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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
[email protected]

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

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