Earnings Release • Mar 31, 2008
Earnings Release
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Corporate | 31 March 2008 11:00
ARQUES exceeds revenue and result targets for 2007
ARQUES Industries AG / Final Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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ARQUES exceeds revenue and result targets for 2007
Starnberg, March 31, 2008. ARQUES Industries AG (ISIN DE0005156004)
continued its dynamic growth in the financial year 2007 and again exceeded
its own targets. Thus the EBITDA (earnings before interest, taxes,
depreciation and amortisation) at EUR 202.7 million was not only
approximately 60% above the previous year's figure of EUR 126.2 million,
but slightly above the corporate guidance of EUR 200 million. Regarding
group revenues, the target of EUR 2.0 billion which ARQUES set itself was
also significantly exceeded. The actual group revenues of EUR 2.1 billion
correspond to an increase of 174% compared to the previous year’s level of
EUR 768 million.
Annualised revenues above EUR 5 billion at the end of 2007
In the financial year 2007 ARQUES executed a total of 15 acquisitions
whereby the group disposes of a total of 24 consolidated groups of
companies at the end of 2007. The annualised group revenues are a good
indication of the development in the new financial year. Contained herein
are the subsidiaries acquired in 2007 and partially or not at all allowed
for in the past financial year projected over a full year. This figure
amounted to more than EUR 5 billion at December 31, 2007 compared to EUR
1.3 billion at the end of 2006.
'ARQUES achieved its own targets in 2007 despite the general conditions
becoming more difficult in the second half year. With an EBITDA of EUR 203
million and group revenues of EUR 2.1 billion, we succeeded not only in
reaching new record figures but also in achieving substantial increases for
the fourth year running compared to the previous years’ financial figures.
The ARQUES business model also functions in more difficult times which is
evident from the two exits which have already been successfully executed in
2008', said Dr. Michael Schumann, ARQUES Industries AG chairman of the
executive board.
Exit revenues rise to EUR 108 million in 2007
The sale of four subsidiaries in 2007 with sales proceeds of approximately
EUR 108 million contributed substantially to the fact that the EBITDA
target of EUR 200 million was exceeded. The majority was allotted to the
sale of the remaining shares in SKW Stahl-Metallurgie AG. In view of the
acquisitions being on average substantially larger in relation to the
previous years, the so-called Bargain Purchase ('negative purchase price')
which is realised when acquiring new subsidiaries, also rose from EUR 92.8
million to EUR 214.7 million. The majority was allotted to the Anvis,
Eurostyle and SM Electronic groups. As is customary for the ARQUES business
model, the newly acquired companies usually show clearly negative results
in the first year of consolidation. Accordingly the operating results of
all subsidiaries were, like last year, in minus in 2007. The success of the
reorganisation of the subsidiaries is however evident from the companies
which were already acquired before 2007. These show an operating profit in
the reporting year.
The EBIT at EUR 140.5 million is 40% above the comparable previous year's
value. In view of the group’s financial debt due to acquisitions - a total
of EUR 145.6 million (previous year EUR 9.4 million) was invested for
company takeovers, in particular for Actebis - and thus the higher interest
charge in the financial result, the profit before taxes was at EUR 118.1
million (+ 21%), the net income for the year amounted to EUR 114.6 million
(previous year EUR 112.6 million). The diluted earnings per share amounted
to EUR 4.43 (previous year EUR 4.60) due to the capital increase of 9% in
May 2007.
Operative cash flow rises substantially
In view of the good operational development the net cash flow (from
operating activities) improved from EUR 2.1 million to EUR 42.2 million.
The free cash flow was influenced by the high investments in company
purchases and assets and slipped into negative figures from EUR 36.4
million by EUR -24.8 million. With cash and cash equivalents to the value
of EUR 84.5 million comparable to the previous year’s level (EUR 92.0
million), ARQUES nevertheless disposes of very solid funding at the year
end 2007. Due to acquisitions, total assets rose substantially from EUR
665.3 million to EUR 1,830.8 million. Due to the high investments however
the equity ratio decreased from 41.3% to 21.7% compared to the previous
year. In particular due to the Actebis takeover, the total financial
liabilities leaped from EUR 49.7 million to EUR 339.5 million. The net
asset value of all subsidiaries however rose from EUR 311 million in 2006
to approximately EUR 540 million despite more conservative capital market
conditional adjustments.
Confidence despite more difficult general conditions for 2008
Despite the significantly more difficult environment due to the current
state of the capital and financial markets, ARQUES is confident in being
able to show good results in 2008. The exact revenues and results will
depend largely on the number of company sales and acquisitions which can be
realised. The fact that the ARQUES business model is also successful in
difficult times is underlined by the fact that two company sales have
already been executed in the first quarter 2008. In February the building
supplier, Missel, was sold and in March the chemicals company, Oxiris.
Transaction proceeds of approximately EUR 13 million were obtained from the
sale of Missel which was acquired in November 2004, and approximately EUR
10.5 million from the subsidiary, Oxiris, acquired in May 2007. In view of
numerous further promising discussions concerning the sales of other
subsidiaries, ARQUES is very optimistic that further exits will take place
in 2008.
As in previous years, it is also expected that considerable revenues will
be generated in the current financial year from the so-called Bargain
Purchases (negative purchase prices) of acquisitions still to be executed.
The acquisition pipeline is well filled and ARQUES expects brisk takeover
activity in the current financial year.
Further information is available on the internet under www.arques.de. The
annual financial statements as approved by the Supervisory Board and the
final annual report will be published after the balance sheet meeting of
the Supervisory Board on April 15, 2008. The preliminary Annual Report 2007
can be found on www.arques.de.
About ARQUES
ARQUES Industries AG, Starnberg, (www.arques.de), is a business partner of
conglomerates regarding company spin-offs and a turnaround specialist who
focuses on the acquisition and the active restructuring of companies in
transitional situations, in order to develop these, with its own team and
own resources, to competitive enterprises with a positive yield. ARQUES
revitalises its subsidiaries' potential for creating value for the benefit
of all its stakeholders, taking on the relevant social responsibility. The
shares of ARQUES Industries AG are traded in the regulated market (Prime
Standard) of the Frankfurt Stock Exchange under the symbol 'AQU' (ISIN:
DE0005156004) and are listed in the MDAX as of October 1, 2007.
Contact
ARQUES Industries AG
Investor Relations & Corporate Communication
Anke Lüdemann, CEFA/CIIA
Email: [email protected]
Public Relations
Christian Schneider
Email: [email protected]
Tel.: +49 (0) 8151/ 651 0
31.03.2008 Financial News transmitted by DGAP
Language: English
Issuer: ARQUES Industries AG
Münchner Str. 15a
82319 Starnberg
Deutschland
Phone: +49 (0)8151 651-0
Fax: +49 (0)8151 651- 500
E-mail: [email protected]
Internet: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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