Quarterly Report • Feb 14, 2018
Quarterly Report
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| INCOME STATEMENT - SUMMARY | |||||
|---|---|---|---|---|---|
| Oct-Dec | Jan-Dec | ||||
| (SEK Million) | 2017 | 2016 | 2017 | 2016 | |
| Net sales | 110,5 | 106,7 | 390,2 | 378,7 | |
| whereof recurring revenue | 51,1 | 45,3 | 195,2 | 178,6 | |
| EBITDA | 25,9 | 30,3 | 85,8 | 88,0 | |
| EBITDA-adj | 17,4 | 21,6 | 48,9 | 50,8 | |
| EBIT | 14,7 | 15,8 | 37,7 | 29,7 |
The positive trend with higher proportions of our new sales being Software as a Service (cloud) has been strengthened even further during the fourth quarter. As previous stated, this is completely in line with our strategy and to our benefits in the longer term.
During the year, we have increased our ARR (Annual recurring revenue) from SaaS to SEK 27 million from SEK 15 million, which is more than the double from the previous year's end. The recurring revenue now amounts to 50 % of our total revenue. During 2017 we have closed 110 new SaaS contracts compared to the 25 new contracts during 2016.
In the short-term, the transition to SaaS sales is negatively affecting both revenue as well as margins. As a reference, the revenues for 2017 would have been approximately SEK 23 million higher would these SaaS deals been sold as traditional licenses. We still show an EBITDA result in line with previous year and an operating profit that is 27 % better than previous year. The depreciations are on a lower level than previous year mainly due to the non-tangible assets from the acquisition of Traen A/S now are fully depreciated.
SaaS: Annual recurring revenue (ARR), SEKm 0 5 10 15 20 25 30 2014 2015 2016 2017
The positive trend is a result of improvements in all business segments. Measures in areas where we have had challenges have yielded results. We can see the biggest impact of the cloud services transition in the Danish operations, where most of the new license sales 2017 were as cloud services. In the Life Science segment, we have adjusted the cost base and make a fourth quarter with a positive result.
Lasernet, which is our product for input- and output management of business documents, has had a very strong development during the year. Our partnership with Microsoft is becoming increasingly closer and Lasernet as a product is now available in Microsoft AppSource, and is therefore available for download for all Microsoft's customers globally. The fact that Microsoft has approved and backs our product is also a quality stamp that creates security and safety in the choice of us as a supplier.
As usual, the business provides a strong cash flow and the Board of Directors hereby proposes an increased dividend to SEK 0.50 per share.
In summary, we make a satisfactory finish of the year that we in the future will see as the start of a paradigm shift from traditional license sales to SaaS sales. When the proportion SaaS sales to traditional license sales stabilizes, the growth of recurring revenue will provide an even clearer margin improvement on our profit.
Enterprise content management (ECM) is used to create, store, distribute, discover, archive and manage digital content (such as scanned documents, email, reports, medical images and office documents), and ultimately analyze usage to enable organizations to deliver relevant content to users where and when they need it. It is in the ECM market that Formpipe has emerged as the market leader in the public sector, as a challenger in e.g. life sciences and legal as well as cross-industry for parts of the product range.
Growth in the ECM market is fueled in large part by the organizational and corporate wide need to streamline operations and meet legal requirements and regulations. Making business value from the information requires applications and services to search, analyze, process and distribute data and content. Growth drivers continually gain strength as the sheer amount of data and information increases and ECM remains a highly prioritized investment area. Gartner's forecast on ECM software revenue is a Compound Annual Growth Rate of 10.6%, 2015-2020. The ECM market is large and fragmented, with a total addressable market (systems revenue) of 7 billion dollars in 2017 (Source: Gartner, Enterprise Software Markets, Worldwide, 2013-2020, 4Q16 update).
The ECM market is changing from the centralized, backend, command and control of unstructured content to integrated, purpose-built, cloud based solutions that prioritizes content usability, processing and analyzing content from one or several sources, to get business insights and business value. Control, file synchronization and sharing will be a standard capability of ECM offerings.
This change is well in line with the Formpipe's strategy, as more and more of the company's customers choose to switch to cloud solutions for the standard products, as well as with the company development of applications and modules with the ability to process information from both Formpipe's existing systems or from other systems.
The development for ECM software is towards cloud based solutions and Gartner predicts that at least 50% of the leading ECM software providers will have rearchitected their offerings to cloud based platform by the end of 2018. But even if the trend is towards the cloud, the license revenues from on-premise will play an important role for years to come.
Software Revenue – On Premises Vs SaaS, 2014-2020 (Source: Gartner (January 2017)
Case and Document Management is about managing documents and information in cooperation, over functional boundaries, with version management, management of rights, traceability and automation of the work flows. This provides lower costs, minimized risk exposure and structured information. In the area of Case and Document Management, Formpipe addresses the public sector in Sweden and Denmark, as well as the industries of Life Science and Legal.
Grants Management automates the whole life cycle for applications and grants for both grant funding bodies and recipients, from requests for proposals by the program to measurement and reporting of the outcome of the effort. Formpipes Grants Management products are currently
sold to the public sector and it is the leading system with national authorities.
With CCM products, content is produced, individualized, formatted and distributed from different systems and data sources to the format that best suits the company in its communication with customers or other business partners. Formpipe's CCM product Lasernet is mainly tied to sales of ERP systems
Structured data archiving is the ability to index and move important operating data from active business systems, or systems being discontinued. It provides control and makes the data available in its context, reduces storage costs and the amount of data in the daily production environment. Formpipe's product Long-Term Archive is currently sold to the public sector in Sweden where there is a high level of activity.
Formpipe is well-positioned to be able to develop and strengthen its leading position as ECM provider while retaining good profitability levels. The company sees good opportunities to continue to utilize its experience from its successes in order to target new markets and customer segments. A solid product development and product strategy creates good conditions to be able to efficiently develop market-leading offerings and meet up with sector-specific requirements also in the future.
The board believes that Formpipe, which is one of the largest European-based ECM suppliers, is wellpositioned with a stabile customer base, a high share of recurring revenue and a focus on customer segments with a high need for ECM solutions.
Net sales for the period totalled to SEK 110.5 million (106.7 million), which corresponds to an increase of 4 %. System revenue decreased by 7 % from the previous year and totalled to SEK 67.8 million (73.0 million). Total recurring revenue for the period increased by 13 % from the previous year and totalled to SEK 51.1 million (45.3 million), which is equivalent to 46 % of net sales (42 %). Exchange rate effects have affected net sales positively by SEK 0.8 million in comparison with the previous year.
Net sales for the period totalled to SEK 390.2 million (378.7 million), which corresponds to an increase of 3 %. System revenue remained at the same level as previous year and totalled to SEK 248.3 million (248.2 million). Total recurring revenue for the period increased by 9 % from the previous year and totalled to SEK 195.2 million (178.6 million), which is equivalent to 50 % of net sales (47 %). Exchange rate effects have affected net sales positively by SEK 3.1 million in comparison with the previous year.
Recurring revenue rolling 12 months, MSEK
The operating costs for the period increased by 4 % and totalled to SEK 94.9 million (90.9 million). Personnel costs increased by 3 % and totalled to SEK 53.6 million (52.2 million). Selling expenses totalled to SEK 19.5 million (14.3 million). Other costs totalled to SEK 20.0 million (18.6 million). During the period costs related to restructuring reserves have been recognized of SEK 0.9 million (- million)
The operating costs for the period increased by 2 % and totalled to SEK 353.0 million (345.9 million). Personnel costs increased by 2 % and totalled to SEK 208.6 million (203.9 million). Selling expenses totalled to SEK 61.0 million (52.4 million). Other costs totalled to SEK 71.7 million (71.6 million). During the period a write-down of the remaining liability for additional purchase price from
the acquisition of GxP Ltd. has been made by GBP 0.5 million (5.6 million). Related goodwill from the acquisition has been written down by GBP 0.4 million (4.3 million). During the period costs related to restructuring reserves have been recognized of SEK 0.9 million (3.1 million) giving a positive net effect of items affecting comparability amounting to SEK 0.4 million (- 3.1 million).
Recurring revenues in relation to fixed operating costs rolling 12 months, MSEK
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 25.9 million (30.3 million) with an EBITDA margin of 23.4 % (28.4 %). Operating profit (EBIT) totalled to SEK 14.7 million (15.8 million) with an operating margin of 13.3 % (14.8 %). Net profit totalled to SEK 10.5 million (11.5 million). Exchange rate effects have affected EBITDA positively by SEK 0.4 million in comparison with the previous year.
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 85.8 million (SEK 88.0 million) with an EBITDA margin of 22.0 % (23.2 %). Operating profit (EBIT) totalled to SEK 37.7 million (29.7 million) with an operating margin of 9.7 % (7.8 %). Net profit totalled to SEK 24.8 million (22.8 million). Net profit from discontinued operations amounted to SEK - million (2.4 million). Exchange rate effects have affected EBITDA positively by SEK 0.9 million in comparison with the previous year.
Cash and cash equivalents at the end of the period amounted to SEK 82.7 million (60.9 million). The company had interest-bearing debt at the end of the period totalling to SEK 92.1 million (106.5 million). The company's net interest-bearing debt thereby totalled to SEK 9.4 million (45.6 million).
The company has bank overdraft facilities for a total of SEK 10.0 million and for DKK 17.0 million, which were not utilized at the end of the period (- million).
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 14.9 million (SEK 17.3 million).
Equity at the end of the period amounted to SEK 363.1 million (346.2 million), which was equivalent to SEK 7.00 (6.75) per outstanding share at the end of the period. The weakening of the Swedish krona has increased the value of the group's net assets in foreign currencies by SEK 6.4 million (7.0 million) from the end of the year.
During the period the personnel warrant program 2014/2017 was exercised. A total of 599 417 new shares were issued from this program. After the issue of new shares, the total number of shares and votes in the Company amounts to 51 873 025 and the share capital to SEK 5 187 302.5.
The equity ratio at the end of the period was 54 % (53 %).
Cash flow from operating activities for the period January - December totalled to SEK 95.1 million (72.2 million).
Total investments for the period January - December amounted to SEK 41.3 million (38.8 million.
Investments in intangible assets totalled to SEK 37.9 million (37.2 million) and refer to capitalized product development costs.
Investments in tangible and financial assets totalled to SEK 3.4 million (1.6 million).
During the period January – December the company has amortized SEK 17.3 million (16.1 million) and the interest-bearing debt amounted to SEK 92.1 million (106.5 million) at the end of the period.
As an outcome from the exercise of the personnel warrant program 2014/2017, 599,417 new shares was issued and payments amounting to SEK 3.8 million (7.4 million) has been added to the Company. At the same time the Company repurchased 392,583 warrants to a value of SEK 3.3 million (0.6 million).
During the period a new warrant program (2017/2020) has been issued to the company's personnel amounting to 500 000 warrants, which has provided the company with payments of SEK 0.4 million (0.3 million).
During the period dividends amounting to SEK 16.0 million (6.6 million) has been paid out to shareholders.
The Board proposes that the AGM to be held on 25 April 2018 adopts a resolution to pay a dividend of SEK 0.50 (0.30) per share, which means a total dividend of SEK 25.9 million (15.4 million).
As the basis for its proposal for the appropriation of profits, the board, in accordance with chapter 17 § 3 subsect 2- 3 of the Swedish Companies Act, has assessed the parent company's and the group's need to strengthen the balance sheet, its liquidity and financial position otherwise, and the ability to meet its obligations in the long-term
Formpipe signs an agreement with three municipalities regarding the e-archiving product Long-Term Archive. The total order value is SEK 6.3 million over a four year period with a possibility of extension on an additional four years.
Formpipe received an order on the ECM product Lasernet through our British partner EFS, who mainly serves the finance industry. The total order value amounts to SEK 4.5 million over a four year period.
Formpipe signed an agreement with Hillerøds municipality regarding the ECM-product Acadre as a cloud service. The total order value amounts to SEK 4.4 million over a four year period.
It was decided at the AGM held on 25 April to issue 500 000 warrants offered to all employees within the Formpipe Software group, where one option gives the right to subscribe for one new share. The programme was fully subscribed.
During the period the personnel warrant program 2014/2017 was exercised. A total of 599,417 new shares were issued from this program. The number of shares and votes in the Company has therefore increased with 599,417 and the share capital has increased with SEK 59,941.7. After the issue of new shares, the total number of shares and votes in the Company amounts to 51,873,025 and the share capital to SEK 5,187,302.5.
Formpipe signed an agreement with Furesø municipality regarding the ECM-product Acadre as a cloud service. The total order value amounts to SEK 3.6 million over a four year period.
No significant events have occurred during the period.
No significant events have ocurred after the periods ended.
The number of employees at the end of the reporting period totalled to 231 persons (230 persons).
The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year. During the period there have been no changes in the risk and uncertainty factors for the group and the parent company.
No transactions with related parties have occurred during the period
The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report covers pages 1-14 and the interim report on pages 1-7 is thus an integral part of this financial report. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report
The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.
The following new accounting standards have been published but are not mandatory for 2017 and have not been early adopted by Formpipe.
IFRS 9 addresses the classification, valuation and reporting of financial assets and liabilities and introduces new rules for hedge accounting. IFRS 9 replaces those parts of IAS 39 regulating the classification and valuation of financial instruments and also introduces a new writedown model. The full version of IFRS 9 was issued in July 2014 and is applicable for fiscal years commencing January 1, 2018 or later. The standard is adopted by the EU. Formpipe has evaluated the effects of IFRS 9 and estimates that the standard has no significant impact on the Group's valuation or classification of financial instruments.
IFRS 15 addresses the principles of revenue recognition and replaces IAS 18 and IAS 11. The standard was adopted by the EU on September 22, 2016, and is applicable for fiscal years commencing January 1, 2018 or later. The principles on which IFRS 15 is based upon will provide users of financial reports with more useful information about the Group's revenues. This is done through more extensive disclosure requirements, and the focus on when revenues may be recognized in time is moved from when the control of the good or service is transferred over to the customer instead of focusing on when the risk is transferred.
Formpipe's work to evaluate the impact of IFRS 15 implementation has been based on the standards fivestep model. The model is applied to all contracts with customers to determine the amount and timing of the revenue recognition, and to determine when the control over the good or service has been transferred to the customer. After the evaluation, the Group has assessed that IFRS 15 does not have a material impact on the Group's historical income statement as the Group's contracts has been divided into four revenue groups where revenue has been recognized in accordance with the principals of IFRS 15.
The effect Formpipe notice, after the evaluation work and which might affect the Group's income statement, is primarily future contracts with customers. Formpipe believes that customers will increasingly seek another billing model in relation to the contract and the actual transfer of control. In case of such deviations, revenue recognition will need to be adjusted from the billing model to comply with IFRS 15 principles. It will also make new demands on the Group's contract management.
The introduction of IFRS 15 will also entail new and more comprehensive disclosure requirements for the Group in respect of the revenue recognition.
Formpipe Software AB (publ) is a software company in the field of ECM (Enterprise Content Management). We develop and deliver ECM products for structuring information in larger companies, the public sector and organizations. Our software helps organizations to capture and place information in context. Reduced costs, minimized risk exposure and structured information are the benefits from using our ECM products.
Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, the Netherlands, Germany and USA. The Formpipe share is listed on Nasdaq Stockholm.
| April 24, 2018 | Interim report Jan-Mar |
|---|---|
| April 25, 2018 | Annual general meeting |
| July 13, 2018 | Interim report Jan-Jun |
| October 23, 2018 | Interim report Jan-Sep |
This interim report has not been subject to review by the company's auditors.
The annual report will be available for shareholders on Formpipes webpage, www.formpipe.com, and on the groups headquarter, Sveavägen 168 in Stockholm from week 14.
Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.
Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]
Stockholm February 14, 2018 Formpipe Software AB The Board of Directors and the Managing Director
Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605 Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2017 | 2016 | 2017 | 2016 | |
| Net Sales | 110 457 | 106 696 | 390 240 | 378 723 | |
| Sales expenses | -19 532 | -14 287 | -61 036 | -52 439 | |
| Other costs | -19 978 | -18 621 | -71 710 | -71 588 | |
| Personnel costs | -53 580 | -52 220 | -208 604 | -203 856 | |
| Capitalized work for own account | 8 496 | 8 718 | 36 869 | 37 204 | |
| Operating profit/loss before depreciation/amortization and non-comparative items (EBITDA) |
25 862 | 30 286 | 85 759 | 88 044 | |
| Items affecting comparability | -863 | - | 398 | -3 118 | |
| Depreciation/amortization | -10 330 | -14 460 | -48 482 | -55 261 | |
| Operating profit/loss (EBIT) | 14 669 | 15 826 | 37 674 | 29 665 | |
| Financial income and expenses | -836 | -1 144 | -3 863 | -4 661 | |
| Exchange rate differences | -118 | 312 | -917 | 2 519 | |
| Tax | -3 257 | -3 517 | -8 057 | -7 173 | |
| Net profit for the period from remaining business | 10 458 | 11 477 | 24 837 | 20 350 | |
| Realization gains from discontinued business | - | - | - | 2 434 | |
| Net profit for the period | 10 458 | 11 477 | 24 837 | 22 784 | |
| Of which the following relates to: | |||||
| Parent company shareholders | 10 485 | 11 457 | 24 832 | 21 877 | |
| Shareholding with no controlling influence | -27 | 19 | 5 | 907 | |
| Other comprehensive income | |||||
| Translation differences | 7 013 | -1 184 | 6 393 | 7 045 | |
| Other comprehensive income for the period, net after tax | 7 013 | -1 184 | 6 393 | 7 045 | |
| Total comprehensive income for the period | 17 471 | 10 292 | 31 230 | 29 829 | |
| Of which the following relates to: | |||||
| Parent company shareholders | 17 498 | 10 273 | 31 225 | 28 922 | |
| Shareholding with no controlling influence | -27 | 19 | 5 | 907 | |
| EBITDA margin, % | 23,4% | 28,4% | 22,0% | 23,2% | |
| EBIT margin, % | 13,3% | 14,8% | 9,7% | 7,8% | |
| Profit margin, % | 9,5% | 10,8% | 6,4% | 6,0% | |
| Earnings per share attributable to the parent company's shareholders during the period (SEK per share) |
|||||
| - before dilution | 0,20 | 0,22 | 0,48 | 0,43 | |
| - after dilution | 0,20 | 0,22 | 0,48 | 0,43 | |
| Average no. of shares before dilution, in 000 | 51 873 | 51 274 | 51 623 | 50 803 | |
| Average no. of shares after dilution, in 000 | 52 188 | 51 566 | 52 128 | 51 203 |
| Dec 31 | ||
|---|---|---|
| (SEK 000) | 2017 | 2016 |
| Intangible assets | 465 071 | 470 396 |
| Tangible assets | 4 596 | 4 075 |
| Financial assets | 2 964 | 1 682 |
| Deferred tax asset | 14 937 | 17 332 |
| Current assets (excl. cash equivalents) | 106 052 | 94 870 |
| Cash equivalents | 82 663 | 60 890 |
| TOTAL ASSETS | 676 281 | 649 244 |
| Equity | 363 051 | 346 249 |
| Shareholding with no controlling influence | 2 079 | 2 706 |
| Long-term liabilities | 97 137 | 115 953 |
| Current liabilities | 214 014 | 184 337 |
| TOTAL EQUITY AND LIABILITIES | 676 281 | 649 244 |
| Net interest-bearing debt (-) / cash (+) | -9 409 | -45 626 |
| Equity attributable to the parent company's shareholders | Share | ||||||
|---|---|---|---|---|---|---|---|
| Other | Profit/loss | holdings with | |||||
| Share | contributed | Translation | brought | no controlling |
|||
| (SEK 000) | capital | capital | reserves | forward | Total | influence | Total |
| Balance at January 1, 2016 | 5 014 | 186 709 | 4 454 | 118 930 | 315 108 | 3 378 | 318 486 |
| Comprehensive income | |||||||
| Net profit for the period | - | - | - | 21 877 | 21 877 | 907 | 22 784 |
| Other comprehensive income items | - | - | 7 045 | - | 7 045 | - | 7 045 |
| Total comprehensive income | - | - | 7 045 | 21 877 | 28 922 | 907 | 29 829 |
| Transaction with owners | |||||||
| Dividend | - | - | - | -5 014 | -5 014 | -1 579 | -6 594 |
| Share issue | 113 | 7 425 | - | - | 7 538 | - | 7 538 |
| Repurchase of warrants | - | -570 | - | - | -570 | - | -570 |
| Employee warrant schemes | - | 265 | - | - | 265 | - | 265 |
| Total transaction with owners | 113 | 7 120 | - | -5 014 | 2 219 | -1 579 | 639 |
| Balance at Dec 31, 2016 | 5 127 | 193 829 | 11 499 | 135 793 | 346 249 | 2 706 | 348 954 |
| Balance at January 1, 2017 | 5 127 | 193 829 | 11 499 | 135 793 | 346 249 | 2 706 | 348 954 |
| Comprehensive income | |||||||
| Net profit for the period | - | - | - | 24 832 | 24 832 | 5 | 24 837 |
| Other comprehensive income items | - | - | 6 393 | - | 6 393 | - | 6 393 |
| Total comprehensive income | - | - | 6 393 | 24 832 | 31 225 | 5 | 31 230 |
| Transaction with owners | |||||||
| Dividend | - | - | - | -15 382 | -15 382 | -632 | -16 014 |
| Share issue | 60 | 3 782 | - | - | 3 842 | - | 3 842 |
| Repurchase of warrants | - | -3 282 | - | - | -3 282 | - | -3 282 |
| Employee warrant schemes | - | 400 | - | - | 400 | - | 400 |
| Total transaction with owners | 60 | 900 | - | -15 382 | -14 422 | -632 | -15 054 |
| Balance at Dec 31, 2017 | 5 187 | 194 729 | 17 892 | 145 243 | 363 051 | 2 079 | 365 130 |
CASH FLOW STATEMENT SUMMARY*
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2017 | 2016 | 2017 | 2016 | |
| Cash flow from operating activities | |||||
| before working capital changes | 19 869 | 28 226 | 75 336 | 76 133 | |
| Cash flow from working capital changes | 41 010 | 18 681 | 19 804 | -3 913 | |
| Cash flow from operating activities | 60 879 | 46 907 | 95 140 | 72 220 | |
| Cash flow from investing activities | -10 698 | -9 346 | -41 263 | -35 663 | |
| Cash flow from financing activities | -4 156 | -3 892 | -32 329 | -12 957 | |
| Cash flow for the period | 46 025 | 33 669 | 21 548 | 23 600 | |
| Change in cash and cash equivalent | |||||
| Cash and cash equivalent at the beginning of the period | 36 388 | 27 192 | 60 890 | 37 670 | |
| Translation differences | 250 | 29 | 224 | -380 | |
| Cash flow for the period | 46 025 | 33 669 | 21 548 | 23 600 | |
| Cash and cash equivalent at the end of the period | 82 663 | 60 890 | 82 663 | 60 890 |
* Cash flow from internal development work (SEK 2,7 m for the year and 0,6 m for the quarter) previously included in the cash flow from operating activities has been re-classified to investment acitivies in last year's comparable period (in accordance with IAS 7).
| (SEK 000) | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2016 Q4 | 2017 Q1 | 2017 Q2 | 2017 Q3 | 2017 Q4 |
|---|---|---|---|---|---|---|---|---|
| Support and maintenance | 42 150 | 40 542 | 42 478 | 42 309 | 43 572 | 42 406 | 44 091 | 44 519 |
| Licenses | 15 999 | 20 370 | 13 730 | 30 667 | 17 778 | 20 033 | 12 585 | 23 298 |
| System revenue | 58 149 | 60 912 | 56 208 | 72 976 | 61 350 | 62 439 | 56 676 | 67 817 |
| whereof recurring revenue | 44 806 | 43 146 | 45 338 | 45 318 | 47 521 | 46 706 | 49 884 | 51 119 |
| Deliveries | 29 126 | 40 619 | 27 013 | 33 720 | 33 372 | 34 620 | 31 326 | 42 640 |
| Net sales | 87 275 | 101 531 | 83 221 | 106 696 | 94 722 | 97 059 | 88 002 | 110 457 |
| Sales expenses | -12 886 | -13 939 | -11 327 | -14 287 | -13 625 | -15 107 | -12 772 | -19 532 |
| Other costs | -17 399 | -18 724 | -16 844 | -18 621 | -17 502 | -18 700 | -15 530 | -19 978 |
| Personnel costs | -51 099 | -56 277 | -44 260 | -52 220 | -54 465 | -54 130 | -46 428 | -53 580 |
| Capitalized development costs | 10 524 | 8 887 | 9 074 | 8 718 | 9 632 | 9 892 | 8 849 | 8 496 |
| Total operating expenses | -70 861 | -80 053 | -63 356 | -76 410 | -75 960 | -78 046 | -65 881 | -84 595 |
| EBITDA | 16 415 | 21 478 | 19 865 | 30 286 | 18 763 | 19 013 | 22 121 | 25 862 |
| % | 18,8% | 21,2% | 23,9% | 28,4% | 19,8% | 19,6% | 25,1% | 23,4% |
| -2 434 | ||||||||
| Items affecting comparability | - | -3 118 | - | - | - | 1 260 | - | -863 |
| Depreciation/amortization | -13 584 | -13 559 | -13 658 | -14 460 | -14 356 | -12 820 | -10 976 | -10 330 |
| EBIT | 2 831 | 4 801 | 6 207 | 15 827 | 4 406 | 7 453 | 11 145 | 14 669 |
| % | 3,2% | 4,7% | 7,5% | 14,8% | 4,7% | 7,7% | 12,7% | 13,3% |
The Group's segments are divided according to which country they have their headquarters in and for which products that is accounted for. The segments are divided into Sweden, Denmark and Life Science. Segment Sweden comprises the Swedish companies and their products, segment Denmark consists of the Danish companies and their subsidiaries that accounts for products belonging to the Danish entities. Segment Life Science consists of the Group's total records related to life sciences customers for its products specifically designed for life science companies. Items related to life sciences are thus reported separately under its own segment and are not included in the other segments' reported amounts.
| Jan-Dec 2017 | ||||||
|---|---|---|---|---|---|---|
| Life | ||||||
| (SEK 000) | Sweden | Denmark | Science | Eliminations | Group | |
| Sales, external | 170 308 | 208 870 | 11 062 | - | 390 240 | |
| Sales, internal | 4 960 | 3 776 | 677 | -9 413 | - | |
| Total sales | 175 268 | 212 646 | 11 739 | -9 413 | 390 240 | |
| Costs, external | -120 001 | -172 288 | -12 192 | - | -304 481 | |
| Costs, internal | -4 785 | -3 944 | -684 | 9 413 | - | |
| EBITDA | 50 482 | 36 414 | -1 137 | - | 85 759 | |
| % | 28,8% | 17,1% | -9,7% | 22,0% |
| Jan-Dec 2016 | |||||
|---|---|---|---|---|---|
| Life | |||||
| (SEK 000) | Sweden | Denmark | Science | Eliminations | Group |
| Sales, external | 157 572 | 211 103 | 10 048 | - | 378 723 |
| Sales, internal | 7 030 | 2 009 | 1 401 | -10 440 | - |
| Total sales | 164 602 | 213 112 | 11 449 | -10 440 | 378 723 |
| Costs, external | -109 147 | -166 030 | -15 502 | - | -290 679 |
| Costs, internal | -6 182 | -2 857 | -1 401 | 10 440 | - |
| EBITDA | 49 273 | 44 225 | -5 454 | - | 88 044 |
| % | 29,9% | 20,8% | -47,6% | 23,2% |
Revenues from all products and services are identified as follows:
| Life | ||||
|---|---|---|---|---|
| 2017 | Sweden | Denmark | Science | Group |
| License | 38 320 | 32 820 | 2 554 | 73 694 |
| Support & Maintenance | 91 249 | 80 336 | 3 002 | 174 588 |
| Delivery | 40 739 | 95 714 | 5 506 | 141 958 |
| Net sales | 170 308 | 208 870 | 11 062 | 390 240 |
| Life | ||||
|---|---|---|---|---|
| 2016 | Sweden | Denmark | Science | Group |
| License | 41 814 | 35 629 | 3 323 | 80 766 |
| Support & Maintenance | 84 366 | 80 616 | 2 497 | 167 479 |
| Delivery | 31 392 | 94 858 | 4 228 | 130 478 |
| Net sales | 157 572 | 211 103 | 10 048 | 378 723 |
| 2013-01-01 | 2014-01-01 | 2015-01-01 | 2016-01-01 | 2017-01-01 | |
|---|---|---|---|---|---|
| 2013-12-31 | 2014-12-31 | 2015-12-31 | 2016-12-31 | 2017-12-31 | |
| Number of outstanding shares at the beginning of the period |
48 934 588 | 48 934 588 | 50 143 402 | 50 143 402 | 51 273 608 |
| Share issue from warrant programme | - | - | - | 1 130 206 | 599 417 |
| Non-cash issue | - | 1 208 814 | - | - | - |
| Number of outstanding shares at the end of the period |
48 934 588 | 50 143 402 | 50 143 402 | 51 273 608 | 51 873 025 |
| Jan-Sep | ||
|---|---|---|
| 2017 | 2016 | |
| Net sales, SEK 000 | 390 240 | 378 723 |
| EBITDA, SEK 000 | 85 759 | 88 044 |
| EBITDA-adj., SEK 000 | 48 890 | 50 840 |
| EBIT, SEK 000 | 37 674 | 29 665 |
| Net profit for the period, SEK 000 | 24 837 | 22 784 |
| EBITDA margin, % | 22,0% | 23,2% |
| EBITDA-adj. margin, % | 12,5% | 13,4% |
| EBIT margin, % | 9,7% | 7,8% |
| Profit margin, % | 6,4% | 6,0% |
| Return on equity, %* | 7,0% | 6,6% |
| Return on working capital, %* | 9,8% | 7,5% |
| Equity ratio, % | 54% | 53% |
| Equity per outstanding share at the end of the period, SEK | 7,00 | 6,75 |
| Earnings per share - before dilution, SEK | 0,48 | 0,43 |
| Earnings per share - after dilution, SEK | 0,48 | 0,43 |
| Share price at the end of the period, SEK | 14,15 | 9,75 |
* Ratios including P&L measures are based on the most recent 12-month period
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2017 | 2016 | 2017 | 2016 | |
| Net sales | 44 704 | 44 521 | 152 794 | 139 446 | |
| Operating expenses | |||||
| Sales expenses | -9 265 | -4 991 | -24 119 | -17 780 | |
| Other costs | -9 177 | -7 761 | -32 072 | -28 229 | |
| Personnel costs | -17 589 | -17 020 | -66 399 | -65 265 | |
| Depreciation/amortization | -1 558 | -1 590 | -6 246 | -6 298 | |
| Total operating expenses | -37 589 | -31 362 | -128 836 | -117 573 | |
| Operating profit/loss | 7 116 | 13 159 | 23 958 | 21 873 | |
| Result from participations in group companies | - | - | 1 168 | 2 921 | |
| Other financial items | 140 | 305 | 1 876 | 4 415 | |
| Appropriations | -6 601 | - | -6 601 | - | |
| Tax | -4 356 | -5 712 | -4 356 | -5 712 | |
| Net profit for the period | -3 702 | 7 752 | 16 046 | 23 496 |
| Dec 31 | ||
|---|---|---|
| (SEK 000) | 2017 | 2016 |
| Intangible assets | 14 852 | 19 856 |
| Tangible assets | 967 | 1 164 |
| Financial assets | 324 304 | 346 473 |
| Deferred tax asset | - | - |
| Current assets (excl. cash equivalents) | 79 439 | 72 292 |
| Cash and bank balances | 65 908 | 45 369 |
| TOTAL ASSETS | 485 470 | 485 154 |
| Restricted equity | 22 878 | 22 818 |
| Non-restricted equity | 211 628 | 210 064 |
| Total equity | 234 506 | 232 882 |
| Long-term liabilities | 81 429 | 94 552 |
| Current liabilities | 169 535 | 157 720 |
| TOTAL EQUITY AND LIABILITIES | 485 470 | 485 154 |
* A reclassification has been made between financial assets and current assets for the year 2016 related to the short-term part of interest-bearing receivables on group companies. The reclassification amounts to 6 990 Tkr.
Pledged assets refers to shares in subsidiaries as security for loans. The pledged assets in the Group is the same as disclosed for the Parent Company.
| Dec 31 | ||
|---|---|---|
| (SEK 000) | 2017 | 2016 |
| Pledged assets | 310 329 | 300 321 |
| Contingent liabilities | - | - |
Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). From July 3rd 2016 new guidelines were implemented by the European Union regarding alternative APM's, which Formpipe uses in published reports. Formpipe's APM's is calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures is altered by adding or subtracting amounts from the presented numbers. Below the alternative performance measures, that Formpipe uses in published reports, are defined and described
The total of license revenue and revenue from support and maintenance contracts.
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.
Recurring revenue for the period's last month multiplied by 12, to obtain the recurring revenue for the coming 12 months from contracts with recognized revenue.
Other costs and personnel costs
Sales costs, other costs, personnel costs, capitalized development and depreciation.
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.
EBITDA exclusive capitalized work for own account
The item must be of a material nature to be reported separately and considered undesirable from the regular core operations and complicate the comparison. For example, acquisition-related items, restructuring-related items and write-downs
Operating profit/loss
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.
Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.
Operating profit/loss as a percentage of net sales.
Net profit/loss after tax as a percentage of sales at the end of the period.
Net profit/loss after tax divided by the average number of shares during the period.
Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
Equity at the end of the period divided by the number of shares at the end of the period.
Profit/loss after tax as a percentage of average equity
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
Interest bearing debts minus cash and cash equivalents
Equity as a percentage of the balance sheet total.
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