Earnings Release • May 24, 2007
Earnings Release
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Corporate | 24 May 2007 07:30
ARQUES enjoys more strong growth in the first quarter of 2007
ARQUES Industries AG / Quarter Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.
ARQUES enjoys more strong growth in the first quarter of 2007
Starnberg, May 24, 2007. The Starnberg-based private equity firm ARQUES
Industries AG (ISIN DE0005156004) has made a strong start to fiscal 2007.
Thanks to a number of acquisitions made during the period, revenues climbed
167% year-on-year to reach EUR 295.5 million in the first quarter. Earnings
before interest, taxes, depreciation and amortization (EBITDA) increased by
42% to EUR 32.9 million. Given this strong springboard, ARQUES has
confirmed its growth targets for 2007 and 2008.
Revenues jump 167%
ARQUES added four companies to its corporate group in the first quarter of
2007, taking the total to 20, with consolidated revenues increasing 167% to
EUR 295.5 million year-on-year accordingly. In the comparisons with the
prior year, it should be noted that the revenues for the prior year are EUR
30 million lower than previously disclosed, EBITDA approximately EUR 0.3
million higher, due to the deconsolidation of the print holding company
ARQUANA International Print & Media AG on December 29, 2006. Following
three further acquisitions at the start of the second quarter, the
company's annualized revenues exceeded the EUR 1.5 billion mark for the
first time, which is a good indicator for the level of revenue to be
expected for the year as a whole.
'ARQUES has made a very good start to fiscal 2007. Annualized revenues have
already topped EUR 1.5 billion, and we increased our profits by more than
40% in the first quarter. This puts us well on the way to hitting our
targets for 2007. Moreover, we still have a number of deals in the pipeline
to underpin our dynamic growth strategy,' commented Dr. Martin
Vorderwülbecke, the Chairman of ARQUES Industries AG's Executive Board.
EBITDA up more than 40%
The 42% rise in EBITDA to EUR 32.9 million notably reflects ARQUES' highly
successful acquisition activities repeated in the period under review and
the disposal of teutonia. In line with the ARQUES business model, the
EBITDA generated already includes significant start-up and restructuring
costs for the companies acquired during the period under review, which were
generating losses when taken over by ARQUES. The disposal of baby carriage
manufacturer teutonia completed in the first quarter yielded a cash
contribution of EUR 8.0 million. teutonia was the last company in the
ARQUES portfolio to still be accounted for using an old accounting standard
(IAS 22), which means that the majority of the gain on the purchase,
operation, and disposal of teutonia was recognized directly in
shareholders' equity without affecting the income statement. Consequently,
the gain on disposal recognized in the quarter under review totaled only
EUR 1.7 million. Similar effects are not expected for the remaining ARQUES
subsidiaries, as they are all accounted for under the new accounting
standards (IFRS 3).
The success of the restructuring processes is evident in the development of
the 'old' ARQUES subsidiaries, a category that includes all the companies
that were already part of the portfolio prior to fiscal 2006. The operating
EBITDA of these subsidiaries increased by 150%, from EUR 1.5 million to EUR
3.8 million, compared with the equivalent quarter last year.
At just under EUR 26 million, income from ordinary operations was up more
than a quarter year-on-year. The quarterly earnings per share totaled EUR
0.98, 3% up on the adjusted figure for the first quarter of 2006.
Balance sheet structure dominated by new subsidiaries
The balance sheet structure and the change in cash flow were also heavily
affected by the rise in the number of subsidiaries. Thus total assets
climbed from EUR 665.3 million at year-end 2006 to reach EUR 772.3 million.
The equity ratio amounted to 39% (December 31, 2006: 41%). The net asset
value of all subsidiaries rose from EUR 310.5 million in 2006 to EUR 340.6
million at March 31. Since the income from the reversal of negative
consolidation differences has to be deducted again in the cash flow
statement, ARQUES recorded an outflow from operating activities of EUR 12.4
million for net cash flow, which is similar to last year's outflow of EUR
11.7 million. Due to the sharp rise in investments, the free cash flow
reflects a net outflow of EUR 18.7 million after an outflow of EUR 7.8
million in the equivalent quarter last year.
More record years expected in 2007 and 2008
Given the strong start to fiscal 2007, the ARQUES Executive Board has
reaffirmed its forecasts for 2007, with a target of EUR 1.5 billion set for
revenues and EUR 180 million for EBITDA. Given that annualized revenues of
EUR 1.5 billion have already been achieved and further projects that could
yield far higher revenues than the acquisitions completed to date are still
in the planning stage, the consolidated revenue target is, if anything, on
the conservative side. From the present situation, the Executive Board
continues to expect consolidated revenues to total at least EUR 2 billion
in 2008, together with an at least proportional improvement in profit
compared with 2007.
You will find the complete interim report for the first quarter on our
website at www.arques.de.
About ARQUES Industries:
ARQUES Industries AG, Starnberg (www.arques.de), is a turnaround specialist
focusing on the acquisition and active restructuring of companies in crisis
situations. ARQUES Industries employs its own management team and resources
to turn its investments into competitive, profitable companies. ARQUES
revitalizes the value creation potential of its subsidiaries for the
benefit of all their stakeholders, while upholding its responsibility
towards the companies’ employees and the general public. ARQUES’ mission is
to identify undervalued companies with dim prospects for survival, but with
strong value creation potential. ARQUES has learned to master complex
corporate structures and crisis situations. The shares of ARQUES Industries
AG are traded in the Prime Standard segment of the Frankfurt Stock Exchange
under the symbol 'AQU' (ISIN: DE0005156004). The company’s shares have been
included in the SDAX index since September 19, 2005.
Contact:
ARQUES Industries AG
Investor Relations & Corporate Communication
Anke Lüdemann, CEFA/CIIA
Tel.: +49 (0) 8151/ 651 0
E-mail: [email protected]
Christian Schneider
Tel.: +49 (0) 8151/ 651 0
Email: [email protected]
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]
www: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: SDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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