million, revenues increased by 26% after nine months compared with the same period during the previous fiscal year. The on-board units (OBUs) business remained strong at approximately 2.9 million units (previous year: approximately 2.5 million units) delivered. The EBIT of the segment SEC slightly decreased to EUR 27.4 million (previous year: EUR 27.9 million) after nine months, representing an EBIT margin of 18.5 % (previous year: 23.7 %). At EUR 105.9 million after nine months, the second large segment RSP (Road Solution Projects), which contains the project business, more than quadrupled revenues compared with the same period during the previous fiscal year. During the same period, the EBIT of this segment improved considerably from EUR -21.3 million in the previous fiscal year to EUR -4.5 million in the current fiscal year. This improvement was largely attributable to the progress of the project in South Africa and the start of the system implementation in Poland.
The balance sheet clearly changed after the placement of a 4.25 % corporate bond with a tenor of seven years and a volume of EUR 75 million on 3 November 2010. The equity ratio was at 40.8 % as of 31 December 2010 (31 December 2009: 52.3 %). While the free cash flow was negative at EUR -21.2 million in the first half of this fiscal year, it turned back clearly positive to EUR 16.3 million on an accumulated basis after nine months.
A very important step in connection with the continuing global expansion of the Kapsch TrafficCom Group was taken in the last quarter. On 30 November 2010, Kapsch TrafficCom acquired the businesses of MARK IV IVHS, a part of MARK IV, LLC (U.S.), in the United States, Canada and Mexico for a purchase price of USD 73 million (approximately EUR 55 million). The transaction was effected as a stock purchase of the holding companies which own the MARK IV IVHS businesses. The acquisition of the largest equipment supplier for electronic toll collection (ETC) systems in North America is further evidence of the firm commitment of Kapsch TrafficCom to the North American market. This acquisition enables Kapsch TrafficCom to offer current and future customers in this region an extended end-to-end product and solution portfolio for intelligent transportation systems (ITS) and ETC.
From a project perspective, the highlight of the third quarter was Poland where the consortium led by Kapsch TrafficCom was announced as best bidder and winner of the tender for a nationwide electronic truck tolling system at the beginning of October 2010. On 2 November 2010, the contract was signed for the implementation and the operation of an electronic tolling system for an existing road network of initially about 1,750 kilometres worth approximately EUR 560 million.
After the end of the third quarter on 31 December 2010, Kapsch TrafficCom was awarded a first contract in Russia to equip traffic crossings in the city of Kazan as well as further contracts with a total volume of approximately EUR 17 million in South Africa. The South African National Roads Agency Ltd (SANRAL) has indirectly awarded a first order of 918,000 on-board units (OBUs) for the open road tolling (ORT) system in the Gauteng province (GORT system) to Kapsch TrafficCom. Furthermore, the subsidiary TMT Services and Supplies (Pty) Ltd. has been recently awarded extensions to existing as well as new violation management contracts in the Gauteng area. These awards should put us in a strong position to take advantage of existing and upcoming opportunities that are expected to become available in Russia and South Africa which are among the strongest growing markets in our industry worldwide.
The project business remains in an exciting cycle: although our consortium did not succeed in the tender for a nationwide electronic truck tolling system in France, several other projects – among others, the nationwide systems in Hungary, Slovenia and Denmark – are close to the final decision for a tender.
The last quarter of the current fiscal year 2010/11 will be shaped by the projects in South Africa and Poland, the preparation for the expected tenders in Hungary, Slovenia and Denmark as well as the integration of MARK IV IVHS.
With all best wishes
Georg Kapsch Chief Executive Officer
The Kapsch TrafficCom share closed the third quarter of the current fiscal year 2010/11 on the Vienna Stock Exchange at a share price of EUR 72.0 on 31 December 2010, up approximately 84.3 % from the closing price on 30 September 2010 (EUR 39.06). The price of the Kapsch TrafficCom share showed a continuously sharp increase during the third quarter of the current fiscal year 2010/11 and closed the third quarter at a high of EUR 72.0 on 31 December 2010. Since the beginning of the fiscal year 2010/11 on 1 April 2010 (the closing price on 31 March 2010 was at EUR 25.26), the price of the Kapsch TrafficCom share increased by approximately 182 %. With this performance, the Kapsch TrafficCom share clearly outperformed the ATX Prime which increased by approximately 13 % during the same period. Besides the very pleasant development of the share price, the clear increase of the average trading volume was outstanding in the third quarter of the current fiscal year 2010/11: at 45,231 daily traded shares in average (double counting), it more than tripled from 12,275 traded shares per day on average during the first half of the current fiscal year. The daily traded turnover increased even more significantly from EUR 0.38 million (double counting) to EUR 2.69 million.
Based on a closing price of EUR 72.0 per share on 31 December 2010 and the number of outstanding shares unchanged at 12.2 million, Kapsch TrafficCom's market capitalization was approximately EUR 878.4 million. As of 31 December 2010, approximately 31.6 % of the shares were in free float, whereas the remaining approximately 68.4 % continued to be held by KAPSCH-Group Beteiligungs GmbH.
Closing price of the Kapsch TrafficCom share and closing value of the ATX Prime on 31 March 2010, each indexed to 100.
| Information on the share | Financial calendar | ||
|---|---|---|---|
| Investor Relations Officer | Marcus Handl | 27 June 2011 | Results FY11 |
| Shareholders' Telephone | +43 (0)50811 1120 | 22 August 2011 | Ordinary Shareholders' Meeting for FY11 |
| [email protected] | 29 August 2011 | Deduction of dividends (ex-day) for FY11 | |
| Website | www.kapschtraffic.com | 5 September 2011 | First day of payment for dividends for FY11 |
| Stock Exchange | Vienna, Prime Market | ||
| ISIN / Trading Symbol | AT000KAPSCH9 / KTCG | ||
| Reuters / Bloomberg | KTCG.VI / KTCG AV |
Revenues of the Kapsch TrafficCom Group were at EUR 258.5 million in the first nine months of the current fiscal year 2010/11 (FY11 Q1-Q3), an increase of 73.5 % to the recorded figure of EUR 149.0 million in the same period of the previous fiscal year (FY10 Q1-Q3). With this favourable result, the previous year total revenues are topped by EUR 42.5 million in the first three quarters of the current fiscal year. In the segment Road Solution Projects (RSP) the sales volume was more than quadrupled and also the segment Services, System Extensions, Components Sales (SEC) contributed an increased revenue of 25.9 % compared to the previous year period.
Revenues by segment in the first three quarters of the current fiscal year 2010/11 were as follows:
In the first nine months of the current fiscal year, Kapsch TrafficCom Group generated an operating result (EBIT) of EUR 23.2 million (FY10 Q1-Q3: EUR 6.6 million). With this result in the first three quarters of the current fiscal year nearly the EBIT of the total previous year was reached (EUR 24.5 million). In comparison to the previous year reference period, the EBIT margin increased from 4.4 % to 9.0 %.
The operating results by segment were as follows:
level in the previous fiscal year was positively affected by the retrospective clarification of the cost absorption of certain transaction clearings in the nationwide electronic truck tolling system in the Czech Republic. The indefinite postponement of the introduction of the electronic highway vignette for passenger vehicles also affected the EBIT result in this segment.
■ At EUR 0.3 million (FY10 Q1-Q3: EUR 0.1 million), the OTH segment had only a minor positive effect on the operating result (EBIT) of the Kapsch TrafficCom Group. The EBIT margin reached 6.8 % (FY10 Q1-Q3: 0.9 %).
The Kapsch TrafficCom Group recorded a financial result of EUR 0.4 million in the first three quarters of the current fiscal year (FY10 Q1-Q3: EUR 1.1 million). The decrease in finance income was mainly a result of lower interest effects from long-term receivables and lower currency exchange profits. The finance costs were nearly at the level of the previous reference period.
With total assets of EUR 432.9 million as of 31 December 2010 (31 March 2010: EUR 295.1 million) and at a total equity of EUR 176.4 million, the Kapsch TrafficCom Group's equity ratio was at 40.8 % (31 March 2010: 57.0 %).
The major changes in assets were attributable to current assets. The increase in trade receivables derived mainly from the large-scale projects in South Africa and Poland and also from the change in the consolidated entities TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa and the MARK IV IVHS entities. The position cash and cash equivalents was positively influenced by the successful placement of the corporate bond, incoming payments in the Czech Republic and contributions from newly acquired entities. The increase in other non-current assets was recorded in intangible assets and also in the position property, plant and equipment, in both cases due to the change of the consolidated entities. Other non-current financial assets and investments declined due to the share price of the Norwegian Q-Free ASA.
On the liability side, both non-current and current liabilities increased. The increase in the position non-current financial liabilities resulted from the successful placement of the corporate bond with a volume of EUR 75 million, a tenor of seven years and an interest rate of 4.25 %. The increase in trade liabilities and other current payables and other liabilities and deferred income was primarily attributable to the South African project.
The net cash flow from operating activities in the first three quarters amounted to EUR 22.1 million after EUR 38.9 million in the previous reference period and almost equals the operating result. The main drivers in net current assets were the changes in trade receivables and trade payables. The cash flow from investing activities was influenced by the acquisitions of TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa and Kapsch Telematic Services Solutions A/S, Copenhagen, Denmark as well as the MARK IV IVHS entities. The placement of the corporate bond led to an increase of non current financial liabilities in the cash flow from financing activities.
Cash and cash equivalents increased from EUR 47.7 million as of 31 March 2010 to EUR 76.4 million as of 31 December 2010.
Kapsch TrafficCom Group –
Consolidated statement of comprehensive income.
| All amounts in TEUR | Note | FY11-Q3 | FY10-Q3 | FY11 Q1-Q3 | FY10 Q1-Q3 |
|---|---|---|---|---|---|
| Revenue | (4) | 111,938 | 69,573 | 258,481 | 148,972 |
| Other operating income | 1,225 | 534 | 3,283 | 1,109 | |
| Changes in finished and unfinished goods and work in progress | -2,750 | 527 | -1,512 | 4,227 | |
| Other own work capitalized | 0 | 9 | 0 | 9 | |
| Cost of materials and other production services | -59,726 | -31,976 | -123,220 | -70,258 | |
| Staff costs | -22,212 | -14,679 | -59,291 | -41,904 | |
| Amortization of intangible assets and depreciation of property, plant and equipment |
-2,817 | -1,842 | -8,534 | -5,698 | |
| Other operating expenses | -20,694 | -11,044 | -45,995 | -29,858 | |
| Operating result | (4) | 4,963 | 11,101 | 23,212 | 6,599 |
| Finance income | 1,819 | -971 | 5,160 | 6,010 | |
| Finance costs | -2,143 | -2,972 | -4,794 | -4,893 | |
| Financial result | -324 | -3,943 | 367 | 1,117 | |
| Result from associates | 0 | 14,694 | 0 | 15,243 | |
| Profit before income taxes | 4,638 | 21,852 | 23,579 | 22,960 | |
| Income taxes | (10) | -2,412 | -2,368 | -6,755 | -1,300 |
| Profit for the period | 2,227 | 19,484 | 16,824 | 21,660 | |
| Other comprehensive income for the period | |||||
| Gains/losses recognized directly in equity: | |||||
| Available for sale financial assets | 629 | 1,037 | -2,726 | 1,831 | |
| Effects from disproportionate capital increase at associates | 0 | -10 | 0 | 69 | |
| Currency translation differences | 283 | 1,251 | 2,226 | 2,382 | |
| Income tax relating to components of other comprehensive income | -62 | -259 | -227 | -458 | |
| Other comprehensive income for the period net of tax | (11) | 849 | 2,019 | -727 | 3,824 |
| Total comprehensive income for the period | 3,076 | 21,503 | 16,097 | 25,484 | |
| Profit attributable to: | |||||
| Equity holders of the Company | 2,165 | 17,253 | 13,333 | 17,905 | |
| Minority interests | 62 | 2,231 | 3,491 | 3,754 | |
| 2,227 | 19,484 | 16,824 | 21,660 | ||
| Total comprehensive income attributable to: | |||||
| Equity holders of the Company | 2,753 | 19,213 | 12,049 | 21,442 | |
| Minority interests | 323 | 2,291 | 4,047 | 4,042 | |
| 3,076 | 21,503 | 16,097 | 25,484 | ||
| Earnings per share from the profit for the period attributable | |||||
| to the equity holders of the Company (in EUR) | 0.18 | 1.41 | 1.09 | 1.47 |
Earnings per share relate to 12.2 million shares.
The notes on the following pages form an integral part of this condensed interim financial information.
*) The condensed consolidated interim report has neither been audited nor been reviewed by an auditor.
| All amounts in TEUR | Note | 31 December 2010 | 31 March 2010 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (5) | 19,241 | 15,824 |
| Intangible assets | (5) | 80,928 | 28,529 |
| Other non-current financial assets and investments | 34,946 | 38,937 | |
| Other non-current assets | 10,117 | 8,481 | |
| Deferred tax assets | 14,584 | 9,650 | |
| 159,815 | 101,420 | ||
| Current assets | |||
| Inventories | 38,597 | 37,582 | |
| Trade receivables and other current assets | 150,220 | 101,448 | |
| Other current financial assets | 7,843 | 6,898 | |
| Cash and cash equivalents | 76,396 | 47,743 | |
| 273,056 | 193,671 | ||
| Total assets | 432,871 | 295,092 | |
| EQUITY | |||
| Capital and reserves attributable to equity holders of the Company | |||
| Share capital | (6) | 12,200 | 12,200 |
| Capital reserve | 70,077 | 70,077 | |
| Retained earnings and other reserves | 83,009 | 80,937 | |
| 165,286 | 163,214 | ||
| Minority interests | 11,119 | 5,035 | |
| Total equity | 176,405 | 168,249 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current financial liabilities | (7) | 84,115 | 10,060 |
| Liabilities from post-employment benefits to employees | (8) | 15,805 | 14,316 |
| Non-current provisions | (9) | 555 | 583 |
| Other non-current liabilities | 12,319 | 9,353 | |
| Deferred income tax liabilities | 13,945 | 3,284 | |
| 126,739 | 37,596 | ||
| Current liabilities | |||
| Trade and other current payables | 67,052 | 41,332 | |
| Other liabilities and deferred income | 41,406 | 25,933 | |
| Current tax payables | 7,291 | 5,900 | |
| Current financial liabilities | (7) | 9,662 | 9,237 |
| Current provisions | (9) | 4,316 | 6,845 |
| 129,727 | 89,247 | ||
| Total liabilities | 256,466 | 126,843 | |
| Total equity and liabilities | 432,871 | 295,092 |
The notes on the following pages form an integral part of this condensed interim financial information.
| All amounts in TEUR | |||||
|---|---|---|---|---|---|
| Attributable to equity holders of the Company | Minority interests |
Total equity | |||
| Share capital | Capital reserve | Consolidated retained earnings and other reserves |
|||
| Carrying amount as of 31 March 2009 | 12,200 | 70,077 | 47,769 | 4,194 | 134,240 |
| Dividend for 2008/09 | -6,100 | -2,288 | -8,388 | ||
| Total comprehensive income | 21,442 | 4,042 | 25,484 | ||
| Effects from the acquisition of minority interests |
1,538 | -1,538 | 0 | ||
| Carrying amount as of 31 December 2009 |
12,200 | 70,077 | 64,649 | 4,409 | 151,335 |
| Carrying amount as of 31 March 2010 | 12,200 | 70,077 | 80,937 | 5,035 | 168,249 |
| Dividend for 2009/10 | -9,150 | -3,248 | -12,398 | ||
| Total comprehensive income | 12,049 | 4,047 | 16,097 | ||
| Effects from business combinations | -827 | 5,285 | 4,458 | ||
| Carrying amount as of 31 December 2010 |
12,200 | 70,077 | 83,009 | 11,119 | 176,405 |
The notes on the following pages form an integral part of this condensed interim financial information.
| Cash flow from operating activities Operating result 4,963 11,101 23,212 6,599 Adjustments for non-cash items and other reconciliations: Depreciation and amortization 2,817 1,842 8,534 5,698 Increase/decrease in obligations for post-employment benefits -39 -94 -114 -310 Increase/decrease in other non-current liabilities and provisions -9 1 -28 0 Increase/decrease in other non-current receivables 319 -6,143 319 -6,143 Increase/decrease in trade receivables (non-current) 931 -4,724 2,868 -8,427 Increase/decrease in trade payables (non-current) 1,601 2,376 -1,636 10,770 Other (net) 290 -3,459 309 3,691 10,873 901 33,463 11,877 Changes in net current assets: Increase/decrease in trade receivables and other assets 10,998 8,501 -27,241 46,728 Increase/decrease in inventories 1,632 -457 1,760 -4,701 Increase/decrease in trade payables and other current payables 20,723 7,495 22,790 -8,295 Increase/decrease in current provisions -1,126 -68 -2,529 -1,441 32,227 15,472 -5,219 32,290 Cash flow from operations 43,100 16,373 28,244 44,167 Interest received 334 277 742 540 Interest payments -1,133 -701 -2,093 -1,952 Net payments of income taxes -1,509 -2,847 -4,789 -3,821 Net cash flow from operating activities 40,793 13,102 22,104 38.934 Cash flow from investing activities Purchases of property, plant and equipment -1,875 -640 -4,278 -2,192 Purchases of non-current intangible assets -1,368 -157 -1,523 -4,492 Payments for acquisition of companies (net of cash acquired) -50,630 0 -51,892 0 Payments for the acquisition of minority interests -1,000 0 -1,000 0 Proceeds from the sale of shares in subsidiaries 0 0 36 0 Proceeds from disposal of property, plant and equipment and intangible assets 202 19 233 20 Net cash flow from investing activities -54,671 -778 -58,424 -6,663 Cash flow from financing activities Dividends paid to equity holders of the company 0 0 -9,150 -6,100 Dividends paid to minority shareholders of group companies -2,645 -195 -3,248 -2,288 Increase in other non-current financial liabilities 73,861 0 74,127 0 Decrease in other non-current financial liabilities 0 0 -72 0 Increase in current financial liabilities -1,528 586 1,010 1,001 Decrease in current financial liabilities -205 -5,145 -586 -37,257 Net cash flow from financing activities 69,483 -4,754 62,081 -44,643 Change in cash and cash equivalents 55,605 7,570 25,761 -12,373 Cash and cash equivalents at beginning of period 19,240 42,034 47,743 60,230 Net decrease/increase in cash and cash equivalents 55,605 7,570 25,761 -12,373 Exchange gains/losses on cash and cash equivalents 1,550 44 2,891 1,791 |
All amounts in TEUR | FY11-Q3 | FY10-Q3 | FY11 Q1-Q3 | FY10 Q1-Q3 |
|---|---|---|---|---|---|
| Cash and cash equivalents at end of period | 76,396 | 49,648 | 76,396 | 49,648 |
The notes on the following pages form an integral part of this condensed interim financial information.
Kapsch TrafficCom Group is an international supplier of superior intelligent transportation systems (ITS).
The business activities of the Kapsch TrafficCom Group are subdivided into the following three segments:
The segment Road Solution Projects (RSP) relates to the installation of ITS solutions.
The segment Services, System Extensions, Components Sales (SEC) relates to the sale of services (maintenance and operation) and components in the area of ITS solutions.
The segment Others (OTH) relates to non-core business activities conducted by the subsidiary Kapsch Components KG. In this segment, engineering solutions, electronic manufacturing and logistics services ate offered to affiliated entities and third parties.
This condensed interim financial information for the third quarter of the current fiscal year 2010/11 ended 31 December 2010 has been prepared in accordance with IAS 34 "Interim financial reporting". The interim condensed financial report should be read in conjunction with the annual financial statements for the year ended 31 March 2010.
Except for new or amended IFRSs and IFRICs listed below the accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 March 2010, as described in the annual financial statements for the year ended 31 March 2010.
In this condensed interim financial information report the third quarter of the current fiscal year 2010/11 no new IFRSs and IFRICs have been adopted. The following amended IFRSs and IFRICs have been adopted:
| Amended IFRSs | Mandatory for accounting periods beginning on or after |
|
|---|---|---|
| IFRS 3 (rev) | Business Combinations | 1 July 2009 |
| FY11 Q1-Q3 All amounts in TEUR |
Road Solution Projects |
Services, System Extensions, Components Sales |
Others | Consolidated Group |
|---|---|---|---|---|
| Revenue | 105,903 | 147,836 | 4,741 | 258,481 |
| Operating result | -4,530 | 27,420 | 322 | 23,212 |
| FY10 Q1-Q3 | Road Solution | Services, System Extensions, |
Others | Consolidated Group |
| All amounts in TEUR | Projects | System Extensions, Components Sales |
Others | Consolidated Group |
|---|---|---|---|---|
| Revenue | 25,245 | 117,465 | 6,261 | 148,972 |
| Operating result | -21,347 | 27,891 | 55 | 6,599 |
The following table contains all single external customers which contributed more than 10 % to the total revenues of the period and additionally shows the information of the attributed operating segment.
| FY11 Q1-Q3 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 80,090 | x | x |
| Customer 2 | 56,510 | x | x |
| Customer 3 | 20,665 | x | |
| FY10 Q1-Q3 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 65,649 | x | x |
| Customer 2 | 0 | ||
| Customer 3 | 20,529 | x |
| All amounts in TEUR | Tangible and intangible assets |
|---|---|
| Carrying amount as of 31 March 2010 | 44,352 |
| Additions | 51,849 |
| Disposals | -288 |
| Change in consolidated entities | 12,346 |
| Depreciation, amortization, impairments and other movements | -8,536 |
| Currency translation differences | 445 |
| Carrying amount as of 31 December 2010 | 100,169 |
| Carrying amount as of 31 March 2009 | 42,976 |
| Additions | 6,684 |
| Disposals | -67 |
| Depreciation, amortization, impairments and other movements | -5,799 |
| Currency translation differences | -841 |
| Carrying amount as of 31 December 2009 | 42,952 |
The registered share capital of the company amounts to EUR 12,200,000. The share capital is fully paid in. The total number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.
| All amounts in TEUR | 31 December 2010 | 31 March 2010 | 31 December 2009 | 31 March 2009 |
|---|---|---|---|---|
| Non-current | 84,115 | 10,060 | 10,060 | 10,060 |
| Current | 9,662 | 9,237 | 13,903 | 49,210 |
| Total | 93,777 | 19,297 | 23,963 | 59,270 |
Movements in borrowings is analysed as follows:
| All amounts in TEUR | Non-current | Current | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2010 | 10,060 | 9,237 | 19,297 |
| Additions | 74,127 | 1,010 | 75,065 |
| Repayments of borrowings | -72 | -586 | -586 |
| Currency translation differences | 0 | 1 | 1 |
| Carrying amount as of 31 December 2010 | 84,115 | 9,662 | 93,777 |
The addition in non-current financial liabilities mainly relates to the placement of a 4.25 % corporate bond with a tenor of seven years and a volume of EUR 75 million on 3 November 2010. Taking into consideration the deduction of flotation cost as required by IFRS this led to an increase in non-current financial liabilities of TEUR 73,757 and an effective annual interest rate of 4.54 %.
| All amounts in TEUR | Non-current | Current | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2009 | 10,060 | 49,210 | 59,270 |
| Additions | 0 | 1,001 | 1,001 |
| Repayments of borrowings | 0 | -37,257 | -37,257 |
| Currency translation differences | 0 | 949 | 949 |
| Carrying amount as of 31 December 2009 | 10,060 | 13,903 | 23,963 |
| All amounts in TEUR | 31 December 2010 | 31 March 2010 | 31 December 2009 | 31 March 2009 |
|---|---|---|---|---|
| Severance payments | 5,582 | 5,561 | 5,104 | 5,294 |
| Pension benefits | 10,223 | 8,755 | 8,800 | 8,920 |
| Total | 15,805 | 14,316 | 13,904 | 14,214 |
The obligation to set up a provision for severance payments is based on the respective labor law.
Liabilities for pension benefits recognised at the balance sheet date relate to retirees only. All pension agreements are based on past service cost and are not covered by external plan assets (funds). In addition, contributions are paid to an external pension fund for employees of the Group.
| All amounts in TEUR | 31 December 2010 | 31 March 2010 | 31 December 2009 | 31 March 2009 |
|---|---|---|---|---|
| Non-current | 555 | 583 | 524 | 524 |
| Current | 4,316 | 6,845 | 9,181 | 10,623 |
| Total | 4,871 | 7,428 | 9,706 | 11,147 |
| All amounts in TEUR | 31 March 2010 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
31 December 2010 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 583 | 0 | -29 | 2 | 0 | 555 |
| Non-current provisions, total | 583 | 0 | -29 | 2 | 0 | 555 |
| Warranties | 2,361 | 0 | -222 | 16 | 162 | 2,317 |
| Losses from pending transactions and rework |
710 | 0 | -710 | 0 | 0 | 0 |
| Legal fees, costs of litigation and contract risks |
891 | 0 | -54 | 0 | 11 | 848 |
| Other | 2,883 | 0 | -2,358 | 594 | 32 | 1,151 |
| Current provisions, total | 6,845 | 0 | -3,344 | 610 | 205 | 4,316 |
| Total | 7,428 | 0 | -3,374 | 612 | 205 | 4,871 |
| All amounts in TEUR | 31 March 2009 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
31 December 2009 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 524 | 0 | -20 | 20 | 0 | 524 |
| Non-current provisions, total | 524 | 0 | -20 | 20 | 0 | 524 |
| Warranties | 1,820 | 0 | -464 | 284 | 53 | 1,692 |
| Losses from pending transactions | ||||||
| and rework | 934 | 0 | -188 | 0 | 0 | 746 |
| Legal fees, costs of litigation and contract risks |
3,228 | 0 | -2,581 | 1,000 | 55 | 1,703 |
| Other | 4,640 | 0 | -8,226 | 8,573 | 53 | 5,040 |
| Current provisions, total | 10,623 | 0 | -11,459 | 9,856 | 161 | 9,181 |
| Total | 11,147 | 0 | -11,479 | 9,876 | 161 | 9,706 |
Income taxes relate to current taxes and to deferred tax assets and deferred tax liabilities. Applying the Austrian corporate tax rate of 25 % to the Group's pre-tax result gives rise to the theoretical value for the tax expense/income. The effective tax expense/income differs from the above due to, among others, different tax regimes in the various countries, the treatment of tax losses, tax allowances and permanent differences.
The effective tax rate for the first three quarters of the current fiscal year is 29 %. In the same period of the previous year the effective tax rate was below this figure due to lower foreign tax rates. For the full year FY 11 management expects an effective tax rate of approximately 25 %.
| FY11 Q1-Q3 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | -2,726 | -227 | -2,953 |
| Currency translation differences | 2,226 | 0 | 2,226 |
| Fair value gains/losses recognized in equity | -501 | -227 | -727 |
The fair value gains/losses not realized relate for the most part to the investment in Q-Free ASA, Norway (TEUR -3,634).
| FY10 Q1-Q3 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | 1,831 | -458 | 1,373 |
| Effects from disproportionate capital increase at associates | 69 | 0 | 69 |
| Currency translation differences | 2,382 | 0 | 2,382 |
| Fair value gains/losses recognized in equity | 4,282 | -458 | 3,824 |
Kapsch TrafficCom AG, Vienna, through a previously acquired subsidiary, acquired 51.43 % of the increased share capital of TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa, under a capital increase on 8 April 2010. The consideration for the capital increase amounted to a total of Rand 75 million. This investment was increased to 56.81 % by an additional purchase of shares on 30 August 2010.
For the remaining 43.19% of the shares a put option, exercisable from 2012 to 2015 (with a potential extension to 2017), was granted to the minority shareholders. The strike price is based on the fair value of shares at the date of the exercise, whereby the maximum amount is limited by a cap. As a result of the structure of the put option, the minority interest continues to be recognised and no liability for the put option is accounted for.
| All amounts in TEUR | |
|---|---|
| Purchase price (incl. contingent purchase price components) 1) | 7,885 |
| Share of fair value of net assets acquired | 6,420 |
| Goodwill | 1,465 |
| 1) Adjustment compared to the amount shown as of 30 September 2010 |
The assets and liabilities arising from the acquisition are as follows:
| All amounts in TEUR | Adjusted Fair Value 1) |
Acquiree's carrying amount |
|---|---|---|
| Intangible assets | 6,683 | 359 |
| Property, plant and equipment | 1,267 | 1,267 |
| Receivables and other assets | 4,577 | 4,591 |
| Cash and cash equivalents | 7,170 | 7,170 |
| Payables, other liabilities and accruals | -7,215 | -5,357 |
| Net assets acquired | 12,483 | 8,029 |
On 5 November 2010 (signing) Kapsch TrafficCom AG agreed with the seller MARK IV LLC, U.S.A. to acquire, through certain subsidiaries, the businesses of MARK IV IVHS in the United States, Canada and Mexico. The closing occurred on 30 November 2010. The purchase price which is still subject to certain price adjustments based on working capital included with the acquired businesses amounts to USD 73 million (approximately EUR 55 million) at the moment.
Currently a purchase price allocation (PPA) is performed by an external consultant. Thus, for the report on the third quarter of fiscal year 2010/11, the total difference between purchase price and net assets acquired is shown under goodwill. For the time being no reliable estimate is possible of assets with a definite useful life due to the short period of time between closing and preparation of the interim report on the third quarter. The amortization and depreciation charges of these assets will have an impact on the result for the period. The PPA (provisionally determined) will be reflected in the consolidated financial statements as at 31 March 2011.
| All amounts in TEUR | |
|---|---|
| Purchase price | 55,035 |
| Share of fair value of net assets acquired | 8,735 |
| Goodwill | 46,300 |
The assets and liabilities arising from the acquisition are as follows (provisionally determined):
| All amounts in TEUR | Fair value | Acquiree's carrying amount |
|---|---|---|
| Intangible assets | 168 | 168 |
| Property, plant and equipment | 2,561 | 2,561 |
| Receivables and other assets | 18,813 | 18,813 |
| Cash and cash equivalents | 4,507 | 4,507 |
| Payables, other liabilities and accruals | -17,315 | -17,315 |
| Net assets acquired | 8,735 | 8,735 |
The Group's contingent liabilities primarily result from large scale projects.
Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance und bid bonds, sureties and acceptance of guarantees for subsidiaries vis-à-vis third parties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 31 December 2010 | 31 March 2010 |
|---|---|---|
| Contract, warranty, performance and bid bonds: | ||
| City Highway Santiago | 0 | 263 |
| City Highway Sydney and Melbourne | 2,411 | 2,881 |
| Truck tolling system Austria | 12,500 | 12,500 |
| Truck tolling system Czech Republic | 10,562 | 10,046 |
| Tolling projects in South Africa: Gauteng, Marian Hill, Huguenot | 148,744 | 117,084 |
| Tolling project Poland | 24,789 | 0 |
| Other | 607 | 1,069 |
| 199,613 | 143,844 | |
| Bank guarantees | 2,346 | 2,419 |
| Sureties | 30 | 30 |
| Total | 201,989 | 146,293 |
| All amounts in TEUR | Sales to related parties Q1-Q3 |
Sales from related parties Q1-Q3 |
Amounts owed by related parties 31 December |
Amounts owed to related parties 31 December |
|
|---|---|---|---|---|---|
| Affiliated companies outside the | FY11 | 1,171 | 11,595 | 4,750 | 2,569 |
| Kapsch TrafficCom Group | FY10 | 1,197 | 9,421 | 5,072 | 1,129 |
| FY11 | 0 | 2,964 | 0 | 9,415 | |
| Others | FY10 | 1 | 2,655 | 0 | 9,499 |
Additionally, in connection with the nationwide electronic truck tolling system in the Czech Republic, a payment guarantee in the Members of the executive and supervisory boards have management functions or are member in supervisory boards of other companies of the Kapsch Group.
After the end of the third quarter on 31 December 2010, the Kapsch TrafficCom Group was awarded a first contract in Russia to equip traffic crossings in the city of Kazan as well as further contracts with a total volume of approximately EUR 17 million in South Africa. The South African National Roads Agency Ltd (SANRAL) has indirectly awarded a first order of 918,000 on-board units (OBUs) for the open road tolling (ORT) system in the Gauteng province (GORT system) to Kapsch TrafficCom. Furthermore, the subsidiary TMT Services and Supplies (Pty.) Ltd has been recently awarded extensions to existing as well as new violation management contracts in the Gauteng area.
Vienna, 26 November 2010
Management Board
Georg Kapsch Erwin Toplak André Laux
Chief Executive Officer Chief Operating Officer Executive Board member
Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS). Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, as well as electronic access systems and parking management. With more than 250 references in 41 countries on all 5 continents, and with more than 42 million on-board units (OBUs) delivered and approximately 17,200 lanes equipped, Kapsch TrafficCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 29 countries.
Kapsch TrafficCom AG | Am Europlatz 2 | 1120 Vienna | Austria | www.kapschtraffic.com Investor Relations | Marcus Handl | Phone +43 50811 1120 | Fax +43 50811 99 1120 | E-mail [email protected] Public Relations | Brigitte Herdlicka | Phone +43 50811 1710 | Fax +43 50811 99 1710 | E-mail [email protected]
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