Evertz Technologies Limited
TSX : ET

Evertz Technologies Limited

March 06, 2008 16:09 ET

Evertz Technologies Reports Quarterly End Results

BURLINGTON, ONTARIO--(Marketwire - March 6, 2008) -

Attention Business/Financial Editors:

Evertz Technologies Limited (TSX:ET), a leading equipment provider to the television broadcast industry, today reported results for the third quarter, ended January 31, 2008, of its fiscal 2008 year.

Quarterly Highlights

- Sales were $64.4 million, 27% higher year-over-year for the quarter

- Gross investment in R&D increased by $0.8 million to $4.6 million, 19% year-over-year for the quarter

- Net earnings were $21.4 million in the quarter as compared to $14.8 million a year ago, an increase of 45 %

- Fully-diluted earnings per share were $0.29 for the quarter ended January 31, 2008 as compared to $0.20 a year ago



Selected Financial Information
Consolidated Statement of Earnings Data
(in '000 except share data)

Q3'08 Q3'07
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Sales $ 64,389 $ 50,828
Gross Margin 37,709 31,122
Earnings from operations 28,572 20,996
Net Income 21,445 14,821
Fully-diluted earnings per share 0.29 0.20



Selected Financial Information
Consolidated Balance Sheet Data as at:

Q3'08 YE'07
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Cash and Short-Term Investments $ 82,222 $ 34,544
Working Capital 146,845 89,991
Total Assets 203,157 143,996
Shareholder's Equity 172,496 112,444


For the quarter ended January 31, 2008, sales were $64.4 million, an increase of $13.6 million or 27% as compared to sales of $50.8 million for quarter ended January 31, 2007. For the quarter the Canada/US region grew by $6.7 million or 18% when compared to the same quarter last year. The International region grew by $6.9 million or 48% when compared to the same quarter last year.

For the quarter ended January 31, 2008 gross margin was $37.7 million compared to $31.1 million when compared to the same quarter last year. Gross margin percentage was approximately 59% as compared to 61% for the quarter ended January 31, 2007.

For the quarter ended January 31, 2008 net earnings were $21.4 million as compared to $14.8 million in the corresponding period last year, an increase of 45%.

For the quarter ended January 31, 2008 Earnings per share on a fully-diluted basis were $0.29 as compared to $0.20 in the same period in 2007.

For the quarter ended January 31, 2008 selling and administrative expenses decreased by $0.2 million as compared to the prior year. Selling and Administrative expenses represented approximately 10.8% of sales in the quarter ended January 31, 2008.

For the quarter ended January 31, 2008 research and development expenses increased by 19% to $4.6 million as compared to the corresponding period during fiscal 2007.

The Company's working capital as at January 31, 2008 was $146.8 million as compared to $90.0 million on April 30, 2007.

Cash and Short-Term Investments were $82.2 million as at January 31, 2008 as compared to cash and short-term investments of $34.5 million as at April 30, 2007.

Cash provided by operations was $23.3 million for the quarter ended January 31, 2008 as compared to $14.0 million in the quarter ended January 31, 2007. Before taking into account changes in non-cash working capital, the Company generated $24.0 million from operations for the quarter ended January 31, 2008 as compared to $16.7 million for the same period last year.

Cash used in investing activities was $18.8 million for the quarter ended January 31, 2008 as a result of the net acquisition of $16.0 million in short term investments, and $2.8 million in capital assets.

Purchase order backlog at the end of February 2008 was in excess of $22 million and shipments during the month of February 2008 exceeded $16 million.

Evertz Board of Directors declared a dividend on March 06, 2008 of $0.05 per share. The dividend is payable to shareholders of record on April 15, 2008 and will be paid on or about April 25, 2008.



Selected Consolidated Financial Information
(in '000 except earnings per share and share data)

----------------------------------------------------------------------------
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Three-months ended Nine-months ended
January 31, January 31,
Consolidated Statement of
Earnings Data 2008 2007 2008 2007
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Sales $ 64,389 $ 50,828 $ 209,606 $ 142,118
Cost of goods sold 26,680 19,706 86,046 55,490
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Gross margin $ 37,709 $ 31,122 $ 123,560 $ 86,628
Gross margin % 58.6% 61.2% 58.9% 61.0%
Expenses
Selling and administrative 6,949 7,182 19,231 17,566
Research and development 4,570 3,841 12,860 10,329
Research and development tax
credits (2,221) (845) (4,627) (2,445)
Foreign exchange (gain) loss (1,153) (534) 1,913 (785)
Interest on long-term debt - - - 219
Stock-based compensation 672 188 1,623 565
Amortization of intangibles 183 183 549 549
Non-controlling interest 137 111 361 74
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Total operating expenses $ 9,137 $ 10,126 $ 31,910 $ 26,072
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Earnings from operations 28,572 20,996 91,650 60,556
Other income (expenses) 766 235 1,761 341
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Earnings before income tax $ 29,338 $ 21,231 $ 93,411 $ 60,897
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Net earnings 21,445 14,821 66,198 42,272
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Net earnings per share:
Basic $ 0.30 $ 0.21 $ 0.92 $ 0.60
Fully-diluted $ 0.29 $ 0.20 $ 0.89 $ 0.58
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As at As at
Consolidated Balance Sheet Data January 31, 2008 April 30, 2007
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Cash and short-term investments $ 82,222 $ 34,544
Inventory $ 51,089 $ 43,084
Working capital $ 146,845 $ 89,991
Total assets $ 203,157 $ 143,996
Shareholder's equity $ 172,496 $ 112,444

Number of common shares outstanding:
Basic 72,431,806 72,217,806
Fully-diluted 76,618,806 75,510,806

Weighted average number of shares
outstanding:
Basic 72,300,916 71,305,725
Fully-diluted 74,730,570 73,202,106
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Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on March 6, 2008 at 5:00 p.m. (EST). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 416-849-6166 or Toll-Free (North America) 1-866-250-6267.

For those unable to listen to the live call, a rebroadcast will also be available until April 6, 2008. The rebroadcast can be accessed at 416-915-1035 or Toll-Free 1-866-245-6755. The pass code for the rebroadcast is 769533.

About Evertz

Evertz Technologies Limited (TSX:ET) designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television ("HDTV") broadcast environments and by telecommunications companies to roll-out IPTV. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.

Contact Information

  • Evertz Technologies Limited
    Anthony Gridley
    Vice-President Finance
    (905) 335-7580