BURLINGTON, ONTARIO — (Marketwired) — 12/03/13 — Evertz Technologies Limited (TSX: ET), a global leader in video network innovation, today reported its results for the Second Quarter ended October 31, 2013 of its fiscal 2014 year.
Revenue
For the quarter ended October 31, 2013, revenues were $81.2 million as compared to revenues of $83.2 million for the quarter ended October 31, 2012. For the quarter, revenues in the United States/Canada region were $38.1 million, compared to $46.7 million in the same quarter last year. The International region had revenues of $43.1 million, an increase of $6.7 million as compared to $36.4 million in the same quarter last year.
Gross Margin
For the quarter ended October 31, 2013 gross margin was $46.7 million compared to $48.9 million in the same quarter last year. Gross margin percentage was approximately 57.4% compared to 58.8% in the same quarter last year.
Earnings
For the quarter ended October 31, 2013 net earnings were $15.6 million as compared to $19.1 million in the corresponding period last year.
For the quarter ended October 31, 2013, earnings per share on a fully-diluted basis were $0.21 as compared to $0.26 in the same period in 2012.
Operating Expenses
For the quarter ended October 31, 2013 selling and administrative expenses were $13.7 million, an increase of $0.6 million or 4.4% compared to $13.1 million for the quarter ended October 31, 2012.
For the quarter ended October 31, 2013 gross research and development expenses increased by $2.0 million or 16.0% as compared to the corresponding period in 2012. Gross research and development expenses represented approximately 18.0% of revenue for the quarter ended October 31, 2013.
Liquidity and Capital Resources
The Company-s working capital as at October 31, 2013 was $360.3 million as compared to $352.2 million on April 30, 2013.
Cash and instruments held for trading were $208.2 million as at October 31, 2013 as compared to $220.7 million on April 30, 2013.
Cash provided by operations was $9.7 million for the quarter ended October 31, 2013 as compared to $46.5 million for the quarter ended October 31, 2012. Before taking into account taxes and the changes in non-cash working capital, the Company generated $19.4 million from operations for the quarter ended October 31, 2013 compared to $22.6 million for the same period last year.
The Company used $1.4 million in investing activities largely a result of purchases in capital assets during the quarter ended October 31, 2013, compared to $1.4 million in capital assets purchased for the quarter ended October 31, 2012.
For the quarter ended October 31, 2013, the Company used cash in financing activities of $11.8 million which was principally a result of the payment of dividends of $11.8 million offset by the issuance of capital stock of $0.2 million.
Shipments and Backlog
Purchase order backlog at the end of November 2013 was in excess of $43 million and shipments during the month of November 2013 were $28 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on December 3, 2013 of $0.16 per share.
The dividend is payable to shareholders of record on December 13, 2013 and will be paid on or about December 20, 2013.
Special Dividend
As previously announced, Evertz Board of Directors declared a special dividend of $1.40 per common share payable on December 11, 2013 to shareholders of record on December 4, 2013.
The special dividend reflects both the strong long-term operating performance of the company and its solid balance sheet, thereby enabling a distribution of cash over and above what is considered necessary to meet known commitments and maintain adequate reserves.
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 December 3, 2013 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 1-416-849-6166 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 January 3, 2014. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 912080.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. 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 and new-media companies. 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.
Contacts:
Evertz Technologies Limited
Anthony Gridley
Chief Financial Officer
(905) 335-7580
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