Corporate | 15 May 2007 08:00
Bechtle AG / Quarter Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Increase in revenue of 7.2 per cent / over-proportional growth in Earnings before Tax Neckarsulm, 15/05/2007 – Bechtle AG increased its revenue in the 2007 first quarter by more than the average market growth and raised earnings disproportionately high in comparison with revenue. By the 31st March, the IT services and retail company group revenue increased by 7.2 per cent to 311.9 million euros (previous year: 291.0 million euros). The group earnings before taxes (EBT) at 13.2 million Euros was up on the previous year by 50.6 per cent (previous year: 8.8 million Euros). This includes one-off special items to the amount of 2.6 million Euros. Excluding the positive special items, the EBT margin rose to 3.4 per cent (previous year: 3.0 per cent). The Earnings per Share reached 0.43 Euros compared with the 0.27 Euros from the comparative period in the previous year. 'We started the year well and are happy with the good results we have achieved. The sector as a whole has gained momentum. Particularly in our core sector, the medium-sized businesses, the readiness to invest has noticeably increased. This year, however, we are concentrating on not-yet completed internal restructuring as well as integration measures for the newly acquired businesses. Against this background, the Earnings from the first quarter are all the more enjoyable', said Ralf Klenk, Chairman of the Board of Bechtle AG IT System House Segment with Operating Profit Margin Improvement With 193.1 million Euros, the IT system house segment lies at 1.4 per cent over the previous year revenue of 190.5 million Euros. The 60 Bechtle IT system houses account for 61.9 per cent of the total revenue. The operating profit EBIT rose significantly from 2.0 million Euros to 5.8 million Euros. This, however, is where the special items take effect. This involves the sale of property in Switzerland that we haven't used ourselves as well as a reimbursement of costs in connection with a now settled lawsuit. But even without the special items, the EBIT segment increased by 62.0 per cent to 3.2 million Euros. The EBIT margin, without special items, amounted to 1.7 per cent, after 1.0 per cent in the comparative period of the previous year. In particular, the increased productivity as well as cost reductions took effect due to restructuring measures adopted in the previous year. IT E-commerce Segment as Growth Driver In IT e-commerce, Bechtle achieved a strong increase in revenue of 18.2 per cent to 118.8 million Euros. The EBIT grew by 7.0 per cent to 7.1 million Euros. The EBIT margin then amounted to 6.0 per cent (previous year: 6.6 per cent). The expansion of the sales team was noticeable through the increased revenue. However, earnings show the cost of training and qualifying new employees. Nevertheless, the expansion of the sales team is an important investment in the future of the IT e-commerce segment for Bechtle. The margin was additionally burdened by the product mix with a high share of low-margin hardware products. Balance sheet structure continues to be stable On the 31st March 2007, the equity ratio lay at 64.3 per cent, after 60.0 per cent on the 31st December 2006. The return on equity rose, in comparison with the previous year quarter, from 2.5 to 3.6 per cent. Together with free credit lines in the amount of 43.3 million Euros, on the 31st March 2007 Bechtle had a cash reserve of 93.0 million Euros. Thus, financially, the group has room for future growth. The cash flow from operating activities rose in the first three months, compared to the previous comparative period, by 123.7 per cent to 12.3 million Euros. Background are, primarily, the increased EBT and the reduced Net working capital. The free cash flow increased noticeably from 2.4 million Euros to 10.4 million Euros. Over 4000 employees, for the first time On the 31st March 2007, the Bechtle group comprised 4007 employees. This is the first time in the company's history that there have been over 4000 employees on Bechtle's payroll. At the end of 2006, there were 3888 employees. The increase was as much a consequence of the acquisitions as it was additions to the sales team in the e-commerce branch. Events after the end of the quarter: Acquisitions in Switzerland and the Netherlands, Bechtle subsidiary ARP in France In April, Bechtle acquired two further companies: The Dutch buyitdirect.com NV, a traditional B2B e-commerce retailer with a strong focus on the licence business, and the Swiss Coma Services AG, a service provider for printers and multifunctional peripherals. On 2nd May, the Bechtle subsidiary ARP Datacon launched the newly founded ARP France SAS with an online trade platform in France. Thus, ARP who are also present in the Netherlands, introduced their second location in a non-German-speaking country. In the medium term, ARP is supposed to establish locations in all countries where Bechtle direct is present already today to accommodate our multi-brand strategy. Forecast for the total year confirmed Against the background of the good 2007 first quarter, the executive board, in an Ad Hoc on 24th April, increased its original prognosis of 48 million Euros for the total year EBT. Presupposing a constantly good economic situation and a strong final quarter, they expect an EBT of at least 50 million Euros. The board sees the revenue as unchanged from the original prognosis from the end of March in a target corridor of 1.30 to 1.35 thousand million Euros. 'The course adopted by us – expansion of sales activities in e-commerce, concentration on margin improvement in the IT system house segment and expansion of the Managed Services – will be consistently maintained by us. Furthermore, we will hold all possibilities for acquisitions open', said Ralf Klenk Quarter numbers in overviewth. Euros Q1/2007 Q1/2006 Change Revenue 311 887 291 000 + 7.2% Domestic 201 166 191 211 + 5.2% Abroad 110 721 99 789 + 11.0% IT System House 193 110 190 531 + 1.4% IT E-commerce 118 777 100 469 + 18.2% EBITDA 16 100 11 804 + 36.4% EBIT 12 922 8662 + 49.2% IT System House 5778 1983 + 191.4% IT E-commerce 7144 6679 + 7.0% EBT 13 215 8777 + 50.6% Earnings After Tax 9031 5789 + 56.0% EPS (in Euros) 0.43 0.27 + 56.0% Equity Ratio (%) 64.3 62.3 + 3.3% Workforce(31/03) 4007 3906 + 2.6%The complete interim report is available for download in both English and German, at www.bechtle.com/qb. Contact: Bechtle AG Martin Link Investor Relations Phone: +49 (0) 7132/981-4149 Fax: +49 (0) 7132/981-4116 martin.link@bechtle.com DGAP 15.05.2007 ---------------------------------------------------------------------- Language: English Issuer: Bechtle AG Bechtle Platz 1 74172 Neckarsulm Deutschland Phone: +49 (0)71 32/ 9 81-0 Fax: +49 (0)7132/ 9 81 - 80 E-mail: ir@bechtle.com www: www.bechtle.com ISIN: DE0005158703 WKN: 515870 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------