18.11.2016
paragon AG DE0005558696
DGAP-News: paragon AG Continues Growing in Third Quarter
DGAP-News: paragon AG / Key word(s): Interim Report/9-month figures
paragon AG Continues Growing in Third Quarter
18.11.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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paragon AG Continues Growing in Third Quarter
- Consolidated revenue up 9.4 percent to EUR 73.7 million (prior year:
EUR 67.4 million)
- Electromobility continues as greatest driver of growth with a 9.3
percent share of revenue (prior year: 5.2 percent)
- EBITDA increases 11.5 percent to EUR 10.2 million (prior year: EUR 9.1
million)
- EBIT margin rises slightly to 6.9 percent (prior year: 6.8 percent)
- Investments decrease 34.3 percent to EUR 16.7 million (prior year: EUR
25.5 million)
- Revenue and earnings forecast for the current fiscal year confirmed
Delbrück, Germany, November 18, 2016 - paragon AG [ISIN DE0005558696]
published its interim report for the first nine months through September
30, 2016, today and confirmed its forecast for the current fiscal year.
In the first nine months of this year, the company generated consolidated
revenue of EUR 73.7 million (prior year: EUR 67.4 million). Growth in the
third quarter was again primarily driven by the dynamic performance of the
Electromobility division. The cost of material developed subproportionally,
increasing 8.4 percent to EUR 40.8 million (prior year: EUR 37.6 million).
The material input ratio amounted to 55.3 percent (prior year: 55.9
percent). Gross profit rose to EUR 43.2 million (prior year: EUR 40.2
million), which corresponds to a gross profit margin of 51.4 percent (prior
year: 51.7 percent).
"Electromobility is clearly our current largest driver of growth," says
Klaus Dieter Frers, founder and Chief Executive Officer of paragon AG.
"With the ongoing developments and existing orders for new products in the
automotive industry, we will see a significant atmosphere of growth in the
other divisions starting in 2018."
With a revenue growth for the first nine months of 96.8 percent, totaling
EUR 6.9 million (prior year: EUR 3.5 million), production at the Voltabox
subsidiaries in Delbrück, Germany, and Austin, Texas, USA, largely focused
on battery modules for forklift trucks. The gradual launch of a new highly
automated production line in Delbrück at the end of the year was a key
operational focus in the third quarter. The delivery of battery systems for
trolleybuses in Lucerne, Switzerland, was also completed. At the same time,
more orders for battery systems, also for use in hybrid buses, came in from
Linz, Austria, and Dayton, Ohio, USA.
Revenue in the Sensors division rose to EUR 26.4 million (prior year: EUR
25.1 million), mainly due to growth in take-rates of paragon products in
current vehicle models. Revenue in the Acoustics division increased to EUR
12.9 million (prior year: EUR 11.9 million). This was primarily due to the
boost in output quantity for the current version of the premium hands-free
microphone. In the Cockpit division, revenue grew to EUR 25.2 million
(prior year: EUR 24.0 million) as serial production of a new generation of
cockpit instruments was launched for a long-standing customer. With a
decrease in revenue to EUR 2.3 million (prior year: EUR 2.9 million), the
Body Kinematics division continued to be strongly influenced by a number of
series production developments for the 2017 fiscal year that ran parallel
to each other. Prominent among the development activities were freely
adjustable rear spoilers for optimized aerodynamics, which will enter pre-
serial production in the fourth quarter.
"Our technological innovations serve the increasing demand for modern
solutions in the areas of health, connectivity, safety, comfort and
electrification," says Dr. Stefan Schwehr, Chief Technology Officer. "Here,
we are adapting to the constantly shrinking innovation cycles in the
automotive sector with the intensification of our agile project
management."
Consolidated EBITDA (earnings before interest, taxes, depreciation and
amortization) increased 11.5 percent to EUR 10.2 million in the first nine
months (prior year: EUR 9.1 million), despite a rise in personnel expenses
resulting from the expansion of the business, which corresponds to an
EBITDA margin of 13.8 percent (prior year: 13.5 percent).
With increased depreciation and amortization of EUR 5.0 million (prior
year: EUR 4.5 million) and other operating expenses remaining on par with
the prior year, consolidated EBIT (earnings before interest and taxes)
amounted to EUR 5.1 million (prior year: EUR 4.6 million). This corresponds
to an EBIT margin of 6.9 percent (prior year: 6.8 percent).
With net finance costs of EUR -2.4 million (prior year: EUR -1.7 million)
and a higher income tax burden of EUR 1.9 million (prior year: EUR 1.0
million), consolidated net income dropped to EUR 0.8 million (prior year:
EUR 1.8 million). This corresponds to earnings per share of EUR 0.20 (prior
year: EUR 0.45).
Total assets increased to EUR 99.9 million (prior year: EUR 86.4 million)
due to the prior year's substantial investments in property, plant and
equipment and due to capitalized development costs.
Equity increased to EUR 19.1 million (prior year: EUR 17.9 million), which
corresponds to an equity ratio of 19.1 percent as of the end of the
reporting period, September 30, 2016 (prior year: 20.7 percent). Following
the reporting period, there was a significant cash inflow of EUR 13.4
million, generated by an increase in the company's share capital from
authorized capital, which resulted in an equity ratio of 28.8 percent after
the capital transaction (as of October 5, 2016).
Cash flow from operating activities increased in the period under review to
EUR 8.4 million (prior year: EUR 6.6 million), mainly due to a much smaller
increase in inventories. Cash flow from investment activity decreased to
EUR 16.5 million (prior year: EUR 25.3 million).
Cash and cash equivalents fell to EUR 4.2 million as of the end of the
reporting period (prior year: EUR 6.6 million). Free liquidity decreased to
EUR 8.1 million (prior year: EUR 10.0 million).
paragon's Managing Board now expects to see an investment volume of around
EUR 20 million in the current year. The investment volume is being raised
beyond what previous planning had allotted for (EUR 14 million) to make the
most of current business opportunities, which can now be explored due to
the successfully carried-out capital increase. New products will be ready
for the market sooner, for example, the particle sensor that meets a strong
customer demand. New technical ideas will reduce the costs of conversion
for battery systems and microphones. Construction costs for the building on
Artegastrasse, Delbrück, have risen due to environmental and security
aspects, as well as an expansion of the surface area.
Based on the results for the first nine months, the Managing Board confirms
its earlier revenue and earnings forecast for the current fiscal year. This
states that consolidated revenue is expected to grow by around 8 percent in
the current fiscal year and thus to exceed the EUR 100 million mark. This
is expected to be accompanied by above-average earnings growth with an EBIT
margin of around 9 percent. The main growth drivers in the current fiscal
year are likely to be the Electromobility division (Voltabox), as well as
the Sensors and Acoustics divisions in the medium term.
The interim report with the condensed interim consolidated financial
statements as of September 30, 2016, can be downloaded from www.paragon.ag/
en/investors.
Company Profile
Listed in the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and
sells innovative automotive electronics solutions. The portfolio of this
direct supplier to the automotive industry includes products in the
business segments of Sensors, Acoustics, Cockpit, E-mobility and Body
Kinematics. In addition to its headquarters in Delbrück (North Rhine-
Westphalia), paragon AG and its subsidiaries have locations in Suhl
(Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Wuerttemberg), and
Bexbach (Saarland), as well as in Kunshan (China) and Austin (Texas, USA).
Financial Press Contact & Investor Relations
paragon AG
Dr. Kai Holtmann
Artegastrasse 1
33129 Delbrück, Germany
Phone: +49 (0) 52 50 - 97 62-140
Fax: +49 (0) 52 50 - 97 62-63
E-mail: [email protected]
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18.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: paragon AG
Schwalbenweg 29
33129 Delbrück
Germany
Phone: +49 (0)5250 97 62 - 0
Fax: +49 (0)5250 97 62 - 60
E-mail: [email protected]
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A1TND93
WKN: 555869, A1TND9
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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