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Generix Group S.A. — Earnings Release 2013
Jun 3, 2013
1361_iss_2013-06-03_207c8a4d-ccf5-40ca-8308-d0cfd8918199.pdf
Earnings Release
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STRONG GROWTH IN 2012/2013 RESULTS EBITDA doubles: €5.6 M (9% of revenue) Return to current positive net income: €2.9 M (5% of revenue)
Paris, June 3, 2013 - Generix Group, collaborative software vendor for Retail ecosystem, today issued the results for its fiscal year 2012/2013 ended March 31, 2013.
EBITDA OF €5.6 M (9% OF REVENUE) SIGNIFICANTLY IMPROVES (x2) AND RETURNS TO CURRENT POSITIVE NET INCOME OF €2.9 M
Generix Group reported an EBITDA of €5.6 M for fiscal year 2013/2012, i.e. 9% of revenue, and an increase of €2.8 M compared to the previous year.
The current operating income of €4.4 M also significantly improved by €3.5 M compared to the previous year. This significant increase in the operational surplus demonstrates continuing increases in profit following the Group's initiatives and affirms the positive effects related to its changing economic model, which is based on recurring activities.
| Twelve months ended March 31, |
Variation | |||
|---|---|---|---|---|
| IFRS consolidated accounts, in millions of Euros (unaudited) | 2012/2013 | 2011/2012 | m€ | % |
| Revenues | 63,1 | 64,3 | 1,1 - | -2% |
| Which licenses | 7,1 | 8,0 | 0,9 - | -11% |
| Which maintenance | 23,4 | 22,7 | 0,7 | 3% |
| Which SaaS | 11,8 | 11,0 | 0,8 | 7% |
| Which Consulting Services | 20,7 | 22,5 | 1,7 - | -8% |
| Operational expenses / other income from operations | - 58,7 |
- 63,4 |
4,7 | -7% |
| Loss from current operations | 4,4 | 0,9 | 3,5 | 401% |
| Other operational income and expenses | - 1,3 |
- 1,8 |
0,5 | -26% |
| Loss from operations | 3,1 | - 0,9 |
4,0 | NA |
| Financial expenses | - 0,4 |
- 0,7 |
0,3 | -47% |
| Loss before income taxes | 2,7 | - 1,6 |
4,3 | NA |
| Income taxes benefit | - 1,1 |
- 0,5 |
- 0,6 |
121% |
| Net result | 1,6 | - 2,1 |
3,7 | NA |
| Net current result | 2,9 | - 0,3 |
3,3 | NA |
| Twelve months ended March 31, |
Variation | |||
|---|---|---|---|---|
| EBITDA in millions of Euros (unaudited) | 2012/2013 | 2011/2012 | m€ | % |
| Revenues | 63,1 | 64,3 | - 1,1 |
-2% |
| Other income from operations | 1,7 | 1,3 | 0,4 | 28% |
| Cost of goods sold | -1,8 | -2,1 | 0,3 | -14% |
| Other purchases and external expenses | -17,2 | -16,7 | - 0,5 |
3% |
| Taxes and similar payments | -1,6 | -1,7 | 0,2 | -10% |
| Personnel costs | -37,3 | -39,8 | 2,6 | -6% |
| Other expenses on operations | -0,9 | -0,2 | - 0,7 |
435% |
| Reversals of used provisions during the period | -0,2 | -1,2 | 1,0 | -87% |
| C apialized production | -0,3 | -1,1 | 0,8 | -72% |
| EBITDA (1) | 5,6 | 2,8 | 2,8 | 101% |
(1) EBITDA = current operating income + net provisions on current assets + net provisions for risks and charges + depreciation on fixed assets - capitalized production costs. EBITDA was recalculated to converge it with the one chosen for banking covenants (taking into account other operating revenues, other expenses and restating the corresponding reversals of provisions used during the period). EBITDA on March 31, 2012 amounted to 2.8 million euros compared to 2.5 million euros in the results issued on March 31, 2012.
The €3.5 M increase in current operating profitability is explained by the increase in recurring activities (SaaS and Maintenance) and by good control of operational expenses, with:
- a €2.6 M decrease in the Group's personnel costs following the reorganization plan implemented at the start of 2012;
- a €2.5 M increase in net depreciation and provisions compared to the previous year, particularly with the outcome of several disputes in Generix's favor, as well as a decrease in allowances for depreciation related to a progressive reduction in the net carrying amount of intangible assets.
The -€1.3 M in other operating expenses and products, shown separately in the income statement due to being non-recurring, correspond in 2012/2013 to the provision of a dispute, while -€1.8 M corresponded to the reorganization plan during the same period last year.
The improvement in financial income demonstrates a decrease in variable rates and turning less to short-term financing following an improvement in the Group's average cash position.
After taking into account the tax effect, net income is showing €1.6 M in profit, up by €3.7 M compared to the previous year.
Current net income (outside other operating income and expenses) thus amounted to €2.9 M, up by €3.3 M compared to the previous year.
MAINTAINING LOW NET DEBT AT THE END OF MARCH 2013
| Twelve months ended March 31, |
Variation | |||
|---|---|---|---|---|
| Consolidated statements of cash flows, in millions of Euros (unaudited) |
2012/2013 | 2011/2012 | m€ | % |
| Net income adjusted by non-cash items | 4,9 | 1,7 | 3,2 | 194% |
| Change in working capital | - 5,0 |
- 3,8 |
- 1,2 |
31% |
| Net cash by operating activities | - 0,1 |
- 2,1 |
2,1 | -96% |
| Net cash used in investing activities | - 0,9 |
- 1,4 |
0,5 | -38% |
| Net cash by financing activities (1) | - 0,8 |
9,0 | - 9,9 |
-109% |
| Net decrease in cash and cash equivalent | - 1,8 |
5,5 | 7,3 - | -133% |
| C ash and cash equivalent, end of period | 7,4 | 9,2 | - 1,8 |
-20% |
(1) Financing flows from 2011/2012 include the €7.8 M capital increase realized in October 2011.
| Twelve months ended March 31, |
Variation | |||
|---|---|---|---|---|
| Net debt, in millions of Euros (unaudited) | 2012/2013 | 2011/2012 | m€ | % |
| C ash and cash equivalents, end of period | 7,4 | 9,2 | - 1,8 |
-20% |
| Short-term and long-term portions of financial obligations | 8,7 | 9,3 | - 0,6 |
-6% |
| Net debt | 1,3 | 0,1 | 1,2 | 1054% |
The cash flows demonstrate:
- a significant improvement in the self-financing capacity (€3.2 M) making it possible for the Group's activity to generate €4.9 M;
- an unfavorable change in the working capital requirement of €5 M related to recording the research tax credit (CIR) in 2012 and in the first quarter of 2013, for a total amount of €1.6 M and to the decrease in the client payment period at the end of the period. Yet it does not reflect a structural effect, as March 31, 2014 corresponds to Easter weekend, and the Group had recorded over €4 M in client payments for the first week of April 2013. As this time frame breached banking covenant R2 (Free Cash Flow/Debt Servicing) on March 31, 2013, the company obtained from the banks an exemption to this ratio on March 31, 2013.
The level of net debt (€1.3 M) remains low, particularly in relation to the amount of equity (€38.8 M).
CONCLUSION AND OUTLOOK
The 2012/2013 fiscal year allowed the Group to affirm and consolidate its return to profitable activity and cashflow generation.
The end of 2012/2013 was marked by a return to growth in revenue over the fourth quarter. We are entering 2013/2014 with confidence and are giving priority to maintaining the return to profitability and increasing revenue.
Supplemental and non-IFRS Financial Information
Supplemental non-IFRS information (above-mentioned as EBITDA and Net Debt) presented in this press release are subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company's supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies.
Information related to goodwill depreciation risk
In accordance with the AMF n°2011-18 recommendation, we call attention on our goodwill depreciation risk as described in our reference document from March 31st , 2012 (refer to section 4.2.3 "Goodwill depreciation risk"), as well as in our half-year financial report from September 30th, 2012 (refer to note 1 section 2.1.6 "Additional notes").
*** Next press release: July 22, 2013, after closing of the stock exchange Release of first quarter revenues of financial year 2013/2014
Contacts Ludovic Luzza
Chief Financial Officer Tel: +33 (0)1 77 45 42 80 [email protected] www.generixgroup.com
Mike Hadjadj Marketing & Communication Director Tel: +33 (0)1 77 45 43 41 [email protected] www.generixgroup.com
Stéphanie Stahr CM-CIC Emetteur Tel: +33 (0)1 45 96 77 83 [email protected] www.cmcics.com
About Generix Group
Generix Group provides the rapidly evolving Retail Ecosystem with leading Collaborative Software Solutions to operate profitably, adjust effectively, and grow sustainably. Generix Group helps retailers, third party logistics providers and manufacturers, in managing, sharing and optimizing their data flows. Generix Collaborative Business portfolio relies on a strong business expertise encompassing ERP, Supply Chain and Cross-Channel management, and uniquely leverages an A2A/B2B Gateway and Portal solutions.
Carrefour, Cdiscount, DHL, Gefco, Kuehne + Nagel, Leclerc, Leroy Merlin, Louis Vuitton, Metro, Nestlé, Sara Lee, Sodiaal, Unilever... more than 1,500 international companies trust "Generix Collaborative Business" solutions to profitably run their business, establishing Generix Group as an European leader with 63+M€ revenue.
www.generixgroup.com