Press release from: 16 May 2013

SMARTRAC Reports First Quarter 2013 Results

  • Sales Q1-2013: EUR 64.7 million, representing an increase of 28 percent on the EUR 50.7 million generated in Q1-2012
  • EBITDA Q1-2013: EUR 5.4 million compared to EUR 2.7 million in Q1-2012
  • Outlook 2013: Management confirms target to increase Group sales to full year revenues which come close to the EUR 300 million mark in 2013


SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, today announced financial figures for the first quarter of 2013.

The positive market development experienced in 2012 continued in the first quarter of 2013 and led to a favorable growth in revenues from January to March 2013. The increase in production and sales volumes was, however, accompanied by a further shift in the product mix and a related strong increase in inventories and stock to satisfy short-term demand in emerging RFID application fields.

Total sales increased by 28 percent from EUR 50.7 million in Q1-2012 to EUR 64.7 million in Q1-2013. EBITDA increased from EUR 2.7 million in the first three months 2012 to EUR 5.4 million in the first three months 2013. Despite the positive development in revenues, SMARTRAC generated loss of EUR 0.3 million in the first quarter of 2013 as compared with profit for the period of EUR 1 million in the first quarter 2012, mainly resulting from a lower other operating income in the first three months of 2013 as compared to the previous year as well as higher administrative expenses.

 

Group Revenues
The SMARTRAC Group generated revenues of EUR 64.7 million in the first quarter of 2013, representing an increase of 28 percent from the previous year’s figure of EUR 50.7 million.

Revenues in SMARTRAC´s Security Segment (Business Units eID and CTA) amounted to EUR 38.1 million in the first three months of 2013, which is equivalent to an increase of 23 percent compared to sales of EUR 30.9 million in the same period of the previous year. In Q1-2013 the Security Segment accounted for 59 percent of total Group revenues compared to 61 percent a year ago.

Revenues in the Industry Segment (Business Units ePI, Industry & Logistics, Dalton ID and Neology) increased by 35 percent in the first three months of 2013 to EUR 26.4 million compared to EUR 19.5 million in the first quarter 2012. The Q1-2013 sales of the Industry Segment represented a 41 percent share of the overall sales of the company compared to 38 percent a year ago.

Group EBITDA
The Group EBITDA from January to March increased from EUR 2.7 million in 2012 to EUR 5.4 million in 2013. The EBITDA margin for the period under review accounted for 8 percent compared to 5 percent a year ago.

The Security Segment generated an EBITDA of EUR 4.2 million in the first quarter of 2013 compared with an EBITDA of EUR 1.6 million a year ago.

The Industry Segment reported an EBITDA of EUR 1.5 million in the first quarter of 2013 compared with an EBITDA of EUR 1.4 million in the same period of 2012.

Profit for the period
SMARTRAC generated loss of EUR 0.3 million in the first three months of 2013 as compared with profit of EUR 1 million in the first quarter of 2012, mainly resulting from a lower other operating income in the first three months of 2013 as compared to the previous year as well as higher administrative expenses.

Financial Position
Total assets amounted to EUR 329.8 million as of March 31, 2013, compared with EUR 329.4 million at year-end 2012. Movements in total assets were related to investments into property, equipment, and machinery as well as investments into intangible assets, including capitalized development costs, in the first three months of 2013. As a consequence, cash and cash equivalents decreased from EUR 28 million as of December 31, 2012, to EUR 20 million as of March 31, 2013.

The Q1-2013 consolidated interim balance sheet showed equity of EUR 169 million compared with EUR 168 million as of December 31, 2012. The equity ratio was 51 percent as of March 31, 2013.

Cash used in operating activities amounted to EUR 5.1 million for the first three months of 2013, compared to cash provided by operating activities of EUR 7.2 million in the same period of the previous year due to the effects from the working capital position and significant insurance inflows in the first quarter of 2012. Taking into account interest payments and receipts as well as payments and repayments for income taxes, the net cash used in operating activities amounted to EUR 6.7 million in the first three months of 2013 compared with net cash provided by operating activities of EUR 5.8 million in the same period of 2012.

Net cash used in investing activities amounted to EUR 5.5 million as of March 31, 2013, compared with net cash of EUR 6.5 million used in the same period of 2012, resulting from investments in property, equipment, and machinery as well as investments into intangible assets in the first three months of 2013.

Net cash provided by financing activities amounted to EUR 1.6 million as of March 31, 2013, compared with net cash provided of EUR 6.5 million in the same period of 2012. The net cash inflow in 2013 mainly related to the cash inflow from the proceeds of secured loans.

Business Outlook
“On the short-term, we will continue to evaluate and implement measures targeted at streamlining activities, reducing complexity, and increasing efficiency,” said Christian Uhl, Co-Chairman of the Management Board and CFO. “At the same time, we will continue to invest into technology and the development of superior products to expand our leadership position in the RFID market, drive the innovative character and competitive advantage of our company and to support our overall target of being the RFID technology partner of choice for customers worldwide.”

As there is evidence that the positive overall trend in the RFID industry will continue over the course of the year, SMARTRAC confirms its target to increase Group sales and to achieve full year revenues which come close to the EUR 300 million mark in 2013.

The SMARTRAC Q1-2013 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 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 (NFC), 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 approximately 3,600 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:
All forward-looking statements contained in this press release 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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