Corporate | 22 March 2016 07:22
Evotec FY 2015: Excellent execution meets first-in-class innovation
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DGAP-News: Evotec AG / Key word(s): Final Results
Hamburg, Germany – 22 March 2016 : Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced its financial results for the fiscal year ended 31 December 2015. Very strong financial performance in 2015; guidance comfortably achieved – Substantial Group revenue growth of 43% to EUR 127.7 m (2014: EUR 89.5 m); base revenues up 57% to EUR 115.4 m – Revenue growth in both operating segments: EVT Execute revenues up 44% to EUR 134.0 m, EV0T Innovate revenues +46% to EUR 21.5 m – Adjusted Group EBITDA positive and up 13% to EUR 8.7 m (2014: EUR 7.7 m) – Significantly improved adjusted EBITDA of EUR 23.8 m for EVT Execute (2014: EUR 22.1 m) – R&D expenses +48% to EUR 18.3 m; increased investment in Cure X /Target X initiatives and newly acquired oncology projects – High and stable liquidity position at EUR 133.9 m; EUR 134.5 m excluding M&A and related payments (Earn-out Euprotec)
Operational excellence in both business segments
– New alliances initiated and important collaborations extended – Integration of additional capabilities at newly acquired site in Toulouse and new US site in Princeton fully on track – Important milestone achievements in existing alliances EVT Innovate – Successful acceleration of first-in-class science – Partnering of four significant Cure X /Target X initiatives – Significant expansion of Cure X /Target X portfolio despite setbacks in Evotec’s legacy pipeline EVT Equity – Company formation “Topas Therapeutics GmbH” to accelerate drug discovery and product development to treat autoimmune diseases (22 March 2016) – Formation of a spin-off company (Topas Therapeutics GmbH) in the field of nanoparticle-based therapeutics to treat immunological disorders; completed Series A funding of EUR 14 m Guidance 2016 – Group revenues excluding milestones, upfronts and licences are expected to increase more than 15% – Research and development (R&D) expenses in 2016 to be approximately EUR 20 m – Adjusted Group EBITDA (before changes in contingent considerations) is expected to be positive and significantly improved compared to 2015 – Capacity and capability building with up to EUR 10 m capex investments
– Liquidity at 31 December 2016 expected to be at a similar level to the prior year
1. Financial performance 2015 Very strong financial performance in 2015; guidance comfortably achieved In 2015, Evotec’s Group revenues grew to EUR 127.7 m, an increase of 43% compared to the same period of the previous year (2014: EUR 89.5 m). This increase resulted primarily from a growth in the core EVT Execute business with new partners, a strong contribution from the anti-infective business unit, four new strategic partnerships out of the Cure X /Target X initiatives and favourable foreign exchange rate effects. Excluding milestones, upfronts and licences, Evotec’s revenues for 2015 were EUR 115.4 m, an increase of 57% over the same period of the previous year (2014: EUR 73.4 m). Revenues from milestones, upfronts and licences amounted to EUR 12.3 m, a decrease of 24% compared to the previous year (EUR 16.1 m), which is mainly attributable to lower milestone contributions in 2015. In 2015, Evotec’s R&D expenses amounted to EUR 18.3 m (2014: EUR 12.4 m). This increase results from significant investments in newly acquired oncology projects through the Sanofi collaboration as well as higher investments in ongoing Cure X and Target X initiatives. Selling, general and administrative (SG&A) expenses increased by 40% in 2015 to EUR 25.2 m (2014: EUR 18.0 m) mainly due to one-time M&A-related costs, ongoing SG&A expenses at the newly acquired Toulouse site, adverse foreign exchange rate movements and higher compensation expenses relating to outstanding share performance awards. Adjusted Group EBITDA in 2015 amounted to EUR 8.7 m (2014: EUR 7.7 m). EBITDA was adjusted for changes in contingent consideration as well as for one-time effects with regards to the bargain purchase resulting from the acquisition of Evotec (France) SAS in 2015 and Bionamics GmbH in 2014. Evotec’s operating income in 2015 amounted to EUR 11.6 m (2014: operating loss of EUR 6.4 m) and was driven by the one-time effect of the income from bargain purchase resulting from the acquisition of Evotec (France). Liquidity, which includes cash and cash equivalents (EUR 44.5 m) and investments (EUR 89.4 m) amounted to EUR 133.9 m as of 31 December 2015 (31 December 2014: EUR 88.8 m). This increase is mainly attributable to the cash received from the Sanofi collaboration (EUR 37.3 m). Liquidity adjusted for M&A and related payments amounted to EUR 134.5 m.
Revenues from the EVT Execute segment amounted to EUR 134.0 m in 2015 (2014: EUR 93.3 m) and included EUR 27.7 m of intersegment revenues (2014: EUR 18.5 m). This sharp increase mainly resulted from the contribution of new customers as well as growth in the core EVT Execute business, a strong contribution from the anti-infective business unit and favourable foreign exchange rate effects. The EVT Innovate segment generated revenues of EUR 21.5 m (2014: EUR 14.7 m) consisting entirely of third-party revenues. This increase compared to the prior year mainly results from EVT Innovate projects which were partnered in 2015. Gross margin for EVT Execute amounted to 23.2% while EVT Innovate generated a gross margin of 54.0%. R&D expenses for the EVT Innovate segment amounted to EUR 22.4 m in 2015 (2014: EUR 14.1 m) due to the additional investments in the oncology portfolio from the Sanofi collaboration as well as higher investments in existing Cure
X
and Target
X
initiatives. In 2015, the adjusted EBITDA (before changes in contingent consideration) of the EVT Execute segment was strongly positive at EUR 23.8 m and improved compared to the same period of the previous year (2014: EUR 22.1 m). The EVT Innovate segment reported a negative EBITDA before changes in contingent consideration of EUR (15.1) m similar to the previous year (2014: EUR (14.4) m).
2. Operational performance 2015 Operational excellence in both business segments
EVT Execute – Further improved global leadership position
EVT Innovate – Successful acceleration of first-in-class science
3. EVT Equity – Company formation “Topas Therapeutics GmbH” to accelerate drug discovery and product development
to treat autoimmune diseases (22 March 2016)
4. Guidance 2016
2)
Before contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result
Evotec pursues a business model in which revenues and operating profitability are highly dependent on the achievement and timing of milestones. In 2016, total Group revenues excluding milestones, upfronts and licences are expected to increase more than 15%. This assumption is based on the current order book, expected new contracts and contract extensions. Evotec expects research and development (R&D) expenses in 2016 to be approximately EUR 20 m in total. The funding will be used to optimally support the competitive positioning of Evotec’s assets. The Company will focus on key programmes and targets to invest in, especially in innovation in the fields of oncology and metabolic disease franchises as well as in its iPS cell based drug discovery initiatives.
Evotec’s
adjusted Group EBITDA
(before changes in contingent considerations) is expected to be positive and significantly improved compared to 2015.
In 2016, Evotec will continue to invest in its technology platforms and capacities in order to drive its long-term growth strategy. It is therefore planned that up to EUR 10 m will be invested in further capacity increases and the upgrade of Evotec’s technological capabilities. Liquidity at 31 December 2016 is expected to be at a similar level to the prior year. This forecast excludes any potential cash outflow for M&A or similar transactions.
The Company’s mid-term financial plan does not envisage the need for any additional external financing for Evotec’s operating business. However, all strategically desirable moves such as potential company or product acquisitions will need to be considered separately.
Webcast/Conference Call
Conference call details
Date:
Tuesday, 22 March 2016
From Germany: +49 (0) 69 22 22 29 043
A simultaneous slide presentation for participants dialling in via phone is available at http://www.audio-webcast.com/, password: evotec0316. Webcast details To join the audio webcast and to access the presentation slides you will find a link on our home page www.evotec.com shortly before the event.
A replay of the conference call will be available for 24 hours and can be accessed in Europe by dialling +49 (0) 69 22 22 33 985 (Germany) or +44 20 3426 2807 (UK) and in the US by dialling +1 866 535 8030. The access code is 654573#. The on-demand version of the webcast will be available on our website:
ABOUT EVOTEC AG
FORWARD LOOKING STATEMENTS
– Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this press release. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.
Fiscal year 2015 results
Key figures of consolidated income statement
In TEUR except share data and per share data
Segment information
2015
2014
Key figures of consolidated statement of financial position
In TEUR
Contact Evotec AG:
2016-03-22 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English | |
| Company: | Evotec AG | |
| Manfred Eigen Campus / Essener Bogen 7 | ||
| 22419 Hamburg | ||
| Germany | ||
| Phone: | +49 (0)40 560 81-0 | |
| Fax: | +49 (0)40 560 81-222 | |
| E-mail: | info@evotec.com | |
| Internet: | www.evotec.com | |
| ISIN: | DE0005664809 | |
| WKN: | 566480 | |
| Indices: | TecDAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX | |
| End of News | DGAP News Service |