Press Release, 15.08.2007
TA Triumph-Adler confirms annual forecast: first-half pre-tax earnings of € 6.2 million fully within budget
Capital increase in current quarter has strengthened equity capital base and opened up additional growth opportunities for revenue and earnings / Write-down to deferred tax to be reported in the third quarter as tax expense
Nuremberg, August 15, 2007: TA Triumph-Adler AG exceeded its group revenue growth target and fully met its half-year earnings target in the first six months of the 2007 financial year. This was announced by the specialist for efficiency in the Document Business in its half-year report published today. TA Triumph-Adler AG's consolidated revenue grew by 18% in the first half-year, from € 174.3 million in the first six months of 2006 to € 205.6 million in the first half of 2007, and the group generated first-half net earnings of € 3.2 million. A deficit of € 0.3 million arose in the first half of 2006.
Operating profit (EBIT) almost doubled compared with the first half-year of 2006, rising from € 6.3 million to € 11.9 million. The operating EBIT margin, calculated as EBIT adjusted to exclude the effect of pension expenses and expressed as a percentage of sales, rose from 5.5% to 7.3% on a first-quarter comparison. This resulted in earnings before tax of € 6.2 million. Pre-tax earnings in the previous year amounted to € 0.6 million.
Cash flow in the first six months of the current business year rose to € 11.6 million compared with € 6.8 million in the same period of last year, and reflected the much stronger half-year earnings. Cash and cash equivalents amounted to € 17.5 million as of June 30, 2007.
The Subscribed Share Capital now amounts to € 58.7 million following the recognition of the capital reduction, the resolution concerning which was taken at the Shareholders' General Meeting held on May 23, 2007. The capital reserve was released in the amount of € 34.6 million to accommodate the retained loss. The capital reserve in the consolidated balance sheet consequently amounts to € 3.2 million as of June 30, 2007, and the retained loss now amounts to € 8.4 million. Earnings generated in the first half of the year also contributed to the reduction in retained losses. The consolidated equity of TA Triumph-Adler AG totaled € 53.3 million (including minority interests: € 54.0 million) as of June 30, 2007. The comparable value on December 31, 2006 was € 50.1 million (including minorities: € 50.9 million). The equity ratio rose from 11.5% to 12.3% (before minorities: from 11.4% to 12.1%).
Following the capital increase, which has in the meantime been performed successfully, the number of shares in issue has risen from 40,483,375 to 55,381,257, the Subscribed Capital has risen by € 21.6 million compared with June 30, 2007 to € 80.3 million, and the capital reserve has risen by € 6.4 million to € 9.6 million. The complete placing of the capital increase allowed the company to simultaneously implement a comprehensive restructuring of its third-party financing, which reduces the finance expense by an annual amount of around €5 million, significantly improves financial flexibility, and opens up opportunities for additional growth through strategic acquisitions in the core business.
As a result of the reform of corporate taxation passed by the Upper House of the German Parliament on July 6, 2007, TA Triumph-Adler AG will write-down consolidated deferred tax assets relating to loss carryforwards by an amount of around €36 million. This effect will be recognized in the current third quarter as a tax expense. The deferred tax assets relating to the tax loss carryforwards are not capitalized in the financial statements of TA Triumph-Adler AG, which is the legally relevant parent company. The process will for this reason have no effect on the financial statements of TA Triumph-Adler AG.
The company continues to anticipate revenue growth to around € 400 million for the current financial year, a further improvement in operating profit, and pre-tax earnings for the year at the lower end of the double-digit million range and is consequently confirming the forecasts issued so far.
The TA Triumph-Adler Group employed 1,397 members of staff as of June 30, 2007, following 1,414 on December 31, 2006.
Further details can be obtained from:
TA Triumph-Adler AG
Dr. Joachim Fleing
Phone: +49 (0) 911 / 68 94 - 499
Fax: +49 (0) 911 / 68 98 -200
Mailing address:
Suedwestpark 23
D -90449 Nuremberg, Germany
ir@ta.ag
www.triumph-adler.de
Important notice:
This press release contains forward-looking statements that are based on assumptions and estimates made by the management of TA Triumph-Adler AG. Even if the management of the company is of the view that these assumptions and estimates are appropriate, future actual developments and future actual events may diverge significantly from these assumptions and estimates due to various factors. These factors may include, by way of example, changes in the macroeconomic situation, exchange rates, interest rates, as well as changes both within the market and in the competitive environment as the result of technological change. TA Triumph-Adler AG provides no guarantee, and accepts no liability, if future developments, and results achieved in the future, do not accord with the assumptions and estimates expressed in this press release.