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TXT E-Solutions — Earnings Release 2015
Aug 4, 2015
4061_10-q_2015-08-04_98a8529a-80e4-43a4-83b0-84702f3f6650.pdf
Earnings Release
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| Informazione Regolamentata n. 0439-55-2015 |
Data/Ora Ricezione 04 Agosto 2015 17:56:26 |
MTA - Star | |
|---|---|---|---|
| Societa' | : | TXT e-SOLUTIONS | |
| Identificativo Informazione Regolamentata |
: | 61808 | |
| Nome utilizzatore | : | TXTN01 - Matarazzo | |
| Tipologia | : | IRAG 02 | |
| Data/Ora Ricezione | : | 04 Agosto 2015 17:56:26 | |
| Data/Ora Inizio Diffusione presunta |
: | 04 Agosto 2015 18:11:27 | |
| Oggetto | : | 30, 2015 | TXT approved Financial Results as of June |
| Testo del comunicato |
Vedi allegato.
TXT e-solutions: good H1 2015 Revenues € 31.1 million Net Income € 2.3 million Orders € 35.0 million
- Consolidated Revenues: € 31.1 million (+13.2% compared to H1 2014 normalized), 56% from outside Italy.
- EBITDA: € 3.4 million (+13.7% compared to H1 2014 normalized).
- Net income: € 2.3 million (+30.5% compared to H1 2014 normalized).
- Net Financial Position: positive € 9.5 million at June 30 2015 (€ 8.5 million at 31 December 2014).
Milan – August 4, 2015
The Board of Directors of TXT e-solutions Spa, chaired by Alvise Braga Illa, today approved the first half-financial results for the period ended as of June 30, 2015.
First semester 2015 recorded good growth of Revenues and Orders in both Divisions.
First semester 2014 results include a non-recurring income of € 1.5 million, earned as indemnity from two sellers of Maple Lake who resigned and non-recurring charges of € 0.4 million. In order to compare performance with current year, financial results as of 30 June 2014 have been normalized, excluding non-recurring Revenues and Costs.
Revenues were € 31.1 million, compared to € 27.5 million in H1 2014 normalized (+13.2%). Sales of licences and maintenance totalled € 8.4 million (27% as a percentage of revenues), up +36.6% compared to H1 2014.
TXT Perform, the Planning specialist in End-to-End Retail for the Luxury and Fashion sector (60% of group revenues) grew revenues to € 18.8 million (+13.1% compared to H1 2014 normalized); TXT Next revenues (40% of group) were € 10.9 million and grew by +13.4% compared to H1 2014.
International Revenues rose from € 15.3 million to € 17.5 million (+13.5% compared to H1 2014 normalized) or 56% of total sales, almost entirely in TXT Perform.
EBITDA was € 3.4 million and grew +13.7% compared to H1 2014 normalized (€ 3.0 million), after strong R&D (+14.1%) and Commercial investments (+12.8%). Profitability on revenues is 10.8% in line with H1 2014 normalized. EBITDA in H1 2014 of € 4.0 million included non-recurring income and charges of € 1.1 million.
TXT e-solutions S.p.A. Via Frigia, 27 - 20126 Milano (Italy) Tel. +39 02 25771.1 Fax +39 02 2578994 www.txtgroup.com
Pre-tax Income grew +24.6% from € 2.2 million (H1 2014 normalized) to € 2.7 million. Profitability on revenues rose from 8.0% to 8.8%.
Net Income was € 2.3 million (7.5% of revenues), up +30.5% compared to H1 2014 normalized (€ 1.8 million). Income tax charges were € 0.4 million, or 15% of pre-tax income. Net income in H1 2014, including non-recurring items, was € 2.7 million.
Net Financial Position has risen from € 8.5 million positive as of December 31, 2014 to € 9.5 million as of June 30, 2015. Main cash movements in H1 2015 included a block sale of treasury shares to USA funds Kabouter (€ 3.2 million), the payment of dividends (€ 2.7 million), the payment of 2014 personnel bonuses (€ 2.5 million) and the purchase of treasury shares on the market (€ 0.5 million).
Shareholders' Equity as of June 30, 2015 amounted to € 32.0 million, compared to € 29.0 million as of December 31, 2014 mainly due to net income of the first semester (€ 2.3 million) and effect of currencies.
As of June 30, 2015 TXT holds 1,286,767 treasury shares (1,570,635 as of December 31, 2014) or 9.89% of issued shares, purchased at an average price of € 2.18.
In first half 2015 orders were € 35.0 million, up +28% compared to first half 2014 (€ 27.4 million). TXT Perform division orders were € 21.6 million (+40%) and TXT Next € 13.4 million (+17%).
In first half 2015 TXT Retail gained important new customers and extension of licences to existing customers, including DFS (HK), Hanna Anderson (USA), Delta Galil (ISR), Swatch (CH), Moncler (I), Marni (I), Carpisa (I), Takko (D), Otto (D), Charles Voegele (D), Adidas (D), White Stuff (UK), Alinea (F) e Kenzo (F).
The Chairman Alvise Braga Illa commented as follows: "This was a good semester, also showing first-to-second quarter improvement in 2015, due also to an important new TXT Retail licence in Asia Pacific. Our competitive position is stronger: the offering of TXT products and services has been broadened to new industrial sectors – notably Food& Manufacturing; we continue to adopt new technology, such as 'cloud services' and 'inmemory processing'; we have extended our geographic coverage, incorporated a new subsidiary in Hong Kong and obtained an important contract in Asia Pacific; our aeronautics branch in the Next Division has received an important international contract outside the perimeter of our key Italian client, who are also growing internationally. In the very short term, however, our guidance is necessarily prudent, in view of continuing serious perturbation and distortion in world economies and global finance; in the medium term, we do confirm our strategy and our specific objectives of profitable growth and value creation for all stockholders."
Outlook and Subsequent Events
The complex international economic environment did not prevent our customer to achieve very good results both in Fashion & Luxury and in TXT Next's markets. The ongoing market trends lead the most dynamic companies to invest in the solution space covered by TXT products. As a consequence, our pipeline of negotiations for new licences and services has further improved in all TXT markets.
The Company continues to invest in R&D, in marketing & sales, and in the search of acquisition opportunities for both Divisions, while at the same time preserving a good level of profit. The Company anticipate a positive business development in the current quarter, notwithstanding the caution in the lights of the complex economic situation.
Declaration of the designated officer in charge of drafting the company's accounting documents
The Designated Officer in charge of drafting the company's accounting documents, Paolo Matarazzo, herein declares, pursuant to Article 154-bis, Paragraph 2 of Legislative Decree no. 58 of 24 February 1998 that the accounting information contained in this press release corresponds to the documentary records, books and accounting entries.
As from today, this press release is available also on the company's website www.txtgroup.com
TXT e-solutions is an international specialist in high-value, strategic software and solutions for large enterprises. The main business areas are: Integrated & Collaborative Planning Solutions, with the TXT Perform Division, especially for Luxury, Fashion, Retail and Consumer Goods; Software for Complex Operations & Manufacturing, with the TXT Next Division, for Aerospace, Defence, High-Tech and Finance. Listed in the Star Segment of Borsa Italiana (TXT.MI), TXT is based in Milan and has offices in Australia, Canada, France, Germany, Hong Kong, Italy, Spain, United Kingdom and United States.
For information:
TXT e-solutions SpA
Paolo Matarazzo CFO Tel. +39 02 25771.355 [email protected]
Management Income Statement as of 30.06.2015
| € thousand | I SEM. 2015 | % | I SEM. 2014 (1) | 2014 non recurring |
I SEM. 2014 "Normalized"(2) |
% | Var % vs 2014 |
Var % vs 2014 "Normalized" |
|---|---|---|---|---|---|---|---|---|
| REVENUES | 31.126 | 100,0 | 28.972 | (1.468) | 27.504 100,0 | 7,4 | 13,2 | |
| Direct costs | 14.878 | 47,8 | 13.464 | (407) | 13.057 | 47,5 | 10,5 | 13,9 |
| GROSS MARGIN | 16.248 | 52,2 | 15.508 | (1.061) | 14.447 | 52,5 | 4,8 | 12,5 |
| Research and Development costs | 2.716 | 8,7 | 2.380 | 2.380 | 8,7 | 14,1 | 14,1 | |
| Commercial costs | 6.392 | 20,5 | 5.666 | 5.666 | 20,6 | 12,8 | 12,8 | |
| General and Administrative costs | 3.764 | 12,1 | 3.431 | 3.431 | 12,5 | 9,7 | 9,7 | |
| EBITDA | 3.376 | 10,8 | 4.031 | (1.061) | 2.970 | 10,8 | (16,2) | 13,7 |
| Amortization, depreciation | 519 | 1,7 | 643 | 643 | 2,3 | (19,3) | (19,3) | |
| OPERATING PROFIT (EBIT) | 2.857 | 9,2 | 3.388 | (1.061) | 2.327 | 8,5 | (15,7) | 22,8 |
| Financial income (charges) | (112) | (0,4) | (124) | (124) | (0,5) | (9,7) | (9,7) | |
| EARNINGS BEFORE TAXES (EBT) | 2.745 | 8,8 | 3.264 | (1.061) | 2.203 | 8,0 | (15,9) | 24,6 |
| Taxes | (405) | (1,3) | (607) | 197 | (410) | (1,5) | (33,3) | (1,1) |
| NET PROFIT | 2.340 | 7,5 | 2.657 | (864) | 1.793 | 6,5 | (11,9) | 30,5 |
(1) Official Financial Reporting.
(2) Income Statement H1 2014 includes non-recurring income of 1.468k€ and non-recurring costs of 407k€. In order to compare performance w ith current year, financial results as of 30.6.2014 have been "Normalized" excluding non-recurring Revenues and Costs. Taxes have been calculated pro-rata.
Income Statement as of 30.06.2015
| Amounts in Euro | 30.06.2015 | 30.06.2014 |
|---|---|---|
| TOTAL REVENUES AND INCOME | 31.125.549 | 28.972.408 |
| Purchases of materials and services | (6.099.884) | (6.701.861) |
| Personnel costs | (20.681.182) | (17.179.025) |
| Other operating costs | (968.088) | (1.060.747) |
| Amortizations, depreciation and write downs | (519.623) | (642.347) |
| OPERATING RESULT | 2.856.772 | 3.388.428 |
| Financial income/charges | (111.414) | (124.606) |
| PRE-TAX RESULT | 2.745.358 | 3.263.822 |
| Income Taxes | (405.571) | (606.444) |
| NET RESULT CURRENT ACTIVITIES | 2.339.787 | 2.657.378 |
| PROFIT PER SHARE (Euro) | 0,20 | 0,25 |
| PROFIT PER SHARE DILUTED (Euro) | 0,20 | 0,24 |
Net Financial Position as of 30.06.2015
| € thousand | 30.6.2015 | 31.12.2014 | Var | 30.6.2014 |
|---|---|---|---|---|
| Cash | 10.423 | 12.304 | (1.881) | 11.583 |
| Short term debt | (960) | (2.154) | 1.194 | (2.763) |
| Short term Financial Resources | 9.463 | 10.150 | (687) | 8.820 |
| Long term debt | - | (1.685) | 1.685 | (2.188) |
| Net Available Financial Resources | 9.463 | 8.465 | 998 | 6.632 |
Consolidated Balance Sheet as of 30.06.2015
| ASSETS (Amounts in Euro) | 30.06.2015 | 31.12.2014 |
|---|---|---|
| NON-CURRENT ASSETS | ||
| Goodwill | 13.607.235 | 12.993.445 |
| Definite life intangible assets | 1.806.559 | 2.085.369 |
| Intangible Assets | 15.413.794 | 15.078.814 |
| Buildings, plants and machinery owned | 1.376.946 | 1.248.845 |
| Tangible Assets | 1.376.946 | 1.248.845 |
| Other non-current assets | 144.184 | 136.068 |
| Deferred tax assets | 1.621.670 | 1.556.303 |
| Other non-current assets | 1.765.854 | 1.692.371 |
| TOTAL NON-CURRENT ASSETS | 18.556.594 | 18.020.030 |
| CURRENT ASSETS | ||
| Inventories | 2.460.514 | 1.820.672 |
| Trade receivables | 21.008.367 | 18.570.928 |
| Other current assets | 2.265.148 | 2.196.824 |
| Cash and other liquid equivalents | 10.423.286 | 12.304.130 |
| TOTAL CURRENT ASSETS | 36.157.315 | 34.892.554 |
| TOTAL ASSETS | 54.713.909 | 52.912.584 |
| EQUITY AND LIABILITIES (Amounts in Euro) |
30.06.2015 | 31.12.2014 |
| SHAREHOLDERS' EQUITY | ||
| Share capital | 6.503.125 | 5.911.932 |
| Reserves | 15.716.975 | 12.867.534 |
| Retained earnings | 7.412.155 | 6.018.431 |
| Profit (Loss) for the year | 2.339.787 | 4.172.380 |
| TOTAL SHAREHOLDERS' EQUITY | 31.972.042 | 28.970.277 |
| NON-CURRENT LIABILITIES | ||
| Non-current fiancial liabilities | - | 1684734 |
| Severance and other personnel liabilities | 3.799.318 | 3.841.200 |
| Deferred tax liabilities | 1.008.076 | 965.428 |
| TOTAL NON-CURRENT LIABILITIES | 4.807.394 | 6.491.362 |
| CURRENT LIABILITIES | ||
| Current financial liabilities | 960.694 | 2.153.926 |
| Trade payables | 1.687.223 | 1.540.108 |
| Tax payables | 327.792 | 150.971 |
| Other current liabilities | 14.958.764 | 13.605.940 |
| TOTAL CURRENT LIABILITIES | 17.934.473 | 17.450.945 |
| TOTAL LIABILITIES | 22.741.867 | 23.942.307 |
TXT e-solutions S.p.A. Via Frigia, 27 - 20126 Milano (Italy) Tel. +39 02 25771.1 Fax +39 02 2578994 www.txtgroup.com
Consolidated Statement of Cash Flows as of 30.06.2015
| Net Income 2.339.787 Non cash costs 42.558 Paid taxes 283.976 Variance in deferred taxes (22.719) Amortization, depreciation and write-downs 519.623 Cash flows generated by operations before working capital 3.163.225 (Increase) / Decrease in trade receivables (2.439.505) (2.334.785) (Increase) / Decrease in inventories (639.842) (957.944) (Increase) / Decrease in trade payables 147.116 466.489 (Increase) / Decrease in severance and other personnel liabilities 13.403 55.213 (Increase) / Decrease in other current assets/liabilities 1.169.228 15.684 (1.749.600) (2.755.343) Changes in working capital CASH FLOW GENERATED BY OPERATIONS 1.413.625 |
Amounts in Euro | 30.06.2015 | 30.06.2014 |
|---|---|---|---|
| 2.657.378 | |||
| - | |||
| 736.914 | |||
| (15.064) | |||
| 642.347 | |||
| 4.021.575 | |||
| 1.266.232 | |||
| Increase in tangible assets (399.302) |
(347.416) | ||
| Decrease in intangible assets (10.104) |
24.603 | ||
| Increase in intangible assets - |
(19.214) | ||
| CASH FLOW GENERATED BY INVESTING ACTIVITIES (409.406) |
(342.027) | ||
| Increase / (Decrease) in financial debts (2.877.966) |
(1.260.354) | ||
| Distribution of dividends (2.678.079) |
(2.614.596) | ||
| Purchase of treasury shares 2.668.948 |
(269.318) | ||
| CASH FLOW GENERETED BY FINANCIAL ACTIVITIES (2.887.097) |
(4.144.268) | ||
| INCREASE / (DECREASE) IN CASH (1.882.878) |
(3.220.063) | ||
| Difference in Currency Translation 2.034 |
(18.025) | ||
| Cash at beginning of the period 12.304.130 |
14.821.027 | ||
| Cash at the end of the period 10.423.286 |
11.582.939 |
TXT e-solutions S.p.A. Via Frigia, 27 - 20126 Milano (Italy) Tel. +39 02 25771.1 Fax +39 02 2578994 www.txtgroup.com
Income Statement - Management Reporting Second Quarter as at 30.06.2015
| € thousand | Q2 2015 | % | Q2 2014 (1) | 2014 non recurring |
Q2 2014 "Normalized"(2) |
% | Var % vs 2014 |
Var % vs 2014 "Normalized " |
|---|---|---|---|---|---|---|---|---|
| REVENUES | 16.442 100,0 | 14.977 | (1.468) | 13.509 100,0 | 9,8 | 21,7 | ||
| Direct costs | 7.770 | 47,3 | 6.857 | (407) | 6.450 | 47,7 | 13,3 | 20,5 |
| GROSS MARGIN | 8.672 | 52,7 | 8.120 | (1.061) | 7.059 | 52,3 | 6,8 | 22,9 |
| Research and Development costs | 1.354 | 8,2 | 1.148 | 1.148 | 8,5 | 17,9 | 17,9 | |
| Commercial costs | 3.470 | 21,1 | 2.775 | 2.775 | 20,5 | 25,0 | 25,0 | |
| General and Administrative costs | 1.963 | 11,9 | 1.687 | 1.687 | 12,5 | 16,4 | 16,4 | |
| EBITDA | 1.885 | 11,5 | 2.510 | (1.061) | 1.449 | 10,7 | (24,9) | 30,1 |
| Amortization, depreciation | 266 | 1,6 | 333 | 333 | 2,5 | (20,1) | (20,1) | |
| OPERATING PROFIT (EBIT) | 1.619 | 9,8 | 2.177 | (1.061) | 1.116 | 8,3 | (25,6) | 45,1 |
| Financial income (charges) | (42) | (0,3) | (56) | (56) | (0,4) | (25,0) | (25,0) | |
| EARNINGS BEFORE TAXES (EBT) | 1.577 | 9,6 | 2.121 | (1.061) | 1.060 | 7,8 | (25,6) | 48,8 |
| Taxes | (213) | (1,3) | (457) | 197 | (260) | (1,9) | (53,4) | (18,0) |
| NET PROFIT | 1.364 | 8,3 | 1.664 | (864) | 800 | 5,9 | (18,0) | 70,4 |
(1) Official Financial Reporting.
(2) Income Statement Q2 2014 includes non-recurring income of 1.468k€ and non-recurring costs of 407k€. In order to compare performance w ith current year, financial results as of 30.6.2014 have been "Normalized" excluding non-recurring Revenues and Costs. Taxes have been calculated pro-rata on a half year basis.