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Evertz Technologies reports Record Quarterly Revenue of $135.3 million in the Third Quarter ended January 31, 2024

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Evertz Technologies Limited (ET) reported impressive third-quarter results for 2024, with record quarterly revenue of $135.3 million, marking a 22% increase from the previous year. International revenue saw a significant 38% rise to $54.8 million, while US/Canada revenue increased by 13% to $80.5 million. Earnings from operations before foreign exchange surged by 48% to $29.2 million, with net earnings reaching $19.0 million. The company's fully diluted earnings per share stood at $0.24 for the quarter. Evertz also declared a quarterly dividend of $0.195 per share.
Positive
  • Record quarterly revenue of $135.3 million, up by 22% from the prior year
  • International revenue increased by 38% to $54.8 million
  • US/Canada revenue grew by 13% to $80.5 million
  • Earnings from operations before foreign exchange rose by 48% to $29.2 million
  • Net earnings reached $19.0 million for the quarter
  • Fully diluted earnings per share stood at $0.24
  • Declared a quarterly dividend of $0.195 per share
Negative
  • None.

Burlington, Ontario--(Newsfile Corp. - March 14, 2024) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the third quarter ended January 31, 2024.

Third Quarter 2024 Highlights

  • Record Quarterly revenue of $135.3 million, an increase of 22% or $24.4 million from the prior year
  • International quarterly revenue of $54.8 million, an increase of 38% from the prior year
  • US/Canada quarterly revenue of $80.5 million, an increase of 13% from the prior year
  • Earnings from operations before foreign exchange of $29.2 million for the quarter, an increase of 48% from the prior year
  • Net earnings of $19.0 million for the quarter
  • Fully diluted earnings per share of $0.24 for the quarter

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)

 Q3 ' 24  Q3 ' 23
Revenue $135,278 $110,873
Gross margin 79,733 65,611
Earnings from operations 26,398 17,465
Earnings from operations before FX 29,238 19,790
Net earnings 19,024 12,097
Fully-diluted earnings per share $0.24 $0.16
Fully-diluted shares 76,878,395 76,305,533

 

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)

 Q3 ' 24  YE '23
Cash and cash equivalents 69,712 $12,468
Working capital 199,581 171,428
Total assets 472,769 436,652
Shareholders' equity 260,158 243,099

 

Revenue

For the quarter ended January 31, 2024, revenues were $135.3 million compared to revenues of $110.9 million for the quarter ended January 31, 2023. For the quarter, revenues in the United States/Canada region were $80.5 million compared to $71.2 million in the same quarter last year. The International region had revenues of $54.8 million compared to $39.6 million in the same quarter last year.

Gross Margin

For the quarter ended January 31, 2024, gross margin was $79.7 million as compared to $65.6 million in the same quarter last year. Gross margin percentage was approximately 58.9% as compared to 59.2% in the quarter ended January 31, 2023.

Earnings

For the quarter ended January 31, 2024, net earnings were $19.0 million as compared to $12.1 million in the corresponding period last year.

For the quarter ended January 31, 2024, earnings per share on a fully-diluted basis were $0.24 as compared to $0.16 in the corresponding period last year.

Operating Expenses

For the quarter ended January 31, 2024, selling and administrative expenses were $18.3 million as compared to $16.3 million for the quarter ended January 31, 2023.

For the quarter ended January 31, 2024, gross research and development expenses were $34.0 million as compared to $30.2 million for the quarter ended January 31, 2023.

Liquidity and Capital Resources

The Company's working capital as at January 31, 2024 was $199.6 million as compared to $171.4 million on April 30, 2023.

Cash and cash equivalent $69.7 million as at January 31, 2024 as compared to $12.5 million in cash on April 30, 2023.

Cash generated from operations was $30.2 million for the quarter ended January 31, 2024 as compared to $16.2 million cash generated for the quarter ended January 31, 2023. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $25.0 million from operations for the quarter ended January 31, 2024 compared to $19.6 million for the same period last year.

For the quarter, the Company used $0.6 million for investing activities.

For the quarter ended, the Company used cash in financing activities of $16.1 million which was principally a result of the payment of dividends of $14.8 million.

Shipments and Backlog

At the end of February 2024, purchase order backlog was in excess of $292 million and shipments during the month of February 2024 were $40 million.

Dividend Declared

Evertz Board of Directors declared a regular quarterly dividend on March 14, 2024 of $0.195 per share.

The dividend is payable to shareholders of record on March 21, 2024 and will be paid on or about March 29, 2024.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

 

Three month period ended Nine month period ended
  January 31, January 31,
  2024 2023 2024 2023
Revenue $135,278 $110,873 $391,846 $325,659
Cost of goods sold  55,545  45,262   162,058   134,047 
Gross margin   79,733  65,611  229,788  191,612
Expenses        
  Selling and administrative 18,262 16,342 52,160 43,997
  General 1,056 1,157 3,388 3,381
  Research and development 33,967 30,225 98,124 87,260
  Investment tax credits (3,987) (3,550) (10,594) (9,912)
  Share based compensation 1,197 1,647 3,876 3,439
  Foreign exchange gain 2,840 2,325 1,979 (1,714)
  53,335 48,146 148,933 126,451
Earnings before undernoted 26,398 17,465 80,855 65,161
         
Finance income (costs) 90 (686) 42 (1,143)
Net loss on investments through profit and loss - (675) (2,704) (2,087)
Other (expenses) income (526) 118 (404) (42)
Earnings before income taxes 25,962 16,222 77,789 61,889
Provision for (recovery of) income taxes        
  Current 6,045 3,376 20,481 16,545   
  Deferred   893   749   141  (660
  6,938 4,125 20,622 15,885
Net earnings for the period $19,024 $12,097 $57,167 $46,004
Net earnings attributable to non-controlling interest 302 146 760 395
Net earnings attributable to shareholders 18,722 11,951 56,407 45,609
Net earnings for the period $19,024 $12,097 $57,167 $46,004
Earnings per share        
Basic $0.25 $0.16 $0.74 $0.60
Diluted $0.24 $0.16 $0.73 $0.60

 

Consolidated Balance Sheet Data As at As at
  January 31, 2024 April 30, 2023
Cash and cash equivalents $69,712 $12,468
Inventory $207,046 $202,479
Working capital $199,581 $171,428
Total assets $472,769 $436,652
Shareholders' equity $260,158 $243,098
     
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FAQ

What was Evertz Technologies Limited's (ET) record quarterly revenue for the third quarter of 2024?

Evertz Technologies Limited reported record quarterly revenue of $135.3 million for the third quarter of 2024.

How much did the international revenue increase by in the third quarter of 2024?

International revenue for Evertz Technologies Limited increased by 38% to $54.8 million in the third quarter of 2024.

What was the percentage increase in US/Canada revenue for Evertz Technologies Limited in the third quarter of 2024?

US/Canada revenue for Evertz Technologies Limited grew by 13% to $80.5 million in the third quarter of 2024.

What was the percentage increase in earnings from operations before foreign exchange for Evertz Technologies Limited in the third quarter of 2024?

Earnings from operations before foreign exchange rose by 48% to $29.2 million for Evertz Technologies Limited in the third quarter of 2024.

What were the net earnings for Evertz Technologies Limited in the third quarter of 2024?

Evertz Technologies Limited reported net earnings of $19.0 million in the third quarter of 2024.

What was the fully diluted earnings per share for Evertz Technologies Limited in the third quarter of 2024?

Evertz Technologies Limited's fully diluted earnings per share stood at $0.24 in the third quarter of 2024.

Did Evertz Technologies Limited declare any dividends in the third quarter of 2024?

Yes, Evertz Technologies Limited declared a quarterly dividend of $0.195 per share in the third quarter of 2024.

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