Strong performance in digital cinema and medical imaging puts Barco back on a path of profitable growth
Board of directors proposes a dividend of 1 euro per share
Kortrijk, Belgium, 9 February 2011 - Barco (Nyse/Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) today announced results for the six and twelve month periods ended 31 December, 2010.
Fiscal year 2010 financial highlights:
• Order intake for the full year increased 58.3% to 978.3 million euro, up 360.1 million euro from 618.2 million euro a year earlier.
• At 897.0 million euro sales were up 258.9 million euro or 40.6% from 638.1 million euro in 2009.
• Barco's order book at the end of 2010 stood at 426.9 million euro. At the end of December 2009 the order book was 331.4 million euro.
• Gross profits grew 71.1% to 287.5 million euro up from 168.0 million euro the previous year. Gross profit margin was 32.1%, against 26.3% in 2009.
• EBITDA was 98.8 million euro compared to 24.1 million euro in 2009.
• EBIT was 45.1 million euro versus minus 29.5 million euro in 2009. EBIT margin was 5.0% compared to minus 4.6% in 2009.
• Net income for 2010 was 43.6 million euro compared to minus 59.9 million euro the year before.
• Net earnings per share were 3.66 euro compared to minus 5.02 euro in 2009.
• Free cash flow at the end of 2010 was minus 7.0 million euro compared to 59.4 million euro the year before.
Commenting on the FY 2010 results Eric van Zele, President & CEO said: “The measures we took in 2009 to weather the crisis and to restore profitability have led to robust growth in 2010. Today the company can be proud of delivering on its promises for profitable growth in 2010. Digital cinema grew sales year-on-year by 154.8% to 255 million euro. In medical imaging sales grew by 59.1% to 180.7 million euro. With 61.7% avionics grew strongly also. The other divisions realized single digit growth rates in sales for the full year, but grew sales by double digits in the second half of the year. With 529 million euro shipped during the last six months of 2010, as much as 59% of the full year shipments were realized during the second semester, an increase of 44% versus semester one.”
Mr Van Zele also referred to the robust growth by 58.3% in order intake to 978.3 million euro, with all divisions contributing to this increase. He also stated that Barco's order book illustrated how the company dealt with the supply chain challenges caused by the strong demand for its products. Whereas the order book went up from 331.4 million euro end of 2009 to 513.3 million euro end June of 2010, higher shipments in 2H10 reduced the order book to 426.9 million by the end of 2010.
Whereas EBIT was at 3.0% in 1H10, it increased to 6.4% in 2H10, leading to a 5.0% EBIT margin for the full year.
Gross operating cash flow was healthy, fueled by robust top line growth and better margins. Mr Van Zele emphasized that the company's cash flow was solid and was used to invest in Barco's growth. Free cash flow over 2010 was nevertheless slightly negative (minus 7.0 million euro) largely due to some investments in 3D related technology licenses and higher working capital needs.
At the end of December 2010 the net financial cash position of the company remained positive at 8.9 million euro, compared to 23.5 million euro at the end of 2009.
In harmony with Barco's long standing dividend policy the board decided to recommend to the general assembly to pay a dividend of 1 euro per share over 2010.
In view of sustaining Barco's profitable growth in the years to come, management announced the implementation of the third step in a three year turnaround program in which some operating divisions are being regrouped and recombined to capture additional scale economies and to align organizational structure with strategy. This will be covered in detail during Barco's upcoming Analyst & Investor Day on 18 February 2011.
Mr Van Zele concluded: “We are pleased with the progress so far and are taking the next steps to strengthen Barco's leadership in the various segments of our business. We will do whatever it takes to realize further profitable growth in the years to come.”
CONSOLIDATED RESULTS FOR FISCAL YEAR 2010
Sales and order intake
Sales realized in 2010 were 897 million euro, a robust growth of 40.6% compared to the 638.1 million of 2009. Organic growth was 32.3%.
All divisions within the two business groups contributed to that growth with highest contributions from the digital cinema, medical imaging and avionics markets, respectively 154.8%, 59.1% and 61.4%. The other divisions realized single digit growth figures.
Sales to Europe, Middle East, Africa and Latin America (EMEALA) represented 42.7% of consolidated sales, while 35.6% of sales were realized in North America and 21.7% in Asia Pacific. Compared to 2009 sales grew respectively by 28.9%, 66.4% and 30.7%.
Order intake in 2010 was 978.3 million euro, an increase of 58.3% against 618.2 million euro in 2009. Organic growth in incoming orders was 49.7%. The regional distribution of order intake figures is about the same as for sales but growth figures compared to 2009 are even higher than for sales. The EMEALA region had a growth of 45.9% year-on-year, North America 94.3% and the APAC region 40.6%. The company realized growth in almost all countries where Barco is active, with outspoken performance in the Benelux, the Nordic region, the US and China, to name a few.
Evolution order book
|(in million euro)
Gross profit increased by 71.1% to 287.5 million euro or 32.1% of sales. In 2009 gross profit was 168.0 million euro and gross profit margin was 26.3%.
EBITDA and EBIT
EBITDA was 98.8 million euro, 11% of sales compared to 24.1 million euro, 3.8% of sales the year before. EBIT was 45.1 million euro compared to minus 29.5 million euro (before restructuring & impairment costs) in 2009. EBIT margin in 2010 was 5.0%. Currency exchanges had a positive impact on EBIT of 6.8 million euro compared to the year before.
Research & development expenses increased year-on-year from 69.2 million euro to 71.4 million euro. In percentage of sales however, R & D expenses went down from 10.8% of sales to 8.0% of sales. Sales & Marketing expenses increased from 94.3 million euro to 114.6 million euro, but relative to sales they decreased from 14.8% of sales to 12.8% of sales. Also general & administration expenses increased in absolute numbers but decreased in percentage of sales: from 41.7 million euro or 6.5% of sales to 49.0 million euro or 5.5% of sales.
Other operating result was minus 7.4 million euro. 2009 had other operating result of 7.7 million euro.
Income taxes were 0.0 million euro in 2010 compared to a positive tax impact of 6.4 million in 2009. This was due to the usage of tax losses carried forward.
Net income for 2010 increased to 43.6 million euro from minus 59.9 million euro in 2009. Net margin for 2010 was 4.9% compared to minus 9.4% the year before.
Net earnings per share increased to 3.66 euro from minus 5.02 euro in 2009.
Fully diluted net earnings per share increased to 3.41 euro from minus 5.02 euro.
For more information, please contact
Senior Advisor to the CEO - Compliance Officer
+32 56/26 23 22