AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Basler AG

Interim / Quarterly Report Aug 14, 2013

45_10-q_2013-08-14_a0ff2ab8-7bea-43c1-a113-bde97922da66.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

Key Figures

in € m* 01/01/ -
06/30/2012
01/01/ -
06/30/2013
Changes to
previous year
04/01/ -
06/30/2012
04/01/ -
06/30/2013
Changes to
previous year
Sales 25.2 32.2 28 % 12.9 17.1 33 %
Incoming orders 28.7 33.3 16 % 15 17.6 17 %
Gross results 11.3 16.3 44 % 5.9 8.7 47 %
Gross margin 44.8 % 50.6 % 6 Pp. 45.7 % 50.9 % 5 Pp.
Full costs for research and
development
4.1 4.4 7 % 2.1 2.2 5 %
Research and development
ratio
16.3 % 13.7 % -3 Pp. 16.3 % 12.9 % -3 Pp.
EBITDA 5.8 6.9 19 % 2.9 3.6 24 %
EBIT 2.6 4.2 62 % 1.4 2.2 57 %
EBT 2.2 3.9 77 % 1.2 2.1 75 %
Quarterly surplus 1.6 2.7 69 % 0.8 1.6 100 %
Weighted average number
of shares
3,410,702 3,303,396 -3 % 3,392,531 3,286,695 -3 %
Result per share (€) 0.47 0.82
01/01/ -
74 %
01/01/ -
0.25
04/01/ -
0.47
04/01/ -
88 %
Cash flow from operational
activity
3.3 06/30/2013
2.3
06/30/2012
-30 %
06/30/2013
1.9
06/30/2012
0.4
-79 %
Cash flow from financing
activity
-3.5 -2.5 -29 % -1.8 -1.3 -28 %
12/31/2011 12/31/2012 06/30/2013 Changes to
in € m* previous year
Total assets 55.9 58.5 60.7 4 %
Long-term assets 34.2 34.5 34.3 -1 %
Equity 27 29.6 30.5 3 %
Borrowed capital 28.9 28.9 30.2 4 %
Equity ratio 48.3 % 50.6 % 50.2 % 0 Pp.
Operating net debt -2.4 -3.5 0.1 n.a.
Working Capital 12.1 12.0 15.1 26 %
Number of employees for the fiscal year,
equivalents of full-time employment
267 290 315 9 %
Share price (XETRA) in € 13.48 13.79 18.98 38 %
Number of shares in circulation 3,445,313 3,325,664 3,267,885 -2 %
Market capitalization 46.4 45.9 62.0 35 %

*unless otherwise stated

Overview of the first six months:

  • Incoming orders: € 33.3 million (previous year: € 28.7 million, +16 %)
  • Sales: € 32.2 million (previous year: € 25.2 million, +28 %)
  • EBIT: € 4.2 million (previous year: € 2.6 million, +62 %)
  • Earnings before taxes (EBT): € 3.9 million (previous year: € 2.2 million, +77 %)
  • Operating cash flow: € 2.3 million (previous year: € 3.3 million, -30 %)
  • Forecast increased: sales € 63 to 65 million, EBT margin 10 to 11 %

Dear Ladies and Gentlemen,

In the second quarter of 2013, Basler AG continued the good results of the first three months.

Despite the continued lack of economic stimuli, incoming orders, sales and earnings of the reporting period were clearly above the values of the previous year. Similar to the first quarter, Basler AG also achieved in the entire first half-year a distinctly stronger growth in sales than expected by the Verband Deutscher Maschinen- und Anlagenbau (VDMA) for the current year in the German image processing market (+5 %).

The key figures for the first six months of fiscal year 2013 are above the expectations of the management board and from today's perspective no significant decline of business is expected for the remainder of the year. For this reason, the management board increases the forecast and from now on expects sales within a corridor of € 63 to 65 million (previously € 60 to 63 million) and a pre-tax return of 10 to 11 % (previously 8 - 10 %).

GROUP INFORMATION

Incoming orders, sales, and gross profit

The group's incoming orders amounted to € 33.3 million in the first half-year (previous year: € 28.7 million, +16 %). The strong demand for our cameras with Gigabit Ethernet (GigE Vision) interface was the main reason for growth in incoming orders in the double digit percentage range.

The group's sales amounted to € 32.2 million in the first six months (previous year: € 25.2 million, +28 %). So far, 42 % of the sales are related to the Asian markets (previous year: 36 %), 36 % to Europe (previous year: 38 %), and 22 % to North America (previous year: 26 %). The particularly positive development in Asia can mainly be attributed to sales-related progress made in important national markets.

The group's gross profit developed better in the reporting period than in the previous year due to an improved product mix. A major factor here was the streamlining of the product portfolio by discontinuing end-of-life products. This resulted in higher gross margins and reduced complexity. Within the result, the gross margin increased by almost 6 percentage points to 50.6 % in the first six months (previous year: 44.8 %).

Costs

The first half-year of fiscal year 2013 was characterized by considerable investments in the expansion of all functional areas and subsidiaries. Due to the disproportionate growth in sales the cost ratios were below the previous year's values.

The expense for sales and marketing was € 5.7 million (previous year: € 4.4 million; +30 %). In relation to sales, the cost of sales with a quota of 17.7 % remained on the level of the previous year (17.5 %).

The general administrative expenses amounted to € 4.0 million (previous year: € 3.5 million, +14 %). Compared to sales, the administrative expense ratio decreased to 12.4 % (previous year: 13.9 %).

The full cost of research and development (R & D) amounted to € 4.4 million and therefore increased by 7 % compared to the previous year's value of € 4.1 million. The R & D ratio decreased from 16.3 % in the previous year to 13.7 % in the current year.

Result

In the first half-year of 2013, Basler AG generated group's earnings before taxes (EBT) of € 3.9 million. This result is 77 % above the EBT of € 2.2 million that were generated in the comparison period of the previous year. Pre-tax return amounted to 12 % (previous year: 9 %) and therefore continued to be above the corridor of 8 % - 10 %, predicted for fiscal year 2013. The group's earnings before interest and taxes (EBIT) amounted to € 4.2 million (previous year: € 2.6 million, +62 %). This corresponds to an EBIT margin of 13 % (previous year: 10 %).

The improved profit situation results from the combined effects of sales being above plan, of gross margins being higher than expected, and of operational costs being slightly below plan.

Business development

Basler AG continued dynamic growth in the first six months concerning incoming orders, sales, and revenue. The growth in sales of +28 % is clearly above the growth rate of 5 %, expected by VDMA for the German image processing industry.

Industrial cameras with Gigabit Ethernet (GigE) interface account for the predominant portion of the sales. GigE cameras also yielded the strongest percentage growth within the product portfolio. To further extend our leadership in this currently largest market segment for industrial cameras we expanded the product portfolio by several new models with CMOS image sensors.

Customers' interest in our racer family of line scan cameras continued to grow in the second quarter. We are very satisfied with the series start-up for the racer that was the steepest ever seen for Basler line scan cameras. We consider this an indicator for good future prospects of this product line.

The market launch of the new ace cameras with USB3 Vision interface was a focus of our business operations during this period. In parallel to the availability of the first series products, we have for some months been conducting a world-wide intense training program for our distributors and customers, that meets with great interest. Judging from the hitherto experienced course of the market launch we see our expectations confirmed predicting that GigE Vision and USB3 Vision will be the dominant interface technologies for industrial cameras in the years to come.

The investment undertaken in the previous years towards strengthening the Basler brand is also paying off. In the recently published study of a leading periodical for industrial image processing, a survey among the readers was held asking to name the best known and most important manufacturers of image processing technology. In the cameras segment, Basler was always ranking at the top. Our company was selected as the "Top of Mind" industrial camera brand and therefore as the best known camera brand in the survey's results. In addition, Basler attracted the majority of votes from the survey's participants when they were asked for the camera manufacturers who had supplied cameras to them in the last 12 months. We were particularly pleased to see that the participants put Basler on the first rank by an even higher number of votes when they were asked for the camera manufacturers from whom they intend to acquire cameras in the next 12 months.

Employees

The number of employees of the Basler group was 318 on the reporting date (previous year: 287, 11 %). The regional allocation is as follows:

  • Headquarters in Ahrensburg: 276 (Previous year: 246)
  • Subsidiary in USA: 15 (Previous year: 18) Subsidiary in Taiwan: 9 (Previous year: 9) Subsidiary in Singapore: 12 (Previous year: 10) Representative offices in Korea and Japan: 6 (Previous year: 4)

Cash flow, liquid assets, and debts

The operating cash flow amounted to € 2.3 million in the reporting period (previous year: € 3.3 million, -30 %). After investments into fixed assets amounting to € 2.5 million the free cash flow (calculated as operating cash flow less cash flow from investments) amounted to € -0.2 million (previous year: € -0.2 million).

At the end of the reporting period, liquid assets amounted to € 6.7 million and were thus by 116 % above the value of the comparison period of the previous year (€ 3.1 million).

The equity amounted to € 30.5 million at the end of the reporting period (December 31, 2012: € 29.6 million, +3 %). At the reporting date, the net cash position amounted to € -0.1 million (December 31, 2012: € 3.5 million, -102 %).

Basler share

The Basler share opened at a price of € 14.79 in the beginning of the second quarter of 2013. Following the publication on April 16 of the preliminary business figures for the first quarter the share price increased speedily reaching a level of € 19, then continued the increase reaching € 20 in May, and marked a 12-year high of € 22 in the beginning of June. In parallel to the adjustments of share prices on the international markets during June the Basler share settled at a price of € 18.98 at the end of the quarter.

The average daily trade volume in the first half-year of 2013 was almost 4,800 units (previous year: 3,100 units, +55 %).

The market capitalization of Basler AG amounted at the end of the second quarter to approximately € 62 million (December 31,2012: € 45.9 million, +35 %).

The management board informed the Basler shareholders on March 19, 2013, that the company will buy back bearer shares with an equivalent value of up to € 1 million via the stock market. This buyback program started on March 20, 2013, and was exhausted at the end of May 2013. The buyback program is based on a resolution of the shareholders' meeting of May 18, 2013, authorizing the company to buy own shares, amounting to a total of up to 10 % of the share capital of the corporation existing at the time the resolution was adopted. The authorization is approved until May 18, 2015. The shares can be used for all purposes provided for in the authorization of the shareholders' meeting of May 18, 2010. Basler AG wants to make use of the share's current valuation that is considered favorable and add to the packet of shares that was already built up in the previous year. The buyback programs are carried out through a credit institution that decides upon the time for the individual buybacks independently of Basler AG and according to Commission Regulation (EC)

No 2273/2003 of December 22, 2003.

As of today, 232,115 Units, equivalent to 6.6 % of own shares are owned by Basler AG.

As of June 30, 2013, the management board and the supervisory board held the following shares:

06/30/2013
Number of
Shares (Units)
06/30/2012
Number of
Shares (Units)
Supervisory Board
Norbert Basler 1,816,891 1,816,891
Konrad Ellegast - -
Prof. Dr. Eckart
Kottkamp - -
Management Board
Dr. Dietmar Ley 144,358 144,043
John P. Jennings 5,500 5,500
Arndt Bake 700 0

Shareholders' meeting 2013

In the course of the shareholders' meeting held in Hamburg on May 22, 2013, the shareholders approved the actions of the management board and supervisory board with great majority. BDO AG, Hamburg, was appointed as auditor for fiscal year 2013. In addition, the mandate in the supervisory board was extended for Prof. Dr. Kottkamp by another five years. Furthermore, another payment of a dividend was approved by almost 100 % of the voters present. The dividend per share amounts to € 0.30. A total of € 982,381 was paid to the shareholders.

The following lists the voting results corresponding to the items on the agenda of the shareholders' meeting of 2013:

Item Yes
(in million)
% No Absten
tions
Resolution on the use of the retained earnings of fiscal year 2012 2.3 99.99 278 20
Approval of the actions of the management board 2.1 100 0 0
Approval of the actions of the supervisory board 0.5 99.98 100 100
Appointment of BDO AG as auditor 2.3 99.94 1,345 8
Appointment of Prof. Dr. Eckart Kottkamp as member
of the supervisory board
2.3 99.94 1,483 320

Corporate governance - declaration of compliance according to Section 161 AktG

The management board and the supervisory board hereby declare that Basler AG has complied with the recommendations for conduct ("code" for short in the following) issued by the "Government Commission of the German Corporate Governance Code", as amended on May 15, 2012. The recommendations have been complied with hitherto during fiscal year 2013 and will be in the future with the following exceptions:

Clause 3.8 Sect. 3 - Retention associated with D & O insurance for the supervisory board

According to Clause 3.8 Sect. 3 of the code an appropriate retention shall be arranged for when the corporation takes out D & O insurance for the supervisory board. D & O insurance coverage for the management board includes retention according to statutory provision. The insurance policy for members of the supervisory board, however, does not provide for retention. Management board and supervisory board continue to share the view that all members of the board are naturally obliged to accountable action. Accordingly, retention for the members of the supervisory board is not required.

Clause 5.3 - Establishment of committees within the supervisory board

The supervisory board does not establish any committees. The supervisory board of Basler AG comprises three persons. This configuration ensures efficient work in all matters of the supervisory board, especially as the generally accepted minimum size for a committee is a membership of three.

Clause 5.4.1 - Composition of the supervisory board

For nominations to the shareholders' meeting the supervisory board will also in the future continue to align itself to legal requirements and will emphasize the candidates' professional and personal qualifications independent of gender. Consideration will also be given to the international activities of the company, to potential conflicts of interest, and to diversity. Basler AG does not state specific pertinent goals.

The declaration of compliance with the code and the constantly updated related compliance can be accessed on the Basler website's investors area (www.baslerweb. com/Investors). If you have any questions regarding the corporate governance code please contact the compliance officer of Basler AG, Dr. Dietmar Ley (CEO), Tel. +49 4102 - 463100, [email protected]

Outlook

The first half-year of fiscal year 2013 went better for Basler AG than expected. We achieved greater growth in sales than we had hoped for at the beginning of the year, when considering the sideways-moving economic environment. Due to growth rates well above market level we assume that we gained market share.

The unabated robust incoming orders, the so far smooth introduction into the market of important new products, and the progress made in sales in national markets of great significance to us, give us the confidence to assume that we will succeed in exceeding the previous forecast for 2013, despite an unchanged moderate macroeconomic environment. Taking into account the still limited predictability of the sales in this year's last two quarters we henceforth assume that the group's sales for 2013 will be within the corridor of € 63 to 65 million (previously € 60 to 63 million) at a pre-tax margin of 10 to 11 % (previously 8 to 10 %).

Declaration of the legal representatives

We affirm to the best of our knowledge that the interim consolidated financial statements, in accordance with the accounting principles applicable to interim reporting, provide a true and fair view of the group's asset, financial, and earnings situation and that the group's interim annual represents a true and fair picture of the course of business, including the operating result, and the group's financial situation as well as describing the essential opportunities and risks concomitant with the expected development of the group during the remainder of the fiscal year.

The management board

Dr. Dietmar Ley John P. Jennings Arndt Bake

(CEO) (CCO) (COO)

Consolidated Profit and Loss Statement

Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2013 to June 30, 2013

in € k 01/01/ -
06/30/2013
01/01/ -
06/30/2012
04/01/ -
06/30/2013
04/01/ -
06/30/2012
Sales 32,215 25,209 17,096 12,890
Cost of sales -15,921 -13,874 -8,375 -6,992
- of which depreciations on capitalized developments -1,679 -2,206 -874 -1,000
Gross profit on sales 16,294 11,335 8,721 5,898
Other internal income 712 950 305 637
Sales and marketing costs -5,656 -4,401 -2,950 -2,243
General administration costs -3,987 -3,469 -2,281 -1,808
Other expenses -3,194 -1,794 -1,621 -1,099
Operating result 4,169 2,621 2,174 1,385
Financial income 415 5 69 4
Financial expenses -688 -454 -191 -230
Financial result -273 -449 -122 -226
Earnings before tax 3,896 2,172 2,052 1,159
Income tax -1,186 -580 -492 -322
Group´s quarterly surplus 2,710 1,592 1,560 837
of which are allocated to
shareholders of the parent company 2,710 1,592 1,560 837
non-controlling shareholders 0 0 0 0
Average number of shares 3,303,396 3,410,702 3,286,695 3,392,531
Earnings per share diluted / undiluted (Euro) 0.82 0.47 0.47 0.25

Consolidated Statement of Comprehensive Income

in € k 01/01/ -
06/30/2013
01/01/ -
06/30/2012
Group's Quarterly surplus 2,710 1,592
Result from differences due to currency conversion, directly recorded in equity 9 4
Surplus/ Net loss from cashflow hedges 168 -307
Total result, through profit or loss 177 -303
Total result 2,887 1,289
of which are allocated to
shareholders of the parent company 2,887 1,289
non-controlling shareholders 0 0

Consolidated Cash Flow Statement

01/01/ - 01/01/ - 04/01/ - 04/01/ -
in € k 06/30/2013 06/30/2012 06/30/2013 06/30/2012
Operational activity
Group's period surplus 2,710 1,592 1,560 837
Increase / decrease in deferred taxes 832 -9 424 -112
Interest outpayment / interest inpayment 762 644 378 353
Depreciations on fixed assets objects 2,692 3,217 1,387 1,532
Change in the capital resources
without affecting payment 180 -304 -29 -469
Increase (+) / decrease (-) in the accruals -290 -122 295 -192
Profit (-) / loss (+) from the outflow of fixed asset objects -4 -4 -4 2
Increase (-) / decrease (+) in the reserves -940 -778 -591 -279
Increase (+) / decrease (-) in the down payments received -9 35 -323 96
Increase (-) / decrease (+) in the receivables
from deliveries and services
-2,124 -1,587 -1,707 -1,087
Increase (-) / decrease (+) in other assets -838 -20 -714 7
Increase (+) / decrease (-) in the payables
from deliveries and services -22 444 219 657
Increase (+) / decrease (-) in other liabilities -671 200 -531 551
Cash inflow from business activity 2,278 3,308 364 1,896
Investment activity
Outpayments for investments in fixed assets -2,481 -3,564 -1,277 -1,776
Inpayment from outflow of fixed asset objects 4 17 4 9
Cash outflow from investment activity -2,477 -3,547 -1,273 -1,767
Financing activity
Outpayment from repayment of bank loans -1,125 -1,599 -1,087 -1,088
Silent partnership outpayment 0 0 0 0
Outpayment for the clearing of financing liabilities -615 -574 -308 -289
Inpayment from the taking out of bank loans 3,210 500 3,210 500
Outpayment from the taking out of loans
from closely affiated persons 0 0 0 0
Interest outpayment -763 -644 -379 -353
Outpayment for own shares -1,002 -799 -916 -413
Outpayment for dividends -982 -1,014 -982 -1,014
Cash outflow from financing activity -1,277 -4,130 -462 -2,657
Changes in the funds that affect the payment
in the period -1,476 -4,369 -1,371 -2,528
Funds at the beginning of the period 8,197 7,438 8,092 5,597
Funds a the end of the end of the period 6,721 3,069 6,721 3,069
Composition of the funds at the end of the period
Cash in bank and cash in hand 6,721 3,069 6,721 3,069
Outpayment for taxes 111 291 111 152

Group Balance Sheet

in € k 06/30/2013 12/31/2012
Assets
A. Long-term assets
I. Intangible assets 13,668 13,642
II. Fixed assets 3,497 3,388
III. Buildings and land in finance lease 17,046 17,392
IV. Other financial assets 5 5
V. Deferred tax assets 91 94
34,307 34,521
B. Short-term assets
I. Inventories 8,576 7,636
II. Receivables from deliveries and services and from production orders 8,447 6,323
III. Other short-term financial assets 220 137
IV. Other short-term assets 1,029 937
V. Claim for tax refunds 1,389 726
VI. Cash in bank and cash in hand 6,721 8,197
26,382 23,956
60,689 58,477

Group Balance Sheet

in € k 06/30/2013 12/31/2012
Liabilities
A. Equity
I. Subscribed capital 3,268 3,326
II. Capital reserves 0 0
III. Retained earnings including group's earnings 27,282 26,498
IV. Other components of equity -62 -239
30,488 29,585
B. Long-term debt
I. Long-term liabilities
1. Long-term liabilities to banks 5,653 3,289
2. Other financial liabilities 4 19
3. Liabilities from finance lease 13,488 14,103
II. Long-term accrual liabilities 489 489
III. Deferred tax liabilities 849 19
20,483 17,919
C. Short-term debt
I. Other financial liabilities 2,321 3,222
II. Short-term accrual liabilities 2,574 2,212
III. Short-term other liabilities
1. Liabilities from deliveries and services 1,840 1,846
2. Other short-term financial liabilities 601 658
3. Liabilities from finance lease 2,149 2,149
IV. Current tax liablilities 233 886
9,718 10,973
60,689 58,477

Consolidated Statement of Changes in Equity

Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2013 to June 30, 2013

Other components of equity
in € k Subscribed
capital
Capital
reserve
Retained
earnings
incl. group's
earnings
Differences
due to
currency
conversion
Reserves for
cash flow
hedges
Sum of other
components of
equity
Total
Sharholders´
equity as of
01/01/2012
3,445 446 24,256 -37 -1,093 -1,130 27,017
Total result 1,594 4 -307 -303 1,291
Share buyback
Dividend
-65 -734 0 -799
outpayment* -1,013 0 -1,013
Shareholders´
equity as of
06/30/2012 3,380 -288 24,837 -33 -1,400 -1,433 26,496
Total result 2,492 -38 1,232 1,194 3,686
Share buyback -54 288 -831 0 -597
Dividend
outpayment*
0 0 0
Shareholders´
equity as of
12/31/2012 3,326 0 26,498 -71 -168 -239 29,585
Total result 2,710 9 168 177 2,887
Share buyback -58 0 -944 0 -1,002
Dividend
outpayment*
-982 0 -982
Shareholders´
equity as of
06/30/2013
3,268 0 27,282 -62 0 -62 30,488

1) € 0.30 per share

Events 2013

Finance

Date Fair Venue
11/07/2013 Publication 9-month report 2013 Ahrensburg,
Germany

Trade Fairs and Conferences

Date Fair Venue
08/28-31/2013 Taipei Int'l Industrial Automation Exhibition Taipei, Taiwan
10/16-18/2013 Vision China, Beijing Beijing, China
November AOI Forum & Show Hsinchu, Taiwan
11/20-23/2013 Metalex Thailand Bangkok, Thailand
12/4-6/2013 International Technical Exhibition on Image Technology and Equipment Yokohama, Japan

Basler AG

An der Strusbek 60 – 62 22926 Ahrensburg Germany Tel. +49 4102 463 0 Fax +49 4102 463 109 [email protected]

baslerweb.com

Basler, Inc. 855 Springdale Drive, Suite 203 Exton, PA 19341 USA Tel. +1 610 280 0171 Fax +1 610 280 7608 [email protected]

Basler Asia Pte. Ltd.

8 Boon Lay Way #03 – 03 Tradehub 21 Singapore 609964 Tel. +65 6425 0472 Fax +65 6425 0473 [email protected]

Basler Vision Technologies

Taiwan Inc. No. 21, Sianjheng 8th St. Jhubei City, Hsinchu County 30268 Taiwan/R.O.C. Tel. +886 3 5583955 Fax +886 3 5583956 [email protected]

Basler Korea

Representative Office Room 16, DM Business Center, 7F KB Bldg. 366-1 Yatap-dong, Budang-gu, Seongnam, 463-827 Korea Tel. +82 707 1363 114 Fax +82 707 0162 705 [email protected]

Talk to a Data Expert

Have a question? We'll get back to you promptly.