Informazione Regolamentata n.0915-28-2019 Data/Ora Ricezione 11 Settembre 201919:29:44 MTA - Star
Informazione Regolamentata n. 0000-00-0000 | Data/Ora Ricezione 11 Settembre 2019 19:29:44 | MTA - Star |
Societa' : XXXXX XXXXX
Identificativo Informazione Regolamentata
: 122460
Nome utilizzatore : LANDIN03 - Cilloni Tipologia : 1.2
Data/Ora Ricezione : 11 Settembre 2019 19:29:44
Data/Ora Inizio Diffusione presunta
: 11 Settembre 2019 19:29:45
Oggetto : PR Half Year 2019 Financial Results
Testo del comunicato
Vedi allegato.
Xxxxx Xxxxx: Board of Directors approves H1 2019 results
- The Group confirmed a positive net result, further strengthening its positioning in the OEM channel
- New credit facilities by leading Italian banks:
Previous financial debt repaid in full
New investments in R&D activities
Consolidated revenues amounted to €102 million, increasing (+4.9%) compared to €97.3 million at June 30, 2018.
EBITDA at €13.3 million (13% of revenues), up 4.6% compared to the same period of the previous year (€12.7 million)
Adjusted EBITDA at €13.6 million, in line with the figure at June 30, 2018 (€14.1 million)
Net result at €2.9 million, sharply improving compared to €1.7 million at June 30, 2018
Net Financial Debt at €60.7 million (at €53.7 million before the application of IFRS 16), essentially in line with the figure at December 31, 2018 before the application of IFRS 16 (€52.9 million)
Xxxxxxxx (RE), September 11, 2019
The Board of Directors of Xxxxx Xxxxx, chaired by Xxxxxxx Xxxxx, met today and approved the First Half Financial Report at June 30, 2019. The H1 2019 results were positive both in terms of revenues and net result, in line with management’s forecasts and the 2018-2022 Strategic Plan. The Group kept adequate levels of profitability consistent with the budget, despite a higher ratio to revenues of sales within the OEM channel, whose margins are generally lower than those generated on the After Market channel. The Group continued to report a positive net result (€2,886 thousand), further improving on H1 2018 (€1,692 thousand). Xxxxx Xxxxx, which aims at keeping a central role in the mobility of the future, also forged ahead its R&D activities regarding several projects started in 2018, in addition to launch new initiatives with international partners.
“In the first half of 2019, the market further confirmed our strong positioning within the automotive sector, and in the OEM channel in particular, as well as in the After Market channel. We are increasingly recognised by our international customers as an efficient, reliable strategic supplier/partner which offers high quality and innovative components and systems,” commented Xxxxxxx Xxxxx, Chairman of Xxxxx Xxxxx X.x.X.
Xxxxxxxxx Xxxx, Chief Executive Officer of Xxxxx Xxxxx X.x.X., stated: “At a time of what I would call a transition for the automotive sector, we ended the first half of the year with a net profit of nearly twice that of 2018, and sound prospects for the second half of the year and future years. The strong results achieved in the first half of this year build further on the excellent work done over the past two years in implementing efficiency-enhancement and performance-improvement policies and programmes. We are also reaping the first fruits of our strategic repositioning on OEM and After Market clients at the global level. In addition, partly thanks also to the reinforcement of our existing R&D team of top-tier professionals, which was joined by experienced new members from the gas-mobility and hydrogen-based solutions sector, we completed the initial development of new components for the HD segment — both LNG and hydrogen — and are now poised to take up the role of system integrator on the HD segment. During this first half of the year, we also won new contracts and orders from leading international OEMs in the Passenger Car segment. We are also continuing the collaboration that began in the second quarter of 2019 with Hydrogenics, a leading global designer, manufacturer and installer of modules for hydrogen generation, fuel cells and energy storage, for the development of hydrogen-based fuel cell systems and
components. In addition, we are satisfied with the further improvement in performance achieved in the second quarter by our joint venture Safe&Cec, operating in the gas distribution sector, which was awarded new contracts at the global level in both the CNG and biomethane segments and which broke even in the second quarter. We are working on updating the Strategic Plan, which will be ready by the end of the year, in the light of the various strategic opportunities that have emerged and are taking shape.”
Consolidated Financial Highlights at June 30, 2019
In H1 2019, Xxxxx Xxxxx Group’s revenues amounted to €102,035 thousand, up 4.9% compared to the same period of the previous year (€97,296 thousand). This result was mainly driven by sales within the OEM channel (43.5% of total revenues compared to 38.9% at June 30, 2018), which grew by 17.3% owing chiefly to the order backlog of some European leading car manufacturers that have been partnering with Xxxxx Xxxxx for years and are focusing on LPG bifuel engines to broaden their “green” offering.
At June 30, 2019, revenues from sales on the After Market channel totaled €57,620 thousand, slightly decreasing compared to the same period of the previous year (€59,423 thousand), mainly due to the decline in the Rest of the World geographical area and the instability currently experienced by South America, which however started to show signs of recovery in the second quarter of 2019.
In H1 2019, 80.7% of revenues were generated abroad (48.7% in Europe and 32% outside Europe), in line with figures at June 30, 2018 (80.5%). This result further confirmed the strong international dimension of Xxxxx Xxxxx, which reinforced its competitive position worldwide.
In detail:
• Italy accounted for 19.3% of total revenues (19.5% in H1 2018), with a 4.1% increase in sales compared to the first half of 2018 that mainly reflected the good performance of the OEM channel;
• the rest of Europe accounted for 48.7% of total sales (42.1% in H1 2018), up by 21.4%, primarily due to the increased OEM channel sales to several leading car manufacturers which are focusing on LPG bifuel engines to broaden their “green” offering;
• America recorded sales of €13,440 thousand for the first six months of 2019, down by 10.8%, essentially attributable to the current difficult situation that hindered the Brazilian market, particularly in the first quarter of the year;
• the markets in Asia and the Rest of the World declined (-14.2% compared to H1 2018), as a result of the reduction of the positive effects generated by the gas mobility incentives granted by some countries as of the previous year.
In H1 2019, Adjusted EBITDA was positive at €13,612 thousand (13.3% of revenues), substantially in line with the same period of the previous year (€14,077 thousand).
EBITDA was positive at €13,272 thousand (+4.6% compared to the same period of the previous year), including €340 thousand non-recurring costs for strategic advisory.
EBIT for the reporting period was positive at €7,007 thousand (€7,460 thousand at June 30, 2018), after amortization, depreciation and impairment losses amounting to €6,265 thousand (€5,223 thousand at June 30, 2018). The increase in amortization, depreciation and impairment losses was mainly attributable to the application of IFRS 16 – Leases.
EBT was positive for €4,527 thousand, improving compared to H1 2018 (€3,426 thousand). Net result at June 30, 2019 amounted to €2,886 thousand, sharply increasing compared to the same period of 2018 (€1,692 thousand).
Net Financial Debt totaled €60,709 thousand, of which €6,980 thousand due to the application of IFRS 16 – Leases. In a like-for-like comparison that does not consider the effects arising from the application of this standard, Net Financial Debt at June 30, 2019 would have been €53,729 thousand, essentially in line with that at December 31, 2018 (€52,872 thousand), but sharply improving compared to the first quarter of 2019 (€59,697 thousand at March 31, 2019). This result is particularly positive in light of the Group’s significant investments in product development projects for the OEM channel (both LNG and CNG products).
Performance of the Gas Distribution and Compressed Natural Gas operating business
The Xxxxx Xxxxx Group operates directly in the automotive sector alone, whereas in the Gas Distribution and Compressed Natural Gas it operates indirectly through its joint venture SAFE&CEC S.r.l.
In 2017, the Gas Distribution and Compressed Natural Gas business was subject to a strategic business combination agreement with Clean Energy Fuels Corp aimed at creating the number-two Group in the sector worldwide by turnover. The business combination was implemented through the formation of a Newco, SAFE & CEC S.r.l., to which 100% of SAFE S.p.A. was then contributed by the Xxxxx Group and 100% of Clean Energy Compressor Ltd (currently denominated IMW Industries Ltd) by Clean Energy Fuels Corp. Due to the contractually established governance system — which reflects a joint control arrangement between the two shareholders — the Group’s equity interest has been classified as a joint venture for the purposes of international accounting standards (IFRS 11) and therefore has been consolidated using the equity method. In H1 2019, the results of the Gas Distribution and Compressed Natural Gas business improved compared to H1 2018, with consolidated net sales of €28,825 thousand (+9.5% compared to June 30, 2018), adjusted EBITDA at €1,985 thousand (€568 thousand at June 30, 2018) and a loss after taxes of €394 thousand (compared to a €2,558 thousand loss at June 30, 2018).
In addition, in April 2019 SAFE S.p.A. signed a contract with ENI S.p.A. to supply and maintain 20 gas- distribution systems for use in refuelling stations within the ENI network servicing both cars and heavy vehicles. Under this five-year partnership agreement, SAFE S.p.A. will be responsible for supplying and installing the assets (i.e., equipment including compressor, driver, dispenser, control and storage system) in the first three years, whereas in the subsequent two years it will be providing the relating maintenance services.
New credit facilities
In light of the ongoing and significant improvement of the Group’s economic and financial performance, as well as the favourable market conditions in terms of value of money, in H1 2019 the management undertook significant negotiations with leading financial institutions, aimed at obtaining a new credit facility to repay in full the Group’s existing debt arising from the Financial Optimization Agreement entered into in March 2017 and the “XXXXX XXXXX 6.10% 2015-2022” bond, ISIN code IT0005107237, in addition to be granted a simultaneous reduction in financial expenses.
On June 26, 2019, Xxxxx Xxxxx S.p.A., Xxxxxx Gas S.p.A. and SAFE S.p.A. (subsidiaries/associates still parties to the Optimization Agreement) formally terminated the Agreement with the financial institutions in question according to the following terms:
- voluntary early repayment of the debt arising from the Optimization Agreement;
- maintenance of outstanding revocable commercial and bank lines of credit and other guarantees from the lenders, including beyond the scope of the Optimization Agreement.
On June 26, 2019, Xxxxx Xxxxx S.p.A. and a pool of three leading banks (BPM, in the role of mandated lead arranger and bookrunner, Intesa Sanpaolo and UniCredit) entered into a five-year medium-to-long-term loan agreement for a total of €65 million, subject to more favourable economic conditions, which will permit a reduction of financial expenses from current levels, while also improving the Group's debt profile. The financial resources in question were used to repay in full the debt arising from the Optimization Agreement, on June 28, 2019, and the bond, on July 1, 2019, for a total of €55 million. The remainder of the new credit facility will be used to support current and future investments.
Significant events after the close of H1 2019
Between the end of the half-year and up to today’s date, it should be noted that on July 1, 2019 the Company paid the bondholders of the “XXXXX XXXXX 6.10% 2015-2022” bond, ISIN code IT0005107237, a total of €29,064 thousand, of which €28,286 thousand by way of early repayment in full and €778 thousand by way of interest accrued.
Business outlook
In light of the Group’s performance in H1 2019, the uncertainties of its reference market and its order backlog, the outlook for the Group’s business remains unchanged from the view released upon approval of the Financial Statements for the year ended December 31, 2018, i.e., revenues in the range of €185 to €190 million, and an adjusted EBITDA of approximately €27 million.
The joint venture’s revenues related to the Gas Distribution and Compressed Natural Gas business (consolidated using the equity method) are expected in the range of €65-€70 million, in increase compared to 2018, with an adjusted EBITDA of €6 to €7 million.
Conference call with the financial community – September 12, 2019
The results at June 30, 2019 will be presented by the top managers of the Group to the financial community during a conference call to be held on September 12, 2019, at 9:00 a.m. CET. Detailed instructions about how to connect to the call will be made available in the Investor Relations section of the Company’s website, xxx.xxxxxxxxxxxxxxx.xxx, by 8:00 a.m. CET on the day of the call.
Pursuant to Article 154-bis, paragraph 2, of Italian Legislative Decree No. 58 of February 24, 1998, the Officer in charge of preparing the Company’s financial statements, Xxxxx Xxxxxxx, declares that the accounting information contained in this press release corresponds to the documented results, books and accounting records.
This press release is also available on the corporate website xxx.xxxxxxxxxxxxxxx.xxx.
This press release is a translation. The Italian version prevails.
Xxxxx Xxxxx is the global leader in the LPG and Methane gas components and systems for the motor vehicles sector. The Company is based in Xxxxxxxx (Xxxxxx Xxxxxx) and has over 60 years’ experience in the sector, and is renowned for the extent of its international activities in over 50 countries, with export sales of about 80%. Xxxxx Xxxxx S.p.A. has been listed on the STAR segment of the MTA Market of Borsa Italiana since June 2007.
XXXXX XXXXX
Xxxxx Xxxxxxx
CFO and Investor Relator
Image Building - Media contacts
Xxxxxxxx Xxxxxxx, Xxxxxx Xxxxx, Xxxx Xxxxxxx Tel.: x00 00 00000000
e-mail: xxxxxxxxxx@xxxxxxxxxxxxx.xx
Xxxxx Xxxxx Group – Consolidate Financial Statements
(thousands of Euro) | ||
CONSOLIDATED INCOME STATEMENT | 30/06/2019 | 30/06/2018 |
Revenues from sales and services | 102,035 | 97,296 |
Other revenue and income | 229 | 163 |
Cost of raw materials, consumables and goods and change in inventories | -54,346 | -46,580 |
Costs for services and use of third party assets | -19,097 | -21,816 |
Personnel expenses | -14,237 | -14,981 |
Allocation, write-downs and other operating expenses | -1,312 | -1,399 |
Gross Operating Profit | 13,272 | 12,683 |
Amortization, depreciation and impairment | -6,265 | -5,223 |
Net Operating Profit | 7,007 | 7,460 |
Financial income | 49 | 77 |
Financial expenses | -2,373 | -1,924 |
Exchange gains (losses) | -253 | -1,035 |
Gains (losses) on equity investments valued using the equity method | 97 | -1,152 |
Profit (Loss) before tax | 4,527 | 3,426 |
Current and deferred taxes | -1,641 | -1,734 |
Net profit (loss) for the Group and minority interests, including: | 2,886 | 1,692 |
Minority interests | -53 | -93 |
Net profit (loss) for the Group | 2,939 | 1,785 |
Basic earnings (loss) per share (calculated on 112,500,000 shares) | 0.0000 | 0.0000 |
Diluted earnings (loss) per share | 0.0000 | 0.0000 |
(thousands of Euro) | ||
ASSETS | 30/06/2019 | 31/12/2018 |
Non-current assets | ||
Land, property, plant, machinery and equipment | 11,920 | 12,745 |
Development expenditure | 7,599 | 6,932 |
Goodwill | 30,094 | 30,094 |
Other intangible assets with finite useful lives | 13,386 | 14,039 |
Right-of-use assets | 7,029 | 0 |
Equity investments valued using the equity method | 23,011 | 22,292 |
Other non-current financial assets | 397 | 352 |
Other non-current assets | 3,991 | 3,991 |
Deferred tax assets | 9,907 | 10,538 |
Total non-current assets | 107,334 | 100,983 |
Current assets | ||
Trade receivables | 43,349 | 35,131 |
Inventories | 39,144 | 38,895 |
Other receivables and current assets | 8,228 | 8,016 |
Current financial assets | 2,760 | 0 |
Cash and cash equivalents | 51,348 | 15,075 |
Total current assets | 144,829 | 97,117 |
TOTAL ASSETS | 252,163 | 198,100 |
(thousands of Euro) | ||
SHAREHOLDERS' EQUITY AND LIABILITIES | 30/06/2019 | 31/12/2018 |
Shareholders’ Equity | ||
Share capital | 11,250 | 11,250 |
Other reserves | 49,268 | 43,931 |
Profit (loss) of the period | 2,939 | 4,671 |
Total Shareholders' Equity of the Group | 63,457 | 59,852 |
Minority interests | -328 | -276 |
TOTAL SHAREHOLDERS' EQUITY | 63,129 | 59,576 |
Non-current liabilities | ||
Non-current bank loans | 54,836 | 23,055 |
Other non-current financial liabilities | 0 | 24,427 |
Non-current liabilities for right-of-use | 4,991 | 0 |
Provisions for risks and charges | 5,000 | 5,443 |
Defined benefit plans for employees | 1,707 | 1,646 |
Deferred tax liabilities | 419 | 339 |
Total non-current liabilities | 66,953 | 54,910 |
Current liabilities | ||
Bank financing and short-term loans | 23,518 | 16,203 |
Other current financial liabilities | 29,483 | 4,262 |
Current liabilities for right-of-use | 1,989 | 0 |
Trade payables | 59,231 | 55,166 |
Tax liabilities | 2,471 | 2,385 |
Other current liabilities | 5,389 | 5,598 |
Total current liabilities | 122,081 | 83,614 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 252,163 | 198,100 |
(thousands of Euro) | ||
CONSOLIDATED CASH FLOWS STATEMENT | 30/06/2019 | 30/06/2018 |
Financial flows deriving from operating activities | ||
Pre-tax profit (loss) for the period | 4,527 | 3,426 |
Adjustments for: Depreciation of property, plant and equipment | 2,049 | 2,354 |
Amortisation of intangible assets | 2,974 | 2,869 |
Depreciation of right-of-use assets | 1,242 | 0 |
Loss (profit) from disposal of tangible and intangible assets | -28 | -37 |
impairment loss on receivables | 9 | 83 |
Net finance expenses | 2,577 | 2,882 |
Profit (loss) attributable to investments valued using equity method | -97 | 1,152 |
13,253 | 12,729 | |
Changes in: | ||
inventories | -249 | -2,441 |
trade receivables and other receivables | -8,561 | -7,130 |
trade payables and other paybles | 3,823 | 4,385 |
provisions and employee benefits | -427 | -3,854 |
Cash generated from operation | 7,839 | 3,689 |
Interest paid | -2,128 | -1,841 |
Interest received | 14 | 37 |
income taxes paid | -1,087 | -495 |
Net cash generated from operating activities | 4,638 | 1,390 |
Financial flow from investment | ||
Proceeds from sale of property, plant and equipment | 106 | 95 |
Purchase of property, plant and equipment | -1,281 | -1,386 |
Purchase of intangible assets | -341 | -100 |
Development expenditure | -2,641 | -1,143 |
Net cash absorbed by investment activities | -4,157 | -2,534 |
Free Cash Flow Financial flow from financing activities | 481 | -1,144 |
Disbursements (reimbursement) of loans to associates | -2,760 | 0 |
Disbursements (reimbursement) of medium/long-term loans | 35,815 | -1,028 |
Change in short-term bank debts | 3,895 | 8,673 |
Repayment of leases IFRS 16 | -1,248 | 0 |
Net cash generated (absorbed) by financing activities | 35,702 | 7,645 |
Net increase (decrease) in cash and cash equivalents | 36,183 | 6,501 |
Cash and cash equivalents as at 1 January | 15,075 | 17,779 |
Effect of exchange rate fluctuations on cash and cash equivalents | 90 | -1,092 |
Closing cash and cash equivalent | 51,348 | 23,188 |
Numero di Pagine: 9
Fine Comunicato n.0915-28