Evertz Technologies Reports First Quarter Results for the Quarter Ended July 31, 2023
- Revenue increases by 23.9% to $125.8 million. Earnings from operations increase by 16% to $22.3 million. Net earnings for the quarter are $15.9 million. Fully diluted earnings per share increase by 13.0% to $0.20. Cash and cash equivalents increase to $48.9 million. Purchase order backlog exceeds $343 million. Dividend of $0.19 per share declared.
- None.
Burlington, Ontario--(Newsfile Corp. - September 12, 2023) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the first quarter ended July 31, 2023.
First Quarter 2024 Highlights
- Revenue of
$125.8 million , an increase of23.9% from the prior year - Revenue in the United Sales region up
14% or$10.6 million from the prior year - International Revenue up
66% or$15.5 million from the prior year - Earnings from operations, before foreign exchange of
$24.4 million - Earnings from operations of
$22.3 million , an increase of16% from the prior year - Net earnings of
$15.9 million for the quarter - Fully diluted earnings per share of
$0.20 for the quarter, an increase of13.0% from the prior year
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q1'24 | Q1'23 | |||||
| Revenue | $ | 125,819 | $ | 101,538 | ||
| Gross margin | 72,036 | 58,524 | ||||
| Earnings from operations | 22,307 | 19,304 | ||||
| Earnings from operations before FX | 24,359 | 18,273 | ||||
| Net earnings | 15,892 | 13,930 | ||||
| Fully-diluted earnings per share | $ | 0.20 | $ | 0.18 | ||
| Fully-diluted shares | 76,529,150 | 76,408,281 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| Q1 ' 24 | YE ' 23 | |||||
| Cash and Cash Equivalents | $ | 48,934 | $ | 12,468 | ||
| Working capital | 173,419 | 171,428 | ||||
| Total assets | 471,966 | 436,652 | ||||
| Shareholders' equity | 244,567 | 243,098 |
Revenue
For the quarter ended July 31, 2023, revenues were
Gross Margin
For the quarter ended July 31, 2023, gross margin was
Earnings
For the quarter ended July 31, 2023, net earnings were
For the quarter ended July 31, 2023, earnings per share on a fully-diluted basis were
Operating Expenses
For the quarter ended July 31, 2023, selling and administrative expenses were
For the quarter ended July 31, 2023, gross research and development expenses were
Liquidity and Capital Resources
The Company's working capital as at July 31, 2023 was
Cash was
Cash generated from operations was
For the quarter, the Company used
For the quarter ended July 31, 2023, the Company used cash in financing activities of
Shipments and Backlog
At the end of August 2023, purchase order backlog was in excess of
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on September 12, 2023 of
The dividend is payable to shareholders of record on September 22, 2023 and will be paid on or about September 29, 2023.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three months ended July 31, 2023 | Three months ended July 31, 2022 | |||||||
| Revenue | $ | 125,819 | $ | 101,538 | ||||
| Cost of goods sold | 53,783 | 43,014 | ||||||
| Gross margin | 72,036 | 58,524 | ||||||
| Expenses | ||||||||
| Selling and administrative | 16,398 | 12,892 | ||||||
| General | 1,158 | 1,096 | ||||||
| Research and development | 31,990 | 28,333 | ||||||
| Investment tax credits | (3,395 | ) | (3,189 | ) | ||||
| Share based compensation | 1,525 | 1,119 | ||||||
| Foreign exchange loss (gain) | 2,053 | (1,031 | ) | |||||
| 49,729 | 39,220 | |||||||
| Earnings before undernoted | 22,307 | 19,304 | ||||||
| Finance income | 124 | 153 | ||||||
| Finance costs | (244 | ) | (318 | ) | ||||
| Net loss on investments through profit and loss | (212 | ) | (348 | ) | ||||
| Other income and expenses | (94 | ) | 128 | |||||
| Earnings before income taxes | 21,881 | 18,919 | ||||||
| Provision for (recovery of) income taxes | ||||||||
| Current | 7,761 | 6,639 | ||||||
| Deferred | (1,772 | ) | (1,650 | ) | ||||
| 5,989 | 4,989 | |||||||
| Net earnings for the period | $ | 15,892 | $ | 13,930 | | |||
| Net earnings attributable to non-controlling interest | $ | 299 | $ | 89 | | |||
| Net earnings attributable to shareholders | 15,593 | 13,841 | | |||||
| Net earnings for the period | $ | 15,892 | $ | 13,930 | ||||
| Earnings per share | ||||||||
| Basic | $ | 0.20 | $ | 0.18 | ||||
| Diluted | $ | 0.20 | $ | 0.18 | ||||
| Consolidated Balance Sheet Data | ||||||
| | As At July 31, 2023 | As At April 30, 2023 | ||||
| Cash and cash equivalents | $ | 48,934 | $ | 12,468 | ||
| Inventory | $ | 205,016 | $ | 202,479 | ||
| Working capital | $ | 173,419 | $ | 171,428 | ||
| Total assets | $ | 453,780 | $ | 436,652 | ||
| Shareholders' equity | $ | 244,567 | $ | 243,098 | ||
| Number of common shares outstanding: | ||||||
| Basic | 76,116,411 | 76,145,758 | ||||
| Fully-diluted | 82,350,161 | 82,446,008 | ||||
| Weighted average number of shares outstanding: | ||||||
| Basic | 76,128,001 | 76,200,248 | ||||
| Fully-diluted | | 76,529,150 | 76,232,462 | |||
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 12, 2023 at 5 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 416-764-8646 or toll-free (North America) 1-888-396-8049.
For those unable to listen to the live call, a rebroadcast will also be available until October 11, 2023. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-674-7070. The pass code for the rebroadcast is 374933.
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 and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud".
For further information, please contact:
Doug Moore
Chief Financial Officer
(905) 335-3700
ir@evertz.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/180414
