ET:CC - Evertz Technologies Reports Record Quarterly Revenue of $129 Million Record Annual Revenue of $455 Million for Periods Ending April 30 2023 and Record Backlog of $392 Million

June, 21 2023 06:31 PM Evertz Technologies Limited

Burlington, Ontario--(Newsfile Corp. - June 21, 2023) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the fourth quarter and year ended April 30, 2023.

Fiscal 2023 Highlights

Record Revenue of $454.6 million
Record Backlog of $392 million as at May 31, 2023
Earnings from operations of $95.6 million
Net earnings of $64.6 million for the year
Fully diluted earnings per share of $0.84 for the year

Fourth Quarter 2023 Highlights

Record Quarterly revenue of $128.9 million, an increase of 11.1% from the prior year
Earnings from operations up 13.4% to $30.5 million from the prior year
Receipt of a purchase order in excess of $152 million from a major US based media company for Evertz Cloud software and services to be provided over a 5 year period
Receipt of a purchase order in excess of $25 million from an International customer for a hybrid solution with next generation Evertz IP core, control, orchestration and visualization
Net earnings of $18.6 million for the quarter
Fully diluted earnings per share of $0.24 for the quarter

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)



Q4'23


Q4'22


YE'23


YE'22

Revenue
$
128,919

$
116,089

$
454,578

$
441,016

Gross margin

76,647


68,340


268,258


255,315

Earnings from operations

30,467


26,863


95,628


101,204

Earnings from operations (before Foreign Exchange)

30,215


25,772


93,662


94,739

Net earnings

18,551


19,213


64,555


72,677

Fully-diluted earnings per share
$
0.24

$
0.25

$
0.84

$
0.94

Fully-diluted shares

76,164,716


76,226,341


76,200,428


76,570,564

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)










YE ' 23


YE '22

Cash and cash equivalents
$
12,468

$
33,902

Working capital

171,428


158,947

Total assets

436,652


420,979

Shareholders' equity

243,099


230,938

Revenue
For the quarter ended April 30, 2023, revenues were $128.9 million compared to revenues of $116.1 million for the quarter ended April 30, 2022. For the quarter, revenues in the United States/Canada region were $98.0 million, an increase of $20.2 million, compared to $77.8 million in the same quarter last year. The International region had revenues of $30.9 million compared to $38.2 million in the same quarter last year.

For the year ended, April 30, 2023, sales were $454.6 million, compared to sales of $441.0 million for the year ended April 30, 2022. For the year, revenues in the United States/Canada region were $337.1 million, an increase of $37.7 million compared to $299.4 million in the prior year. The International region had revenues of $117.5 million compared to $141.7 million in the prior year.

Gross Margin
For the quarter ended April 30, 2023, gross margin was $76.6 million as compared to $68.3 million in the same quarter last year. Gross margin percentage was approximately 59.5% as compared to 58.9% in the quarter ended April 30, 2022.

For the year ended April 30, 2023, gross margin was $268.3 million as compared to $255.3 million for the year ended April 30, 2022. Gross margin percentage was approximately 59.0% as compared to 57.9% for the prior year.

Earnings
For the quarter ended April 30, 2023, net earnings were $18.6 million as compared to $19.2 million in the corresponding period last year.

For the year ended April 30, 2023, net earnings were $64.6 million as compared to $72.7 million in the corresponding period last year.

For the quarter ended April 30, 2023, earnings per share on a fully-diluted basis were $0.24 as compared to $0.25 in the corresponding period last year.

For the year ended April 30, 2023, earnings per share on a fully-diluted basis were $0.84 as compared to $0.94 in the same period in 2022.

Operating Expenses
For the quarter ended April 30, 2023, selling and administrative expenses were $17.5 million as compared to $16.1 million for the quarter ended April 30, 2022.

For the year ended April 30, 2023, selling and administrative expenses were $61.5 million as compared to $60.9 million for the year ended April 30, 2022.

For the quarter ended April 30, 2023, gross research and development expenses were $29.9 million as compared to $27.3 million for the quarter ended April 30, 2022.

For the year ended April 30, 2023, gross research and development expenses were $117.1 million as compared to $102.4 million for the year ended April 30, 2022.

Liquidity and Capital Resources
The Company's working capital as at April 30, 2023 was $171.4 million as compared to $158.9 million on April 30, 2022.

Cash was $12.5 million as at April 30, 2023 as compared to $33.9 million on April 30, 2022.

Cash generated from operations was $25.9 million for the quarter ended April 30, 2023 as compared to $21.5 million cash generated for the quarter ended April 30, 2022. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $26.7 million from operations for the quarter ended April 30, 2023 compared to $23.9 million for the same period last year.

Cash provided by operations was $53.8 million for the 2023 fiscal year as compared to cash provided by operations of $68.7 million for the 2022 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $91.5 million from operations for fiscal 2023 as compared to $93.0 million for fiscal 2022.

For the quarter, the Company generated $3.0 million from investing activities.

For the year, the Company used $17.1 million in investing activities which was principally driven by the acquisition of instruments held for trading of $14.4 million.

For the quarter ended, the Company used cash in financing activities of $10.6 million which was principally a result of the payment of dividends of $14.5 million.

For the year ended April 30, 2023, the Company used cash in financing activities of $58.0 million which was principally a result of the payment of dividends of $56.4 million.

Shipments and Backlog
At the end of May 2023, purchase order backlog was in excess of $392 million and shipments during the month of May 2023 were $40 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on June 21, 2023 of $0.19 per share.

The dividend is payable to shareholders of record on June 29, 2023 and will be paid on or about July 6, 2023.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)



Three month period ended


Twelve month period ended



April 30,


April 30,



2023


2022


2023


2022

Revenue
$
128,919

$
116,089

$
454,578

$
441,016

Cost of goods sold

52,273


47,749


186,320


185,701

Gross margin

76,646


68,340


268,258


255,315














Expenses












Selling and administrative

17,521


16,139


61,518


60,883

General

1,323


1,026


4,704


4,563

Research and development

29,867


27,327


117,127


102,438

Investment tax credits

(3,503
)

(3,295
)

(13,415
)

(12,336
)
Share based compensation

1,223


1,370


4,662


5,028

Foreign exchange (gain) loss

(252
)

(1,091
)

(1,966
)

(6,465
)


46,179


41,476


172,630


154,111

Earnings before undernoted

30,467


26,864


95,628


101,204














Finance income

91


72


376


309

Finance costs

(2,290
)

(1,207
)

(3,718
)

(2,445
)
Share of net loss of Investment in Associate

(3,277
)

(469
)

(5,364
)

(1,493
)
Other income and expenses

930


574


888


338

Earnings before income taxes

25,921


25,834


87,810


97,913

Provision for (recovery of) income taxes












Current

8,521


7,477


25,066


26,959

Deferred

(1,151
)

(857
)

(1,811
)

(1,724
)


7,370


6,620


23,255


25,235














Net earnings for the period
$
18,551

$
19,214

$
64,555

$
72,677














Net earnings attributable to non-controlling interest

128


256


523


932

Net earnings attributable to shareholders

18,423


18,957


64,032


71,745

Net earnings for the period
$
18,551

$
19,213

$
64,555

$
72,677














Earnings per share












Basic
$
0.24

$
0.25

$
0.84

$
0.94

Diluted
$
0.24

$
0.25

$
0.84

$
0.94



April 30,


April 30,


April 30,



2023


2022


2021











Assets









Current assets









Cash and cash equivalents
$
12,468

$
33,902

$
108,771

Trade and other receivables

106,871


100,020


76,785

Contract assets

11,032


6,398


2,821

Prepaid expenses

10,319


5,930


6,559

Inventories

202,479


177,268


152,699



343,169


323,518


347,635











Property, plant and equipment

34,730


37,877


44,799

Right-of-use assets

20,396


24,637


23,570

Goodwill

21,333


21,033


21,140

Intangible assets

2,125


3,317


4,476

Investment in Associate

8,160


5,474


6,869

Deferred income taxes

6,739


5,123


3,304


$
436,652

$
420,979

$
451,793











Liabilities









Current liabilities









Bank Indebtedness
$
5,928

$
-

$
-

Trade and other payables

75,521


68,405


66,727

Provisions

5,104


7,379


4,069

Deferred revenue

69,827


74,267


58,047

Current potion of lease obligations

4,060


4,088


4,122

Current potion of redemption liability

3,711


3,423


-

Income tax payable

7,590


7,009


155



171,741


164,571


133,120











Long term redemption liability

-


-


2,523

Long term lease obligations

18,827


22,760


21,245



190,568


187,331


156,888











Equity









Capital stock

143,344


143,502


143,605

Share based payment reserve

14,696


10,893


9,514











Accumulated other comprehensive income

(2,402
)

(4,093
)

(1,062
)
Retained earnings

87,461


80,636


140,677



85,059


76,543


139,615











Total equity attributable to shareholders

243,099


230,938


292,734

Non-controlling interest

2,985


2,710


2,171



246,084


233,648


294,905


$
436,652

$
420,979

$
451,793

Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on June 21, 2023 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 416-764-8646 or toll-free (North America) 1-888-396-8049.

For those unable to listen to the live call, a rebroadcast will also be available until July 21, 2023. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-647-7070. The pass code for the rebroadcast is 998178.

About Evertz

Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud".

For further information please contact:

Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
ir@evertz.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/170909

Company Name:	Evertz Technologies Limited
Stock Symbol:	ET:CC
Market:	TSXC
Website:	evertz.com

Twitter