Press release from: 09 November 2012

SMARTRAC Increases Revenues by 36 Percent in the First Nine Months of 2012 and for the First Time Exceeds Revenues of EUR 70 million per Quarter

  • Revenues 9M 2012: EUR 189 million, representing an increase of 36 percent on the EUR 139 million generated in the first nine months of 2011
  • Sales in Q3-2012 for the first time exceeded EUR 70 million within a single quarter
  • EBITDA 9M 2012: EUR 17.4 million compared to EUR 14.6 million in the first nine months of 2011
  • Outlook 2012: Management confirms target to increase Group sales to more than EUR 250 million in 2012


SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, today announces financial figures for the first nine months of 2012. The company further increased its revenues and reported total sales of EUR 189 million in the first nine months of 2012 as compared with sales of EUR 139 million in the period January to September 2011.

EBITDA for the first nine months of 2012 amounted to EUR 17.4 million in 2012 compared to EBITDA of EUR 14.6 million in 2011. Profit for the period increased from EUR 1.4 million in the first nine months of 2011 to EUR 1.6 million in the first nine months of 2012.

 

Group Revenues


The SMARTRAC Group generated revenues of EUR 189 million in the first nine months of 2012, representing an increase of 36 percent from the previous year’s figure of EUR 139 million.

Revenue in the Security Segment (Business Units eID and CTA) amounted to EUR 108.3 million in the first nine months of 2012 compared to sales of EUR 100.4 million in the same period of 2011. From January to September 2012, the Security Segment accounted for 57 percent of total Group revenue compared to 72 percent a year ago.

Revenue in the Industry Segment (Business Units Industry & Logistics and ePI, Neology and Dalton) increased to EUR 80.4 million in the first nine months of 2012 compared to EUR 37.4 million in 2011. From January to September 2012, the Industry Segment represented a 43 percent share of total Group sales of the company compared to 27 percent a year ago.

Group EBITDA


In total, Group EBITDA from January to September amounted to EUR 17.4 million in 2012 compared to EUR 14.6 million in 2011. EBITDA for the first nine months of 2012, as per definition, excludes non-recurring items such as costs for restructuring and insurance payments.

EBITDA in the Security Segment amounted to EUR 11.1 million from January to September 2012 compared to EUR 12.5 million a year ago. The Industry Segment reported EBITDA of EUR 5.7 million in the first nine months of 2012 compared to EUR 2.4 million in the same period of 2011.

Profit for the period


Profit for the period from January to September increased from EUR 1.4 million in 2011 to EUR 1.6 million in 2012.

Financial Position

 

Total assets amounted to EUR 331 million as of September 30, 2012, as compared with EUR 264 million at year-end 2011. The increase in total assets was predominantly related to the inclusion of former UPM RFID as well as investments into property, plant, and equipment in the first nine months of 2012 related to the reconstruction in Thailand. Cash and cash equivalents increased from EUR 22 million as of December 31, 2011, to EUR 36 million as of September 30, 2012.

Group equity amounted to EUR 166 million as of September 30, 2012, compared to EUR 139 million as of December 31, 2011. The increase in group equity mainly results from the proceeds from the capital increase conducted on March 31, 2012, in relation to the acquisition of former UPM RFID. The equity ratio subsequently decreased slightly from 53 percent at year-end 2011 to 50 percent as of September 30, 2012.

Cash provided by operating activities amounted to EUR 19 million for the first nine months of 2012, as compared with EUR 5 million cash provided by operating activities in the same period of the previous year due to favorable cut-off effects in the working capital position. Taking into account interest payments and receipts as well as payments and repayments for income taxes, the net cash provided by operating activities amounted to EUR 15.2 million as of September 30, 2012, as compared with net cash provided of EUR 2.4 million for the first nine months of 2011.

Net cash used in investing activities amounted to EUR 30 million as of September 30, 2012, as compared with net cash used of EUR 32 million for the same period of 2011. Higher investments in property, plant, and equipment are mainly related to the reconstruction in Thailand.

Net cash provided by financing activities amounted to EUR 29 million as of September 30, 2012, compared to net cash provided of EUR 7 million in the first nine months of 2011 and related to the cash inflow from the proceeds of secured loans. In the second quarter of 2012, SMARTRAC has signed a EUR 100 million term and revolving facilities agreement replacing the syndicated EUR 65 million term and multicurrency revolving facilities agreement concluded in 2009.

Business Outlook


The SMARTRAC Management expects that the overall positive market trend in the RFID industry will continue over the last quarter of 2012 and that SMARTRAC will add another successful year of growth to its company history. Therefore, SMARTRAC confirms its target to increase Group sales to more than EUR 250 million in 2012.

From a strategic perspective, the Management Board will pursue the target to optimize structures and processes in order to further improve overall efficiency of the Company and profitability of the Group.

The SMARTRAC 9M 2012 Interim Report has been published today and is available for download on the company’s website at www.smartrac-group.com.

About SMARTRAC:


SMARTRAC is the leading developer, manufacturer, and supplier of RFID and NFC transponders and inlays. The company produces both ready-made and customized transponders and inlays used in access control, animal identification, automated fare collection, border control, RFID-based car immobilizers, contactless payment cards, electronic product identification, industry, libraries and media management, laundry, logistics, mobile and smart media, public transport, retail, and many more.

SMARTRAC was founded in 2000, went public in July 2006, and trades as a stock corporation under Dutch law with its registered headquarters in Amsterdam. The company currently employs some 4,000 employees and maintains a global research and development, production, and sales network.

If you have any questions, please contact:
Tanja Moehler
Head of Corporate Communications & Marketing
SMARTRAC N.V.
Phone: +31 20 30 50 157
Email: tanja.moehler@smartrac-group.com
Internet: www.smartrac-group.com
Twitter: www.twitter.com/SMARTRAC_NV

Forward-looking statements:
To the extent that this press release contains forward-looking statements, such statements are based on assumptions, planning and forecasts at the time of publication of this press release. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions and other factors may cause the actual results to be materially different from the assumptions, planning and forecasts at the time of publication of this press release. Therefore, SMARTRAC N.V. does not assume any responsibility relating to forward-looking statements contained in this press release. Furthermore, SMARTRAC N.V. does not assume any obligation to update the forward-looking statements contained in this press release.

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