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C-RAD
Annual Report • Jan 27, 2022
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Annual Report
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C-RAD AB
YEAR-END REPORT
RECORD HIGH IN ORDER INTAKE, REVENUE AND OPERATING INCOME
Fourth Quarter 2021
- Order intake increased 9% to 132.9 (122.1) MSEK (12% in constant currencies).
- Order backlog amounted to 425.3 (350.5) MSEK.
- Revenue increased 4% to 77.4 (74.3) MSEK (8% in constant currencies).
- Operating income amounted to 14.9 (9.8) MSEK, corresponding to a margin of 19.3 (13.2) %.
- Net results after tax amounted to 11.4 (12.5) MSEK.
- Result per share amounted to 0.34 (0.37) SEK.
Significant Events During The Quarter
• C-RAD received a purchase order from the Belgium company Ion Beam Applications, regarding the supply of C-RAD's surface tracking solution for Chineese proton therapy center. The net order value amounted to 20 MSEK.
Full Year January – December 2021
- Order intake increased 13% to 353.5 (312.6) MSEK (15% in constant currencies).
- Revenue increased 18% to 261.2 (221.6) MSEK (21% in constant currencies).
- Operating income amounted to 36.0 (17.1) MSEK, corresponding to a margin of 13.8 (7.7) %.
- Net results after tax amounted 25.1 (14.4) MSEK.
- Result per share amounted to 0.74 (0.43) SEK.
Order Intake And Revenue (MSEK)
Summary Financial Result Fourth Quarter
| Q4, OCT-DEC | FULL YEAR | ||||||
|---|---|---|---|---|---|---|---|
| MSEK | 2021 | 2020 | Change | 2021 | 2020 | Change | |
| Order intake | 132,9 | 122,1 | 9% | 353,5 | 312,6 | 13% | |
| Revenues | 77.4 | 74,3 | 4% | 261,2 | 221,6 | 18% | |
| Gross profit | 50,9 | 42,9 | 19% | 165,7 | 131,6 | 26% | |
| Gross profit margin (%) | 66% | 58% | 63% | 59% | |||
| Operating income | 14,9 | 9,8 | 52% | 36,0 | 17,1 | 110% | |
| Operating margin | 19,3% | 13,2% | 13,8% | 7,7% | |||
| Net results after tax | 11,4 | 12,5 | 25,1 | 14,4 | |||
| Earnings per share (SEK) | 0,34 | 0,37 | 0,74 | 0,43 | |||
| Cash | 122,4 | 108,0 | 13% | 122,4 | 108,0 | ||
| Order backlog | 425,3 | 350,5 | 21% | 425,3 | 350,5 | ||
| out of which Products | 212,1 | 172,5 | 23% | 212,1 | 172,5 | ||
| out of which Service contracts | 213,2 | 178,0 | 20% | 213,2 | 178,0 |
CEO COMMENTS
" We are delivering a quarter and full year with a record high in all key metrics – order intake, revenue and operating profit.
Tim Thurn, CEO
YEAR-END REPORT 2021 2
When closing the year 2021 I can conclude we have done measurable progress towards our goal of establishing surface tracking technology as the standard of care in advanced radiation therapy. We are delivering a quarter and full year with a record high in all key metrics – order intake, revenue and operating profit. An achievement despite the increasingly challenging supply chain situation and the again rising implications of the pandemic.
Comparing to a strong quarter last year, growth in constant currencies for order intake and revenue amounted to 12 and 8 percent respectively, paired with an operating profit of 14.9 MSEK, a margin of 19 percent, compared to 9.8 MSEK in 2020 and a margin of 13 percent. The increased profitability is a function of a revenue growth with improved gross margin exceeding the increases in operating expenses, coming from enhancing our organization. For the full year revenue grew with 21 percent to 261 MSEK and the operating profit more than doubled to 36 MSEK, a margin of 14 percent. Essentially, the full year profitability increase is a confirmation that the investments made in the organization is generating a return.
Essentially, the full year profitability increase is a confirmation that the investments made in the organization is generating a return. "
The North American market is delivering a 29 percent growth in order intake for the full year. There is substantial potential for our technology and with our setup and the partnership with Elekta, C-RAD is well positioned to exploit this potential. It should be noted that during 2020 about two-third of the orders were booked in the fourth quarter since projects were stalled because of the operational implications for our customers due to the pandemic. The order intake growth in the region, commencing towards the end of 2020, has contributed to a full year revenue growth of 75 percent, a measurable part of the company's total growth for the year.
The APAC region continued to be affected by the pandemic, especially in Australia, where projects were stalled. However, towards the end of the year we noticed that the situation eased up again and we returned to growing order intake.
Our decision to establish an office in Delhi, India has shown first results in terms of orders with expected installations during the first half of 2022. China as the largest market for us in the APAC region continues to show steady growth in order intake for the full year. The vast unmet demand for cancer care in combination with the strong push to establish high-end radiation therapy is the driver for the development in China, which is also shown by the two important proton therapy projects that C-RAD secured in December. Considering a very successful order intake from Japan and Australia in 2020, the region shows a minor decline in order intake for the full year 2021 but ending on a positive trend with a 23 percent growth in the fourth quarter.
The EMEA region is showing a strong recovery both in order intake and revenue growth in the fourth quarter, lifting the region to a full year growth in order intake and revenue of 20 and 23 percent respectively.
Order intake of our positioning products, our largest category, increased across all regions with 16 percent during 2021, which is a very encouraging development and underlines once more the demand for surface tracking in the market. Revenue generated from long term service contracts grew with 40 percent over the previous year and constitutes 13 percent of the annual revenue – as compared to 11 percent in the previous year. This is an important driver behind improved margins for both gross- and operating profit. Moreover, this confirms the trend of an increasing number of customers willing to outsource services to C-RAD and therewith maintain an up-to-date, highly available system over the lifetime of the product.
C-RAD has strengthened the organization during the year, primarily our service organization. In addition, we have continued to invest in new product developments to intensify the cooperation with the OEM's. The latest example is the integration and validation of C-RAD's Catalyst+ system with Elekta's latest linear accelerator – Harmony. All Elekta linear accelerators are now certified for compatibility with the full capabilities of the Catalyst family of products.
I want to take the opportunity to give a big thank you to the C-RAD team, our customers, and partners for the commitment and trust during the last year. It is great to see the progress that C-RAD made. We ended the year with a high level of interest in the marketplace for our solutions, and we are in an excellent position and well prepared to continue in 2022 working towards our goal of making surface tracking standard of care.
Tim Thurn, CEO
FINANCIAL DEVELOPMENT, GROUP
Order Intake
Order intake for the fourth quarter amounted to 132.9 (122.1) MSEK, a growth of 9 percent. In constant currencies order intake increased 12 percent compared to the corresponding quarter 2020. Americas is demonstrating a significant recovery for the full year with a 29 percent growth, the decline of 44 percent in the fourth quarter is a function of order intake in 2020 being weighted towards the end of the year due to the pandemic. The APAC had a very strong order intake in 2020, especially in Japan and Australia, and has overall been negatively affected by the pandemic during the second half of 2021. Market conditions improved towards the end of the year generating a growth in the quarter of 23 percent. China being the largest part of the region showed steady growth during 2021. Order intake in EMEA grew with 67 percent for the quarter compared to last year, with solid performance in most parts of the region, generating a full year growth of 20 percent.
Sales of positioning products generated an increase of 18 percent in the quarter and 16 percent for the full year, again confirming the progress in the concept of making C-RAD solutions standard of care. Sales of service contracts (Life Cycle Business) decreased 7 percent comparing to the very strong fourth quarter 2020 but increased for the full year with 4 percent.
For the full year order intake amounted to 353.5 (312.6) MSEK, a growth of 13 percent and 15 percent in constant currencies.
Q4 Order Intake (MSEK) – By Market
Q4 Order Intake (MSEK) – By Product Category
Jan-Dec Order Intake (MSEK) – By Market
Jan-Dec Order Intake (MSEK) – By Product Category
Revenues
Revenues grew 4 percent to 77.4 (74.3) MSEK in the quarter. In constant currencies the growth was 8 percent. APAC revenue decreased 40 percent, due to a strong period last year when major orders were delivered in particularly Japan and Australia, regions that have been negatively affected by the pandemic during 2021. Revenue in the region for the full year decreased more moderately with 7 percent. Revenue in Americas grew 69 percent, a result from increased sales over the last quarters now converting into deliveries. Revenue in EMEA generated a growth of 42 percent in the quarter and 23 percent for the full year. Revenue for Life Cycle Business (service contracts) increased with 36 percent in the quarter and 40 percent for the full year and is an increasing part of the company's total revenue.
For the full year revenue increase 18 percent to 261.2 (221.6) MSEK, 21 percent in constant currencies.
Q4 Revenue (MSEK) – By Market
Q4 Revenue (MSEK) – By Product Category
Revenue Jan-Dec (MSEK) – By Market
Revenue Jan-Dec (MSEK) – By Product Category
Seasonality
There is a seasonal pattern in C-RAD's operations. The second half of the year is usually the strongest periods, both in terms of order intake and revenue. This is due to the fact that a large number of customers are hospitals and clinics, which have annual budgets aligned to the calendar year. As the larger part of C-RAD's cost base is fixed, fluctuations in revenue have a direct impact on the quarterly operating profit. Volatility in order intake between quarters and markets is to be expected in our business.
Order Intake, Revenue And Operating Profit Before IAC (MSEK)
Order Backlog And Order Conversion Rate
The order backlog represents orders that have been received but not delivered and invoiced. The backlog amounted to 425.3 (350.5) MSEK at the end of the quarter, an increase of 21 percent compared to same period last year. From the total order backlog, 212.1 (172.5) MSEK relates to products and 213.2 (178.0) MSEK refer to Life Cycle Business (service contracts). Two Asian orders with a total value of 2.9 MSEK has been cancelled in the fourth quarter, since the customer due to the pandemic has not been able to take delivery within agreed time period stipulated in the terms and conditions.
The weighted average delivery time for products recognized as revenue in the fourth quarter was six months. The average delivery time for the full year was seven months. This is the time from the reception of an order until delivery has been made, and thus recognition of revenue. The average delivery time depends on several factors and varies between periods.
31.6 MSEK, representing 15 percent of the order backlog for Life Cycle Business, will be recognized as revenue within 12 months, as service contracts are recognized as revenue over the contract period. The service contract can be up to eight years while the most common contract period is three to five years.
Order Backlog (MSEK)
YEAR-END REPORT 2021 6
Gross Profit
Gross profit margin was 66 (58) percent during the fourth quarter 2021. For the full year the gross profit margin was 63 (59) percent. Fluctuations in gross profit can be expected between periods as it is dependent on the product mix and a variation of sales channels in our different markets, where a larger portion of direct sales was the main driver behind the improved gross margin in the fourth quarter. Cost of goods sold in the fourth quarter 2020 included commission to sales channel partners of 3.1 MSEK. Hence, the underlying gross margin in 2020 was 60 percent in the quarter and 60 percent for the full year.
External Expenses
External expenses for the quarter amounted to 14.5 (14.1) MSEK for the quarter and 52.5 (44.3) for the full year. Last year's total external expenses were significantly impacted by the pandemic, with virtually no travel or physical marketing events taking place.
Personnel Expenses
Personnel expenses for the quarter amounted to 20.1 (15.8) MSEK and for the full year to 71.7 (64.8) MSEK. Last year pandemic related governmental support in various regions reduced personnel expenses. The average number of employees amounted to 66 during the fourth quarter 2021, compared to 56 during the corresponding period in 2020. At the end of 2021, the number of employees in the Group amounted to 66 (55).
Other Operating Income/Expenses
The main composition of other operating income and expenses relates to fluctuations in exchange rates, and thus the revaluation of balance sheet items, further described in Note 2 section.
Capitalized Development Costs
Capitalizations during the fourth quarter of 2021 amounted to 1.1 (1.5) MSEK and are related to continued development of the Positioning products. Amortization of capitalized development expenditures amounted to 1.0 (1.0) MSEK during the quarter.
For the full year 4.6 (5.3) MSEK have been capitalized and 3.8 (3.5) MSEK has been amortized. Total capitalized development costs amounted to 15.7 (15.1) MSEK at the end of 2021.
Operating Income And Net Result
Operating income for the quarter amounted to 14.9 (9.8) MSEK, corresponding to a margin of 19.3 (13.2) percent. For the full year the operating income amounted to 36.0 (17.1) MSEK, a margin of 13.8 (7.7) percent. The increase in operating income and improved margins is a function of the growth in revenue with improved gross margin and cost control in general.
Net results after tax in the quarter amounted to 11.4 (12.5) MSEK, corresponding to 0.34 (0.37) SEK per share. For the full year net results after tax amounted to 25.1 (14.4) MSEK, corresponding to 0.74 (0.43) SEK per share. The tax expense refers to the reversal of deferred tax assets for the Swedish entities and does not affect cash flow. The total deferred tax assets amount to 13.1 (23.7) MSEK.
Cash Flow And Net Financial Income
Cash flow from operating activities amounted to 13.1 (17.5) MSEK for the quarter and 18.1 (18.4) MSEK for the full year. During the first quarter the option program from 2018 was converted into shares generating a capital increase and in the second quarter the 2021 program was initiated, totaling 4.2 MSEK. Total liquid funds at the end of the period amounted to 122.4 (108.0) MSEK. In addition, the company has an unused credit facility of 20 MSEK.
Net financial income for the quarter amounted to -0.1 (-0.1) MSEK and -0.3 (-0.7) for the full year. The company has no external debt nor uses factoring, hence the neglectable financial cost.
Legal Disputes
On July 1st the Patent and market court rejected a claim from a former employee for compensation for an invention made during the employment. Furthermore, the court verdict states that the former employee should bare C-RADs legal fees, amounting to 2.9 MSEK, which will be recognized in the profit and loss statement when refunded, a claim has been raised towards the counterpart but thus far no payment has been received. The verdict was appealed by the counterpart on July 22nd, which has been granted by the court but thus far no hearing date confirmed.
With regards to the governmental support received in Sweden C-RAD, like many other companies, has experienced errors with the reporting infrastructure of the authority, leading to an erroneous claim of reimbursement from the authorities with a potential negative effect on the result of 0.9 MSEK. C-RAD assess the claim as not valid and has disputed it and is now with the administrative court. Given the vast number of similar cases the court has not been able to indicate any timing of a verdict.
All expenses for the disputes are recognized as cost when they arise.
Ongoing Incentive Programs
Below is a summary of active long-term incentive programs. The incentive program consists of warrants, valued in accordance with the Black & Scholes valuation model.
| Number of | Exercise | Average | Total capital increase as per |
Total capital increase upon |
||||
|---|---|---|---|---|---|---|---|---|
| subscribed | Earliest date | Latest date | price | warrant price | balance sheet | exercise 100% | ||
| warrants | Start date | for exercise | for exercise | (kr/aktie) | (SEK/warrant) day (SEK) | (SEK) | ||
| Incentive program 2019/2022 | 94 991 | 2019-05-23 | 2022-02-01 | 2022-04-30 | 47.64 | 3.1 | 295 542 | 4 820 913 |
| Incentive program 2020/2023 | 100 000 | 2020-05-26 | 2023-02-01 | 2023-04-30 | 40.04 | 4.8 | 479 192 | 4 483 201 |
| Incentive program 2021/2024 | 39 480 | 2021-05-24 | 2024-02-01 | 2024-04-30 | 63,21 | 11,5 | 454 020 | 2 949 551 |
Significant Risks And Uncertainties
Reference is made to the Annual Report 2020 for significant risks and uncertainties.
Other Significant Events During The Quarter
There were no other significant events in reporting period other than what has been described in the report above.
Other Significant Events After The Reporting Period
There were no other significant events after the reporting period.
Parent Company
No operations are carried in the Parent Company except for Group Management and administration. For the full year period, revenues for the Parent Company amounted to 25.5 (22.1) MSEK and the operating income was 0.5 (-7.7) MSEK.
Appropriation of the company's profit or loss
The board will propose to the Annual General Meeting that all available funds be carried forward.
Nomination Comittee
C-RAD's Nomination Committee ahead of the 2022 Annual General Meeting comprises:
- Anna Frick (appointed by Svea Ekonomi)
- Lars Nyberg
- Gaétan Boyer (appointed by Hamberg Förvaltning)
The Nomination Committee has appointed Gaétan Boyer as Chairman of the Committee.
The Nomination Committee is tasked ahead of the 2022 Annual General Meeting with preparing proposals pertaining to the number of Board members, Board fees, the composition of the Board, election of the Chairman of the Board, election of the Chairman of the Annual General Meeting, auditors' fees and the election of auditors as well as guidelines for appointing the Nomination Committee.
Proposal to the nomination committee can be delivered via email: [email protected] no later than February 14, 2022.
Annual General Meeting 2022
The annual general meeting for C-RAD AB will be held on May 6, 2022. Time and place to be announced in conjunction with the call.
Upcoming Events
| April 13, 2022 | Annual Report 2021 |
|---|---|
| May 6, 2022 | |
| May 6, 2022 | Interim Report for January-March/webcast |
| Annual General MEeting 2022 | |
| July 21, 20221 | Interim Report for April-June/webcast |
| October 28, 2022 | Interim Report for July-September/webcast |
| January 26, 2023 | Consolidated Year-End Report 2022/webcast |
Shareholders
Current list of shareholders is available on the following link; https://c-rad.se/shareholders/
Presentation of the Year-End Report
CEO Tim Thurn and CFO Henrik Bergentoft will present the year-end report by Webcast on Thursday January 27th at 11:00 CET. After the presentation, there will be room for questions and answers. The presentation will be held in English. To participate in the presentation live, please register through the link below:
https://us06web.zoom.us/w/84796452723?tk=zU09nKJAKZtQ-j39kL7trSyz2mqasGPBNXeDv_F1lhk. DQMAAAATvkMvcxZncGMzS3JzSVNkQ25LSWtVYWI4RlJBAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
Future Outlook
We remain confident about our market opportunity and are convinced that C-RAD is in a good position to outgrow the market. C-RAD will continue to improve efficiency in cancer treatments for health care providers, better in quality and safer for patients and medical personnel.
Certification By The CEO
The Chief Executive Officer of C-RAD AB confirms that this year-end report provides a true and fair view of the Group's operations, financial position and earnings, and provides an overview of the significant risks and uncertainties that the company and the group companies are facing.
This year-end report has not been reviewed by the company auditors.
If there are any deviations between the reports in English and Swedish, the Swedish version is valid.
Uppsala, January 27, 2022
Tim Thurn CEO
C-RAD AB (publ)
C-RAD AB (publ) Sjukhusvägen 12 K, SE-753 09 Uppsala, Sweden Telephone +46 (0)18 - 66 69 30 www.c-rad.com Corp. reg. no 556663-9174
For more information: Tim Thurn, CEO, Phone: +46 (0)18 66 69 30
C-RAD AB is listed on Nasdaq Stockholm Small Cap since December 2014. The information in this report is such that C-RAD is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act.
The information was submitted for publication, through the agency of the contact person set out above, on January 27, 2022 at 8:30 am.
| Consolidated Income Statement in brief | Q4 | Q4 | Full Year | Full Year |
|---|---|---|---|---|
| MSEK | 2021 | 2020 | 2021 | 2020 |
| Revenues | 77,4 | 74,3 | 261,2 | 221,6 |
| Raw material and consumables | -26,5 | -31,4 | -95,5 | -90,0 |
| Gross profit | 50,9 | 42,9 | 165,7 | 131,6 |
| Gross profit margin | 66% | 58% | 63% | 59% |
| Other external expenses | -14,5 | -14,1 | -52,5 | -44,3 |
| Personnel expenses | -20,1 | -15,8 | -71,7 | -64,8 |
| Capitalized development costs | 1,1 | 1,5 | 4,6 | 5,3 |
| Depreciation | -2,5 | -2,6 | -9,7 | -9,0 |
| Other operating income/expenses | 0,1 | -2,0 | -0,3 | -1,6 |
| Total operating expenses | -35,9 | -33,1 | -129,7 | -114,5 |
| Operating income | 14,9 | 9,8 | 36,0 | 17,1 |
| Financial income | 0,0 | 0,0 | 0,0 | 0,0 |
| Financial costs | -0,1 | -0,1 | -0,3 | -0,7 |
| Income before tax | 14,9 | 9,7 | 35,7 | 16,4 |
| Tax | -3,5 | 2,7 | -10,6 | -2,0 |
| Net income | 11,4 | 12,5 | 25,1 | 14,4 |
| (Attributable to Parent company´s shareholders) | ||||
| Results per share before dilution | 0,34 | 0,37 | 0,74 | 0,43 |
| Results per share after dilution | 0,34 | 0,37 | 0,74 | 0,43 |
| Consolidated Statement of Comprehensive Income | Q4 | Q4 | Full Year | Full Year |
| MSEK | 2021 | 2020 | 2021 | 2020 |
| Net income | 11,4 | 12,5 | 25,1 | 14,4 |
| Other comprehensive income | ||||
| Income/expenses recognized in equity | ||||
| Exchange differences on translating foreign operations | 0,2 | -3,1 | 2,0 | -3,1 |
| Other comprehensive income of the period (after tax) | 11,6 | 9,4 | 27,1 | 11,2 |
| Total comprehensive income for the period | 11,6 | 9,4 | 27,1 | 11,2 |
| (Attributable to Parent company´s shareholders) | ||||
| Q4 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|
| Revenue per geographical market | 2021 | 2020 | 2021 | 2020 |
| Americas | 17,9 | 10,6 | 51,2 | 29,2 |
| EIMEA | 37,1 | 26,2 | 127,9 | 104,1 |
| APAC | 22,4 | 37,5 | 82,1 | 88,3 |
| Total | 77,4 | 74,3 | 261,2 | 221,6 |
| Q4 | Q4 | Full Year | Full Year | |
|---|---|---|---|---|
| Revenue per product category | 2021 | 2020 | 2021 | 2020 |
| Positioning products | 64,0 | 60,9 | 211,8 | 183,4 |
| HIT Laser | 4,0 | 6,5 | 15,6 | 14,1 |
| Life Cycle Business | 9,4 | 6,9 | 33,7 | 24,1 |
| Total | 77,4 | 74,3 | 261,2 | 221,6 |
Segment reporting is based on the same accounting principles as applied in the consolidated financial statements for 2020.
| Consolidated Balance Sheet in brief | 31-12-2021 | 31-12-2020 |
|---|---|---|
| MSEK | ||
| Non-current assets | ||
| Intangible assets | 17,0 | 17,9 |
| Tangible assets | 3,3 | 3,2 |
| Right-of-use assets | 9,3 | 9,9 |
| Long-term receivables | 0,0 | 0,1 |
| Deferred tax receivables | 13,1 | 23,7 |
| Total non-current assets | 42,6 | 54,7 |
| Current assets | ||
| Inventory | 17,2 | 25,7 |
| Current receivables | 124,4 | 82,1 |
| Cash and liquid assets | 122,4 | 108,0 |
| Total current assets | 264,1 | 215,8 |
| Total assets | 306,7 | 270,5 |
| Equity | ||
| Equity | 231,1 | 199,8 |
| Non-current liabilities | ||
| Long-term lease liabilities | 6,4 | 7,4 |
| Total non-current liabilities | 6,4 | 7,4 |
| Current liabilities | ||
| Current liabilities | 69,2 | 63,3 |
| Total current liabilities | 69,2 | 63,3 |
| Total equity and liabilities | 306,7 | 270,5 |
| Consolidated Cash Flow Statement in brief | Q4 | Q4 | Full Year | Full Year |
|---|---|---|---|---|
| MSEK | 2021 | 2020 | 2021 | 2020 |
| Operating income | 14,9 | 9,8 | 36,0 | 17,1 |
| Adjustment for non-cash items | 2,5 | 2,6 | 10,1 | 9,3 |
| Interest paid | 0,0 | 0,0 | 0,0 | -0,6 |
| Cash flow from operating activities before working capital changes | 17,5 | 12,4 | 46,1 | 25,8 |
| Changes in working capital | -4,4 | 5,0 | -27,9 | -7,3 |
| Cash flow from operating activities | 13,1 | 17,5 | 18,1 | 18,4 |
| Investments | -1,2 | -2,2 | -5,8 | -6,8 |
| Cash flow from investing activities | -1,2 | -2,2 | -5,8 | -6,8 |
| New share issue | 0,0 | 0,0 | 0,0 | 104,7 |
| Premiums received for warrants | 0,0 | 0,0 | 4,2 | 0,5 |
| Amortization of loan | 0,0 | 0,0 | 0,0 | -34,7 |
| Amortization of lease liabilities | -0,8 | -0,7 | -3,2 | -2,5 |
| Cash flow from financing activities | -0,8 | -0,7 | 1,0 | 68,0 |
| Net increase (decrease) in cash and cash equivalents | 11,1 | 14,5 | 13,4 | 79,7 |
| Cash and liquid assets at beginning of period | 111,0 | 94,0 | 108,0 | 29,5 |
| Exchange rate differences | 0,4 | -0,5 | 1,0 | -1,1 |
| Cash and liquid assets at end of period | 122,4 | 108,0 | 122,4 | 108,0 |
| Change in Group Equity | Q4 | Q4 | Full Year | Full Year |
|---|---|---|---|---|
| MSEK | 2021 | 2020 | 2021 | 2020 |
| Opening balance | 219,6 | 190,3 | 199,8 | 83,3 |
| Warrants program | 0,0 | 0,0 | 4,2 | 0,5 |
| New share issue | 0,0 | 0,0 | 0,0 | 110,4 |
| Cost of share issue | 0,0 | 0,0 | 0,0 | -5,7 |
| Changes in the period | 0,0 | 0,0 | 4,2 | 105,2 |
| Total comprehensive income for the period | 11,6 | 9,4 | 27,1 | 11,2 |
| Closing balance at end of period | 231,1 | 199,8 | 231,1 | 199,8 |
| Parent Company Income Statement in brief | Full Year | Full Year |
|---|---|---|
| MSEK | 2021 | 2020 |
| Revenues | 25,5 | 22,1 |
| Operating expenses | -25,0 | -29,8 |
| Operating income | 0,5 | -7,7 |
| Financial items | -2,0 | -2,1 |
| Income before tax | -1,5 | -9,8 |
| Tax | -0,1 | 1,6 |
| Net income | -1,6 | -8,2 |
| Parent Company Balance Sheet in brief MSEK |
31-12-2021 | 31-12-2020 |
|---|---|---|
| Intangible assets | 1,0 | 1,8 |
| Tangible assets | 0,3 | 0,4 |
| Financial assets | 183,4 | 179,1 |
| Deferred tax asset | 4,2 | 4,4 |
| Total non-current assets | 189,0 | 185,7 |
| Current receivables | 3,2 | 2,7 |
| Cash and liquid assets | 60,6 | 61,1 |
| Total assets | 252,8 | 249,5 |
| Equity and liabilities | ||
| Equity | 242,1 | 239,5 |
| Total current liabilities | 10,7 | 10,0 |
| Total equity and liabilities | 252,8 | 249,5 |
Group Review per quarter
| Income Statement (MSEK) |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
FY 2020 |
FY 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 77,4 | 63,2 | 60,5 | 60,0 | 74,3 | 52,6 | 42,9 | 51,8 | 51,0 | 55,6 | 51,5 | 47,3 | 221,6 | 205,4 |
| Cost of Sale | -26,5 | -22,9 | -22,6 | -23,5 | -31,4 | -21,0 | -15,9 | -21,7 | -20,4 | -22,6 | -22,2 | -19,2 | -90,0 | -84,4 |
| Gross Profit Gross profit margin |
50,9 66% |
40,3 64% |
37,9 63% |
36,6 61% |
42,9 58% |
31,7 60% |
27,0 63% |
30,1 58% |
30,6 60% |
32,9 59% |
29,3 57% |
28,1 59% |
131,6 59% |
121,0 59% |
| Other external expenses | -14,5 | -12,4 -18,0 |
-12,7 -17,6 |
-12,8 -16,0 |
-14,1 -15,8 |
-10,5 -14,7 |
-8,3 -15,4 |
-11,4 -18,9 |
-14,0 -16,9 |
-13,6 -16,6 |
-14,7 -15,6 |
-10,3 -14,8 |
-44,3 -64,8 |
-52,6 -63,9 |
| Personnel expenses Capitalized development costs |
-20,1 1,1 |
1,1 | 1,2 | 1,1 | 1,5 | 1,4 | 0,6 | 1,8 | 3,0 | 1,5 | 1,6 | 0,6 | 5,3 | 6,7 |
| Depreciation | -2,5 | -2,5 | -2,4 | -2,4 | -2,6 | -2,2 | -2,2 | -2,0 | -13,7 | -2,6 | -2,4 | -2,3 | -9,0 | -21,0 |
| Other operating income/expenses | 0,1 | 0,3 -31,5 |
-0,5 -31,9 |
-0,2 -30,3 |
-2,0 -33,1 |
-0,3 -26,3 |
-0,7 -26,1 |
1,4 -29,1 |
-1,2 -42,8 |
0,1 -31,2 |
1,2 -29,8 |
0,0 -26,8 |
-1,6 -114,5 |
0,1 -130,7 |
| Operating expenses | -35,9 | |||||||||||||
| Operating income | 14,9 | 8,8 | 6,0 | 6,2 | 9,8 | 5,4 | 0,9 | 1,0 | -12,1 | 1,7 | -0,6 | 1,3 | 17,1 | -9,6 |
| Financial items. net | -0,1 | -0,1 | 0,0 | -0,1 | -0,1 | 0,0 | -0,2 | -0,4 | -0,5 | -0,5 | -0,5 | -0,2 | -0,7 | -1,7 |
| Income before tax | 14,9 | 8,7 | 6,0 | 6,2 | 9,7 | 5,4 | 0,6 | 0,6 | -12,7 | 1,2 | -1,1 | 1,1 | 16,4 | -11,4 |
| Tax | -3,5 | -3,8 | -0,4 | -3,0 | 2,7 | -1,5 | -3,0 | -0,2 | 0,2 | -2,6 | 0,2 | -0,2 | -2,0 | -2,4 |
| Net income (Attributable to Parent company´s shareholders) |
11,4 | 4,9 | 5,6 | 3,2 | 12,5 | 3,8 | -2,4 | 0,4 | -12,5 | -1,4 | -0,9 | 0,9 | 14,4 | -13,8 |
| Balance Sheet | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY |
| (MSEK) | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | 2020 | 2019 |
| Non-current assets | 42,6 | 47,5 | 50,3 | 50,9 | 54,7 | 51,1 | 44,7 | 49,1 | 48,5 | 58,1 | 69,8 | 58,7 | 54,7 | 48,5 |
| Current assets | 264,1 | 238,0 | 228,2 | 221,2 | 215,8 | 201,8 | 184,6 | 193,9 | 109,3 | 118,5 | 108,4 | 99,2 | 215,8 | 109,3 |
| Total assets | 306,7 | 285,4 | 278,5 | 272,1 | 270,5 | 252,9 | 229,3 | 243,0 | 157,8 | 176,6 | 178,2 | 157,9 | 270,5 | 157,8 |
| Equity | 231,1 | 219,6 | 213,8 | 208,4 | 199,8 | 190,3 | 185,8 | 187,4 | 83,3 | 96,5 | 96,7 | 94,9 | 199,8 | 83,3 |
| Non-current liabilities | 6,4 69,2 |
7,1 58,8 |
7,3 57,3 |
7,0 56,7 |
7,4 63,3 |
7,3 55,3 |
0,8 42,7 |
0,7 54,9 |
20,3 54,2 |
20,1 60,0 |
32,7 48,8 |
23,1 39,8 |
7,4 63,3 |
20,3 54,2 |
| Current liabilities Total equity and liabilities |
306,7 | 285,4 | 278,5 | 272,1 | 270,5 | 252,9 | 229,3 | 243,0 | 157,8 | 176,6 | 178,2 | 157,9 | 270,5 | 157,8 |
| Cash Flow Statement (MSEK) |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
FY 2020 |
FY 2019 |
| Operating cashflow | 13,1 | -0,5 | 4,3 | 1,3 | 17,5 | 13,0 | -0,2 | -12,1 | 8,6 | -0,1 | -3,7 | 11,0 | 18,4 | 15,8 |
| Cashflow from investing activities | -1,2 | -2,2 | -1,2 | -1,2 | -2,2 | -1,7 | -0,8 | -2,1 | -3,0 | -3,3 | -3,4 | -1,0 | -6,8 | -10,6 |
| Cashflow from financing activities | -0,8 | -0,8 | -0,3 | 3,0 | -0,7 | -0,3 | -3,6 | 72,8 | -5,7 | 6,3 | 7,9 | 7,4 | 68,0 | 16,0 |
| Totals | 11,1 | -3,5 | 2,7 | 3,1 | 14,5 | 11,0 | -4,5 | 58,6 | -0,1 | 2,9 | 0,7 | 17,4 | 79,7 | 21,1 |
| Key Ratios | Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
FY 2020 |
FY 2019 |
| Total order intake (MSEK) | 132,9 | 82,1 | 72,3 | 66,3 | 122,1 | 80,5 | 62,3 | 47,7 | 88,1 | 69,7 | 64,1 | 47,8 | 312,6 | 269,8 |
| Quarterly change (%) | 62% | 14% | 9% | -46% | 52% | 29% | 31% | -46% | 26% | 9% | 34% | -37% | n/a | n/a |
| Change compared to same period last year (%) | 9% | 2% | 16% | 39% | 39% | 15% | -4% | 0% | 16% | 9% | 14% | -6% | 16% | 9% |
| Total Revenues (MSEK) | 77,4 | 63,2 | 60,5 | 60,0 | 74,3 | 52,6 | 42,9 | 51,8 | 51,0 | 55,6 | 51,5 | 47,3 | 221,6 | 205,4 |
| Quarterly change (%) Change compared to same period last year (%) |
23% 4% |
4% 20% |
1% 41% |
-19% 16% |
41% 46% |
23% -5% |
-17% -18% |
2% 10% |
-8% -12% |
8% 19% |
9% -1% |
-18% 40% |
n/a 8% |
n/a 8% |
| 66% | 64% | 63% | 61% | 58% | 60% | 63% | 58% | 60% | 59% | 57% | 59% | 59% | 59% | |
| Gross Margin (percent of Revenues) Operating profit-margin (percent of Revenues) |
19% | 14% | 10% | 10% | 13% | 10% | 2% | 2% | -24% | 3% | -1% | 3% | 8% | -5% |
| Profit margin (percent of Revenues) | 15% | 8% | 9% | 5% | 17% | 7% | -6% | 1% | -25% | -3% | -2% | 2% | 6% | -7% |
| Earnings per share before dilution (SEK) | 0,34 | 0,15 | 0,17 | 0,09 | 0,37 | 0,11 | -0,07 | 0,01 | -0,40 | -0,05 | -0,03 | 0,02 | 0,43 | -0,45 |
| Equity per share before dilution (SEK) | 6,85 | 6,51 | 6,34 | 6,17 | 5,94 | 5,65 | 5,99 | 6,04 | 2,69 | 3,11 | 3,12 | 3,08 | 5,94 | 2,69 |
| Equity per share after dilution (SEK) | 6,84 | 6,50 | 6,33 | 6,17 | 5,94 | 5,65 | 5,97 | 6,02 | 2,68 | 3,10 | 3,11 | 3,06 | 5,94 | 2,68 |
| Equity/asset ratio (percent) | 75% | 77% | 77% | 77% | 74% | 75% | 81% | 77% | 53% | 55% | 54% | 60% | 74% | 53% |
| Cash Balance (MSEK) | 122,4 | 111,0 | 114,1 | 111,6 | 108,0 | 94,0 | 83,2 | 87,9 | 29,5 | 30,2 | 27,5 | 26,8 | 108,0 | 29,5 |
| Number of employees at end of period | 66 | 65 | 64 | 57 | 55 | 56 | 62 | 63 | 59 | 59 | 54 | 54 | 55 | 59 |
| Average number of outstanding shares (millions) | 33,7 | 33,7 | 33,7 | 33,7 | 33,3 | 33,1 | 32,1 | 32,1 | 30,9 | 30,9 | 30,9 | 30,8 | 33,3 | 30,9 |
| Average number of diluted shares (millions) | 33,8 | 33,8 | 33,8 | 33,8 | 33,3 | 33,1 | 32,2 | 32,2 | 31,0 | 31,0 | 31,0 | 31,0 | 33,3 | 31,0 |
| Number of outstanding shares at end of period (millions) Number of outstanding warrants at end of period (millions) |
33,8 0,2 |
33,8 0,2 |
33,8 0,2 |
33,8 0,2 |
33,7 0,3 |
33,7 0,3 |
33,5 0,4 |
33,5 0,4 |
31,0 0,4 |
31,0 0,4 |
31,0 0,4 |
30,8 0,5 |
33,7 0,3 |
31,0 0,4 |
NOTES
Note 1. Accounting principles
This interim report is prepared, for the Group, in accordance with IAS 34, RFR1 "Redovisning för koncerner" and the Annual Accounts Act and, for the Parent company, the Annual Accounts Act and RFR 2. The applied accounting principles are consistent with what is stated in note 1 in the Financial Statements for 2020. Note 2. Exchange rates The financial statements are presented in SEK, the functional currency of C-RAD. Sales and orders are largely generated in foreign currency, mainly EUR and USD and, in addition, foreign subsidiaries and associates are included in the consolidation. Orders, order back-log and income statement are translated at the period-average exchange rate while balance sheet items are translated at the closing rate. The average EUR rate during 2021 was 10.1 (10.5), while the average USD rate in the period was 8.6 (9.2). Closing rate for EUR was 10.2 (10.0) and USD 9.0 (8.2). Note 4. Capitalized development costs Development expenses that fulfil the recognition criteria in IAS38 are capitalized. Impairment test are performed quarterly. The progress of C-RAD AB is applying certain financial measurements in the interim report that is not defined in IFRS. It is C-RAD's opinion that these
Note 3. Related party transactions
There were no transactions with closely related parties during the fourth quarter of 2021.
current development projects is reviewed on a regular basis.
Note 5. Deferred tax
Deferred tax assets are reviewed at the end of each reporting period and adjusted in line with the probable future taxable result.
Note 6. Contingent liabilities
Contingent liability of SEK 2 000 000 in the Parent company refer to guarantee commitment for subsidiary.
Note 7. Pledges
The pledges refer to to a chattle mortgage for the Companys credit line with Nordea (security of SEK 20.000.000).
Note 8. Alternative performance measures (APM:s)
measurements give valuable information to investors and company management as they give a view of the Company's performance. These measurement shall not be considered as a replacement for any financial measurement as defined by IFRS. Operating income and operating margin
Gross profit and gross margin
Gross profit is the difference between net sales and cost of products sold and is presented on a separate line in the income statement. Gross profit as a percentage of net sales represents gross margin. The Gross margin is used by management to review effects on the income statement from factors such as product mix and price development. The measure is presented in the income statement as C-RAD consider it to provide users of the financial statements with a better understanding
of the Group's operating performance from a financial perspective. The operating margin shows the operating income as a percentage of net sales.
C-RAD receives a purchase order from the Belgium company Ion Beam Applications SA (IBA) to supply multiple Catalyst™ and Sentinel™ 4DCT systems as well as a multiyear service agreement.
C-RAD and IBA have several successful collaborations at multiple sites globally. This latest project includes an installation at two prominent Chinese proton therapy centers. Proton therapy and the high demands for uncompromised accuracy and operational efficiency within the field lies at the centre of technological advancement at C-RAD. One of many reasons why C-RAD is the SGRT market leader within the proton field.
The C-RAD Catalyst PT is a surface guided radiation therapy system (SGRT) version based on the patented Catalyst technology and software for use in proton and particle therapy, it is a complete solution for high precision patient positioning, intra-fraction motion management, and respiratory gating.
"I am excited to work with the customers and IBA on the implementation of our advanced surface tracking solutions here in China." says Kurt Xiaodong Wang, President at C-RAD in China "China has a big unmet demand for cancer care. Our customers show a huge interest in adapting surface tracking both in photon and proton therapy. This interest made C-RAD the distant market leader for surface tracking in China."
"We are delighted to announce this important milestone in the implementation of our strategy to make surface tracking standard of care in advanced radiation therapy." says Tim Thurn, CEO and President at C-RAD AB. "Proton therapy is the spearhead of precision radiation therapy. It has the potential to deliver the treatment dose with highest precision. Accurate patient positioning is crucial for a successful and safe treatment. We are looking forward to team up with the customer to contribute with our solutions to improve cancer care for patients in need."
The order has a total value of approximately 20 MSEK. Delivery and installation are expected to be commence during 2023.