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INVISIO Interim / Quarterly Report 2021
3065_10-q_2021-04-28_8430010e-7f67-42f4-bde7-37f6e96e78c8.pdf
Interim / Quarterly Report
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INVISIO®
Interim report January - March 2021
Increased activity in the market
| SEK in millions | 2021 Jan-Mar | 2020 Jan-Mar | Δ % | 2020 Full year |
|---|---|---|---|---|
| Revenue | 143.7 | 116.8 | 23 | 532.0 |
| Gross profit | 82.7 | 67.2 | 23 | 309.0 |
| Gross margin, % | 57.5 | 57.5 | 58.1 | |
| EBITDA | 23.5 | 16.8 | 40 | 108.1 |
| EBITDA margin, % | 16.3 | 14.4 | 20.3 | |
| Operating profit/loss | 12.8 | 14.4 | -11 | 95.4 |
| Operating margin, % | 8.9 | 12.3 | 17.9 | |
| Profit/loss for the period | 6.7 | 9.4 | -29 | 61.2 |
| Earnings per share, SEK | 0.15 | 0.21 | -29 | 1.39 |
| Order intake | 137.3 | 90.3 | 52 | 535.3 |
| Order book | 191.5 | 124.9 | 53 | 123.2 |
"In the first quarter of the year we noted a slow but sure increase of the activity level in the market, particularly in the USA. The positive picture is confirmed by the order intake, especially later in the quarter. Integration with Racal Acoustics is proceeding according to plan and in line with the concept: One company with two strong brands."
Lars Højgård Hansen, CEO
IMPORTANT EVENTS DURING THE QUARTER
- The acquisition of Racal Acoustics was completed.
- One more American elite force chose INVISIO and submitted a first order. The order value was less than SEK 20 million but is of strategic significance.
- INVISIO's management team was expanded to include James Ewing, Managing Director of Racal Acoustics.
- The Board of Directors proposes a dividend of SEK 0.70 per share (0.85).
INVISIO AB | Interim Report January - March 2021 | 1
Interim report January - March 2021
Increased activity in the market
The acquisition of Racal Acoustics was completed at the end of January and the work of integration is proceeding according to plan. There is great enthusiasm, and a mutual, high ambition to make the most of the opportunities created by the acquisition. We have already merged the two sales organizations and are now building on the concept: One company with two strong brands.
Racal Acoustics will constitute the center of excellence for products and solutions adapted for use in environments characterized by constant high noise levels. To fully benefit from the expertise existing in Racal Acoustics, the Managing Director James Ewing has joined the Management team.
Increased activity in the market
At the beginning of the year, and particularly in the later part of the quarter, we noted a slow but sure increase in activity in the market, particularly in the USA. As the world returns to a more normal state, we expect that more and more organizations in defense and law enforcement will continue the modernization of communication equipment we have seen in recent years.
The positive picture is confirmed by the order intake, which was SEK 137 million (90) in the quarter. Sales during the quarter amounted to almost SEK 144 million (117), where products under the Racal Acoustics brand have contributed more than SEK 20 million for the two months they have been part of INVISIO.
The order book was strong at the close of the period and amounted to just over SEK 191 million (125). It is worth noting that Racal Acoustics' deliveries may lie further in the future. It is not unusual for a first part-delivery to be within 6 months and the following deliveries within 12-18 months, in accordance with the customers' roll-out plans. For products under the INVISIO brand deliveries are usually within 2-6 months.
The gross margin during the quarter was slightly lower than the average for the full year 2020. The main reason for this is the product mix, but the sales mix also has some influence. Racal Acoustics has a greater proportion of sales via partners than INVISIO.
Full focus on product development and sales.
To best utilize the business opportunities created through the launch of the Intercom system, establishment in the law enforcement and security area and the acquisition of Racal Acoustics, the forward-looking investments in the form of organizational development continued during the quarter.
Our Intercom system is meeting great and growing interest, which has led to a need for further resources in both sales and product development. The augmented organization together with consolidation of Racal Acoustics has meant a slight increase in operating expenses. However, in my opinion we now have an organization that is well-adapted to the current level of activity and in 2021 we will slow down the rate of new recruitment.
Lars Højgård Hansen, CEO
Sales (SEK million)¹
EBIT (SEK million)²
INVISIO's organization is well-equipped, and the rate of new recruitment will decrease slightly in 2021.
¹ CAGR refers to the past 20 quarters.
² The operating margin refers to average operating margin for the past 20 quarters.
INVISIO AB | Interim Report January – March 2021 | 2
Interim report January - March 2021
Our financial performance is impacted by increased depreciation/amortization. This is mainly due to several newly developed products now having been launched, which means we are starting to depreciate development costs. In addition, the acquisition of Racal Acoustics contributes to increased depreciation. All in all, depreciation/amortization amounts to SEK 10.7 million, which is about SEK 8.3 million higher than the corresponding quarter in the previous year.
Important focus areas in 2021
During the rest of the year much effort will go into the continued integration of Racal Acoustics and increasing sales of products under both brands. As regards our Intercom system, we will intensify market penetration further. Our confidence in the opportunities is strengthened by the knowledge that the system is already used in live operations.
As regards our geographical expansion, we will continue to address selected countries in Asia, the Middle East and South America, where we received important initial orders before the start of the pandemic.
Trade exhibitions during the spring are still suspended, but our assessment is that the exhibitions planned for the autumn will take place. This will give us the opportunity to show our new products in a public environment.
Continued roll-out of vaccines and a gradual return to more normal conditions will mean a continual rise in activity level among our customers and a continuation of the global modernization trend for communication equipment and hearing protection. There is therefore every reason to take a positive view of INVISIO's continued development.
Lars Højgård Hansen, CEO
One company - one sales force - representing two strong and market-leading brands.
INVISIO AB | Interim Report January - March 2021 | 3
Interim report January - March 2021
Sales and profit
First quarter 2021
Sales in the first quarter amounted to SEK 143.7 million (116.8), which means an increase of 23 per cent compared with the corresponding period in the previous year.
Sales of the Racal Acoustics product line in February and March contribute just over SEK 20 million.
In comparable currencies sales increased by 26 per cent. Sales on international markets are mainly in USD, EUR and GBP. INVISIO hedges large orders to offset currency fluctuations in the short term.
The order intake in the quarter was SEK 137.3 million (90.3). The order book amounted to SEK 191.5 million (124.9) at the close of the quarter.
INVISIO's market is characterized by large procurements at irregular intervals. Lead times are often long due to extensive processes with customer tests both in laboratories and among end users. This means that the order intake and sales for individual quarters may vary and have an effect on the full year figures.
Gross profit was SEK 82.7 million (67.2) and the gross margin was 57.5 per cent (57.5).
Operating expenses excluding depreciation/amortization were SEK 59.2 million (50.4), which gives an EBITDA of SEK 23.5 million (16.8). The EBITDA margin was 16.3 per cent (14.4).
Depreciation/amortization in the quarter amounted to SEK 10.7 million (2.4). The higher level is mainly due to the company having begun depreciation of a number of completed development projects. This depreciation during the period amounted to SEK 4.5 million, compared with SEK 1.0 million in the corresponding period in 2020. The remaining SEK 6.3 million (1.4) includes amortization of other intangible assets (customer relations, technologies and trademarks) arising in connection with the acquisition of Racal Acoustics valued at SEK 2,0 million (-), amortization of rights of use (leases) under IFRS 16, SEK 3.1 million (1.0) and depreciation of property, plant and equipment of SEK 1,2 million (0.4). For further information, please see Note 3 on page 13 of this report.
Operating expenses including depreciation/amortization were SEK 69.9 million (52.8).
The operating profit / EBIT was SEK 12.8 million (14.4) for the first quarter of 2021, resulting in a margin of 8.9 per cent (12.3).
During the quarter development costs of SEK 4.3 million (6.0) were capitalized.
Net financial income was SEK -2.1 million (-0.5).
Profit before tax amounted to SEK 10.7 million (13.9) and profit for the period was SEK 6.7 million (9.4). Earnings per share were SEK 0.15 (0.21).
Order intake per quarter and rolling 12 months (SEK million)
Sales per quarter and rolling 12 months (SEK million)
Operating expenses per quarter and EBITDA margin rolling 12 months (SEK million)
INVISIO AB | Interim Report January - March 2021 | 4
Interim report January - March 2021
Cash flow, investments and financial position
Cash flow and investments
The cash flow for the period January - March 2021 was SEK -58.2 million (46.2), of which cash flow from operating activities was SEK 34.0 million (51.9) and cash flow from investing activities was SEK -190.3 million (-6.3). Cash flow from financing activities was SEK 98.1 million (0.6), of which SEK 100.0 million (-) was loans taken up.
During the period investments amounted to SEK 190.3 million (6.3), of which SEK 184.3 million referred to investments in the subsidiary Racal Acoustics SEK 4.3 million (6.0) was capitalized development costs and SEK 1.5 million (0.3) was net investment in property, plant and equipment.
The inventory value at the close of the quarter amounted to SEK 131.4 million (117.2)
Cash and cash equivalents and financial position
INVISIO has a good financial position, cash and cash equivalents at the close of the quarter amounted to SEK 103.1 million (202.0).
Equity at the close of the period amounted to SEK 399.1 million (398.1), which gave an equity/assets ratio of 57 per cent (76).
Parent company
Net sales for the parent company during the period January - March 2021 amounted to SEK 0.0 million (0.0). The operating profit was SEK -2.6 million (-2.0). Net financial income was SEK -3.8 million (-2.0).
At the close of the quarter the parent company's cash and bank balances amounted to SEK 18.5 million (32.0). Equity amounted to SEK 229.6 million (113.1), which gave an equity/assets ratio of 67 per cent (95). The number of employees in the parent company was 1 (1).
Employees
The number of employees, restated as full-time positions, was 183 (105) at the close of the period. Of the employees, 151 were men (84) and 32 women (18).
Other information
Material risks and uncertainties
INVISIO's business and earnings are affected by a number of external and internal factors. A continuous process is conducted to identify all anticipated risks and to assess how each respective risk is to be managed. INVISIO's risks can be divided into market, operational, and financial risks. For a more detailed description of these risks, please refer to INVISIO's annual report for 2020.
Financial instruments
The fair value of the financial assets and liabilities is estimated to be equal to the book value.
14%
investments in R&D for 2016-2020 amounted to an average of 14 per cent per year of the company's total revenue.
INVISIO AB | Interim Report January - March 2021 | 5
Interim report January - March 2021
Review
This interim report has not been reviewed by the company's auditors.
Financial calendar
Interim report January - June 2021 July 22, 2021
Interim report January-September 2021 October 28, 2021
Year-end report 2021 February 15, 2022
Interim reports and annual reports are available at www.invisio.com.
Stockholm, April 28 2021.
Lars Højgård Hansen
President/CEO
For further information, please contact
Lars Højgård Hansen, CEO
+45 5372 7722 | [email protected]
Thomas Larsson, CFO
+45 5372 7735 | [email protected]
Public disclosure
This information is information that INVISIO AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the President/CEO, on April 28, 2021, at 11.00 CEST.
Address
INVISIO AB | PO Box 151 | SE 201 21 Malmö
INVISIO AB is a Swedish limited company listed on Nasdaq Stockholm. The company's share is traded under the ticker name IVSO and the ISIN code is SE0001200015.
INVISIO AB | Interim Report January - March 2021 | 6
Interim report January - March 2021
Invitation to conference call
INVISIO invites the media, investors and analysts to a conference call on Thursday, April 29, at 10:00, when the President and CEO Lars Højgård Hansen will present INVISIO's interim report.
The conference call will be held in English, starting with a brief presentation of the report followed by a question-and-answer session.
Telephone number for the conference call
To participate in the conference call, use one of the dial-in numbers below. Please dial in 5-10 minutes prior to the scheduled starting time to facilitate a timely start.
Standard international:
+44 (0) 207 192 83 38
Sweden (Local number):
+46 (0) 856618467, (Free of charge): +46 (0) 200125160
Denmark (Local number):
+45 32720417, (Free of charge): +45 80711246
United Kingdom (Local number):
+44 (0) 8444819752, (Free of charge): +44 (0) 8002796619
Germany (local number):
+49 (0) 6922222625, (Free of charge): +49 (0) 8007234756
France (Local number):
+33 (0) 170700781, (Free of charge): +33 (0) 805101465
Switzerland (Local number):
+41 (0) 445807145, (Free of charge): +41(0) 800000367
Conference-ID: 749 3158
Webcast
To follow the presentation online, use the link below:
https://edge.media-server.com/mmc/p/3tt8k4dp
For further information, please contact
Michael Peterson, Director Investor Relations & Corporate Communication,
+45 5372 7733 | [email protected]
INVISIO AB | Interim Report January - March 2021 | 7
Interim report January - March 2021
INVISIO in brief
The core of INVISIO's business is to develop and market, on the basis of good customer understanding and innovative capacity, advanced communication systems that help professionals in noisy and mission critical environments to work more safely and effectively while protecting their hearing.
The personal system and Intercom solution
INVISIO's offer consists of both personal communication systems for use in the field and in vehicles, and an Intercom system for use in various forms of transport. The personal equipment reduces high noise levels and enables disruption-free communication in noisy and mission critical environments. The Intercom system makes it possible for users of the personal equipment to communicate within the group and with others while on the move. The products are marketed under the INVISIO and Racal Acoustics brands.
A structurally growing niche market
INVISIO mainly addresses customers in the military and defense as well as law enforcement and security in the USA, Europe and selected countries in Asia. The company estimates that the annual value of the total addressable market for personal equipment and the Intercom system amounts to about SEK 14 billion.
At present more than 90 per cent of revenue comes from European and American defense customers. However, the company sees steadily increasing business opportunities in the law enforcement and security market as well as new geographical markets.
Sales primarily through own channels
Sales are from the headquarters in Copenhagen and via our own sales offices in the USA, France, Italy and the United Kingdom. Sales are also via a global network of partners and resellers. Major business transactions are normally via procurements, which often take a long time due to extensive administrative processes and customer tests. INVISIO has long-term framework agreements with defense and law enforcement authorities in the USA, Canada, the United Kingdom, Australia, Sweden and Denmark.
Uneven order flow and sales
Both order intake and sales can fluctuate substantially between quarters and the company's development should therefore be evaluated in a longer time perspective than an individual quarter or year.
An organizational structure focused on core business
INVISIO focuses on development, marketing and sales, while selected contract manufacturers are responsible for manufacturing the products. Outsourcing manufacture to external partners ensures the flexibility to be able to manage variations in order volumes.
High growth with sound profitability
INVISIO is a distinct growth company with the financial targets of an average sales increase of 20 per cent per year and an operating margin that exceeds 15 per cent. In the five-year period 2016-2020 average sales have grown annually by just over 18 per cent and the average operating margin has been just over 22 per cent.
The share is listed on Nasdaq Stockholm and is in the Mid Cap segment.
INVISIO AB | Interim Report January - March 2021 | 8
By enabling safe communication and hearing protection in critical situations INVISIO creates value for both individuals and society as a whole.
Value creation for users
- Safer work environment
- Increased operational capacity
- Prevents lifelong hearing loss and related problems
Value creation for society
- Higher efficiency
- Lower costs for rehabilitation and compensation for hearing loss
Interim report January - March 2021
Condensed consolidated income statement and consolidated statement of comprehensive
| SEK in millions | Note | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full year |
|---|---|---|---|---|
| Revenue | 2 | 143.7 | 116.8 | 532.0 |
| Cost of goods sold | -61.1 | -49.6 | -222.9 | |
| Gross profit | 82.7 | 67.2 | 309.0 | |
| Operating expenses* | 3 | -69.9 | -52.8 | -213.6 |
| Operating profit/loss | 12.8 | 14.4 | 95.4 | |
| Net financial items | -2.1 | -0.5 | -10.5 | |
| Profit/loss before tax | 10.7 | 13.9 | 84.9 | |
| Income tax | 4 | -4.0 | -4.5 | -23.7 |
| Profit/loss for the period | 6.7 | 9.4 | 61.2 | |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that may subsequently be reclassified to profit and loss | ||||
| Translation differences | 12.3 | 22.1 | -14.4 | |
| Comprehensive income for the period | ||||
| (Profit/loss attributable to equity holders of the parent company.) | 19.0 | 31.6 | 46.8 | |
| *Depreciation/amortization incl. in operating expenses | 3 | -10.7 | -2.4 | -12.7 |
| Per-share data | 2021 | 2020 | 2020 | |
| --- | --- | --- | --- | |
| Jan-Mar | Jan-Mar | Full year | ||
| Earnings per share, SEK | 0.15 | 0.21 | 1.39 | |
| Earnings per share after dilution, SEK | 0.15 | 0.21 | 1.37 | |
| Shareholders' equity per share, SEK | 9.05 | 9.03 | 8.59 | |
| Shareholders' equity per share after dilution, SEK | 8.72 | 8.82 | 8.28 | |
| Equity ratio, % | 57 | 76 | 73 | |
| Number of shares, thousand | 44,098 | 44,098 | 44,098 | |
| Average number of outstanding shares, thousand | 44,098 | 44,098 | 44,098 | |
| Average number of outstanding shares after dilution, thousand | 45,704 | 45,137 | 45,578 | |
| Share price at end of period, SEK | 209.00 | 105.40 | 250.00 |
INVISIO AB | Interim Report January - March 2021 | 9
Interim report January - March 2021
Condensed consolidated statement of financial position
SEK in millions
| Assets | Note | 31/03/2021 | 31/03/2020 | 31/12/2020 |
|---|---|---|---|---|
| Goodwill | 5 | 54.7 | - | - |
| Capitalized development costs | 3 | 96.6 | 96.2 | 94.8 |
| Other intangible assets | 3, 5 | 104.4 | - | - |
| Equipment | 3 | 19.2 | 3.0 | 4.1 |
| Right-of-use assets, leases | 3 | 39.9 | 24.4 | 24.0 |
| Deposits for rent, long-term | 2.5 | 2.4 | 2.3 | |
| Deferred tax assets | 4 | 2.6 | 1.7 | 2.8 |
| Inventories | 131.4 | 117.2 | 115.7 | |
| Trade receivables | 117.2 | 63.3 | 100.4 | |
| Other short-term receivables | 24.1 | 12.5 | 14.0 | |
| Cash and cash equivalents | 103.1 | 202.0 | 157.7 | |
| Total assets | 695.7 | 522.6 | 515.8 |
Shareholders' equity and liabilities
| Shareholders' equity | 399.1 | 398.1 | 378.9 | |
|---|---|---|---|---|
| Liabilities to credit institutions | 100.0 | - | - | |
| Lease liabilities | 40.2 | 26.5 | 23.8 | |
| Deferred tax liabilities | 4 | 40.7 | 10.0 | 20.5 |
| Trade payables | 49.4 | 39.1 | 35.3 | |
| Other current liabilities | 66.2 | 48.9 | 57.3 | |
| Total shareholders' equity and liabilities | 695.7 | 522.6 | 515.8 | |
| Condensed consolidated statement of changes in equity | 2021 | 2020 | 2020 | |
| --- | --- | --- | --- | |
| Jan-Mar | Jan-Mar | Full year | ||
| Opening balance | 378.9 | 366.0 | 366.0 | |
| Employee stock option program | 1.1 | 0.5 | 3.5 | |
| Dividend | - | - | -37.5 | |
| Comprehensive income for the period | 19.0 | 31.6 | 46.8 | |
| Closing balance | 399.1 | 398.1 | 378.9 |
INVISIO AB | Interim Report January - March 2021 | 10
Interim report January - March 2021
Condensed consolidated statement of cash flow
| SEK in millions | Note | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full year |
|---|---|---|---|---|
| Operating activities | ||||
| Profit/loss before tax | 10.7 | 13.9 | 84.9 | |
| Adjustments for non-cash items | 12.4 | 1.5 | 24.0 | |
| Income tax paid | -1.0 | -0.6 | -12.3 | |
| Cash flow from operating activities before changes in working capital | 22.1 | 14.9 | 96.7 | |
| Changes in inventories | 6.2 | -14.3 | -27.1 | |
| Changes in operating receivables | 15.7 | 50.9 | -1.6 | |
| Changes in operating liabilities | -10.0 | 0.5 | 17.6 | |
| Cash flow from changes in working capital | 11.8 | 37.0 | -11.1 | |
| Cash flow from operating activities | 34.0 | 51.9 | 85.6 | |
| Investing activities | ||||
| Capitalization of development costs | -4.3 | -6.0 | -19.1 | |
| Investments in subsidiaries | 5 | -184.3 | - | - |
| Acquisition of property, plant, and equipment | -1.5 | -0.3 | -6.2 | |
| Acquisition of financial assets | -0.2 | 0.0 | -0.1 | |
| Cash flow from investing activities | -190.3 | -6.3 | -25.4 | |
| Financing activities | ||||
| Borrowings | 100.0 | - | - | |
| Changes in lease liabilities | -1.9 | 0.6 | -2.1 | |
| Dividend paid | - | - | -37.5 | |
| Cash flow from financing activities | 98.1 | 0.6 | -39.5 | |
| CASH FLOW FOR THE PERIOD | -58.2 | 46.2 | 20.7 | |
| Cash and cash equivalents at start of period | 157.7 | 145.1 | 145.1 | |
| Translation differences in cash and cash equivalents | 3.7 | 10.6 | -8.1 | |
| Cash and cash equivalents at end of period | 103.1 | 202.0 | 157.7 |
INVISIO AB | Interim Report January - March 2021 | 11
Interim report January - March 2021
Condensed parent company income statement
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| SEK in millions | Jan-Mar | Jan-Mar | Full year |
| Revenue | 0.0 | 0.0 | 0.1 |
| Operating expenses | -2.6 | -2.0 | -8.7 |
| Operating profit/loss | -2.6 | -2.0 | -8.6 |
| Net financial items** | -1.3 | 0.0 | 160.3 |
| Profit/loss before tax | -3.8 | -2.0 | 151.6 |
| Income tax | - | - | - |
| Profit/loss for the period | -3.8 | -2.0 | 151.6 |
| **Of which, dividend from subsidiaries | - | - | 160.0 |
Condensed parent company balance sheet
SEK in millions
| Assets | 31/03/2021 | 31/03/2020 | 31/12/2020 |
|---|---|---|---|
| Participations in Group companies | 299.9 | 85.9 | 88.9 |
| Receivables from Group companies | 22.8 | - | 108.7 |
| Other current receivables | 0.6 | 0.6 | 0.8 |
| Cash and bank balances | 18.5 | 32.0 | 38.9 |
| Total assets | 341.8 | 118.5 | 237.3 |
| Shareholders' equity and liabilities | |||
| Restricted shareholders' equity | 65.7 | 65.7 | 65.7 |
| Non-restricted shareholders' equity | 163.9 | 47.4 | 166.6 |
| Liabilities to credit institutions | 100.0 | - | - |
| Trade payables | 7.3 | 0.2 | 0.6 |
| Liabilities to Group companies | 2.7 | 3.4 | 2.7 |
| Other current liabilities | 2.3 | 1.9 | 1.7 |
| Total shareholders' equity and liabilities | 341.8 | 118.5 | 237.3 |
| 2021 | 2020 | 2020 | |
| --- | --- | --- | --- |
| Parent company changes in shareholders' equity | Jan-Mar | Jan-Mar | Full year |
| Opening balance | 232.3 | 114.6 | 114.6 |
| Employee stock option program | 1.1 | 0.5 | 3.5 |
| Dividend | - | - | -37.5 |
| Profit/loss for the period** | -3.8 | -2.0 | 151.6 |
| Closing balance | 229.6 | 113.1 | 232.3 |
| **Of which, dividend from subsidiaries | - | - | 160.0 |
INVISIO AB | Interim Report January - March 2021 | 12
Interim report January - March 2021
Notes
Note 1. Accounting policies and valuation principles
The interim report was prepared in accordance with IAS 34, the Swedish Financial Reporting Board's Recommendation RFR 1, Supplementary Accounting Rules for Groups, and the Annual Accounts Act. The parent company's accounts were prepared in accordance with RFR2, Accounting for Legal Entities and the Swedish Annual Accounts Act. The accounting policies applied are consistent with the policies described in INVISIO's annual report for 2020.
New standards
No new standards or amendments to interpretations and existing standards which are effective for the financial year beginning on or after January 1, 2021 are expected to have any significant impact on the financial statements.
Note 2. Revenue by geographical area
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| SEK in millions | Q1 | Q1 | Full year |
| Sweden | 2.9 | 1.7 | 26.0 |
| Europe | 71.1 | 46.6 | 181.0 |
| North America | 45.6 | 59.2 | 280.1 |
| Rest of the world | 24.2 | 9.3 | 44.9 |
| Total | 143.7 | 116.8 | 532.0 |
Note 3. Depreciation/amortization
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| SEK in millions | Jan-Mar | Jan-Mar | Full year |
| Depreciation of capitalized development costs | 4.5 | 1.0 | 6.4 |
| Amortization of Other intangible assets* | 2.0 | - | - |
| Amortization of Right of use assets, leases | 3.1 | 1.0 | 4.4 |
| Depreciation of Equipment | 1.2 | 0.4 | 1.9 |
| Total | 10.7 | 2.4 | 12.7 |
*Other intangible assets consists of values allocated to intangible assets, such as customer relations, technology and trademarks, in connection with the acquisition of Racal.
Note 4. Taxes
Deferred tax assets referring to tax loss carry forwards are recognized to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. An individual assessment is made of each company with reference to historical performance and possibilities of utilizing the loss carry-forwards.
The total loss carry-forwards as of March 31, 2021 were SEK 127.5 million (166.3), of which SEK 0 million (49.1) are capitalized. Unutilized loss carry-forwards amounted to SEK 127.5 million (117.3) and refer mainly to the parent company and cannot be capitalized at present. All loss carry-forwards have an unlimited life.
| SEK in millions | ||
|---|---|---|
| Deferred tax assets | 31/03/2021 | 31/03/2020 |
| Receivables attributable to other temporary differences | 2.6 | 1.7 |
| Closing balance | 2.6 | 1.7 |
| Deferred tax liabilities | 31/03/2021 | 31/03/2020 |
| Receivables attributable to tax loss carry-forwards in Denmark | - | 10.8 |
| Liabilities attributable to capitalized development costs in Denmark | -21.0 | -21.2 |
| Liabilities attributable to temporary differences in other intangible assets | -19.8 | - |
| Receivables attributable to other temporary differences in Denmark | 0.1 | 0.3 |
| Closing balance | -40.7 | -10.0 |
Note 5. Business combinations
On January 29, 2021, INVISIO acquired 100 per cent of the shares in Racal Acoustics Ltd and its sister company Racal Acoustics Inc. The impact of the acquisitions on net sales was SEK 21.6 million.
The assets and liabilities included in the year's acquisitions, according to the preliminary acquisition analysis are as follows:
| SEK in millions | |
|---|---|
| Acquisition price | |
| Purchase price, cash | 200.8 |
| Total | 200.8 |
| Fair value of acquired assets and liabilities | |
| Intangible assets | 106.4 |
| Other non-current assets | 32.1 |
| Inventories | 17.6 |
| Other current assets | 37.9 |
| Cash and cash equivalents | 16.5 |
| Deferred tax liability | -20.1 |
| Other liabilities | -44.3 |
| Total | 146.1 |
| Goodwill | 54.7 |
| Change in the Group's cash and cash equivalents | |
| Purchase price paid in cash | 200.8 |
| Less cash and cash equivalents in the acquired operations | -16.5 |
| Impact on the Group's cash and cash equivalents | 184.3 |
INVISIO AB | Interim Report January - March 2021 | 13
Interim report January - March 2021
Financial key figures, alternative performance measures and other definitions
INVISIO's financial statements include both financial key figures that are specified in current financial reporting rules, alternative performance measures ("APM") in accordance with ESMA's definition and other key figures related to the business. The alternative performance measures are regarded as relevant for an investor who wants to understand the company's results and financial position better. Definitions and reconciliation of the alternative performance measures that are not directly reconcilable with the financial statements can be found below. Reconciliation is against the closest comparable IFRS financial measure.
Gross margin
Gross profit as a percentage of total income.
Operating margin
Operating profit as a percentage of total revenue.
Profit margin
Profit for the year as a percentage of total revenue.
EBITDA
Operating profit before depreciation/amortization and impairment losses.
EBIT (Operating profit)
Operating profit after depreciation/amortization and impairment losses. INVISIO defines EBIT (earnings before interest and tax) in the same way as Operating profit.
Operating expenses
Selling and marketing costs, Administrative expenses and Development costs.
Net financial items
Financial income less Financial expenses.
Equity/assets ratio
Equity divided by total assets (balance sheet total).
Number of shares
Number of outstanding shares at the close of the period.
Number of shares after dilution
Number of outstanding shares at the close of the period plus the number of shares that would be added if all potential dilutive shares were converted to shares.
Only the option programs whose issue price is less than the average market price of the shares during the period can lead to a dilutive effect.
Average number of outstanding shares
Weighted average of the number of outstanding shares during the period.
Average number of outstanding shares after dilution
Weighted average of the number of outstanding shares during the period plus a weighted number of shares that would be added if all dilutive potential shares were converted to shares. Only the option programs whose issue price is less than the average market price of the shares during the period can lead to a dilutive effect.
Earnings per share
Profit for the year divided by the average number of outstanding shares.
Earnings per share after dilution
Profit for the year in relation to the number of shares outstanding after dilution.
Equity per share
Equity divided by the number of outstanding shares adjusted for non-registered issues.
Shareholders' equity per share after dilution
Shareholders' equity divided by the number of outstanding shares after dilution.
Number of employees at close of period
The number of employees on the date of the last monthly salary payment for the period.
INVISIO AB | Interim Report January - March 2021 | 14
Interim report January - March 2021
Reconciliation of alternative performance measures
| 2021 | 2020 | ||
|---|---|---|---|
| SEK in millions | Q1 | Q1 | |
| Gross profit | A | 82.7 | 67.2 |
| Operating expenses | B | 69.9 | 52.8 |
| EBIT (Operating profit) | A-B | 12.8 | 14.4 |
| EBIT (Operating profit/loss) | A | 12.8 | 14.4 |
| Depreciation, amortization and impairment losses | B | 10.7 | 2.4 |
| EBITDA | A+B | 23.5 | 16.8 |
| SEK in millions | 31/03/2021 | 31/03/2020 | |
| Equity | A | 399.1 | 398.1 |
| Number of shares, thousands | B | 44,098 | 44,098 |
| Shareholers' equity per share, SEK | A/B | 9.05 | 9.03 |
| Equity | A | 399.1 | 398.1 |
| Number of shares after dilution, thousands | B | 45,758 | 45,137 |
| Shareholers' equity per share after dilution, SEK | A/B | 8.72 | 8.82 |
INVISIO AB | Interim Report January - March 2021 | 15
Interim report January - March 2021
Overview - eight past quarters
| SEK in millions | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|---|
| Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |
| Revenue | 137.2 | 109.2 | 200.5 | 116.8 | 123.6 | 118.7 | 172.8 | 143.7 |
| Cost of goods sold | -50.1 | -46.9 | -77.4 | -49.6 | -43.7 | -59.0 | -70.6 | -61.1 |
| Gross profit | 87.2 | 62.3 | 123.1 | 67.2 | 79.9 | 59.8 | 102.2 | 82.7 |
| Operating expenses | -48.4 | -43.6 | -49.6 | -52.8 | -55.4 | -43.4 | -61.9 | -69.9 |
| Operating profit/loss | 38.8 | 18.8 | 73.5 | 14.4 | 24.4 | 16.4 | 40.2 | 12.8 |
| Net financial items | -1.3 | 3.2 | -1.4 | -0.5 | -0.5 | -8.2 | -1.4 | -2.1 |
| Profit/loss before tax | 37.5 | 21.9 | 72.1 | 13.9 | 24.0 | 8.2 | 38.9 | 10.7 |
| Income tax | -9.0 | -5.7 | -16.7 | -4.5 | -5.9 | -1.9 | -11.4 | -4.0 |
| Profit/loss for the period | 28.5 | 16.2 | 55.4 | 9.4 | 18.1 | 6.2 | 27.5 | 6.7 |
| Cash flow from operating activities | 52.8 | 39.0 | 58.6 | 51.9 | 49.7 | -66.5 | 50.4 | 34.0 |
| Gross margin, % | 63.5 | 57.1 | 61.4 | 57.5 | 64.6 | 50.3 | 59.1 | 57.5 |
| Operating margin, % | 28.2 | 17.2 | 36.7 | 12.3 | 19.8 | 13.8 | 23.3 | 8.9 |
| Profit margin % | 20.8 | 14.9 | 27.6 | 8.1 | 14.6 | 5.2 | 15.9 | 4.7 |
| Equity ratio, % | 76 | 77 | 76 | 76 | 72 | 73 | 73 | 57 |
| Earnings per share, SEK* | 0.65 | 0.37 | 1.26 | 0.21 | 0.41 | 0.14 | 0.62 | 0.15 |
| Shareholders' equity per share, SEK* | 6.76 | 7.25 | 8.30 | 9.03 | 8.14 | 8.35 | 8.59 | 9.05 |
- Before dilution
INVISIO AB | Interim Report January - March 2021 | 16