Quarterly Report • Apr 27, 2015
Quarterly Report
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46.0%
Doro AB Corporate Identity Number 556161-9429
2015 sales and profit for the group are expected to increase with the main part generated in the second half of the year.
| DORO GROUP*) | |||
|---|---|---|---|
| (SEK m) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
| Net sales | 340.1 | 233.0 | 1,276.2 |
| Net sales growth, % | 46.0 | 27.2 | 10.5 |
| EBITDA | -11.7 | 14.9 | 122.6 |
| EBITDA margin, % | -3.4 | 6.4 | 9.6 |
| EBIT | -22.5 | 3.6 | 79.7 |
| EBIT margin, % | -6.6 | 1.5 | 6.2 |
| Profit after tax | -21.7 | 2.0 | 58.2 |
| Earnings per share after tax, SEK | -0.99 | 0.10 | 2.76 |
| Equity/assets ratio, % | 38.2 | 48.4 | 39.3 |
*) Note 3
Net sales growth
EBIT margin
Remarkable increase in demand
Insufficient hedging resulted in currency loss
Actions taken to address negative currency effects
Caretech progressing well
Social alarm transformation trends support Doro
2015 outlook reiterated
In the first quarter we saw a remarkable increase in demand for a broad range of our products, as well as in our acquisition Caretech. Our expanded smartphone range for seniors has been well established with the larger operators and partners across most of our markets. This is visible in both sales and order intake.
I am perhaps most positively surprised about the swift return of high growth in our high margin Nordic region where sales increased by 2.4 times compared to the same quarter last year. This growth was triggered by our smart phones ramp-up.
Sales in EMEA also increased sharply or by 78.1 percent, and sales in the UK increased by 35.5 percent – growth rates that confirm the solid demand for our products and our new design, strengthening the growth trend of our niche senior phones market. Sales in US & Canada declined compared to the same quarter last year, but the order intake was up 60.5 percent compared to previous year. Sales have been negatively affected by phasing between different phone models.
I am sorry to report a currency loss due to insufficient hedging during a period of sharp and rapid appreciation of the USD, which of course reduces our short term earnings. The total negative currency impact on the first quarter result was SEK 27.1m, as explained in the "Currency impact" section on page 3. We have reviewed our currency hedging routines and consider the main part of the loss as of nonrecurring character.
Going forward, and in view of the continued strong USD, we do continue to take measures for reviewed pricing and product costs as well as operating expenses. Our organization has achieved a critical size for continued growth. Consequent positive effects on our profit margins will be seen primarily in the second half of 2015.
Our accelerated expansion with larger operators and partners in Europe means that also our working capital grows. This has affected cash flow in the quarter. We expect cash flow generation to improve gradually.
Caretech, which was consolidated in February, has developed according to plan and is a key part of our strategy for the coming years. A synergy program is in place and our next focus will be on developing the care service offering in order to expand our recurring subscription based revenues.
The transition from analogue to digital social alarm technology is of high priority among our customers and creates business opportunities for us through the development and launch of new services. Caretech can benefit from the Doro organization and we see that synergies can be extracted in several markets. It is a unique combination addressing the international telecare market – a market which we see as an important platform for growth for the coming years.
We reiterate our previously communicated outlook for the year: 2015 sales and profit for the group are expected to increase with the main part generated in the second half of the year.
Net sales per quarter, SEKm
EBIT and EBIT margin per quarter, SEKm and in %
Doro's net sales for the first quarter amounted to SEK 340.1m (233.0), an increase of 46.0 percent compared with the first quarter 2014. The increase in net sales was a result of good progress in the ramp-up of smartphone volumes for several large customers in the Nordics and EMEA, good demand for more mature products and the consolidation of Caretech, which took place end of January. Growth was also positively affected by some customer pre-orders in view of our announced price adjustments for the second quarter. Adjusted for Caretech, net sales growth was 34.5 percent (25.5 percent including currency effects), as compared to the same quarter last year.
Order intake for the first quarter increased by 77.9 percent during the first quarter, with the Nordic region and EMEA as the strongest regions. Excluding Caretech, the order intake increased by 66.4 percent.
The total impact of currency in the first quarter was SEK -27.1m, whereof SEK -22.9m affected operating costs, and SEK -4.2m affected gross margin. This is higher than the SEK -20m communicated March 17 as extra cost for insufficient currency hedging. The reasons for this deviation are: i) sales growth has been stronger-than-anticipated, ii) actual figures are now based on finally consolidated balance sheet, and iii) hedging would not cover 100 percent of flows.
Hedging of currency for second quarter trade is at a level which reflects our current trade volumes inside the limit of Doro's policy.
The gross margin decreased to 36.3 percent (40.4) as an effect of higher direct cost related to technologies, and the currency effect described above. EBITDA for the quarter decreased to SEK -11.7m (14.9), resulting in a negative EBITDA margin of 3.4 percent (positive 11.8). The result also includes non-recurring costs related to the acquisition of Caretech of SEK 0.2m.
EBIT in the first quarter was SEK -22.5m (3.6), with a negative EBIT margin of 6.6 percent (positive 8.8). EBIT adjusted for total impact of currency, of which insufficient hedging is the main part, was SEK 4.6m.
Net financial items for the quarter were SEK -5.5m (-0.5), which includes approximately SEK -1.3m related to revaluation of deferred consideration in conjunction with final payment for our acquisition of IVS. Revaluation of financial instruments in foreign currencies is included in the financial net in the amount of SEK -2.7m.
Group tax for the quarter amounted to SEK 6.3m (-1.1). Loss for the period amounted to SEK -21.7m (2.0).
Cash flow from current activities in the quarter was SEK -44.6m (-28.8), mainly as an effect of increased working capital, where stock and accounts receivables continued to expand as a result of strategic listings with new operators, higher sales volumes and value increases for inventory in foreign currency. Cash flow related to change in working capital amounted to SEK -34.0m (-38.0). Cash and cash equivalents at the end of the quarter amounted to SEK 52.2m (70.2).
The equity/asset ratio was 38.2 percent (48.4) at the end of the period. Net debt was SEK 194.0m compared with a net cash position of SEK 24.8m at the end of the corresponding period last year. During the quarter, Doro completed the acquisition of Caretech AB for a total consideration, net of cash and cash equivalents in Caretech AB, of SEK 229.1m, financed by a combination of existing cash, bank loans and a non-cash share issue directed towards the sellers of Caretech AB.
As announced March 19 this year, the Board proposes no payment of dividend for 2014. The proposal is based on the company's intention to retain a strong equity base in order to exploit further expansion opportunities in the Care area, and maintain continued good organic growth in the company's segment for senior mobile phones.
January 30, Doro completed the closing of the previously announced acquisition of Caretech AB whereby 63.7 percent of shares in Caretech AB were transferred to Doro against cash payment.
February 18, Doro completed the acquisition of Caretech AB with a non-cash issue of 2,033,772 shares as payment to the sellers of Caretech AB for the remaining 36.3 percent of Caretech AB. The value of the non-cash consideration amounted to SEK 84.4m. As a result of the new share issue, the total number of outstanding shares and votes in Doro AB (publ) increased to 23,238,255, resulting in dilution of approximately 8.7 percent for existing shareholders.
Doro participated at the Mobile World Congress in Barcelona. The company received a Global Mobile Award for "Best Mobile Device for Accessibility & Inclusion" and released two new mobile phones and a new service:
A pocket version of the Doro Liberto® 820.
The Doro 820 Claria is an adaptation of the Doro smartphone to make it suitable for the blind user.
Doro Connect & Care® is an innovative mobile social networking tool applied to real life. The service facilitates the delivery of help and assistance – whether in an emergency situation such as a fall accident, or for a basic everyday household task, such as closing a window. The service allows family members to create their own network of people willing to help provide daily care and offer assistance to their senior relative.
During the first quarter IVS GmbH divested its small subsidiary Service & Sales Gmbh. The divestment has not had any cash flow impact and it will not have any impact on future results.
Nordic
Europe, Middle East and
Africa Dach (Germany, Austria, Switzerland)
United Kingdom
USA and Canada
Other regions
| Doro Group (SEK m) | 2015 Jan-March |
Net sales Growth, % |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|---|
| Nordic | 101.8 | 143.5 | 41.8 | 270.8 |
| Europe, Middle East and Africa | 110.4 | 78.1 | 62.0 | 309.7 |
| Dach (Germany, Austria, Switzerland) | 71.6 | 11.0 | 64.5 | 348.0 |
| United Kingdom | 52.3 | 35.5 | 38.6 | 206.4 |
| USA and Canada | 8.3 | -66.4 | 24.7 | 137.3 |
| Other regions | 0.0 | NM | 2.4 | 9.4 |
| Central overhead | -4.3 | NM | -1.0 | -5.4 |
| Totalt | 340.1 | 46.0 | 233.0 | 1,276.2 |
*) Note 3
Net sales in the Nordic region continued to develop favorably based on continued progress for Doro Liberto® 820, continued sales growth for feature phones and as a result of customer restocking after solid Christmas holiday sales. Doro Liberto® 820 Mini started to get listings at both operators and retailers.
Marketing activities for Doro Liberto® 820 continued in the quarter. Doro Liberto® 820 Mini was introduced in several markets towards the end of the quarter, also in important Eastern European markets. In Germany, Doro reinforced its position as the market leader of senior mobile phones, according to the market research provider GFK, with Primo by Doro 413 being the most sold senior mobile in Germany 2014.
Growth in EMEA was based on continued ramp-up of smartphone sales with several large customers, primarily in France. Agreements with several new customers, both distributors and operators, were signed in Spain and Italy. We saw a good start for Doro Liberto® 820 Mini in terms of listings.
UK reported double digit growth driven by positive mix effects with demand shifting from entry-level to mid-/ and high-end devices.
While the sell-through remains unchanged in US, sales in Canada have been reduced due to lower demand for feature phones. However, our order intake in the quarter was 60.5 percent higher than previous year.
Net sales for other regions amounted to SEK 0.0m (2.4).
For the quarter, income and income adjustments not related to any specific region amounted to -4.3m (-1.0). The amount is related to exchange rate fluctuations and capitalized development costs.
Doro's shares are listed on the Nasdaq OMX Nordic Exchange Stockholm, Small Cap – Telecom/IT list. As per March 31, 2015, the total number of undiluted and diluted shares outstanding were 23,238,255. Shareholders' equity amounted to SEK 408.5m (292.2).
No transactions took place between Doro and related parties that had a material impact on the Company's financial position and results during the period.
Doro had 311 (153) employees as of March 31 2015, equivalent to 265 (153) full-time employees. Of these, 196 (37) are based in Sweden, 39 (33) in France, 12 (10) in the UK, 9 (9) in Hong Kong, 3 (3) in Norway 1 (0) in Italy, and 51 (61) in Germany.
Risks and instability factors are mainly related to supplier disruption, product adaptation and certification, customer relations, exchange rate fluctuations and loan financing. Apart from these risks and the instability factors described on pages 20-21 of the 2014 Annual Report, no other risks of any significance have been identified during the period.
The Parent Company's net sales for the first quarter amounted to SEK 275.9m (176.2). The profit before tax amounted to SEK -34.0m (-1.7).
This Interim Report has been prepared on behalf of the Group according to IAS 34, Interim Financial Reporting, and for the Parent Company in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting of legal entities. Deferred tax assets are considered to the extent the company believes that this can be utilized in the foreseeable future, which the Company considers to be 3-4 years. The accounting principles and calculation methods applied are consistent with those that were applied when drawing up the previous year's accounts, except for what is described in note 3 regarding accounting of exchange rate differences.
Doro's sales are subject to seasonal changes. Sales in the first and second quarters are normally the lowest in the year. Sales in the third quarter is normally stronger than in the first two quarters of the year. Sales in the fourth quarter is normally the strongest in the year.
Second quarter report will be presented on August 21, 2015
The report will be presented via an audiocast on April 27, at 14.00 CET
2015 sales and profit for the group are expected to increase with the main part generated in the second half of the year.
The Board has set the following dates for the publication of Doro's Reports: Q2 report April – June 2015: August 21, 2015 Q3 report July – September 2015: November 4, 2015 Q4 report October – December 2015: February 17, 2016
Jérôme Arnaud, President and CEO, +46 (0)46 280 50 05 Christian Lindholm, CFO, +46 (0) 46 280 50 06
Analysts, investors and the media are welcome to attend a presentation via www.doro.com or by telephone from 14.00 CET on April 27, 2015. Doro's President and CEO Jérôme Arnaud will hold the presentation and answer questions. Before the start of the presentation, the material will be made available on www.doro.com.
Please call about five minutes before the advertised starting time to access the telephone conference.
Call-in details:
Sweden: + 46 (0)8 505 564 74 France: 0805980143 United Kingdom: +44 (0)20336 453 74 United States: + 1 855 7532 230
About Doro
Doro AB is a Swedish public company formed in 1974. It released its pioneering 'easy-to-use' mobile phone in 2007 and today is the global market-leader within the category. Doro products and solutions are available in more than thirty countries spanning five continents. These include; mobile phones and smart devices, applications and software, fixed line telephony, telecare and mobile health solutions. Doro removes barriers to adoption of new technologies and holds numerous international awards in recognition of its product designs and innovations. Doro shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,277 million (EUR 135 million) were reported for 2014. www.doro.com
| INCOME STATEMENT*) | |
|---|---|
| Doro Group (SEKm) | Note | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|---|
| Income/Net sales | 340.1 | 233.0 | 1,276.2 | |
| Operating cost | 1, 2 | -351.8 | -218.1 | -1,153.6 |
| Operating profit/loss before depreciation and write-downs, EBITDA | -11.7 | 14.9 | 122.6 | |
| Depreciation according to plan | -10.8 | -11.3 | -42.9 | |
| Operating profit/loss after depreciation and write-downs, EBIT | -22.5 | 3.6 | 79.7 | |
| Net financial items | 1 | -5.5 | -0.5 | -0.4 |
| Profit/loss after financial items | -28.0 | 3.1 | 79.3 | |
| Taxes | 6.3 | -1.1 | -21.1 | |
| Profit/loss for the period | -21.7 | 2.0 | 58.2 | |
| Average number of shares, thousands | 22,018 | 20,806 | 21,059 | |
| Average number of shares after dilution, thousands* | 22,066 | 20,971 | 21,059 | |
| Earnings per share before tax, SEK | -1.27 | 0.15 | 3.77 | |
| Earnings per share before tax, after dilution, SEK* | -1.27 | 0.15 | 3.77 | |
| Earnings per share after tax, SEK | -0.99 | 0.10 | 2.76 | |
| Earnings per share after tax, after dilution, SEK* | -0.98 | 0.10 | 2.76 | |
| *) Note 3 |
* The effect of dilution is considered only when the effect on earnings per share is negative.
| Doro Group (SEKm) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|
| Profit/loss for the period | -21.7 | 2.0 | 58.2 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
|||
| Translation differences | 0.5 | 1.2 | 8.7 |
| Effects from cash flow hedges | 13.4 | 2.6 | -2.8 |
| Deferred tax | -2.9 | -0.6 | 0.6 |
| Total Result | -10.7 | 5.2 | 64.7 |
| (Related to Parent Company's shareholders) |
| Doro Group (SEKm) | Note (Please see Note 2 for impact of Caretech AB) |
2015 31-Mar |
2014 31-Mar |
2014 31-Dec |
|---|---|---|---|---|
| Intangible assets | 427.7 | 197.2 | 201.2 | |
| Tangible assets | 9.8 | 6.1 | 4.8 | |
| Financial assets | 0.9 | 0.5 | 0.7 | |
| Deferred tax asset | 19.2 | 20.3 | 15.6 | |
| Inventories | 237.2 | 115.8 | 204.6 | |
| Current receivables | 321.9 | 193.2 | 347.6 | |
| Cash and cash equivalents | 52.2 | 70.2 | 78.2 | |
| Total assets | 1,068.9 | 603.3 | 852.7 | |
| Shareholders' equity | 408.5 | 292.2 | 334.8 | |
| Long term liabilities | 1 | 225.4 | 107.5 | 59.6 |
| Current liabilities | 1 | 435.0 | 203.6 | 458.3 |
| Total shareholders' equity and liabilities | 1,068.9 | 603.3 | 852.7 | |
| Financial instruments recognized at fair value in the Balance Sheet | 2015 31-Mar |
2014 31-Mar |
2014 31-Dec |
|
| Exchange rate contracts recorded as current liability | 2.5 | 0.4 | 7.4 | |
| Exchange rate contracts recorded as current receivable | 9.6 | 1.9 | 15.8 |
Financial instruments recognized at fair value consist of currency forward contracts and are used primarily for hedging purposes and are measured at level 2.
| STATEMENT OF CASH FLOWS | ||||
|---|---|---|---|---|
| Doro Group (SEKm) | Note | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
| Operating profit/loss after depreciation and write-downs, EBIT | Note 3 | -22.5 | 3.6 | 79.7 |
| Depreciation according to plan | 10.8 | 11.3 | 42.9 | |
| Net Financial items | Note 3 | -4.2 | -0.1 | -0.1 |
| Unrealized exchange rate differences in cash flow hedges | 14.8 | -2.8 | -14.6 | |
| Revaluation deferred consideration | Note 1 | 0.0 | 0.8 | -8.7 |
| Taxes paid | -9.5 | -3.6 | -18.3 | |
| Changes in working capital | -34.0 | -38.0 | -58.4 | |
| Cash flow from current activities | -44.6 | -28.8 | 22.5 | |
| Acquisitions | Note 1,2 | -244.0 | -17.9 | -21.9 |
| Investments | -7.4 | -6.5 | -29.3 | |
| Cash flow from investment activities | -251.4 | -24.4 | -51.2 | |
| Amortisation of debt | -4.4 | -0.2 | -45.0 | |
| Raised loans | 190.1 | 0.0 | 41.5 | |
| Dividend | 0.0 | 0.0 | -31.7 | |
| New share issue | 84.4 | 0.0 | 14.1 | |
| Warrant program, buy back | 0.0 | 0.0 | 0.7 | |
| Cash flow from financial activities | 270.1 | -0.2 | -20.4 | |
| Exchange rate differences in cash and cash equivalents | -0.1 | -0.3 | 3.4 | |
| Change in liquid funds | -26.0 | -53.7 | -45.7 | |
| Net debt | 194.0 | 0.0 | 0.0 | |
| Net cash | 0.0 | 24.8 | 36.5 |
| Doro Group (SEKm) | 2015 31-Mar |
2014 31-Mar |
2014 31-Dec |
|---|---|---|---|
| Opening balance | 334.8 | 287.0 | 287.0 |
| Total result for the period | -10.7 | 5.2 | 64.7 |
| Dividend | 0.0 | 0.0 | -31.7 |
| Warrants | 0.0 | 0.0 | 0.7 |
| New share issue | 84.4 | 0.0 | 14.1 |
| Share issue in kind | 0.0 | 0.0 | 0.0 |
| Closing balance | 408.5 | 292.2 | 334.8 |
| Doro Group | 2015 31-Mar |
2014 31-Mar |
2014 31-Dec |
|---|---|---|---|
| Orderbook at the end of the period, SEKm, excluding Caretech | 140.3 | 66.3 | 65.2 |
| Order intake Q , SEKm | 423.3 | 238.0 | 366.9 |
| Gross margin % | 36.3 | 40.4 | 41.0 |
| Equity/assets ratio, % | 38.2 | 48.4 | 39.3 |
| Number of shares at the end of the period, thousands | 23 238 | 20,806 | 21,204 |
| Number of shares at the end of the period after dilution, thousands * | 23 302 | 20,911 | 21,204 |
| Equity per share, SEK | 17.58 | 14.04 | 15.79 |
| Equity per share, after dilution SEK * | 17.53 | 13.97 | 15.79 |
| Earnings per share after taxes paid, SEK | -1.6 | -0.02 | 2.90 |
| Earnings per share after taxes paid, after dilution, SEK * | -1.6 | -0.02 | 2.90 |
| Return on average share holders' equity, % | 9.8 | 0.8 | 18.7 |
| Return on average capital employed, % | 17.2 | 38.2 | 32.8 |
| Share price at period's end, SEK | 46.20 | 42.10 | 38.80 |
| Market value, SEKm | 1073.6 | 875.9 | 822.7 |
* The effect of dilution is considered only when the effect on earnings per share is negative.
| Doro Group (SEKm) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|
| Nordic | 101.8 | 41.8 | 270.8 |
| Europe, Middle East and Africa | 110.4 | 62.0 | 309.7 |
| Dach (Germany, Austria, Switzerland) | 71.6 | 64.5 | 348.0 |
| United Kingdom | 52.3 | 38.6 | 206.4 |
| USA and Canada | 8.3 | 24.7 | 137.3 |
| Other regions | 0.0 | 2.4 | 9.4 |
| Central overhead | -4.3 | -1.0 | -5.4 |
| Total | 340.1 | 233.0 | 1,276.2 |
| *) Note 3 |
| Doro Group (SEKm) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|
| Nordic | 23.3 | 10.6 | 76.7 |
| Operating Margin % | 22.9 | 25.4 | 28.3 |
| Europe, Middle East and Africa | 14.9 | 14.4 | 70.7 |
| Operating Margin % | 13.5 | 23.2 | 22.8 |
| Dach (Germany, Austria and Switzerland) | 4.2 | 6.7 | 32.4 |
| Operating Margin % | 5.9 | 10.4 | 9.3 |
| United Kingdom | 13.3 | 11.2 | 46.0 |
| Operating Margin % | 25.4 | 29.0 | 22.3 |
| USA och Canada | 1.3 | 5.6 | 27.8 |
| Operating Margin % | 15.7 | 22.7 | 20.2 |
| Other regions | 0.6 | -0.1 | 0.4 |
| Operating Margin % | - | -4.2 | 4.3 |
| Central overhead | -80.1 | -44.8 | -174.3 |
| Operating Margin % | - | - | - |
| Operating profit/loss after depreciation | -22.5 | 3.6 | 79.7 |
| Operating Margin % | -6.6 | 1.5 | 6.2 |
*) Note 3
| Parent company (SEKm) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|
| Income/Net sales | 275.9 | 176.2 | 1,012.4 |
| Operating cost | -298.4 | -168.8 | -945.8 |
| Operating profit/loss before depreciation and write-downs, EBITDA | -22.5 | 7.4 | 66.6 |
| Depreciation according to plan | -8.3 | -10.3 | -38.8 |
| Operating profit/loss after depreciation and write-downs, EBIT | -30.8 | -2.9 | 27.8 |
| Net financial items | -3.2 | 1.2 | 4.1 |
| Profit/loss after financial items | -34.0 | -1.7 | 31.9 |
| Taxes | 7.5 | -0.1 | -7.3 |
| Profit/loss for the period | -26.5 | -1.8 | 24.6 |
| Parent company (SEKm) | 2015 Jan-March |
2014 Jan-March |
2014 Full Year |
|---|---|---|---|
| Profit/loss for the period | -26.5 | -1.8 | 24.6 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
|||
| Effects from cash flow hedges | 13.4 | 2.6 | -2.8 |
| Deferred tax | -2.9 | -0.6 | 0.6 |
| Total Result | -16.0 | 0.2 | 22.4 |
| (Related to Parent Company's shareholders) |
| Parent company (SEKm) | Note | 2015 31-Mar |
2014 31-Mar |
2014 31-Dec |
|---|---|---|---|---|
| Intangible assets | 35.5 | 43.8 | 39.1 | |
| Tangible assets | 1.9 | 3.5 | 2.1 | |
| Financial assets | 2 | 325.8 | 82.2 | 85.4 |
| Inventories | 164.1 | 77.9 | 156.9 | |
| Current receivables | 407.0 | 266.5 | 443.9 | |
| Cash and cash equivalents | 4.4 | 37.4 | 9.9 | |
| Total assets | 938.7 | 511.3 | 737.3 | |
| Shareholders' equity | 333.3 | 259.7 | 264.9 | |
| Provisions | 73.7 | 79.3 | 73.5 | |
| Longterm liabilities | 160.0 | 46.3 | 0.0 | |
| Current liabilities | 371.7 | 126.0 | 398.9 | |
| Total shareholders equity and liabilities | 938.7 | 511.3 | 737.3 |
During Q1 deferred consideration of EUR 1.6m (SEK 14.9m) has been paid. This deferred consideration was discounted to present value of EUR 1.458 m in the purchase price analysis. The difference of EUR 0.142m has been accounted for as a financial cost in the consolidated accounts. The acquisition of IVS is now fully paid.
On December 31, 2014, the contingent consideration was estimated to SEK 11.7m, whereof SEK 0.7m was accounted for as a current liability and SEK 11.0m as a longterm liability. The current contingent consideration for 2013, SEK 0.3m, was paid in Q2 2014. The contingent consideration for 2014 and 2015 was revised December 31, 2014, and was estimated to SEK 3.6m, whereof SEK 2.6m was accounted for as a long-term liability and SEK 1.0m was accounted for as a current liability. This estimate and accounting remains at March 31, 2015.
On January 30, 2015, Doro AB acquired 63.7 percent of the shares in Caretech AB in Kalix. The remaining 36.3 percent was acquired on February 18, 2015, through a share issue in kind. Costs for the acquisition was charged to the operating result in 2014 of SEK 3.0m. Additional acquisition costs of SEK 0.2m has been accounted for in the operating result of 2015. The purchase price was paid in cash with SEK 148.1m and SEK 84.4m as a share issue in kind. Goodwill is linked to the enhanced position in the Care segment that Caretech's new sales channels provide, as well as increased expertise in the care segment for the senior population. On the acquisition date, the headcount was 154. Net sales for 2014 amounted to SEK 130.1m with an EBIT of SEK 7.5m.
| The preliminary figures for the acquired net assets and goodwill are presented below: |
Fair value SEKm |
|---|---|
| Intangible assets | 29.9 |
| Fixed assets | 4.1 |
| Deferred tax receivables | 1.9 |
| Other financial assets | 0.3 |
| Stock | 9.9 |
| Accounts receivables | 20.2 |
| Other receivables, Prepaid expenses and accrued income | 10.7 |
| Cash and bank balances | 3.4 |
| Interest bearing debt | -17.5 |
| Accounts payable | -11.9 |
| Deferred tax liability | -3.1 |
| Other liabilities, Accrued expenses and prepaid income | -18.4 |
| Acquired Net Assets | 29.5 |
| Goodwill | 203.0 |
| Total purchase consideration | 232.5 |
| Cash in acquired company | 3.4 |
| Change in the Group's cash flow resulting from the acquisition | 229.1 |
Doro has changed its reporting of exchange rate differences regarding revaluation of bank account balances and intra group loans in foreign currency. Previously this kind of exchange rate differences were not separated and reported in the operating result. As of January 1st 2015 the reporting principles have been changed and these kind of exchange rate differences are reported in the financial result. Hence the figures for previous periods have been recalculated for comparison.
| Gross Margin | Net sales - Merchandise costs |
|---|---|
| Gross Margin, % | Gross Margin in percentage of Net sales |
| Average number of shares | Number of shares at the end of each period divided with number of periods. |
| Average number of shares after dilution |
Average number of shares adjusted with the dilution effect from warrants is calculated as the difference between the assumed number of shares issued at the exercise price and the assumed number of shares issued at average market price for the period. |
| Earnings per share before tax | Profit/loss after financial items divided by the average number of shares for the period. |
| Earnings per share before tax, after dilution |
Profit/loss after financial items divided by the average number of shares for the period after dilution. |
| Earnings per share after tax | Profit/loss after financial items minus tax divided by average number of shares for the period. |
| Earnings per share after tax, after dilution |
Profit/loss after financial items minus tax divided by the average number of shares for the period after dilution. |
| Number of shares at the end of the period |
Actual number of shares at the end of the period. |
| Number of shares at the end of the period, after dilution |
The number of shares at the end of the period adjusted with the dilution effect from warrants is calculated as the difference between assumed number of shares issued at the exercise price and the assumed number of shares issued at the closing market price at the end of the period. |
| Equity per share | Shareholders' equity at the end of the period divided by the number of shares at the end of the period. |
| Equity per share, after dilution | Shareholders' equity at the end of the period divided by the number of shares at the end of the period, after dilution. |
| Earnings per share after taxes paid | Profit/loss after taxes paid divided by average number of shares for the period. |
| Earnings per share after taxes paid, after dilution |
Profit/loss after taxes paid divided by the average number of shares for the period after dilution. |
| Net Debt/Net Cash | Cash and bank balances reduced with interest bearing liabilities. |
| Equity/assets ratio, % | Shareholders' equity as a percentage of the balance sheet total. |
| Return on average shareholders' equity, % |
Profit/Loss rolling twelve months after financial items and tax divided by average shareholders' equity. |
| Capital employed | Total assets reduced with non-interest bearing debt and cash and bank balances. |
| Return on average capital employed, % |
Operating profit/loss rolling twelve months, divided by the quarterly average capital employed excluding cash and bank balances. |
| Share price at period's end | Closing market price at the end of the period. |
| Market value, SEK m | Share price at period's end times the number of shares at the end of the period. |
The Board of Directors and CEO confirm that this Quarterly Report provides a fair overview of the Company's and Group's business, position and results and describes the significant risks and uncertainties faced by the Company and its subsidiaries.
This interim report has not been reviewed by the Company's auditors.
Stockholm, Sweden, April 27, 2015
Bo Kastensson Chairman of the Board
Jérôme Arnaud President and CEO Charlotta Falvin Board Member
Fredrik Hedlund Board Member
Karin Moberg Board Member Jonas Mårtensson Board Member
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Monday, April 27, 2015, at 13:30 CET.
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