Quarterly Report • Oct 19, 2016
Quarterly Report
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The results figures in this highlights section are pro forma figures from continuing operations (last year's figures in brackets).
| 2016 | 2015 change | 2015 | 2016 | 2016* | 2015 change | 2015 | 2015 | 2015* | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| All figures in NOK million | 7-9 | 7-9 | % | 7-9 | 1-9 | 1-9 | 1-9 | % | 1-9 | 1-12 | 1-12 |
| Sales revenue | 91.8 | 88.7 | 3 % | 94.0 | 307.5 | 305.9 | 287.7 | 6 % | 322.3 | 435.4 | 394.2 |
| Gross profit | 79.2 | 76.1 | 4 % | 80.0 | 262.7 | 261.5 | 245.2 | 7 % | 270.3 | 368.0 | 335.6 |
| EBITDA | 11.0 | 11.1 | -1 % | 9.3 | 37.1 | 37.7 | 31.9 | 18 % | 26.9 | 39.9 | 46.1 |
| EBITDA margin | 12.0 % | 12.5 % -0,5 pts | 9.9 % | 12.1 % | 12.3 % | 11.1 % 1,2 pts | 8.3 % | 9.2 % | 11.7 % | ||
| Operating profit (EBIT) before non-recur. items | 6.3 | 6.4 | 0 % | 4.5 22.5 | 23.2 | 17.6 | 32 % | 12.0 | 20.1 | 26.4 | |
| EBIT margin before non-recurring items | 6.9 % | 7.2 % -0,3 pts | 4.8 % | 7.3 % | 7.6 % | 6.1 % 1,5 pts | 3.7 % | 4.6 % | 6.7 % | ||
| Operating profit (EBIT) | 6.3 | 6.4 | 0 % | 6.5 20.9 | 21.0 | 13.9 | 51 % | 10.3 | 18.8 | 22.7 | |
| EBIT margin | 6.9 % | 7.2 % -0,3 pts | 6.9 % | 6.8 % | 6.9 % | 4.8 % | 2 pts | 3.2 % | 4.3 % | 5.7 % | |
| Profit before tax | 5.9 | 6.2 | 19.7 | 9.9 | 19.7 | ||||||
| Profit for the period | 4.4 | 4.6 | 14.7 | 7.2 | 13.1 | ||||||
| Profit margin | 4.8 % | 4.8 % | 4.8 % | 2.2 % | 3.0 % | ||||||
| Net cash flow from operating activities |
4.4 | 5.3 | 11.6 | -9.3 | 20.8 | ||||||
| No. of employees at the end of the period | 387 | 378 | 2 % | 401 | 387 | 387 | 378 | 2 % | 401 | 400 | 381 |
* = Pro forma Profit & Loss and employee figures for continued operations. Other figures as reported.
In this report all comments comparing the Group's results with those achieved last year are based on pro forma figures unless otherwise stated. The pro forma figures exclude Itera's IT hosting unit in Sweden, which was sold with effect from 1 July 2015, as well as its consulting business in Sweden, which was closed in February 2016.
Itera achieved revenue growth of 3% in the third quarter of 2016 relative to the same period last year. This growth was achieved through its nearshore activities and its Norwegian consulting and product units, while the revenue generated by Itera's Danish activities and its IT hosting activities in Norway decreased slightly due to lower hardware sales.
The Group's operating profit (EBIT) before non-recurring items was NOK 6.3 million (NOK 6.4 million), giving an EBIT margin of 6.9% (7.2%). There were no non-recurring items in the third quarter of 2016, whereas a gain of NOK 2 million was recognised on the sale of Itera's IT hosting unit in Sweden in the third quarter of 2015.
In Norway the third quarters of 2016 and 2015 contained the same number of working days. A change of one working day represents an impact on earnings of slightly over NOK 1 million.
This consolidated interim financial report includes Itera ASA and its subsidiaries, and was prepared in accordance with IAS 34, which covers interim reporting, and the Securities Trading Act. The report has not been audited, and does not contain all the information required in an annual financial report. More information about the accounting principles used can be found in Itera's annual report for 2015.
The figures given in brackets in this report refer to the equivalent period in 2015. The comparable figures for tax expense and for balance sheet and cash flow items are the figures reported at 30 September 2015.
See Note 3 on alternative performance measures.
The Group reports operating revenue of NOK 91.8 million (NOK 88.7 million) for the third quarter of 2016, which represents growth of 3%. This revenue growth was largely achieved through the Group's nearshore services, whereas sales of hardware/software decreased significantly.
Gross profit (revenue – cost of goods sold) was NOK 79.2 million (NOK 76.1 million) in the third quarter. This represents growth of 4% for the quarter relative to the same period last year.
The Group's total operating costs were up 3% to NOK 85.5 million (NOK 82.4 million) in the third quarter of 2016.
Cost of goods sold was NOK 12.6 million (NOK 12.7 million) in the third quarter. Cost of goods sold principally consists of services purchased from sub-consultants, costs related to the Group's data centres, and third-party software licences and hardware that form part of larger deliveries. Cost of goods sold can vary significantly from quarter to quarter. Relative to the third quarter of 2015, less
hardware/software was purchased, while purchases from subconsultants increased.
Personnel costs were NOK 58.5 million (NOK 55.6 million) in the third quarter of 2016, representing an increase of 5%. Apart from general increases in salaries, the increase in personnel costs is due in part to higher provisions for bonuses.
Depreciation and amortisation totalled NOK 4.7 million (NOK 4.8 million) in the third quarter, and other operating costs totalled NOK 9.7 million (NOK 9.9 million).
The operating result before depreciation and amortisation (EBITDA) for the third quarter of 2016 was a profit of NOK 11.0 million (a profit of NOK 11.1 million in Q3 2015), and the operating result (EBIT) before non-recurring items was a profit of NOK 6.3 million (a profit of NOK 6.4 million in Q3 2015). The EBIT margin was 6.3% as compared to 7.2% in the same period last year.
Net financial items totalled NOK -0.4 million (NOK -0.2 million) in the third quarter of 2016.
The result before tax for the third quarter of 2016 was a profit of NOK 5.9 million (a profit of NOK 6.2 million in Q3 2015). Tax expense totalled NOK 1.5 million (NOK 1.7 million). Tax paid in the third quarter totalled NOK 0.0 (NOK 0.0).
Cash flow from operational activities was NOK 4.4 million (NOK 5.3 million) in the third quarter of 2016. This is NOK 6.7 million less than EBITDA, which is due primarily to a reduction in other current liabilities.
Work in progress at 30 September 2016 was NOK 4.7 million higher than at the same point in 2015, while accounts receivable from customers were NOK 4.9 million lower than at the end of the third quarter of 2015. Other current receivables were NOK 9.8 million lower, which largely relates to the closure of the company in Sweden.
Accounts payable at 30 September 2016 were NOK 1.0 million lower than at 30 September 2015, while public duties payable were NOK 3.2 million lower. Deferred tax assets were NOK 2.4 (3.2) million, while Tax payable increased from 0 to NOK 7.6 million. Other current liabilities were NOK 11.5 million lower, which was also principally due to the closure of the company in Sweden.
Bank deposits totalled NOK 51.6 million (NOK 53.8 million) at 30 September 2016, and the Group had an undrawn credit facility of NOK 25 million.
The Group had interest-bearing liabilities totalling NOK 21.4 million (NOK 12.2 million) at 30 September 2016 related to financial lease agreements entered into in order to finance investments related to IT hosting contracts.
Itera did not purchase any of its own shares during the third quarter. At 30 September 2016 the company held 965,445 own shares.
Equity at 30 September 2016 totalled NOK 55.5 million (NOK 61.5 million). This represented an equity ratio of 30% (32%).
The Group invested a total of NOK 5.1 million (NOK 2.1 million) in the third quarter of 2016.
Investment in Itera's IT hosting activities amounted to NOK 3.4 million (NOK 0.2 million) in the third quarter of 2016. Leasing accounted for NOK 1.8 million (NOK 0.0 million) of this amount. Investment in intangible assets (including software developed inhouse for ongoing yearly agreements) totalled NOK 1.7 million (NOK 1.5 million) in the third quarter of 2016.
At its meeting on 18 October 2016 the Board of Directors approved the payment of an additional dividend of NOK 0.15 per share for 2015 in accordance with the authorisation it was granted at the Annual General Meeting on 23 May 2016.
The market for the Group's services continued to be generally good across all countries. The majority of business processes and products are being digitalised, and more and more businesses have started to redefine their roles in accordance with this. The opportunities and technology needed to turn ideas previously regarded as impossible into reality are now available.
Itera is finding the market position that it has created in collaboration with its customers to be strong, and believes that the Group has the right knowledge, experience and approach to further strengthen its position: insight into advanced technology, a good understanding of business, and a strong focus on creating good user experiences. The Group's range of services in communication and technology are more relevant than ever before.
The Group experienced good order inflows in the third quarter, with customers such as the Norwegian Defence Estates Agency, PRA Group, Santander, Islandsbanki and Schibsted either extending existing or entering into new agreements.
These agreements span the whole range of the services offered by the Group, from consulting and strategy through to IT hosting and management via design and development. The design and development projects cover both business-critical core systems and communications solutions for Itera's customers to use with their own customers, existing as well as potential. The IT hosting and management services to an increasing degree involve setting up and hosting cloud-based platforms and applications rather than more traditional technology.
The Group is seeing an increasing trend for cross-selling across its service areas, which is to say that customers that have originally purchased consulting services from Itera are increasingly also buying hosting-related services, and vice versa.
Itera is entering into an increasing number of partnerships in order to compete for major long-term procurement contracts in both the public and private sectors.
An important milestone in the third quarter was that Norway's National Police Directorate signed a large contract with Gemalto, with Itera involved as a sub-contractor. The delivery is for a new national ID card with eID based on biometric technology and a new generation of Norwegian passports. The contract has an estimated revenue value of NOK 1.5 billion over eight years.
The age of digitalization in which we live when the world is changing extremely quickly necessitates a methodology that enables new
concepts to be tried out rapidly. Itera has therefore developed its own efficient methodology, which combines service design with the principles of lean start-up.
Itera's methodology has proved very popular with the Group's customers that are committed to innovation, high-quality user experiences and time to market, as it allows new ideas to be tested out without long preparatory project phases and comprehensive specifications.
The methodology ensures a strong focus on the user experience. Using an inter-disciplinary team made up of Itera, the customer and representative customers of the customer, it is possible to produce a user-tested concept in around one week.
During the quarter the Group carried out design sprints for many customers, including Santander, BankId and the Norwegian Directorate of eHealth.
Itera is one of the top-25 most innovative organisations in Norway
During the third quarter Itera was recognised as one of the top-25 most innovative organisations in Norway across all sectors, along with other strong brands such as DNV GL, Norwegian, Snøhetta, Telenor, Statoil and Schibsted.
For many years Norway's leading innovation news magazine, Innovasjonsmagasinet, has collaborated with Innovation Forum Norway to identify the top-25 most innovative organisations in Norway. The magazine's 25,000 readers were asked during the summer to nominate organisations in two categories, namely "Startups" and "Norwegian beacons of innovation"
Itera is the only stock exchange listed IT consulting company to be included on the list and is inspired by featuring in conjunction with some of Norway's strongest brands.
The Group has built up a leading position internationally in testing, which is an area that is growing strongly. In the third quarter Itera organised "QA Fest" in Kiev, a large specialist conference on testing with over 1,000 attendees. The conference brought together leading experts from 15 countries, with presentations on the latest news as well as on global trends in automated testing.
Itera has also distinguished itself among Europe's IT consulting companies by being nominated as a finalist in two categories of the European Software Testing Awards 2016.
A key part of Itera's strategy is to maintain and develop the Group's largest and most strategic relationships across national borders and areas of expertise. Itera has a strong customer portfolio in the Nordic region, where many customers are served from more than one of Itera's various locations.
The revenue from Itera's 30 largest customers grew by 9% in the third quarter of 2016 and accounted for 75% of the Group's operating revenue, up from 70% in the third quarter of 2015.
The Group is witnessing a clear tendency for more and more Nordic customers to purchase a wider range of services from Itera across international borders. Nearshoring and cloud services are natural drivers of this, but we are also seeing a greater tendency for personnel resources to be mobile and for project teams to be distributed across international borders in the Nordic region. This is making local presence less critical.
In the third quarter Itera entered into an agreement to provide testing services to Islandsbanki in Iceland. This is Itera's first customer in Iceland. The delivery will primarily be provided using nearshoring in the form of Testing as a Service (TaaS), and will gradually be expanded to additional testing areas.
The Group's headcount at the end of the third quarter of 2016 was 387 as compared to 378 the year before for the continued operations.
The proportion of Itera's capacity that is located nearshore (its nearshore ratio) was 36% (33%) at the end of the third quarter. The Group has development centres in Slovakia and Ukraine and has a strategic target of achieving a nearshore ratio of 50% in the future.
Itera's activities are influenced by a number of different factors, both inside and outside of the company's control. As a service company, Itera faces business risks associated with competition and pressure on prices, project overruns, recruitment, loss of key employees, customers' performance and bad debts. Market-related risks include risks related to the business cycle. Financial risks include currency fluctuations against the Norwegian krone (NOK), principally in relation to the Danish krone (DKK), the US dollar (USD) and the euro (EUR). In addition, interest rate changes will affect the returns earned by the Group on its bank deposits, as well as leasing costs and the cost of credit facilities.
The Group is exposed through its nearshore activities in Ukraine to additional risk factors such as country risk, data security and corruption. Itera has a zero tolerance policy on corruption and therefore does not deliver services to the public or private sectors in Ukraine.
More information about risks and uncertainties can be found in Itera's annual report for 2015.
The company's overall strategy of developing large, long-term customer relationships, increasing the number of project deliveries which involve the full range of the Group's services, using nearshore resources and focusing on operational efficiency remains unchanged.
Itera develops its range of services to meet customers' requirements, and its services are based on combining communication and technology.
The interim report for the fourth quarter of 2016 will be published and presented on 17 February 2017.
| 2016 | 2015* | change* | 2015 | 2016 | 2015* | change* | 2015 | 2015 | 2015* | |
|---|---|---|---|---|---|---|---|---|---|---|
| All figures in NOK 1000 | 7-9 | 7-9 | % | 7-9 | 1-9 | 1-9 | % | 1-9 | 1-12 | 1-12 |
| Sales revenue | 91 799 | 88 748 | 3 % 94 006 | 307 473 | 287 675 | 6 % 322 278 | 435 393 | 394 243 | ||
| Operating expenses | ||||||||||
| Cost of sales | 12 557 | 12 654 | -1 % | 14 003 | 44 748 | 42 502 | 5 % | 51 984 | 67 355 | 58 621 |
| Contribution margin | 79 242 | 76 094 | 4 % 80 003 | 262 725 | 245 173 | 7 % 270 294 | 368 038 | 335 623 | ||
| CM% | 86 % | 86 % | 0,6 pts | 85 % | 85 % | 85 % | 0,3 pts | 84 % | 85 % | 85 % |
| Personnel expenses | 58 535 | 55 567 | 5 % | 59 402 | 195 317 | 182 481 | 6 % | 206 883 | 275 383 | 246 868 |
| Depreciation | 4 691 | 4 774 | -2 % | 4 816 | 14 540 | 14 334 | 1 % | 14 914 | 19 779 | 19 741 |
| Other operating expenses | 9 680 | 9 901 | -2 % | 11 312 | 30 343 | 30 765 | -3 % | 36 511 | 52 731 | 42 625 |
| Total operating expenses | 85 463 | 82 895 | 3 % 89 533 | 284 947 | 270 082 | 5 % 310 292 | 415 248 | 367 854 | ||
| Operating profit before non-recurring items | 6 337 | 5 853 | 8 % | 4 473 | 22 526 | 17 593 | 32 % 11 986 | 20 145 | 26 389 | |
| Non-recurring items | 0 | - | -2 000 | 1 648 | 3 732 | -42 % | 1 732 | 1 381 | 3 732 | |
| Operating profit after non-recurring items | 6 336 | 5 853 | 8 % | 6 473 | 20 878 | 13 861 | 51 % 10 254 | 18 764 | 22 657 | |
| Financial items | - | - | - | - | - | |||||
| Other financial income | 311 | 748 | 661 | 2 821 | 4 509 | |||||
| Other financial expenses | 704 | 981 | 1 842 | 3 147 | 3 619 | |||||
| Net financial items | -393 | -233 | -1 181 | -326 | 890 | |||||
| Ordinary profit before tax | 5 943 | 6 240 | 19 697 | 9 928 | 19 654 | |||||
| Tax expense | 1 498 | 1 685 | 4 956 | 2 681 | 6 590 | |||||
| Profit for the period | 4 445 | 4 555 | 14 741 | 7 247 | 13 064 | |||||
| Earnings per share Fully diluted earnings per share |
0.05 0.05 |
0.06 0.05 |
0.18 0.18 |
0.09 0.09 |
0.16 0.16 |
|||||
| Statement of other income and costs | ||||||||||
| Currency translation differences | - | -684 | -172 | 8 | -417 | |||||
| Unreal. net effect on investments in foreign subsidiaries | - | - | - | 393 | 414 | |||||
| Profit for the period | 4 445 | 4 555 | 14 741 | 7 247 | 13 064 | |||||
| Total profit | 4 445 | 3 871 | 14 569 | 7 648 | 13 061 | |||||
| Attributable to: | ||||||||||
| Shareholders in parent company | 4 445 | 3 871 | 14 569 | 7 648 | 13 061 |
* = Pro forma figures for continuing operations
| 2016 | 2015 | change | 2015 | |
|---|---|---|---|---|
| All figures in NOK 1000 | 30 Sep | 30 Sep | % | Dec 31 |
| ASSETS | ||||
| Non-current assets | ||||
| Deferred tax assets | 2 368 | 3 177 | -25 % | 2 547 |
| Other intangible assets | 14 935 | 14 966 | 0 % | 15 274 |
| Fixed assets | 28 146 | 20 027 | 41 % | 29 979 |
| Total non-current assets | 45 449 | 38 170 | 19 % | 47 800 |
| Current assets | ||||
| Work in progress | 13 820 | 9 163 | 51 % | 9 463 |
| Accounts receivable | 55 046 | 59 969 | -8 % | 66 599 |
| Other receivables | 20 314 | 30 086 | -32 % | 22 905 |
| Bank deposits | 51 580 | 53 777 | -4 % | 68 351 |
| Total current assets | 140 760 | 152 996 | -8 % | 167 318 |
| TOTAL ASSETS | 186 209 | 191 166 | -3 % | 215 118 |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 24 656 | 24 656 | 0 % | 24 656 |
| Other equity | 16 141 | 29 606 | -45 % | 16 680 |
| Net profit for the period | 14 728 | 7 247 | 103 % | 13 064 |
| Total equity | 55 524 | 61 509 | -10 % | 54 401 |
| Non-current liabilities | ||||
| Non-current interest bearing liabilities | 21 360 | 12 230 | 75 % | 22 528 |
| Total non-current liabilities | 21 360 | 12 230 | 75 % | 22 528 |
| Current liabilities | ||||
| Accounts payable | 16 963 | 17 958 | -6 % | 24 768 |
| Tax payable | 7 599 | 11 | 71678 % | 3 211 |
| Public duties payable | 22 484 | 25 699 | -13 % | 29 321 |
| Other short-term liabilities | 62 278 | 73 759 | -16 % | 80 890 |
| Total current liabilities | 109 324 | 117 427 | -7 % | 138 190 |
| Total liabilities | 130 683 | 129 656 | 1 % | 160 717 |
| TOTAL EQUITY AND LIABILITIES | 186 208 | 191 166 | -3 % | 215 118 |
| Equity ratio | 30 % | 32 % | 0 % | 25 % |
| 2016 | 2015 | change | 2016 | 2015 | change | 2015 | |
|---|---|---|---|---|---|---|---|
| All figures in NOK 1000 | 7-9 | 7-9 | % | 1-9 | 1-9 | % | 1-12 |
| Cash flow from operating activities | |||||||
| Profit before taxes | 5 943 | 6 240 | -5 % | 19 697 | 9 928 | 98 % | 19 654 |
| Profit from sale of subsidiary | 0 | -2 000 | 100 % | -530 | -2 000 | 73 % | -2 348 |
| Tax paid | 0 | 0 | -148 | 0 | -327 | ||
| Depreciation | 4 691 | 4 816 | -3 % | 14 540 | 14 914 | -3 % | 20 366 |
| Change in w ork in progress |
3 023 | 3 506 | -14 % | -4 785 | 2 663 | -280 % | 2 363 |
| Change in accounts receivable | 2 709 | -2 787 | 197 % | 6 357 | -5 465 | 216 % | -12 095 |
| Change in accounts payable | -1 681 | -2 372 | 29 % | -4 702 | -7 382 | 36 % | -572 |
| Change in other accruals | -10 367 | -3 115 | -233 % | -18 550 | -22 495 | 18 % | -6 379 |
| Effect of currency changes | 40 | 1 044 | -96 % | -288 | 520 | -155 % | 126 |
| Net cash flow from operating activities | 4 359 | 5 333 | -18 % | 11 590 | -9 318 | 224 % | 20 786 |
| Cash flow from investment activities | |||||||
| Payment from sale of fixed assets | 140 | 0 | 140 | 0 | 0 | ||
| Investment in fixed assets | -1 658 | -508 | -226 % | -3 962 | -2 389 | -66 % | -2 856 |
| Investment in intangible assets | -1 737 | -1 564 | -11 % | -4 614 | -4 781 | 3 % | -6 744 |
| Receipt from sale of shares in other companies | 0 | 8 872 | 0 % | 0 | 8 872 | 0 % | 10 937 |
| Net payment from sale of subsidiary | 0 | 0 | -881 | 0 | 0 | ||
| Net cash flow from investment activities | -3 255 | 6 800 | -148 % | -9 317 | 1 702 | -647 % | 1 337 |
| Cash flow from financing activities | |||||||
| Purchase of ow n shares |
0 | -75 | 100 % | -3 604 | -75 | -4706 % | -456 |
| Sales of ow n shares |
0 | 69 | -100 % | 648 | 69 | 839 % | 69 |
| Borrow ings repaid |
-2 103 | -2 079 | -1 % | -6 361 | -5 790 | -10 % | -8 265 |
| Dividend | 0 | 0 | -9 727 | 0 | -12 309 | ||
| Net cash flow from financing activities | -2 103 | -2 085 | -1 % | -19 045 | -5 796 | -229 % | -20 961 |
| Net cash flow | -1 000 | 10 048 | -110 % | -16 771 | -13 412 | -25 % | 1 162 |
| Bank deposits at the beginning of the period | 52 580 | 43 729 | 20 % | 68 351 | 67 189 | 2 % | 67 189 |
| Bank deposits at the end of the period | 51 580 | 53 777 | -4 % | 51 580 | 53 777 | -4 % | 68 351 |
| New borrowing related to leasing | 1 753 | 0 | 5 193 | 1 988 | 161 % | 14 761 |
| STATEMENT OF CHANGES IN EQUITY | ||||||
|---|---|---|---|---|---|---|
| All figures in NOK 1000 | Share capital |
Ow n shares |
Other equity |
Translation differences |
Other equity |
Total equity |
| Shareholders' equity as of 31 Dec 2014 | 24 656 | 0 | 305 | -595 | 29 501 | 53 867 |
| Comprehensive income for the year | 0 | 0 | 0 | - 3 |
13 064 | 13 061 |
| Option costs | 0 | 0 | 97 | 0 | 0 | 97 |
| Purchase of ow n shares |
0 | -47 | 0 | 0 | -409 | -456 |
| Sale of ow n shares |
0 | 9 | 0 | 0 | 60 | 69 |
| Dividend | 0 | 0 | 0 | 0 | -12 237 | -12 237 |
| Shareholders' equity as of 31 Dec 2015 | 24 656 | -38 | 402 | -598 | 29 980 | 54 401 |
| Comprehensive income year to date 2016 | 0 | 0 | 0 | -402 | 14 741 | 14 339 |
| Option costs | 0 | 0 | - 3 |
0 | -24 | -27 |
| Purchase of ow n shares |
0 | -300 | 0 | 0 | -3 304 | -3 604 |
| Sale of ow n shares |
0 | 49 | 0 | 0 | 93 | 142 |
| Dividend | 0 | 0 | 0 | 0 | -9 727 | -9 727 |
| Shareholders' equity as of 30 Sep 2016 | 24 656 | -290 | 399 | -1 000 | 31 759 | 55 524 |
There have been no material transactions with related parties during the reporting period 31 December 2015 to 30 September 2016.
There have been no events after 30 September 2016 that would have an effect on the interim accounts.
The new guidelines issued by the European Securities and Markets Authority on alternative performance measures (APMs) have come into force for 2016. In accordance with these guidelines Itera is publishing definitions for the alternative performance measures used by the company. Alternative performance measures, i.e. performance measures not based on financial reporting standards, provide the company's management, investors and other external users with additional relevant information on the company's operations by excluding matters that may not be indicative of the company's operating result or cash flow. Itera has adopted non-recurring costs, EBITDA, EBITDA margin, EBIT, EBIT margin and equity ratio as alternative performance measures both because the company thinks these measures will increase the level of understanding of the company's operational performance and because these represent performance measures that are often used by analysts and investors and other external parties.
Non-recurring costs are significant costs that are not expected to reoccur under normal circumstances.
EBITDA is calculated as profit for the period before (i) tax expense, (ii) financial income and expenses and (iii) depreciation and amortisation.
EBITDA margin is calculated as EBITDA as a proportion of operating revenue.
EBIT is calculated as profit for the period before (i) tax expense and (ii) financial income and expenses.
EBIT margin is calculated as EBIT as a proportion of operating revenue.
Equity ratio is calculated as total equity as a proportion of total equity and liabilities.
| 2016 | 2015* | change | 2015 | 2016 | 2015* | change | 2015 | 2015 | 2015* | |
|---|---|---|---|---|---|---|---|---|---|---|
| All figures in NOK 1000 | 7-9 | 7-9 | % | 7-9 | 1-9 | 1-9 | % | 1-9 | 1-12 | 1-12 |
| Profit & Loss | ||||||||||
| Sales revenue | 91 799 | 88 748 | 3 % | 94 006 | 307 473 287 675 | 6 % | 322 278 | 435 393 394 243 | ||
| Gross profit 1 | 79 242 | 76 094 | 4 % | 80 003 | 262 725 245 173 | 7 % | 270 294 | 368 038 335 623 | ||
| EBITDA | 11 028 | 10 626 | 4 % | 9 289 | 37 066 | 31 927 | 18 % | 26 900 | 39 924 | 46 130 |
| EBITDA margin | 12.0 % | 12.0 % | 0 pts | 9.9 % | 12.1 % | 11.1 % | 1,2 pts | 8.3 % | 9.2 % | 11.7 % |
| Operating profit (EBIT) before non-recur. items | 6 337 | 5 853 | 8 % | 4 473 | 22 526 | 17 593 | 32 % | 11 986 | 20 145 | 26 389 |
| EBIT margin before non-recurring items | 6.9 % | 6.6 % | 0,3 pts | 4.8 % | 7.3 % | 6.1 % | 1,5 pts | 3.7 % | 4.6 % | 6.7 % |
| Operating profit (EBIT) | 6 336 | 5 853 | 8 % | 6 473 | 20 878 | 13 861 | 51 % | 10 254 | 18 764 | 22 657 |
| EBIT margin | 6.9 % | 6.6 % 0,3 pts | 6.9 % | 6.8 % | 4.8 % | 2 pts | 3.2 % | 4.3 % | 5.7 % | |
| Profit before taxes | 5 943 | 6 240 | 19 697 | 9 928 | 19 654 | |||||
| Profit for the period | 4 445 | 4 555 | 14 741 | 7 247 | 13 064 | |||||
| Balance sheet | ||||||||||
| Non-current assets | 45 449 | 38 170 | 45 449 | 38 170 | 47 800 | |||||
| Bank deposits | 51 580 | 53 777 | 51 580 | 53 777 | 68 351 | |||||
| Current assets | 140 760 | 152 996 | 140 760 | 152 996 | 167 318 | |||||
| Total assets | 186 209 | 191 166 | 186 209 | 191 166 | 215 118 | |||||
| Equity | 55 524 | 61 509 | 55 524 | 61 509 | 54 401 | |||||
| Total current liabilities | 109 324 | 117 427 | 109 324 | 117 427 | 138 190 | |||||
| Equity ratio | 29.8 % | 32.2 % | 29.8 % | 32.2 % | 0 | |||||
| Current ratio | 1.29 | 1.30 | 1.29 | 1.30 | 1 | |||||
| Cash flow | ||||||||||
| Net cash flow from operating activities |
4 359 | 5 333 | 11 590 | -9 318 | 20 786 | |||||
| Net cash flow | -1 000 | 10 048 | -16 771 | -13 412 | 1 162 | |||||
| Share information | ||||||||||
| Number of shares | 82 186 624 | 82 186 624 82 186 624 | 82 186 624 82 186 624 | |||||||
| Weighted average basic shares outstanding | 81 221 179 | 82 184 374 81 640 174 | 82 186 624 82 122 897 | |||||||
| Weighted average diluted shares outstanding | 83 350 179 | 84 160 374 83 905 174 | 84 177 624 83 553 897 | |||||||
| Profit per share | 0.05 | 0.06 | 0.18 | 0.09 | 0 | |||||
| Diluted Profit per share | 0.05 | 0.05 | 0.18 | 0.09 | 0 | |||||
| EBITDA per share | 0.14 | 0.13 | 5 % | 0.11 | 0.45 | 0.39 | 19 % | 0.33 | 0.49 | 0.56 |
| Equity per share | 0.68 | 0.75 | 0.68 | 0.75 | 0.66 | |||||
| Dividend per share | 0.00 | 0.00 | 0.12 | 0.00 | 0.15 | |||||
| Employees | ||||||||||
| Number of employees at the end of the period | 387 | 378 | 2 % | 401 | 387 | 378 | 2 % | 401 | 400 | 381 |
| Average number of employees | 378 | 374 | 1 % | 412 | 382 | 378 | 0 % | 434 | 425 | 383 |
| Operating revenue per employee | 243 | 237 | 2 % | 228 | 805 | 761 | 7 % | 743 | 1 024 | 1 029 |
| Gross profit 1 per employee | 210 | 203 | 3 % | 194 | 687 | 649 | 7 % | 623 | 866 | 876 |
| Personnel expenses per employee | 155 | 147 | 5 % | 144 | 511 | 483 | 6 % | 477 | 648 | 645 |
| Other operating expenses per employee | 26 | 26 | -3 % | 27 | 79 | 81 | -2 % | 84 | 124 | 111 |
| EBITDA per employee | 29 | 30 | -2 % | 23 | 97 | 84 | 18 % | 62 | 94 | 120 |
| EBIT per employee | 17 | 17 | -1 % | 11 | 59 | 47 | 32 % | 28 | 47 | 69 |
* = Pro forma Profit & Loss and employee figures for continuing operations. Other figures as reported.
EBIT
200 250 300 350 400 450 Q 1 Q 2 Q 3 Q 4 2014* 2015* 2016* Employees End of period
EBITDA margin
EBIT margin
* = pro forma
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