RoodMicrotec: Annual figures for 2014

Zwolle, 30 April 2015

2004 HIGHLIGHTS


Commercial/operational

  • Sales in 2014 of EUR 9.971 million fell by 11% compared to 2013 (EUR 11.180 million) due to longer lead times and postponement of some large orders. Decline mainly in Test, Test Engineering and Qualification & Reliability.
  • Lower sales and seizing new market opportunities have resulted in a net result of EUR 1.693 million negative in 2014 (2013: EUR 0.284 million negative).
  • Increased investments in the second half of 2014 in sales and marketing.
  • Setup of Automotive Competitive Centre and investments in automotive infrastructure as a result of new automotive projects and new prospects.
  • Investments in highly promising projects like 'light switches based on radiofrequency'.
  • Strategic partnership with Fraunhofer Institute IIS.
  • Further strengthening of SCM.
  • New test handling and programming equipment to handle new promising products of (new) customers.
  • Sharp increase of our quote portfolio and a continued positive book-to-bill ratio.
  • Significant headcount cost reduction program resulting in EUR 1.300 million within the next three years. This program is partly based on attrition, but also on forced layoffs.
  • The difference in personnel costs compared to 2013 was caused mainly by a non-recurring income in respect of the pension scheme.
  • Strategic adjustment in response to changing market conditions. Our new approach involves longer lead times.

Financials

  • EBITDA: EUR 0.722 million negative (2013: EUR 0.870 million positive).
  • EBIT (operating result) was EUR 1.514 million negative (2013: EUR 0.13 million negative).
  • Net result of EUR 1.693 million negative (2013: EUR 0.284 million negative). At year-end 2014 the company had approximately EUR 15 million in accumulated tax losses which can be offset against future tax profits for an indefinite period of time. In other words, the company's tax loss carry forward potential is around EUR 15 million. However, the company takes a conservative approach on this and only recognised EUR 1.6 million as deferred tax asset.
  • Net cash position improved from EUR 1.326 million negative in 2013 to EUR 0.192 million positive in 2014. The net cash from operating activities were EUR 0.262 million negative in 2014 compared to EUR 0.017 million positive in 2013.
  • The working capital position improved strongly from EUR 1.331 million negative in 2013 to EUR 0.125 million negative in 2014.
  • Decrease in solvency rate to 27% (2013: 39%) as a result of the net loss and the decrease of the pension discount rate from 3.6% to 2%. (This discount rate change in had a negative impact on the equity position of EUR 1.0 million).
  • Issue of EUR 2.500 million bond loan and repayment of bank loans. All short-term loans, except for the finance lease, were redeemed using the proceeds from the bond loan. This form of financing has greatly reduced RoodMicrotec's finance liabilities for the short term.


KEY FIGURES

31 December 2014          
(X EUR 1,000) IFRS IFRS IFRS IFRS IFRS
  2014 2013 2012 2011 2010
    restated restated    
Result          
      
Net sales9,97111,18011,97115,71715,563
Gross margin8,1849,0219,68812,34212,242
EBITDA-7228707031,8652,361
EBIT (operating result)-1,514-13-181709733
EBT-1,675-243-507408207
Cash flow (net result and depreciation)-9015996031,7442,076
Cash flow from operating activities-262178991,9391,689
Net result-1,693-284-281588448
      
      
Capital, debt & liquidity ratios          
Total assets 13,61713,94112,91512,85713,726
Group equity3,7065,396 5,4576,1395,647
Net debt2,1592,1133,2162,6863,334
Capital (net debt  + equity)5,8657,5098,6738,8248,981
Gearing ratio (net debt/ capital)37%28%37%30%37%
Solvency (group equity / total liabilities)27%39%42%48%41%
Debt ratio (net debt / EBITDA)-2.992.434.571.441.41
Net working capital-125-1.331-1.422-831-569
Working capital ratio0.950.680.630.790.87
      
Assets          
Tangible fixed assets5,5675,4466,3475,7325,710
Investments in tangible fixed assets4995351,4751,024681
Depreciation of tangible fixed assets7928698601,1561,600
      
Data per share (x EUR 1)          
Capital and reserves0.090.140.150.170.16
Operating results-0.030.00-0.010.020.02
Cash flow-0.000.000.030.050.05
Net result-0.03-0.01-0.010.020.01
Share price: year-end0.250.160.150.160.17
Share price: highest0.350.180.230.310.19
Share price: lowest0.150.140.150.140.15
      
Issue of nominal shares          
At year-end (x 1,000)43,51938,67435,76935,76935,769
      
Number of FTEs (permanent)          
At year-end9496103106120
Average97 99103111124
      
Sales (total) / average FTEs (permanent)103113116142126




Audited financial statements 2014


On 12 March 2015 we published our preliminary financial figures. Following the completion of the audit, certain adjustments were made. The most important ones related to the financial assets, pension obligations and to the financial results, which we summarise below. The adjustments do not have a material effect on the operational cash flow.


The total assets were EUR 13.617 million, which is EUR 2.447 million higher than presented before. The increase is mainly due to the reclassification of financial assets of EUR 2.494 million, which were previously presented under pension liabilities and the cash position. These items also led to a restatement of the comparative figures as per 1 January 2013 and 31 December 2013. The financial assets comprise bonds of EUR 2.494 million, which are held for financing pension liabilities and have been placed under a Contractual Trust Agreement. However, these bonds were not transferred to the Trustee as per 31 December 2014 and therefore may not be netted against the pension liabilities. As at 20 April 2015, these bonds were definitively transferred to the Trustee. As a result, the corresponding financial assets therefore may be netted against the pension liabilities in 2015.


EBIT for 2014 was EUR 1.514 million negative, which is EUR 178 thousand lower than presented in the preliminary figures. This was due to additional audit and legal fees of approx. EUR 70 thousand and additional cost accruals in personnel and other expenses of approx. EUR 108 thousand. Taxes through the profit and loss statement for 2014 were EUR 18 thousand negative, compared to  EUR 144 thousand positive as we stated in the preliminary figures.  This resulted into a negative effect of the profit and loss statement of EUR 162 thousand. The comparable figures of the profit and loss statement have been restated due to an adjustment in the pension costs of EUR 95 thousand.


Reference is made to the deferred tax assets and the valuation of the financial assets as explained in the Annual Report in note 10 and note 11 as well as the audit opinion on these items on page 117/118 of our Annual Report.

Trading update first quarter 2015


As the first quarter has since closed we will issue our trading update now.


In line with expectations, the first quarter of 2015 showed an improvement in operations, resulting in a higher sales compared to last year and over budget. The increase was limited, but compared to recent years it is a positive trend break. RoodMicrotec's management considers this a clear positive signal. 


As published before, we have more than 20 new projects on hand, for which we have high expectations for the near future. Of this new business with a volume of EUR 5 to 10 million per year as of 2015, 80-90% will come on top of our current business. This supports our projection that we will be able to achieve significant growth up to and including 2018. We are already invoicing for the start-up or investing in the preparation of more than 50% of these new projects. We are realising this new business in our core segments Automotive (50%) and  Industrial/Medical (30%), but also in high-end consumer business (20%). Automotive and Industrial/Medical are among the fastest growing segments in the market. This supports our expectation that we will grow significantly over the next few years.


This volume of new business is unparalleled, which gives the management of RoodMicrotec confidence that we are on the right way for a full recovery.

Conference call Friday 1 May 2015, 10:00 am


A conference call will be held for press, analysts and other interested parties on 1 May. The telephone number to join the call is  

+ 31 20 531 5854

Information meeting 13 May 2015 at 4 pm, Euronext Amsterdam, Beursplein 5


Investors, bondholders, analysts, journalists and other interested parties are invited to join the investors meeting on 13 May at 4 pm, in which we will give information concerning the business and will present our new CTO Martin Sallenhag.

Annual General Meeting of Shareholders 11 June 2015 at 2 pm, Euronext Amsterdam, Beursplein 5


The Annual General Meeting of Shareholders will be held on Thursday 11 June 2015.

Financial agenda

13 May 2015Information meeting for investors, bondholders, analysts, journalists and other interested parties
11 June 2015Annual general meeting of shareholders
9 July 2015Publication sales figures first half 2015
27 August 2015Publication interim report 2015
27 August 2015Conference call for press and analysts
12 November 2015Publication trading update
7 January 2016Publication annual sales figures 2015
25 February 2016Publication annual figures 2015
25 February 2016Conference call for press and analysts
10 March 2016Publication annual report 2015
21 April 2016Annual general meeting of shareholders
12 May 2016Publication trading update
7 July 2016Publication sales figures first half 2016
25 August 2016Publication interim report 2016
25 August 2016Conference call for press and analysts
15 November 2016Publication trading update


Consolidated statement of profit or loss

 




(x EUR 1,000)
 




Notes
 




2014
2013


restated*
    
Net sales19,97111,180
Cost of sales2-1,787-2,159
Gross profit   8,184 9,021
    
Personnel expenses3-6,058-5,446
Other operating expenses4-2,848-2,705
Total operating expenses   -8,906 -8,151
       
EBITDA   -722 870
    
Depreciation and amortisation5-792-883
EBIT  -1,514 -13
    
Financial expenses6-161-230
Profit before tax  -1,675 -243
    
Taxation7-18-41
Net profit (loss)  -1,693 -284
   

Net profit attributable to:

Owners of the company -1,693-284
Non-controlling interests  
Net profit (loss)  -1,693 -284

Earnings per share

Basic16-0.04-0.01
Diluted16-0.04-0.01

* Certain amounts shown here do not correspond to the 2013 financial statements and reflect adjustments made, referring to prior period adjustments


Consolidated statement of financial position

 




(x EUR 1,000)
 




Notes
31-12-2014 31-12-2013


restated*
01-01-2013


restated*
     
Assets    
     
Property, plant and equipment85,5675,4466,347
Intangible assets91,7411,7411,755
Deferred taxes101,079910951
Financial assets112,9822,9911,449
Non-current assets   11,369 11,088 10,502
     
Inventories12344283305
Trade and other receivables131,7122,3592,089
Cash and cash equivalents1419221119
Current assets  2,248 2,853 2,413
        
Total assets  13,617 13,941 12,915
     
 




Equity and liabilities
    
     
Share capital 4,7884,2553,935
Share premium 18,08417,85117,751
Revaluation reserve 1,8591,6681,890
Net benefit reserve -1,834-880-975
Retained earnings -21,245-19,992-19,638
Mezzanine capital 2,4942,4942,494
Mezzanine capital loss participation -440
Equity attributable to shareholders15 3,706 5,396 5,457
     
Loans and borrowings182,3062791,399
Retirement benefit obligation195,2324,0822,224
Non-current liabilities  7,538 4,361 3,623
     
Bank overdraft141,5371,381
Loans and borrowings1845508455
Trade and other payables202,2702,0811,977
Current tax liabilities18585822
Current liabilities  2,373 4,184 3,835
        
Total equity and liabilities  13,617 13,941 12,915

* Certain amounts shown here do not correspond to the 2013 financial statements and reflect adjustments made, referring  to prior period adjustments


Consolidated cash flow statement

    
 




(x EUR 1,000)
 




Notes
 




2014
2013


restated*
    
EBITDA  -722870
Adjustments for:   
–  Movements in net defined benefit obligations -103-535
–  Share-based payments175920
–  Accrued interest6-9
Changes in working capital   
–  Inventories12-6122
–  Trade and other receivables13647-270
–  Trade and other accrued liabilities18,2079140
Cash generated from operating activities   -101 238
Interest paid6-161-221
Net cash from operating activities   -262 17
    
Cash flows from investing activities   
Acquisition of property, plant and equipment8-499-535
Disposal of property, plant and equipment8567
Di-/investments in defined benefit plan192,487
Net investments in financial assets119-1,542
Net cash from investing activities   -490 977
    
Cash flows from financing activities   
Proceeds from issue of share capital15707400
Payment of compensation mezzanine capital15-292
Proceeds from issuance of mezzanine capital 
Proceeds from borrowings 2,55050
Repayment of borrowings -903-1,116
Payment of bond issuance costs18-100
Amortization of discount and bond issuance costs1816
Net cash flow from financing activities   2,270 -958
    
Net cash flow   1,518 36
    
Cash -/- bank overdrafts at 1 January14-1,326-1,362
Cash -/- bank overdrafts at 31 December14192-1,326
Net cash flow  1,518 36

* Certain amounts shown here do not correspond to the 2013 financial statements and reflect adjustments made, referring to prior period adjustments

About RoodMicrotec


With 45 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers fabless companies, OEMs and other companies a one-stop shopping proposition. With its
powerful solutions
RoodMicrotec has built up a strong position in Europe.

Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.

'Certified by RoodMicrotec'
concerns inter alia testing of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.

The value-added services comprise inter alia (eXtended) supply chain management, failure & technology analysis, qualification & burn-in, test- & product engineering, production test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting and total manufacturing solutions with partners.

RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), the UK (Bath) and the Netherlands (Zwolle).

Further information:


Philip Nijenhuis, CEO


Telephone:        +31 (0)38 4215216


Email:             
investor-relations@roodmicrotec.com


Website:          
www.roodmicrotec.com



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Source: RoodMicrotec N.V. via GlobeNewswire

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