USU Software AG — Earnings Release 2014

Nov 21, 2014

News Details

Corporate | 21 November 2014 10:00

USU Software AG publishes figures for third quarter and first nine months of 2014

DGAP-News: USU Software AG / Key word(s): 9-month figures/Development
of Sales

21.11.2014 / 10:00

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* Sales in Q3 2014 up slightly on previous year - growth trend continues in
international business
* Clear year-on-year earnings increase in Q3 2014
* Positive sales and earnings performance in first nine months of 2014
* Planning for 2014 influenced by project postponements
* 2017 medium-term planning confirmed by Management Board

Möglingen, November 21, 2014 - USU Software AG (ISIN DE000A0BVU28)
generated slight Group-wide sales growth as against the previous year of
0.6% in the third quarter to EUR 13,889 thousand (Q3 2013: EUR 13,802
thousand). This increase resulted from a continuing expansion of the
international business of the USU Group, particularly in the United States,
while domestic business was marked by the postponement of investments by
companies, particularly those in the home loan bank and insurance sector.
USU's income generated outside Germany grew by 62.8% in the reporting
quarter to EUR 3,587 thousand (Q3 2013: EUR 2,203 thousand), corresponding
to an international share of consolidated sales of 25.8% (Q3 2013: 16.0%).

USU's operating EBITDA climbed by 51.2% as against the previous year in the
third quarter of 2014 to EUR 1,789 thousand (Q3 2013: EUR 1,183 thousand).
Including depreciation and amortization of EUR 555 thousand (Q3 2013: EUR
365 thousand), USU generated EBIT of EUR 1,234 thousand (Q3 2013: EUR 818
thousand). This corresponds to a year-on-year EBIT increase of 50.9%. USU's
EBIT after adjustment for the extraordinary effects of acquisitions
(adjusted EBIT) climbed by 50.6% in the third quarter of 2014 to EUR 1,607
thousand (Q3 2013: EUR 1,067 thousand). In the third quarter of 2014, USU's
unadjusted consolidated earnings (IFRS) rose by 149.7% to EUR 1,351
thousand (Q3 2013: EUR 541 thousand), corresponding to earnings per share
of EUR 0.13 (Q3 2013: EUR 0.05).

Over the first nine months, USU generated a sales increase of 7.9% to EUR
41,496 thousand (Q1-Q3 2013: EUR 38,446 thousand). While maintenance
business continued to expand in line with planning in the first three
quarters with an increase of 9.4% to EUR 10,055 thousand (Q1-Q3 2013: EUR
9,188 thousand), license business grew only slightly by 1.5% to EUR 5,687
thousand (Q1-Q3 2013: EUR 5,601 thousand) on account of the project
postponements referred to above. USU's consulting business was up by 11.0%
as against the previous year at EUR 24,817 thousand in the period under
review (Q1-Q3 2013: EUR 22,365 thousand). Other income amounted to EUR 937
thousand (Q1-Q3 2014: EUR 1,292 thousand) and essentially included
merchandise sales of third-party hardware and software.

Regionally, the USU Group's international business was extremely successful
in the US in the first nine months of the current fiscal year. In the
reporting year USU benefited from several major orders placed with its US
subsidiary Aspera Technologies by leading Fortune 100 companies.
Accordingly, the USU Group increased its international sales by 92.2%
year-on-year in the reporting period to EUR 10,365 thousand (Q1-Q3 2013:
EUR 5,394 thousand), thereby expanding the share of sales generated outside
Germany in consolidated sales to 25.0% (Q1-Q3 2013: 14.0%).

By segment, the Product Business segment contributed a total of EUR 31,191
thousand (Q1-Q3 2013: EUR 28,461 thousand) to consolidated sales in the
first nine months of 2014, representing a year-on-year increase of 9.6%.
Consulting sales in the Service Business segment were also up slightly by
2.4% to EUR 10,159 thousand in the period under review (Q1-Q3 2013: EUR
9,921 thousand). Sales not assigned to either segment amounted to EUR 146
thousand (Q1-Q3 2013: EUR 64 thousand). The relatively moderate rise
resulted in part from the partial use of developer resources in consulting
projects and the associated reduction in freelancers.

In conjunction with an only minor rise in costs in the first nine months of
2014, the sales growth achieved resulted in a significant increase in
earnings in the first nine months of 2014. Thus, USU's EBITDA was up by
161.4% as against the previous year at EUR 4,138 thousand (Q1-Q3 2013: EUR
1,583 thousand). Taking into account depreciation and amortization of EUR
1,656 thousand (Q1-Q3 2013: EUR 1,082 thousand), EBIT rose almost five
times over to EUR 2,482 thousand (Q1-Q3 2013: EUR 501 thousand). After
adjustment for acquisitions, USU's adjusted EBIT was up by 175.2% as
against the previous year at EUR 3,591 thousand in the period under review
(Q1-Q3 2013: EUR 1,305 thousand). Consolidated earnings (IFRS) amounted to
a total of EUR 2,309 thousand for the period from January to September 2014
after a loss of EUR 29 thousand in the same period of the previous year.
Accordingly, USU's earnings per share improved from EUR 0.00 in the
previous year to currently EUR 0.22.

At the same time, the earnings increase led to growth in the Group's
liquidity to EUR 16,276 thousand as of September 30, 2014 (December 31,
2013: EUR 14,231 thousand). USU still has no liabilities to banks and its
financing remains extremely solid with an equity ratio of 66.9% as of the
end of the reporting period (December 31, 2013: 65.4%).

The Management Board is forecasting a consistently strong business
performance abroad for the final quarter of the year. However, this is not
currently expected to fully offset the negative effects identified. Thus,
while USU has already received larger product orders in the current fourth
quarter, some of these will not affect sales until 2015 on account of
contract-specific conditions in accordance with IFRS. The Management Board
of USU Software AG is therefore now forecasting consolidated sales and
adjusted EBIT on par with the previous year's level for Q4 2014. In line
with this, the Management Board is adjusting its sales guidance for 2014 as
a whole from between EUR 63 and EUR 65 million to approximately EUR 60.0
million (2013: EUR 55.7 million) and, at the same time, anticipates a rise
in adjusted EBIT to between EUR 7.0 million and EUR 7.5 million (2013: EUR
5.1 million). The previous guidance for adjusted EBIT was in a range of EUR
8.0 to EUR 8.5 million. In the opinion of the Management Board, the
forecast earnings increase offers sufficient potential for a dividend
increase to allow USU shareholders to participate in the positive overall
business performance of the current fiscal year in accordance with the
company's dividend strategy, thereby continuing the shareholder-friendly
dividend policy of recent years. With international business flourishing,
potential on the core German market remaining high and the growth-oriented
acquisition strategy of the USU Group, the Management Board is also still
assuming the successful implementation of its medium-term planning of sales
of more than EUR 100 million with an adjusted EBIT margin in excess of 15%
by 2017.

USU Software AG
The USU Group is the largest provider in Europe for IT and knowledge
management software. Market leaders from all sectors of the international
economy use USU applications to create transparency, enhance agility, save
costs and reduce their risks. In addition to USU AG, founded in 1977, USU
Software AG - which is listed in the Prime Standard of the German Stock
Exchange and in the GEX (ISIN DE000A0BVU28) - also includes the
subsidiaries Aspera GmbH, LeuTek GmbH, OMEGA Software GmbH, USU Consulting
GmbH and B.I.G. Social Media GmbH.

Contact:
USU Software AG
Corporate Communications
Dr. Thomas Gerick
Tel.: +49 (0) 71 41 - 48 67 440
Fax: +49 (0) 71 41 - 48 67 909
E-Mail: t.gerick@usu-software.de

USU Software AG
Investor Relations
Falk Sorge
Spitalhof
D-71696 Möglingen
Tel.: +49 (0) 71 41 - 48 67 351
Fax: +49 (0) 71 41 - 48 67 108
E-Mail: f.sorge@usu-software.de

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Language: English
Company: USU Software AG
Spitalhof
71696 Möglingen
Germany
Phone: +49 (0)7141 4867-0
Fax: +49 (0)7141 4867-200
E-mail: info@usu-software.de
Internet: www.usu-software.de
ISIN: DE000A0BVU28
WKN: A0BVU2
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart

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