USU Software AG — Earnings Release 2014

Mar 26, 2015

News Details

Corporate | 26 March 2015 10:00

USU Software AG publishes final figures for 2014 – dividend expected to increase to EUR 0.30 per share

DGAP-News: USU Software AG / Key word(s): Final Results/Dividend

2015-03-26 / 10:00

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* Consolidated sales increase by 5.8% to EUR 58,933 thousand
* Strong growth of 78.5% in international business to EUR 15,595 thousand
* Adjusted EBIT gains 43.1% to EUR 7,276 thousand
* Consolidated net profit rises by 42.9% to EUR 5,512 thousand
* 2014 dividend expected to jump by 20% to EUR 0.30 per share
* Liquidity in Group as a whole expands by 32.9% to EUR 18,920 thousand
* Group-wide orders on hand grow by 21.0% to EUR 28,172 thousand
* Rise in Group sales revenue to EUR 64 - 68 million and expansion of
adjusted EBIT to EUR 8 - 9.5 million for 2015 expected

USU Software AG (ISIN DE000A0BVU28) published its final figures for 2014
today. USU generated Group-wide sales growth of 5.8% year-on-year to EUR
58,933 thousand in the year under review (2013: EUR 55,713 thousand). This
upturn is due to the USU Group's sustained expanding international
business, especially in the US. USU benefited from several major orders
from leading Fortune 100 companies. The USU Group increased its
international sales by 78.5% compared to the previous year to EUR 15,595
thousand in 2014 (2013: EUR 8,737 thousand) and thus expanded the share of
sales generated outside Germany in consolidated sales revenue to 26.5%
(2013: 15.7%).

Broken down by type of sales, USU's license revenue rose by 0.7% to EUR
10,122 thousand (2013: EUR 10,056 thousand). Modest growth was due firstly
to the postponement of investments in Germany and secondly to increased
software-as-a-service (SaaS) projects by the USU Group, which are allocated
to maintenance revenue in terms of sales. Accordingly, maintenance business
increased significantly by 15.2% to EUR 14,242 thousand (2013: EUR 12,364
thousand). In addition to expanding SaaS revenue, USU also benefited from
strong license business from the previous year and the related increase in
maintenance income. USU increased its consulting revenue by 4.1% to EUR
32,982 thousand (2013: EUR 31,668 thousand) thanks to the positive
development of product business. Other revenue, relating mainly to
merchandise sales from third-party hardware and software, totaled EUR 1,587
thousand in fiscal year 2014 (2013: EUR 1,625 thousand).

In conjunction with an only slight expansion in costs, the sales growth
achieved by the USU Group led to a significant rise in earnings in fiscal
year 2014. For example, USU increased earnings before interest and taxes
adjusted for extraordinary effects due to acquisitions (adjusted EBIT) by
43.1% year-on-year to EUR 7,276 thousand in 2014 (2013: EUR 5,083
thousand). In addition to the adjustment of acquisition-related
amortization of intangible assets of EUR 1,257 thousand (2013: EUR 1,362
thousand), these extraordinary effects included income from the reversal of
a purchase price provision of EUR 970 thousand in connection with the full
acquisition of B.I.G. Social Media GmbH (BIG). USU grew its adjusted
consolidated earnings to EUR 5,963 thousand (2013: EUR 5,169 thousand), a
year-on-year increase of 15.4%. Adjusted earnings per share therefore
improved from EUR 0.49 in the previous year to EUR 0.57 in the reporting
period.

On an unadjusted basis, USU increased EBITDA by 61.9% year-on-year to EUR
8,886 thousand (2013: EUR 5,490 thousand). Including depreciation and
amortization of EUR 2,213 thousand (2013: EUR 2,082 thousand), USU almost
doubled its EBIT year-on-year to EUR 6,673 thousand (2013: EUR 3,408
thousand). In 2014, net financial income increased year-on-year to EUR 495
thousand (2013: EUR 112 thousand), mainly due to positive exchange rate
effects. Financial expenses of EUR 572 thousand (2013: EUR 649 thousand)
include primarily expenses from the scheduled interest cost of the purchase
price obligation for the final BIG takeover. Taxes on income for 2014 were
EUR -1,084 thousand (2013: EUR 775 thousand) and included income taxes from
the reporting period as well as deferred taxes. After taxes, the USU Group
increased its consolidated net profit in fiscal year 2014 by 42.9% to EUR
5,512 thousand (2013: EUR 3,646 thousand). Accordingly, USU improved its
earnings per share from EUR 0.35 in the previous year to EUR 0.52 now.

In line with the distribution policy the Company has communicated and in
the spirit of continuity, the Management Board and Supervisory Board will
propose to the Annual General Meeting of USU Software AG a dividend
distribution of EUR 0.30 per share for fiscal year 2014. This decision for
the announced increase of the profit distribution of 20% compared to the
previous year is taking place against the background of the successful
development of the USU Group as a whole and the Company's further positive
business outlook.

In line with the increase in profits, USU generated net cash from operating
activities of EUR 7,740 thousand (2013: EUR 9,855 thousand). The high
figure from the previous year was influenced by factors such as payments of
the partner CA Technologies Inc. as part of the partnership agreement.
Despite the dividend distribution of EUR 2,631 thousand paid out in June
2014, USU expanded its cash and cash equivalents to a total of EUR 18,920
thousand as at the end of the 2014 fiscal year (December 31, 2013: EUR
14,231 thousand) thanks to the positive earnings development. At the same
time, equity as at December 31, 2014 increased to EUR 55,608 thousand
(December 31, 2013: EUR 53,232 thousand). With total assets of EUR 85,174
thousand (December 31, 2013: EUR 81,414 thousand), the equity ratio was
65.3% as at the balance sheet date (December 31, 2013: 65.4%).

The Management Board anticipates that the positive growth trend will
successfully continue in fiscal year 2015 for USU Software AG and its
subsidiaries. In doing so, international business, which was the central
growth pillar of the USU Group in 2014, is expected to grow significantly
in 2015 as well. The further penetration of the US market, the expansion of
activities in Central Europe via partner business in England, Italy, and
the Benelux countries, and USU's own development of the French market are
expected to contribute to this. However, business in Germany is expected to
further increase in 2015, too. The Management Board is expecting
significant expansion of the high-margin Product business, primarily from
the big-data related areas of license, IT and knowledge management and
social business. The consulting-intensive Service business is also
anticipated to increase slightly in 2015 according to current planning. A
positive indication of this is the year-on-year rise of 21.0% to EUR 28,172
thousand as at December 31, 2014 (December 31, 2013: EUR 23,276 thousand)
in the Group-wide orders on hand for the USU Group. Overall, the Management
Board expects to expand Group sales revenue in fiscal year 2015 to EUR 64 -
68 million and at the same time considerably increase adjusted EBIT to EUR
8 - 9.5 million. On the basis of this prognosis, the Management Board plans
to allow the shareholders of USU Software AG to participate in the business
success of the Company in 2015 as in previous years and thus continue the
shareholder-friendly dividend policy. With international business strongly
flourishing, potential on the German core market remaining high and the
growth-oriented acquisition policy of the USU Group, the Management Board
also continues to expect 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, Aspera Technologies Inc., 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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart

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