Bollène, March 27th, 2019 - 8:30pm (CET)
2018 Results
The results presented below are unaudited consolidated financial statements for 2018 but reviewed by the Audit Committee on March 26, 2019; certification of accounts is expected in the coming weeks.
| In million Euros, IFRS | FY 2017 | FY 2018 |
| Revenue | 30.89 | 31.74 |
| EBITDA | +0.40 | +0.67 |
| Operating Result | (0.82) | (1.53) |
| Financial Result | (0.75) | (0.65) |
| Net result before tax | (1,58) | (2.17) |
| Differed tax / tax | +1.21 | (0.11) |
| Net result | (0.37) | (2.28) |
Consolidated financials 2018
revenue
Egide Group's unaudited consolidated revenue grew by 2.7% to € 31.74 million in 2018. On a like-for-like basis and constant currency effects, revenue in 2018 was stable (+0.2%). Sales of US entities now represent 55% of the group's total turnover.
Egide USA's HTCC ceramic product sales have contributed positively to the overall growth of the Group in 2018 with over $1.4 million added during the year (combined sales of Egide USA and Santier's orders manufactured at Cambridge).
For information, the average euro / dollar parity in 2018 was 1.18143 against 1.12929 in 2017
RESULTS AS OF DECEMBER 31, 2018
In 2018, the rate of consumption of raw material and supplies slightly decreased, to 39% of revenue vs 40% in 2017. This gain is the result of the improving of yield and productivity metrics at all three units. Staff costs remain at 43% of the revenue and fixed costs are at the same level than in 2017. R&D expenditures amounting to €1.0 M (same than 2017) were fully expensed in the period. Some non-recurring items have been recorded in 2017 and in 2018 for about €0.40M. The persistent volume issues at Egide SA led to realize an impairment test of the assets of the unit, the result being a depreciation of €0.94 M. The operating loss (before this depreciation) has been reduced by almost 30% and the positive Ebitda has increased by more than 67%. The financial expenses are mainly interest on loans, with a currency exchange in 2017. Then, the net loss before depreciation of assets and tax in 2018 is down by 20% compare to last year.
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2018ic
| ASSETS | LIABILITIES | ||
| Fixed assets | 7.14 | Equity | 10.96 |
| Differed tax asset | 1.19 | Accruals | 0.73 |
| Inventory, AR and other assets | 12.73 | Financial debt (+/- 1 year) | 6.93 |
| Cash | 2.36 | AP and other debt | 4.80 |
| TOTAL | 23.42 | TOTAL | 23.42 |
The distribution of the fixed assets is: €1.22M of intangible (attached to Santier), €5.44M of tangible (land and building of Egide USA, HTTC ceramic installation and all other production equipment of the three units) and €0.48M of financial assets (rent deposits). Long-term financial debt amounts €4.36M and represents loans with Pacific Mercantile Bank (€3.48M - Egide USA and Santier), Sofired (€0.36M - Egide SA) and simple bond with Vatel (€0.48M). The short-term debt (€2.57M) is mainly due to the factoring (€1.8M - Egide SA). The working capital requirement amounts to 85 days of turnover (excluding tax receivables).
2019 OUTLOOK
MARKET
As the US defence sector, Asia and Israel are considered as growth markets in 2019. The market in Europe will continue to face difficulties and a complex geopolitical environment, especially regarding China-US relations. The European defence sector will also be affected by stricter enforcement of export rules. Moreover, we observe less long-term visibility for major programs (8 to 12 weeks max) despite positive trends in underlying markets.
However, positive trends and market share gains are expected in selected sub-markets:
The group will also develop new processes for new market applications as Microwave, Solid Oxide Fuel Cells (SOFC), Auto lidar or Resources exploration.
OPERATIONS
The group will continue to improve its operational metrics at all 3 facilities for On-time delivery, Yields and Productivity and intends to develop new technologies such as 3D printing capabilities (with a third party). Egide USA is expecting a stronger ceramic backlog to support the expected growth in HTCC in 2019 and inter-company transfers will increase in 2019, especially concerning HTCC ceramic, thermal heatsinks materials and machined components.
Jim Collins, Chairman and CEO, comments: "We anticipate the first semester will be impacted by the softness of the thermal imaging business which will adversely affect the revenue of Egide SA. At the same time, we expect sequential improvement in the second half driven by continuous improvement of the US operations and a return to the revenue level for Egide SA back to H1 2018. Therefore, the group anticipates overall growth in 2019. The 2018 performance is significantly better than last year, but still needs to be improved. We are studying an action plan to reorganize Egide SA and optimize operations, as well as a consolidation of the US entities to improve synergies."
FINANCIAL Communication
In 2019, Egide will now present the situation of its activity by semester.
Financial Agenda:
2019 H1 revenue: 12 July 2019
To find out more about Egide: www.egide-group.com
About Egide
Egide is a group with an international dimension, specialized in the manufacture of hermetic packages and heat dissipation solutions for sensitive electronic components. It operates in cutting edge markets with strong technology barriers to entry in all critical industry segments (Thermal Imaging, Optronics, High-Frequency, Power Units.). Egide is the only pure player in this market niche with manufacturing bases in France and the United States.
Egide's eligibility for tax efficient French innovation-focused mutual funds (FCPI) was renewed on May 14, 2018.
Egide is listed on Euronext Paris(TM)- Segment C - ISIN code: FR0000072373 - Reuters: EGID.PA - Bloomberg : GID
CONTACTS
EGIDE - Finance Department - Philippe Lussiez - +33 1 30 68 81 00 - plussiez@fr.egide-group.com
INBOUND CAPITAL - Investor Relations - Frédéric Portier - +44 7802 533333 - fportier@inbound.capital
FIN'EXTENSO - Press Relations - Isabelle Aprile - +33 1 39 97 61 22 - i.aprile@finextenso.fr
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