08.05.2018
paragon AG DE0005558696
DGAP-News: paragon AG Closes Strongest First Quarter in Company History and Confirms Forecast for 2018
DGAP-News: paragon AG / Key word(s): Quarterly / Interim Statement
paragon AG Closes Strongest First Quarter in Company History and Confirms
Forecast for 2018
08.05.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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paragon AG Closes Strongest First Quarter in Company History and Confirms
Forecast for 2018
- New operating segments increase Group sales in the first quarter by 32.4%
to EUR 34.2 million (prior year: EUR 25.9 million)
- Electromobility revenue doubles again to EUR 5.1 million (prior year: EUR
2.6 million), Body Kinematics jumps to EUR 7.5 million (prior year: EUR 0.8
million)
- EBIT margin of 4.7% (prior year: 5.2%)
- Free liquidity of EUR 149.1 million is available for acquisitions and
growth investments (December 31, 2017: EUR 166.8 million)
- Forecast for 2018 confirmed: further revenue growth of around 40% to
around EUR 175 million - with an EBIT margin of around 9.0%
Delbrück, Germany, May 8, 2018 - Today, paragon AG [ISIN DE0005558696]
published its results for the first quarter of 2018 and confirmed its
forecast for the current fiscal year.
In the first quarter, the company generated Group sales of EUR 34.2 million
(prior year: EUR 25.9 million) and, with its 32.4% revenue increase,
completed the most successful first quarter in its thirty-year history. The
revenue increase was largely attributable to the very good performance in
the new operating segments Electromobility and Mechanics (Body Kinematics
unit), which recorded a revenue increase with third parties of 97.5% and
860.4% respectively, and thus increased their cumulative revenue shares to
36.8% (prior year: 13.0%). The main growth drivers in the Electromobility
operating segment were battery modules for intralogistics vehicles and
battery systems for trolleybuses. The revenue increase in the Mechanics
segment is particularly due to the acquisition of HS Genion GmbH (now
paragon movasys GmbH) at the end of November 2017 and the start of series
production for the latest generation of rear spoilers for several vehicle
models over the course of 2017. The one-time effects incurred in the
Mechanics operating segment in fiscal year 2017, which consisted of start-up
costs and increased cost of materials due to prototype construction, were
again incurred in the first quarter and led to subsequent additional costs
of EUR 0.4 million in this segment. Furthermore, the largest operating
segment, Electronics, dominated Group activities with a revenue share of
63.2% (prior year: 87.0%). Seasonal effects led to a slight decline in
revenue of 3.9% to EUR 21.7 million (prior year: EUR 22.5 million).
"We are especially pleased that we have made such a brilliant start to our
anniversary year," said Klaus Dieter Frers, founder and CEO of paragon AG.
"This has provided us with an excellent starting point for achieving the
goals we have set ourselves for the year as a whole."
Capitalized development costs increased as planned by 21.2% to EUR 4.5
million (prior year: EUR 3.7 million), the largest portion of which is
attributable to the Mechanics operating segment (37%). Due to the expansion
of production in the newest operating segments, the cost of materials
increased by 35.5% to EUR 20.7 million (prior year: EUR 15.3 million). As a
result, the material input ratio rose slightly to 60.4% (prior year: 59.1%).
This results in a gross profit for the reporting period of EUR 19.8 million
(prior year: EUR 15.7 million), which constitutes a lower gross profit
margin of 57.8% (prior year: 60.6%) when adjusting for significant revenue
increases.
"With our current developments, we are serving all major megatrends in the
automotive industry," said Dr. Stefan Schwehr, Chief Technology Officer
(Electronics). "As a result, we will be able to participate to a great
extent in the forthcoming changes in the automotive value chain, both with a
higher proportion of systems and with new data-based product offerings."
Personnel costs increased 25.2% to EUR 10.1 million (prior year: EUR 8.1
million) mainly as a result of new hires in connection with operational
growth in the new operating segments. The personnel expense ratio
accordingly came to 29.6% (prior year: 31.3%).
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose
42.9% to EUR 4.8 million (prior year: EUR 3.4 million), which corresponds to
an EBITDA margin of 14.0% (prior year: 13.0%). After increased depreciation
and amortization totaling EUR 3.1 million (prior year: EUR 2.0 million),
earnings before interest and taxes (EBIT) increased 19.6% to EUR 1.6 million
(prior year: EUR 1.3 million). Accounting for the increase in revenue, the
EBIT margin decreased slightly to 4.7% (prior year: 5.2%).
With a lower financial result of EUR -1.5 million (prior year: EUR -0.8
million) and income taxes of EUR 0.4 million (prior year: EUR 0.5 million),
the paragon Group generated a consolidated net loss of EUR 0.3 million in
the period under review (prior year: consolidated net gain of EUR 0.1
million). This corresponds to earnings per share of EUR -0.06 (prior year:
EUR 0.02).
Noncurrent assets increased EUR 5.6 million to EUR 117.4 million (December
31, 2017: EUR 111.8 million). This gain is attributable in part to an
increase in intangible assets of EUR 2.6 million to EUR 62.6 million, which
resulted from the further capitalization of own work in connection with the
development of new product generations and product innovations.
Additionally, financial assets increased by EUR 2.6 million to EUR 2.9
million.
By contrast, current assets decreased EUR 2.9 million to EUR 197.2 million
(December 31, 2017: EUR 200.1 million). While inventories rose EUR 7.8
million to EUR 25.2 million and trade receivables increased EUR 6.5 million
to EUR 39.1 million, cash and cash equivalents decreased EUR 17.8 million to
EUR 128.1 million.
paragon AG's equity remained nearly unchanged at EUR 176.6 million (December
31, 2017: EUR 177.1 million). Accordingly, the equity ratio as of the
balance sheet date was 56.1% (December 31, 2017: 56.8%).
Cash flow from operating activities decreased in the period under review by
EUR 6.0 million to EUR -8.1 million (prior year: EUR -2.1 million). While
depreciation and amortization increased by EUR 1.1 million to EUR 3.1
million, trade receivables rose EUR 4.6 million over the prior year to EUR
7.1 million. At the same time, inventories increased by EUR 4.2 million to
EUR 7.8 million. Finally, trade payables increased by EUR 1.9 million over
the prior year, totaling EUR 3.9 million.
Cash flow from investing activities fell by EUR 3.6 million to EUR -8.3
million (prior year: EUR -4.7 million) in the reporting period, which is due
in part to EUR 0.5 million in higher investments in property, plant and
equipment and EUR 0.9 million in higher investments in intangible assets due
to the capitalization of development work as well as to payments for
investments in financial assets amounting to EUR 2.6 million. The increase
in financial assets is attributable to the acquisition of Concurrent Design
by Voltabox AG on March 27, which is initially being reported as an
investment.
Cash and cash equivalents decreased EUR 17.8 million as of the end of the
reporting period to EUR 128.1 million (December 31, 2017: EUR 145.8
million).
The Management Board confirms its forecast for the current year, as
explained in detail in the Group management report for the 2017 fiscal year
alongside the key assumptions upon which the forecast is based.
Based on the solid order situation, paragon AG expects to again grow
significantly faster than the automotive sector in 2018. The Electromobility
operating segment is expected to more than double its revenues to around EUR
60 million and make a sustained contribution to the Group's profitability
with an EBIT margin of around 10%. Another growth driver will be the
Mechanics operating segment. From the fiscal year 2019 onwards, the
Electronics operating segment is expected to increasingly contribute to the
Group's growth through new products.
According to the forecast, Group sales will grow by more than 40% to around
EUR 175 million with a consolidated EBIT margin of around 9%. The Management
Board expects to see an investment volume of around EUR 35 million in the
current year.
This forecast does not yet take into account several promising acquisitions
of paragon AG and Voltabox AG that are currently in various project stages.
The interim report and condensed consolidated financial statements from
March 31, 2018, are available for download at
http://www.paragon.ag/en/investors.html.
Company Profile
paragon AG (ISIN DE0005558696), which is listed in the regulated market
(Prime Standard) of the Frankfurt Stock Exchange, develops, produces and
distributes forward-looking solutions in the field of automotive
electronics, e-mobility and body kinematics. As a market-leading direct
supplier to the automotive industry, the company's portfolio includes the
Electronics operating segment's innovative air-quality management,
state-of-the-art display systems and connectivity solutions, and high-end
acoustic systems. With Voltabox AG (ISIN DE000A2E4LE9), a subsidiary that is
also listed on the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt, Germany, the Group is also active in the rapidly growing
Electromobility operating segment with its cutting-edge lithium-ion battery
systems. In the Mechanics operating segment, paragon AG develops and
produces active mobile aerodynamic systems.
In addition to the company headquarters in Delbrück (North Rhine-Westphalia,
Germany), paragon AG and its subsidiaries operate sites in Suhl (Thuringia,
Germany), Nuremberg and Landsberg am Lech (Bavaria, Germany), St. Georgen
(Baden-Württemberg, Germany), Bexbach (Saarland, Germany) and Aachen (North
Rhine-Westphalia, Germany) as well as in Kunshan (China) and Austin, Texas
(USA).
Financial Press & Investor Relations Contact
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
Email: [email protected]
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08.05.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: paragon AG
Artegastraße 1
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, DE000A2GSB86
WKN: 555869, A1TND9, A2GSB8
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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