Ad-hoc | 15 November 2004 07:31

AC-Service Achieves Positive EBIT in a Difficult Environment

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AC-Service Achieves Positive EBIT in a Difficult Environment Momentum from accelerated sales and expanded range of products and services. Third-quarter EBIT at EUR 0.3 million (Q3/03: EUR -0.1 million). Earnings per share of 0,06 EUR (Q3/03: -0,12 EUR) following favourable tax-related special effects. Sales after 9 months reach EUR 32.9 million (9 months 2003: EUR 36.4 million), EBIT at EUR 0.7 million (9 months 2003: EUR 1.8 million). Strong balance sheet with capital ratio of 63% and enormous financing potential for further expanding business operations. Stuttgart, 15 November 2004 – In an economic setting that remained difficult and challenging, AC-Service, as an IT service provider focused on IT Outsourcing, Human Resource Services and SAP Consulting, succeeded in gaining favourable impetus this past third quarter from its accelerated sales efforts, optimised organisational structure and expanded range of products, systems and services. In the third quarter, after regular goodwill amortisation of EUR 0.2 million (Q3/03: EUR 0.2 million) and after adjusted tax assessments for previous years led to a reduction of some EUR 0.2 million in tax expenses, AC- Service achieved an EBIT of EUR 0.3 million (Q3/03: EUR -0.1 million), a net result for the period of EUR 0.3 million (Q3/03: EUR -0.6 million) and earnings per share (IFRS) of 0,06 EUR (Q3/03: -0,12 EUR). Third-quarter sales were EUR 10.4 million (Q3/03: EUR 11.3 million). The positive earnings performance of the third quarter was, however, unable to offset those second- quarter losses that were due in large part to one-time expenses. Whereas investment tax credits and foreign currency gains of EUR 0.6 million (Q2/03) favourably impacted the 9-month results for 2003, the current 9-month results include value adjustments on deferred income tax assets (Q2/04) of EUR -0.8 million. Overall after 9 months AC-Service reported sales of EUR 32.9 million (9 months 2003: EUR 36.4 million), an EBIT of EUR 0.7 million (9 months 2003: EUR 1.8 million) and a net period result of EUR -0.4 million (9 months 2003: EUR 1.0 million). The average staffing strength (full-time equivalents) was 293 people (9 months 2003: 320 people). Cash and cash equivalents in the third quarter rose to EUR 12.2 million (31 Dec 03: EUR 13.4 million) from EUR 10.7 million (30 Jun 04). This results in a free cash flow after 9 months of EUR 0.9 million (9 months 2003: EUR 1.6 million) following cash flows from operating activities of EUR 3.5 million (9 months 2003: EUR 4.2 million) and cash of EUR 2.6 million used in investing, which was at the same level as a year ago. The EUR 25.1 million (31 Dec 03: EUR 26.4 million) in shareholders’ equity accounts for 63% (31 Dec 03: 62%) of the balance sheet total of EUR 39.7 million (31 Dec 03: EUR 42.8 million). In spite of what continues to be a sluggish and difficult economy, our aggressive selling, an expanded range of products and services, as well as enhanced co-operation with our partners will increasingly come into effect. In light of how sales are developing, actions will continue to be taken to optimise cost efficiency. The Board of Directors expects sales revenues for the full 2004 year to be less than last year and in line with how sales performed during the first three quarters of 2004, along with a positive EBIT before consideration of any special influences that may arise. Thanks to its robust, healthy balance sheet and cash and cash equivalents of EUR 12.2 million, AC-Service now enjoys additional freedom of action for financing activities to expand its business operations. Additional information available on the Internet at http://www.ac-service.com end of ad-hoc-announcement (c)DGAP 15.11.2004 ——————————————————————————– WKN: 511000; ISIN: DE0005110001; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 150731 Nov 04