Press release from: 25 July 2012
SMARTRAC Increases Revenues by 26 Percent in the First Six Months of 2012
- Revenues H1-2012: EUR 118 million, representing an increase of 26 percent on the EUR 94 million generated in H1-2011
- EBITDA H1-2012: EUR 9.1 million compared to EUR 9.5 million in H1-2011
- EBITDA Q2-2012: EUR 6.4 million compared to EUR 4.3 million in Q2-2011
- Term and revolving facilities agreement of EUR 100 Million further strengthens financial flexibility of the company
- Outlook 2012: Management confirms target to increase Group sales to some EUR 250 million in 2012
- Dr. Christian Fischer, CEO: “The completion of the ramp-up of production capacity was a significant milestone for our company and the last cornerstone in our successful ambition to move on from the flood disaster in Thailand.”
SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, today announces financial figures for the first half-year of 2012. The positive momentum which SMARTRAC had experienced in the first three months of 2012 continued in the second quarter of 2012. As a result, the company was able to increase total sales by 26 percent from EUR 94 million in H1-2011 to EUR 118 million in H1-2012.
EBITDA for the reporting period January to June amounted to EUR 9.1 million in 2012 compared to EBITDA of EUR 9.5 million in 2011. EBITDA in the second quarter increased from EUR 4.3 million in the second quarter of 2011 to EUR 6.4 million in the second quarter of 2012. Profit for the period increased from EUR 0.8 million in the first half-year of 2011 to EUR 9 million in the first six months of 2012 including insurance payments related to the flood in Thailand.
The SMARTRAC Group generated revenues of EUR 118 million in the first half-year of 2012, representing an increase of 26 percent from the previous year’s figure of EUR 94 million.
Revenue in SMARTRAC´s Security Segment (Business Units Cards and eID) amounted to EUR 67.4 million in the first six months of 2012 compared to sales of EUR 67.9 million in the same period of the previous year. In H1-2012 sales of 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, Tickets & Labels and Neology) increased to EUR 51 million in the first six months of 2012 compared to EUR 26 million in 2011. In H1-2012 sales of the Industry Segment represented a 43 percent share of total Group sales of the company compared to 27 percent a year ago.
In total, Group EBITDA from January to June amounted to EUR 9.1 million in 2012 compared to EUR 9.5 million in 2011. This decrease results from the burden of the flood in Thailand on the Group’s profitability in the first quarter of 2012. EBITDA for the first six months of 2012, as per definition, excludes extraordinary costs for restructuring, non-recurring costs related to the flood in Thailand, as well as extraordinary acquisition costs.
EBITDA in the company’s Security Segment amounted to EUR 6 million in 2012 compared to EUR 8 million a year ago. The Industry Segment reported EBITDA of EUR 4 million in the first half-year of 2012 compared to EUR 2 million in the same period of 2011.
Profit for the period
Profit for the first half-year increased from EUR 0.8 million in 2011 to EUR 9 million in 2012 including insurance payments related to the flood in Thailand.
Total assets amounted to EUR 336 million as of June 30, 2012, as compared with EUR 264 million at year-end 2011. The increase in total assets was predominantly related to the inclusion of UPM RFID as well as investments into property, plant and equipment and inventory in the first six months of 2012. Cash and cash equivalents increased by 28 percent from EUR 22 million as of December 31, 2011, to EUR 28 million as of June 30,2012, which is mainly attributable to cash flow provided by financing activities.
SMARTRAC’s Group equity amounted to EUR 174 million as of June 30, 2012, compared to EUR 139 million as of December 31, 2011. The increase mainly results from the proceeds from the capital increase conducted on March 31, 2012, in order to finance the UPM RFID business. The equity ratio subsequently decreased from 53 percent at year-end 2011 to 52 percent as of June 30, 2012.
Cash provided by operating activities amounted to EUR 5.4 million for the first six months of 2012, as compared with EUR 5.2 million cash provided by operating activities in the same period of the previous year. 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 2.8 million as of June 30, 2012, as compared with net cash provided of EUR 3.8 million for the first half-year of 2011.
Net cash used in investing activities amounted to EUR 19 million as of June 30, 2012, as compared with net cash used of EUR 33 million for the same period of 2011. Higher investments in property, plant and equipment resulted from the reconstruction in Thailand.
Net cash provided by financing activities amounted to EUR 21 million as of June 30, 2012, compared to net cash provided of EUR 7 million in the first six 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.
The SMARTRAC Management expects that the positive trend in the RFID market will continue over the course of the year and that SMARTRAC and the RFID industry will both grow in 2012. Therefore, SMARTRAC confirms its target to increase Group sales to some EUR 250 million in 2012.
From a strategic perspective, the company will continue to work on creating synergies from the acquired companies and combined business activities. The SMARTRAC Management will also pursue the target to optimize structures and processes in order to further improve overall efficiency and profitability of the Group. First results of this endeavor have already become visible in the second quarter of 2012 which showed significant improvement as compared with the second quarter of 2011.
“The positive development of the first six months of 2012 paves the way for another successful year in our company history,” said Dr. Christian Fischer. “The completion of the ramp-up of production capacity in Thailand and Malaysia was a significant milestone for our company and the last cornerstone in our successful ambition to move on from the flood disaster in Thailand. The strength which our company has proven over the past months is evidence that we are well prepared for all challenges we may face in the future.”
The SMARTRAC H1-2012 Interim Report has been published today and is available for download on the company’s website at www.smartrac-group.com.
SMARTRAC is the leading developer, manufacturer, and supplier of RFID and NFC transponders and inlays. The company produces ready-made and customized transponders and inlays used in access control, animal identification, automated fare collection, border control, RFID-based car immobilizers, electronic product identification, industry, libraries and media management, laundry, logistics, mobile & 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 about 4,000 employees and maintains a global research and development, production, and sales network.
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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.