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WashTec AG — Earnings Release 2007
Nov 6, 2007
483_rns_2007-11-06_3413a528-fa9f-4d1a-82c8-bb6dedeef069.html
Earnings Release
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News Details
Corporate | 6 November 2007 08:05
WashTec AG: Dynamic revenue growth in the third quarter
WashTec AG / Key word(s): Quarter Results
06.11.2007 / 08:05
Dynamic revenue growth in the third quarter:
– Revenues exceed EUR 200m after three quarters for the first time
(EUR 200.1m; prior year: EUR 190.2m)
– EBIT at EUR 17.2m (prior year: EUR 16.0m)
– Stock options granted and share buy-back program started
– Goals for 2010 announced on first investor day
Augsburg, November 06, 2007 – Thanks to a dynamic development of revenues in the third quarter, WashTec AG (ISIN DE0007507501), the leading provider of innovative solutions for vehicle wash systems worldwide, was able to raise both revenues and earnings.
WashTec’s consolidated revenues after three quarters amounted to EUR 200.1m, an increase of EUR 9.9m (5.2%) compared to the prior year (2006: EUR 190.2m). Third quarter alone showed a revenue increase by 10.0% versus last year. Revenues in the core markets in Europe developed dynamically after being slightly below the prior-year level at the half-year mark.
The positive development in Northern America continued in the third quarter. At EUR 21.9m, revenues of Mark VII after nine months increased by EUR 4.1m or 23.0% compared to the prior year (2006: EUR 17.8m). In US-dollars the increase with 32.3% was even higher.
EBIT for the period rose by EUR 1.2m to EUR 17.2m (2006: EUR 16.0m) improving the EBIT margin to 8.6%, up 0.2% compared to last year (2006: 8.4%). EBIT adjusted for non-recurring effects of the third quarter rose to EUR 8.3m (Q3 2006: EUR 8.2m).
EBT for the first three quarters increased from EUR 13.2m to EUR 14.3m. As a result of the German tax reform which was adopted in the third quarter, deferred tax assets had to be written down by EUR 3.3m. Due to the one time extraordinary high tax-quota, net profit stood at EUR 5.4m (prior year: EUR 7.9m). The equity ratio as of September 30, 2007 is 32.0% (Dec. 31, 2006: 29.6%).
Sales and service activities in the US were further strengthened. Aqua Pro, Mark VII’s Texas distributor, was acquired at the beginning of July and own sales- and service-organizations have been set up in New England.
767,000 stock options were issued on July 23, 2007 for the management board members and executive employees at an exercise price of EUR 15.34 and a 2-year hurdle rate of 20% share price increase. On September 17, the management board resolved to acquire up to 800,000 of WashTec’s own shares until November 21, 2008. They shall be used, amongst others, to cover the stock options granted to avoid potential dilution.
In September 2007, WashTec’s first ‘Investor Day’ took place, where the strategic and financial goals of WashTec up to 2010 were announced.
Forecast
The management board aims to increase the EBIT margin for the full year 2007 from 9.5% 2006 to at least 10% with moderate growth in 2007. New markets in the US and Southern Europe contribute above average revenue growth. These markets currently show little or no contribution to earnings but are expected to further increase the Group’s profitability in the future.
WashTec aims to be the leading full-service provider for car wash systems in all major global markets. As part of strategic planning, country specific strategies were adopted for all focus markets. They include, amongst others, the expansion of offerings around the complete value chain of operation of vehicle wash systems including, amongst others, chemicals, financing and marketing support. In addition, efficiency projects to further improve WashTec’s profitability and competitive edge form a substantial part of the strategy. In Asia, a sourcing organization will be set up.
The management board is aiming to grow revenues by 4-7% p.a. with further improved EBIT margins of 12-14% until 2010.
Key Performance Indicators:
| EUR m | Jan. 1 to Sep. 30, | Jan. 1 to Sep. 30, |
| 2007 | 2006 | |
| Revenues | 200.1 | 190.2 |
| EBITDA | 22.9 | 21.1 |
| EBIT | 17.2 | 16.0 |
| EBIT adjusted for non-recurring | 16.6 | 19.5 |
| effects | ||
| EBT | 14.3 | 13.2 |
The full interim report may be downloaded at www.washtec.de.
Contact:
Karoline Kalb, Investor Relations
WashTec AG
Argonstraße 7
86153 Augsburg
Tel.: +49 (0)821 – 55 84 – 0
Fax: +49 (0)821 – 55 84 – 1135
Mobile: +49 175 – 4302025
End of Corporate News
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| Language: | English |
| Company: | WashTec AG |
| Argonstraße 7 | |
| 86153 Augsburg | |
| Germany | |
| Phone: | +49 (0)821 55 84-0 |
| Fax: | +49 (0)821 55 84-1135 |
| E-mail: | [email protected] |
| Internet: | www.washtec.de |
| ISIN: | DE0007507501 |
| WKN: | 750750 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 23364 06.11.2007 |