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Press release from Marketwire

Evertz Technologies Third Quarter Fiscal 2013 Earnings Per Share Up 6%

Tuesday, March 05, 2013

Evertz Technologies Third Quarter Fiscal 2013 Earnings Per Share Up 6%15:17 EST Tuesday, March 05, 2013BURLINGTON, ONTARIO--(Marketwire - March 5, 2013) -Attention Business/Financial Editors: Evertz Technologies Limited (TSX:ET), a global leader in video infrastructure solutions for production, playout and delivery systems for television broadcasters, telecom and multi-system operators, today reported its results for the third quarter of its fiscal 2013 year. Quarterly Highlights Revenue of $71.8 million, including an increase of 6% in the US/Canada region Fully diluted earnings per share of $0.18, an increase of 6% as compared to $0.17 a year ago Accretive investment of over $5 million in a complimentary communications solutions company Continued growth in R&D with a gross investment increase of 18% compared to a year ago Cash and instruments held for trading increased to over $224 million Selected Financial InformationConsolidated Statement of Earnings Data(in thousands of dollars, except per share amounts)Q3 '13Q3 '12Revenue$71,771$71,445Gross margin40,27240,162Earnings from operations17,10817,357Net earnings13,17912,745Fully-diluted earnings per share$0.18$0.17Selected Financial InformationConsolidated Balance Sheet Data (in thousands of dollars)Q3 '13YE '12Cash and instruments held for trading$224,315$185,669Working capital355,652325,677Total assets462,801431,864Shareholders' equity409,690378,417 Revenue For the quarter ended January 31, 2013, revenues were $71.8 million as compared to revenues of $71.4 million for the quarter ended January 31, 2012. For the quarter, revenues in the United States/Canada region were $33.8 million, an increase of $1.8 million or 6% when compared to the same quarter last year. The International region had revenues of $38.0 million, as compared to $39.5 million in the same quarter last year. Gross Margin For the quarter ended January 31, 2013 gross margin was $40.3 million compared to $40.2 million in the same quarter last year. Gross margin percentage was approximately 56% and consistent with the quarter ended January 31, 2012. Earnings For the quarter ended January 31, 2013 net earnings were $13.2 million as compared to $12.7 million in the corresponding period last year.For the quarter ended January 31, 2013, earnings per share on a fully-diluted basis were $0.18 as compared to $0.17 in the same period in 2012. Operating Expenses For the quarter ended January 31, 2013 selling and administrative expenses were $13.7 million compared to $12.7 million for the quarter ended January 31, 2012. Selling and administrative expenses represented approximately 19% of revenue in the quarter compared to 18% for the same period last year.For the quarter ended January 31, 2013 gross research and development expenses increased by $2.0 million or 18% as compared to the corresponding period in 2012. Gross research and development expenses represented approximately 18% of revenue for the quarter ended January 31, 2013. Liquidity and Capital Resources The Company's working capital as at January 31, 2013 was $355.7 million as compared to $325.7 million on April 30, 2012.Cash and instruments held for trading were $224.3 million as at January 31, 2013 as compared to $185.7 million on April 30, 2012.Cash provided by operations was $22.0 million for the quarter ended January 31, 2013 as compared to $23.8 million for the quarter ended January 31, 2012. Before taking into account the changes in non-cash working capital, the Company generated $16.7 million from operations for the quarter ended January 31, 2013 compared to $16.7 million for the same period last year.The Company invested $6.2 million in a technology based company and on the purchase of capital assets for the quarter ended January 31, 2013, compared to $10.9 million in capital assets purchased for the quarter ended January 31, 2012.For the quarter ended January 31, 2013, the Company used cash from financing activities of $6.3 million which was principally a result of the payment of dividends of $10.2 million offset by the issuance of capital stock of $4.5 million. Shipments and Backlog Purchase order backlog at the end of February 2013 was in excess of $45 million and shipments during the month of February 2013 exceeded $15 million. Dividend Declared On March 5, 2013, the Evertz Board of Directors approved a 14% increase of the dividend to $0.16 per share from $0.14 per share. This is the 6th dividend increase in the past six years, reflecting the underlying strength of the Company's cash flow and business outlook.The dividend is payable to shareholders of record on March 15, 2013 and will be paid on or about March 22, 2013.Selected Consolidated Financial Information(Unaudited)(in thousands of dollars, except earnings per share and share data)Three month period ended January 31,Nine month period ended January 31,2013201220132012Revenue$71,771$71,445$250,890$217,060Cost of goods sold31,49931,283106,10393,675Gross margin40,27240,162144,787123,385ExpensesSelling and administrative13,65912,67739,11834,798General1,3931,5804,2904,678Research and development13,09811,05837,50231,418Investment tax credits(3,519)(2,574)(9,569)(7,310)Foreign exchange (gain) loss(1,467)64(2,790)(3,001)23,16422,80568,55160,583Earnings before undernoted17,10817,35776,23662,802Finance income6995511,5761,427Finance costs(103)(45)(269)(142)Other income and expenses276(332)272(557)Earnings before income taxes17,98017,53177,81563,530Provision for (recovery of) income taxesCurrent3,9684,32319,28017,804Deferred8334631,505(740)4,8014,78620,78517,064Net earnings for the period$13,179$12,745$57,030$46,466Net earnings attributable to non-controlling interest195108550306Net earnings attributable to shareholders12,98412,63756,48046,160Net earnings for the period$13,179$12,745$57,030$46,466Earnings per shareBasic$0.18$0.17$0.77$0.63Diluted$0.18$0.17$0.77$0.62Consolidated Balance Sheet DataAs at January 31, 2013As at April 30, 2012Cash and instruments held for trading$224,315$185,669Inventory$114,937$109,211Working capital$355,652$325,677Total assets$462,801$431,864Shareholders' equity$409,690$378,417Number of common shares outstanding:Basic73,574,76673,225,786Fully -diluted78,239,96677,904,086Weighted average number of shares outstanding:Basic73,190,05773,612,759Fully -diluted73,707,80573,812,767Forward-Looking StatementsThe 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 CallThe Company will hold a conference call with financial analysts to discuss the results on March 5, 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 April 4, 2013. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 820034.About EvertzEvertz 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.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Evertz Technologies LimitedAnthony GridleyChief Financial Officer(905) 335-7580ir@evertz.com