Evertz Technologies Reports Fiscal 2022 Results for the Year Ended April 30, 2022

June 23, 2022 4:05 PM EDT | Source: Evertz Technologies Limited

Burlington, Ontario--(Newsfile Corp. - June 23, 2022) - 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, 2022.

Fiscal 2022 Highlights

  • Revenue of $441.0 million, an increase of 29% from the prior year
  • Earnings from operations of $101.2 million, an increase of $43.2 million or 75% from the prior year
  • Net earnings of $72.7 million for the year, an increase of 73.2% from the prior year
  • Fully diluted earnings per share of $0.94 for the year, compared to $0.55 in the prior year

Fourth Quarter 2022 Highlights

  • Quarterly revenue of $116.1 million, an increase of 24% from the prior year
  • Earnings from operations of $26.9 million, an increase of $12.8 million or 91% from the prior year
  • Net earnings of $19.2 million for the quarter, an increase of 96% from the prior year
  • Fully diluted earnings per share of $0.25 for the quarter, compared to $0.13 in the prior year

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


 Q4'22
 
Q4'21
 
YE'22
 
YE'21 
Revenue $116,089
$93,293
$441,016
$342,888
Gross margin
68,340

55,558

255,315

199,424
Earnings from operations
26,863

14,055

101,203

57,986
Net earnings
19,213

9,810

72,677

41,960
Fully-diluted earnings per share $0.25
$0.13
$0.94
$0.55
Fully-diluted shares
76,226,341

76,646,831

76,570,564

76,403,894​

 

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


 YE ' 22
 
YE '21 
Cash and cash equivalents $33,902
$108,771
Working capital
158,947

214,515
Total assets
422,979

451,793
Shareholders' equity
230,938

292,734

 

Revenue

For the quarter ended April 30, 2022, revenues were $116.1 million compared to revenues of $93.3 million for the quarter ended April 30, 2021. For the quarter, revenues in the United States/Canada region were $77.8 million, an increase of $14.2 million, compared to $63.6 million in the same quarter last year. The International region had revenues of $38.2 million an increase of $8.5 million compared to $29.7 million in the same quarter last year.

For the year ended, April 30, 2022, sales were $441.0 million, compared to sales of $342.9 million for the year ended April 30, 2021. For the year, revenues in the United States/Canada region were $299.4 million, an increase of $76.7 million compared to $222.7 million in the prior year. The International region had revenues of $141.7 million, an increase of $21.5 million compared to $120.2 million in the prior year.

Gross Margin

For the quarter ended April 30, 2022, gross margin was $68.3 million as compared to $55.6 million in the same quarter last year. Gross margin percentage was approximately 58.9% as compared to 59.6% in the quarter ended April 30, 2021.

For the year ended April 30, 2022, gross margin was $255.3 million as compared to $199.4 million for the year ended April 30, 2021. Gross margin percentage was approximately 57.9% as compared to 58.2% for the prior year.

Earnings

For the quarter ended April 30, 2022, net earnings were $19.2 million as compared to $9.8 million in the corresponding period last year.

For the year ended April 30, 2022, net earnings were $72.7 million as compared to $42.0 million in the corresponding period last year.

For the quarter ended April 30, 2022, earnings per share on a fully-diluted basis were $0.25 as compared to $0.13 in the corresponding period last year.

For the year ended April 30, 2022, earnings per share on a fully-diluted basis were $0.94 as compared to $0.55 in the same period in 2021.

Operating Expenses

For the quarter ended April 30, 2022, selling and administrative expenses were $16.1 million as compared to $13.0 million for the quarter ended April 30, 2021.

For the year ended April 30, 2022, selling and administrative expenses were $60.9 million as compared to $49.4 million for the year ended April 30, 2021.

For the quarter ended April 30, 2022, gross research and development expenses were $27.3 million as compared to $22.5 million for the quarter ended April 30, 2021.

For the year ended April 30, 2022, gross research and development expenses were $102.4 million as compared to $80.2 million for the year ended April 30, 2021.

Liquidity and Capital Resources

The Company's working capital as at April 30, 2022 was $158.9 million as compared to $214.5 million on April 30, 2021.

Cash was $33.9 million as at April 30, 2022 as compared to $108.8 million on April 30, 2021.

Cash generated from operations was $21.5 million for the quarter ended April 30, 2022 as compared to $33.6 million cash generated for the quarter ended April 30, 2021. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $23.9 million from operations for the quarter ended April 30, 2022 compared to $12.4 million for the same period last year.

Cash provided by operations was $68.7 million for the 2022 fiscal year as compared to cash provided by operations of $101.0 million for the 2021 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $93.0 million from operations for fiscal 2022 as compared to $59.0 million for fiscal 2021.

For the quarter, the Company used $1.3 million for investing activities.

For the year, the Company used $5.0 million in investing activities which was principally driven by the acquisition of capital equipment of $5.5 million.

For the quarter ended, the Company used cash in financing activities of $15.0 million which was principally a result of the payment of dividends of $13.7 million.

For the year ended April 30, 2022, the Company used cash in financing activities of $137.5 million which was principally a result of the payment of dividends of $131.4 million, including a special dividend of $76.3 million.

Shipments and Backlog

At the end of May 2022, purchase order backlog was in excess of $148 million and shipments during the month of May 2022 were $26 million.

Dividend Declared

Evertz Board of Directors declared a regular quarterly dividend on June 23 2022 of $0.18 per share.

The dividend is payable to shareholders of record on July 5, 2022 and will be paid on or about July 12, 2022.

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, 


2022


2021


2022


2021
 
Revenue $116,089
$93,293
$441,016
$342,888 
Cost of goods sold
47,749

37,735
 
185,701
 
143,464
Gross margin
68,340

55,558
 
255,315
 
199,424 
  

 


 


 


 

Expenses
 


 


 


 

    Selling and administrative
16,139

12,987

60,884

49,413 
    General
1,026

1,287

4,563

3,896
    Research and development
27,328

22,516

102,438

80,187
    Investment tax credits
(3,295)
(2,942)
(12,336)
(13,042)
    Share based compensation
1,370

2,545

5,028

6,123
    Foreign exchange (gain) loss
(1,091)
5,110
 
(6,465)  
14,861 


41,477 
41,503   154,112
 141,438 
Earnings before undernoted
26,863 
14,055   101,203
 57,986 
  

 


 


 


 

Finance income
72

66

309

687
Finance costs
(1,207)
(516)
(2,445)
(1,709)
Share of net loss of Investment in Associate
(469)
(531)
(1,493)
(531)
Other income and expenses  574   (157)  338   (588)
Earnings before income taxes  25,833   12,917   97,912   55,845 
Provision for (recovery of) income taxes
 


 


 


 

    Current
7,477

6,459

26,909

17,369
    Deferred
(857)
(3,352)  (1,724)  (3,484)


6,620 
3,107   25,185   13,885 
  

 


 


 


 

Net earnings for the period $19,213  $9,810  $72,677  $41,960 
   

 


 


 


 

Net earnings attributable to non-controlling interest
256

(144)  
932
 
202 
Net earnings attributable to shareholders
18,957 
9,954   
71,745   
41,758 
Net earnings for the period $19,213  $9,810  $72,677  $41,960 
    

 


 


 


 
 
Earnings per share
 


 


 


 

Basic $0.25
$0.13
$0.94
$0.55
Diluted $0.25  $0.13  $0.94  $0.55 

 



April 30,

April 30,

April 30, 


2022

2021

2020 










Assets







 
Current assets








    Cash and cash equivalents $33,902
$108,771
$75,025
    Trade and other receivables
100,020

76,785

90,631
    Contract assets
6,398

2,821

7,864
    Prepaid expenses
5,930

6,559

9,003
    Inventories
177,268

152,699

161,985 
 

323,518

347,635

344,508
 

 

 

  
Property, plant and equipment
37,877

44,799

47,794
Right-of-use assets
24,637

23,570

28,823
Goodwill
21,033

21,140

20,771
Intangible assets
3,317

4,476

1,573
Investment in Associate
5,474

6,869

-
Deferred income taxes
5,123

3,304

204 

$420,979
$451,793
$443,673 
   

 

 

 
Liabilities
 

 

  
Current liabilities
 

 

  
    Trade and other payables $68,405
$66,727
$62,231
    Provisions
7,379

4,069

5,031
    Deferred revenue
74,267

58,047

45,076
    Current portion of long term debt
-

-

238
    Current potion of lease obligations
4,088

4,122

4,400
    Current potion of redemption liability
3,423

-

-
    Income tax payable
7,009

155

3,812 


164,571

133,120

120,788
   
 

 

  
Long term redemption liability
-

2,523

-
Long term lease obligations
22,760

21,245

25,465 


187,331

156,888

146,253 


 

 

  
Equity
 

 

  
Capital stock
143,502

143,605

143,915
Share based payment reserve
10,893

9,514

8,279
 

 

 

 
Accumulated other comprehensive income
(4,093)
(1,062)
1,032
Retained earnings
80,636

140,677

141,786 
 

76,543

139,615

142,818
  

 

 

  
Total equity attributable to shareholders
230,938

292,734

295,012
Non-controlling interest
2,710

2,171

2,408
 

233,648

294,905

297,420 

$420,979
$451,793
$443,673 

 

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 23, 2022 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 June 23, 2023. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-674-7070. The pass code for the rebroadcast is 586735.

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".

Doug Moore
Chief Financial Officer
(905) 335-7580
ir@evertz.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/128774

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