Press Release, 15.05.2007
TA Triumph-Adler quarterly earnings of € 1.9 million fully within budget
Equity ratio up slightly to 12.3% - confirmation of full-year forecasts
Nuremberg, May 15, 2007 - In the first three months of the 2007 financial year, TA Triumph Adler AG exceeded its group revenue growth target and fully met its quarterly earnings target. The consolidated revenue of TA Triumph-Adler AG in the first quarter grew by 20.1%, from € 87.6 million in the previous year's first-quarter to € 105.2 million in the first quarter of 2007. The specialist in efficiency in the Document Business generated half-year net income before minority interests of €1.9 million, following on € 0.1 million in the comparable quarter of the previous year.
Operating profit (EBIT) more than doubled compared with the first quarter of 2006, rising from € 2.9 million to € 6.2 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 5.3% to 7.4% on a first quarter comparison.
As of March 31, 2007, total consolidated assets amounted to € 428.2 million, € 12.7 million below the level on December 31, 2006 (€ 440.9 million). The shortening of the balance sheet is largely due to the redemption of finance debt as well as the decline in inventories and trade payables.
Cash flow in the first three months of the current business year jumped to € 6.4 million compared with € 2.9 million in the same period of last year, and reflected the much stronger quarterly earnings. As planned, regular and special redemptions as well as changes in current assets led, by contrast, to cash outflows. The cash position on March 31, 2007 amounted to € 12.7 million, slightly above the level of the previous year (March 31, 2006: € 14.2 million).
The consolidated equity of TA Triumph-Adler AG totaled € 52.7 million including minority interests as of March 31, 2007 as a result of the net profit generated for the quarter. The comparable value on December 31, 2006 was € 50.9 million. This allowed the equity ratio to rise from 11.5% to 12.3%.
The TA Triumph-Adler Group employed 1,403 members of staff as of March 31, 2007, following 1,414 on December 31, 2006.
The company anticipates revenue of approximately € 400 million for the current financial year, a further improvement in operating profit, pre-tax earnings just into double digits, and is thereby confirming the forecasts issued so far.
In its unaudited quarterly report published today, the company is also reiterating the consequences of the announced reform of corporate taxation. The reduction of the income-tax rate to around 30% will lead to the requirement for an adjustment to deferred tax in the consolidated balance sheet of around € 36 million. These effects will require recognition in the financial statements at the time of the conclusion of the legislative process. 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. In this respect, the potential reform of corporate taxation will for this reason have no effect on the financial statements of TA Triumph-Adler AG.
TA Triumph-Adler is planning to completely redeem its existing financing for the 2007 business year. A cash capital increase of approximately € 20 million is being prepared, along with a balanced mix of debt instruments. The refinancing, which is currently running to plan, is intended to result in a significant expansion of the company's room to maneuver with respect to continued growth in revenue and earnings, including through targeted acquisitions in the core business. Due to the current nominal value per share, which is € 2.56, as well as to settle accumulated losses, we intend to perform a reduction of the issued share capital to just under € 60 million before we perform the capital increase as part of the Shareholders' General Meeting scheduled for May 23, 2007. This will entail the partial release of the capital reserve. The implementation of this measure will also restore TA Triumph-Adler AG's ability to pay dividends. The replenishing of equity capital will additionally allow the company to offset the devaluation risks to deferred tax resulting from the reform of corporate taxation.
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 Information:
This press statement contains forward-looking statements that are based on the assumptions and estimations of the management of TA Triumph-Adler AG. Even though the management is of the opinion that these assumptions and estimations are correct, the actual future development and the actual future results of these assumptions and estimations may deviate materially owing to many different factors. These factors could include, for example, a change in the overall economic situation, exchange rates, interest rates as well as changes in the development of the market and changes to the competitive situation arising from technological change. TA Triumph-Adler AG undertakes no guarantee that the future development and the actual future results achieved will meet the assumptions and estimations expressed in this press statement, nor does it assume any liability in this regard.
Nuremberg, May 15, 2007 - In the first three months of the 2007 financial year, TA Triumph Adler AG exceeded its group revenue growth target and fully met its quarterly earnings target. The consolidated revenue of TA Triumph-Adler AG in the first quarter grew by 20.1%, from € 87.6 million in the previous year's first-quarter to € 105.2 million in the first quarter of 2007. The specialist in efficiency in the Document Business generated half-year net income before minority interests of €1.9 million, following on € 0.1 million in the comparable quarter of the previous year.
Operating profit (EBIT) more than doubled compared with the first quarter of 2006, rising from € 2.9 million to € 6.2 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 5.3% to 7.4% on a first quarter comparison.
As of March 31, 2007, total consolidated assets amounted to € 428.2 million, € 12.7 million below the level on December 31, 2006 (€ 440.9 million). The shortening of the balance sheet is largely due to the redemption of finance debt as well as the decline in inventories and trade payables.
Cash flow in the first three months of the current business year jumped to € 6.4 million compared with € 2.9 million in the same period of last year, and reflected the much stronger quarterly earnings. As planned, regular and special redemptions as well as changes in current assets led, by contrast, to cash outflows. The cash position on March 31, 2007 amounted to € 12.7 million, slightly above the level of the previous year (March 31, 2006: € 14.2 million).
The consolidated equity of TA Triumph-Adler AG totaled € 52.7 million including minority interests as of March 31, 2007 as a result of the net profit generated for the quarter. The comparable value on December 31, 2006 was € 50.9 million. This allowed the equity ratio to rise from 11.5% to 12.3%.
The TA Triumph-Adler Group employed 1,403 members of staff as of March 31, 2007, following 1,414 on December 31, 2006.
The company anticipates revenue of approximately € 400 million for the current financial year, a further improvement in operating profit, pre-tax earnings just into double digits, and is thereby confirming the forecasts issued so far.
In its unaudited quarterly report published today, the company is also reiterating the consequences of the announced reform of corporate taxation. The reduction of the income-tax rate to around 30% will lead to the requirement for an adjustment to deferred tax in the consolidated balance sheet of around € 36 million. These effects will require recognition in the financial statements at the time of the conclusion of the legislative process. 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. In this respect, the potential reform of corporate taxation will for this reason have no effect on the financial statements of TA Triumph-Adler AG.
TA Triumph-Adler is planning to completely redeem its existing financing for the 2007 business year. A cash capital increase of approximately € 20 million is being prepared, along with a balanced mix of debt instruments. The refinancing, which is currently running to plan, is intended to result in a significant expansion of the company's room to maneuver with respect to continued growth in revenue and earnings, including through targeted acquisitions in the core business. Due to the current nominal value per share, which is € 2.56, as well as to settle accumulated losses, we intend to perform a reduction of the issued share capital to just under € 60 million before we perform the capital increase as part of the Shareholders' General Meeting scheduled for May 23, 2007. This will entail the partial release of the capital reserve. The implementation of this measure will also restore TA Triumph-Adler AG's ability to pay dividends. The replenishing of equity capital will additionally allow the company to offset the devaluation risks to deferred tax resulting from the reform of corporate taxation.
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 Information:
This press statement contains forward-looking statements that are based on the assumptions and estimations of the management of TA Triumph-Adler AG. Even though the management is of the opinion that these assumptions and estimations are correct, the actual future development and the actual future results of these assumptions and estimations may deviate materially owing to many different factors. These factors could include, for example, a change in the overall economic situation, exchange rates, interest rates as well as changes in the development of the market and changes to the competitive situation arising from technological change. TA Triumph-Adler AG undertakes no guarantee that the future development and the actual future results achieved will meet the assumptions and estimations expressed in this press statement, nor does it assume any liability in this regard.