Evertz Technologies Limited
TSX : ET

Evertz Technologies Limited

September 14, 2007 17:09 ET

Evertz Technologies Reports Year End Results

BURLINGTON, ONTARIO--(Marketwire - Sept. 14, 2007) -

Attention Business/Financial Editors:

Evertz Technologies Limited (TSX:ET), a leading equipment provider to the television broadcast industry, today reported results for the first quarter, ended July 31, 2007, of its fiscal 2008 year.

Quarterly Highlights

- Sales were $70.8 million, 59% higher year-over-year for the quarter

- Gross investment in R&D increased by $1.1 million to $4.1 million, 34% year-over-year for the quarter

- Net earnings were $22.6 million in the first quarter as compared to $13.2 million a year ago, an increase of 71%

- Fully-diluted earnings per share were $0.30 for the first quarter ended July 31, 2007 as compared to $0.19 a year ago




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

Q1'08 Q1'07
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Sales $ 70,780 $ 44,595
Gross Margin 42,104 27,105
Earnings from operations 32,028 19,623
Net Income 22,587 13,247
Fully-diluted earnings per share 0.30 0.19

Selected Financial Information
Consolidated Balance Sheet Data as at Year End

Q1'08 YE'07
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Cash and Short-Term Investments $ 41,498 $ 34,544
Working Capital 112,586 89,991
Total Assets 164,715 143,996
Shareholder's Equity 135,387 112,444


For the quarter ended July 31, 2007, sales were $70.8 million, an increase of $26.2 million or 59% as compared to sales of $44.6 million for the quarter ended July 31, 2006. For the quarter the Canada/US region grew by $17.4 million or 55% when compared to the same quarter last year. The International region grew by $8.8 million or 68% when compared to the same quarter last year.

For the quarter ended July 31, 2007 gross margin was $42.1 million compared to $27.1 million when compared to the same quarter last year. Gross margin percentage was approximately 60% as compared to 61% for the quarter ended July 31, 2006.

For the quarter ended July 31, 2007 net earnings were $22.6 million as compared to $13.2 million in the corresponding period last year, an increase of 71%.

For the quarter ended July 31, 2007 Earnings per share on a fully-diluted basis were $0.30 as compared to $0.19 in the same period in 2006.

For the quarter ended July 31, 2007 selling and administrative expenses increased by $1.5 million as compared to the prior year. Selling and Administrative expenses represented approximately 9% of sales in the quarter ended July 31, 2007.

For the quarter ended July 31, 2007 research and development expenses increased by 34% to $4.1 million as compared to the corresponding period during fiscal 2007.

The Company's working capital as at July 31, 2007 was $112.6 million as compared to $90.0 million on April 30, 2007.

Cash and Short-Term Investments were $41.5 million as at July 31, 2007 as compared to cash and short-term investments of $34.5 million as at April 30, 2007.

Cash provided by operations was $8.9 million for the quarter ended July 31, 2007 as compared to cash used by operations of $5.3 million in the quarter ended July 31, 2006. Before taking into account changes in non-cash working capital, the Company generated $23.9 million from operations for the quarter ended July 31, 2007 as compared to $13.2 million for the same period last year.

Cash used in investing activities was $10.5 million for the quarter ended July 31, 2007 as a result of the net acquisition of $8.6 million in short term investments, and $1.9 million in capital assets.

Purchase order backlog at the end of August 2007 was in excess of $27 million and shipments during the month of August 2007 exceeded $26 million.

Evertz Technologies Limited declares first dividend:

Evertz Technologies Limited is pleased to report that its Board of Directors declared a dividend on September 14, 2007 of $0.05 per share. The dividend is payable to shareholders of record on October 15, 2007 and will be paid on or about October 25, 2007.

Evertz' Board has adopted a policy of paying quarterly dividends going forward subject to the Company's results of operations, capital requirements and its business environment. This is the first dividend since the company was listed on the Toronto Stock Exchange in June 2006.



Selected Consolidated Financial Information

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Quarter Ended
Consolidated Statement of Earnings Data July 31,
2007 2006
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Sales $ 70,780 $ 44,595
Cost of goods sold 28,676 17,490
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Gross margin $ 42,104 $ 27,105
Gross margin % 59.5% 60.8%
Expenses
Selling and administrative 6,259 4,804
Research and development 4,121 3,065
Research and development tax credits (1,320) (800)
Foreign exchange (gain) loss 275 (51)
Amortization of intangibles 183 183
Stock-based compensation 460 189
Interest on long-term debt - 92
Non-controlling interest 98 --
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Total operating expenses $ 10,076 $ 7,482
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Earnings from operations $ 32,028 $ 19,623
Other income (expenses) 413 (102)
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Earnings before income tax $ 32,441 $ 19,521
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Net earnings $ 22,587 $ 13,247
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Net earnings per share:
Basic $ 0.31 $ 0.19
Fully-diluted $ 0.30 $ 0.19
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Consolidated Balance Sheet Data
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July 31, As at April
2007 30,2006
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Cash and short-term investments $ 41,498 $ 34,544
Inventory $ 45,442 $ 43,084
Working capital $ 112,586 $ 89,991
Total assets $ 164,715 $ 143,996
Shareholder's equity $ 135,387 $ 112,444

Number of common shares outstanding:
Basic 72,217,806 72,217,806
Fully-diluted 75,898,306 75,510,806

Weighted average number of shares outstanding:
Basic 72,217,806 71,305,725
Fully-diluted 74,420,336 73,202,106
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(in '000 except earnings per share and share data)


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 September 14, 2007 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 October 14, 2007. The rebroadcast can be accessed at 416-915-1035 or Toll-Free 1-866-245-6755. The pass code for the rebroadcast is 416301.

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
    V.P. Finance
    (905) 335-7580
    Email: ir@evertz.com