Today Elmos Semiconductor AG announces the preliminary unaudited financials for the fourth quarter of 2016 and the financial year 2016.
“Elmos has met its targets for 2016. Especially the expected strong final quarter contributed to that. It was determined by the sound performance of the running business and by one-off effects. Asia also showed a disproportionate development with 17% growth compared to the previous year,” says Dr. Anton Mindl, CEO of Elmos Semiconductor AG. “Elmos is optimistic for the year 2017. Demand for new and established products is pleasant. In 2017 we will prepare for further growth in the upcoming years by expanding our sales and development resources both domestically and internationally.”
Financials Q4 2016 and FY 2016
In the fourth quarter of 2016 sales increased by 14.8% over the prior-year quarter of comparison to 63.5 million Euro (Q4 2015: 55.3 million Euro). The strong growth in sales was realized based on good customer demand and expected one-off effects. The gross profit amounted to 29.4 million Euro, equivalent to a gross margin of 46.4% (Q4 2015: 23.3 million Euro or 42.0%). The EBIT reached 11.2 million Euro or 17.7% of sales (Q4 2015: 7.0 million Euro or 12.6%). The high EBIT was supported significantly by the high level of sales. Consolidated net income was increased to 8.1 million Euro (Q4 2015: 4.4 million Euro). This equals basic earnings per share (EPS) of 0.41 Euro (Q4 2015: 0.22 Euro). Capital expenditures for intangible assets and property, plant and equipment came to 5.0 million Euro or 7.8% of sales in Q4 2016 (Q4 2015: 2.9 million Euro or 5.2%). The adjusted free cash flow* amounted to 8.4 million Euro as compared to 18.7 million Euro in Q4 2015, taking into consideration that the prior-year amount was positively affected by a decrease of account receivables in comparison to an increase in Q4 2016.
In financial year 2016 sales gained 4.1% to 228.6 million Euro (2015: 219.6 million Euro). Gross profit reached 96.8 million Euro or 42.3% of sales (2015: 91.6 million Euro or 41.7%). 23.1 million Euro in earnings before interest and taxes (EBIT) were generated (2015: 24.5 million Euro), equivalent to an EBIT margin of 10.1% (2015: 11.2%). Consolidated net income was down slightly from 16.2 million Euro to 15.9 million Euro resulting in an EPS of 0.80 Euro (2015: 0.82 Euro). Capital expenditures for intangible assets and property, plant and equipment of 24.5 million Euro or 10.7% remained at prior-year level (2015: 24.7 million Euro / 11.3%)**. As expected, a positive adjusted free cash flow* was generated, amounting to 9.1 million Euro for the 2016 financial year. Amongst others due to tax effects, this amount fell short of the prior-year amount of 29.7** million Euro.
Dividend proposal
Supervisory Board and Management Board intend to propose to the Annual General Meeting on May 11, 2017 in Dortmund a dividend increase to 0.35 Euro per share (prior year: 0.33 Euro per share). Elmos has defined a sustained positive performance of earnings and cash flows as a condition for the payment of a dividend.
Outlook 2017
For 2017 Elmos expects sales growth in the higher single digit percentage range compared to the previous year. Through the year 2017 the Company will keep strengthening product- and market-related areas in order to prepare for future growth. We anticipate a slightly better EBIT margin for 2017 compared to the previous year (2016: 10.1%). The capital expenditures ratio is scheduled to be less than 12% of sales. Moreover, Elmos will generate a positive adjusted free cash flow once again.
This forecast is based on an exchange rate of 1.10 USD/EUR.
Overview of financials
Overview of selected preliminary and unaudited financial figures according to IFRS (in million Euro or percent unless otherwise indicated):
2016 | 2015 | Diff. | Q4/16 | Q4/15 | Diff. | |
|---|---|---|---|---|---|---|
Sales | 228.6 | 219.6 | 4.1% | 63.5 | 55.3 | 14.8% |
Gross profit | 96.8 | 91.6 | 5.7% | 29.4 | 23.3 | 26.6% |
Gross margin in % | 42.3% | 41.7% |
| 46.4% | 42.0% |
|
Research and development | 36.0 | 37.1 | -3.0% | 9.1 | 9.0 | 1.2% |
Operating income | 22.0 | 18.1 | 21.6% | 10.9 | 5.6 | 95.0% |
EBIT | 23.1 | 24.5 | -5.7% | 11.2 | 7.0 | 60.7% |
EBIT margin in % | 10.1% | 11.2% |
| 17.7% | 12.6% |
|
Consolidated net income after non-controlling interests | 15.9 | 16.2 | -1.9% | 8.1 | 4.4 | 84.5% |
Basic earnings per share (Euro) | 0.80 | 0.82 | -2.5% | 0.41 | 0.22 | 83.1% |
Capital expenditures for intangible assets and property, plant and equipment | 24.5 | 24.7** | -0.8% | 5.0 | 2.9 | +73.7% |
Capex in % | 10.7% | 11.3%** |
| 7.8% | 5.2% |
|
Adjusted free cash flow* | 9.1 | 29.7** | -69.4% | 8.4 | 18.7 | -55.0% |
* Cash flow from operating activities less capital expenditures for/plus disposal of intangible assets and property, plant and equipment
** Adjusted for repurchase of land and building from prematurely terminated leases in the amount of approx. 14 million Euro
Webcast for analysts
Elmos will distribute a webcast for analysts and investors on February 15, 2017 at 11:30 a.m. (CET). The webcast presentation will later be downloadable from the website. Final financial figures and the complete Annual Report for the year 2016 will probably be released on March 15, 2017.
About Elmos
Elmos Semiconductor AG is a developer and manufacturer of system solutions on semiconductor basis. For more than 30 years, our chips have made vehicles as well as industrial and consumer goods more efficient in terms of energy consumption and performance.
Forward-looking statements
This report contains forward-looking statements that are based on assumptions and estimates made by the Elmos management. Even though we assume the underlying expectations of our statements to be realistic, we cannot guarantee these expectations will prove right. The assumptions may carry risks and uncertainties, and as a result actual events may differ materially from the forward-looking statements. Among the factors that could cause such differences are changes in general economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.