Evertz Technologies Limited
TSX : ET

Evertz Technologies Limited

March 10, 2009 16:13 ET

Evertz Technologies Reports Results for the Third Quarter Ended January 31, 2009

BURLINGTON, ONTARIO--(Marketwire - March 10, 2009) -

Attention Business/Financial Editors:

Evertz Technologies Limited (TSX:ET), a leading equipment provider to the television broadcast industry, today reported its results, ended
January 31, 2009, of its fiscal 2009 year.

Quarterly Highlights

- Sales were $79.6 million, a 24% increase year-over-year for the quarter

- Gross investment in R&D increased by $3.3 million to $7.9 million, 72% higher than the prior year

- Net earnings were $24.5 million for the quarter as compared to $21.4 million a year ago

- Fully-diluted earnings per share were $0.33 for the quarter as compared to $0.29 a year ago



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

Q3 '09 Q3 '08
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Sales $ 79,584 $ 64,389
Gross Margin 48,790 37,709
Earnings from operations 32,989 28,572
Net Income 24,496 21,445
Fully-diluted earnings per share $ 0.33 $ 0.29



Selected Financial Information
Consolidated Balance Sheet Data as at Year End
(in '000 except share data)

Q3 '09 YE '08
--------- ---------
Cash and Short-Term Investments $ 115,842 $ 95,543
Working Capital 211,719 164,147
Total Assets 279,872 220,579
Shareholder's Equity 252,323 188,220


Sales

For the quarter ended January 31, 2009, sales were $79.6 million, an increase of $15.2 million or 24% as compared to sales of $64.4 million for the quarter ended January 31, 2008. For the quarter the United States/Canada region increased by $10.5 million or 24.4% when compared to the same quarter last year. The International region grew by $4.7 million or 22% for the quarter ended January 31, 2009 when compared to the same quarter last year.

Gross Margin

For the quarter ended January 31, 2009 gross margin was $48.8 million compared to $37.7 million when compared to the same quarter last year. Gross margin percentage was approximately 61.3% as compared to 58.6% for the quarter ended January 31, 2008.

Earnings

For the quarter ended January 31, 2009 net earnings were $24.5 million as compared to $21.4 million in the corresponding period last year, an increase of 14%.

For the quarter ended January 31, 2009 Earnings per share on a fully-diluted basis were $0.33 as compared to $0.29 in the same period in 2008.

Operating Expenses

For the quarter ended January 31, 2009 selling and administrative expenses increased by $1.7 million as compared to the prior year. Selling and Administrative expenses represented approximately 10.9% of sales in the quarter ended January 31, 2009.

For the quarter ended January 31, 2009 research and development expenses rose by 72% to $7.9 million as compared to the corresponding period during fiscal 2008. Research and Development expenses represented approximately 9.9% of sales for the quarter.

Liquidity and Capital Resources

The Company's working capital as at January 31, 2009 was $211.7 million as compared to $164.1 million on April 30, 2008.

Cash and Short-Term Investments were $115.8 million as at January 31, 2009 as compared $95.5 million at April 30, 2008.

Cash provided by operations was $38.1 million for the quarter ended January 31, 2009 as compared to $23.3 million at January 31, 2008. Before taking into account the changes in non-cash working Capital, the Company generated $27.7 million from operations for the quarter ended January 31, 2009 compared to $24.0 million for the same period last year.

For the quarter ended January 31, 2009 the Company acquired capital assets of $7.2 million.

For the quarter ended January 31, 2009 cash used in financing activities was $3.8 million predominantly as a result of the payment of a dividend of $5.8 million offset by $2.0 million generated from the issuance of capital stock.

Shipments and Backlog

Purchase order backlog at the end of February 2009 was in excess of $32 million and shipments during the month of February 2009 exceeded $22 million.

Dividend Declared

Evertz Board of Directors declared a dividend on March 10, 2009 of $0.08 per share. The dividend is payable to shareholders of record on April 14, 2009 and will be paid on or about April 24, 2009.



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

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Consolidated Statement Three-month period ended Nine-month period ended
of Earnings Data January 31, January 31,
------------------------- ------------------------
2009 2008 2009 2008
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Sales $ 79,584 $ 64,389 $ 238,609 $ 209,606
Cost of goods sold 30,794 26,680 92,244 86,046
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Gross margin $ 48,790 $ 37,709 $ 146,365 $ 123,560
Gross margin % 61.3% 58.6% 61.3% 58.9%
Expenses
Selling and administrative 8,642 6,949 24,049 19,231
Research and development 7,858 4,570 21,720 12,860
Research and development
tax credits (1,602) (2,221) (4,639) (4,627)
Foreign exchange (gain)
loss (487) (1,153) (6,088) 1,913
Amortization of intangibles 401 183 1,131 549
Stock-based compensation 828 672 2,643 1,623
Non-controlling interest 161 137 405 361
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Total operating expenses $ 15,801 $ 9,137 $ 39,221 $ 31,910
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Earnings from operations $ 32,989 $ 28,572 $ 107,144 $ 91,650
Other income (expenses) 726 766 2,565 1,761
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Earnings before income taxes $ 33,715 $ 29,338 $ 109,709 $ 93,411
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Net earnings $ 24,496 $ 21,445 $ 79,954 $ 66,198
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Net earnings per share:
Basic $ 0.34 $ 0.30 $ 1.10 $ 0.92
Fully-diluted $ 0.33 $ 0.29 $ 1.07 $ 0.89
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----------------------------------------------------------------------------
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Consolidated Balance Sheet Data As at As at
January 31, 2009 April 30, 2008
----------------------------------------------------------------------------
Cash and short-term investments $ 115,842 $ 95,543
Inventory $ 73,581 $ 53,760
Working capital $ 211,719 $ 164,147
Total assets $ 279,872 $ 220,579
Shareholder's equity $ 252,323 $ 188,220

Number of common shares outstanding:
Basic 73,088,606 72,277,206
Fully-diluted 77,113,006 76,398,206

Weighted average number of shares
outstanding:
Basic 72,369,373 72,318,148
Fully-diluted 74,796,464 74,707,530
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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 10, 2009 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 10, 2009. The rebroadcast can be accessed at 416-915-1035 or Toll-Free 1-866-245-6755. The pass code for the rebroadcast is 487209.

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
    Chief Financial Officer
    (905) 335-7580
    Email: ir@evertz.com