- ISIN DK0010268366
Columbus A/S
Interim Management Statement for Q3 2014
DGAP-News: Columbus A/S
04.11.2014 / 12:27
---------------------------------------------------------------------
Columbus delivers strong result improvements in EBITDA (10%) and profit before
tax (127%) and maintains expectations for the year
Release no. 30/2014
In accordance with the regulations for listed companies' submission of interim
statements, Columbus A/S hereby submits the interim management statement for
the period 01.01.2014-30.09.2014 (9 months).
Profit before tax increased from DKK 13.3 to 30.1m in Q3 YTD
Revenue in Q3 YTD amounted to DKK 627.1m (2013: 636.2m), corresponding to a
decrease of 1%. In local currency revenues increased by 1%. EBITDA1 amounted to
DKK 45.5m (2013: 41.3m), corresponding to an increase of 10% compared to Q3 YTD
2013.
Profit before tax2 YTD improved by 127% compared to the same period last year.
The improved result is a consequence of three elements: 1) EBITDA increase of
10%. 2) A significant financial income primarily due to the increase in USD. 3)
The completed closure of the Middle East activities in 2013.
Focus on the execution of Columbus15
Columbus is now in the third year of executing the Columbus15 strategy and
continues the strong focus on selling Columbus software, consulting and
services to the industries food, retail and manufacturing, optimizing the
services business and reducing costs and managing risk in the entire
organization. The execution of Columbus15 is successful and Columbus continues
to execute the strategy.
Recovering of the subsidiaries in US and Norway
Columbus' subsidiary in the US is facing challenges in sales execution, which
consequently means a decline in both revenue and earnings. Columbus US is
currently executing recovery plans comprising a re-organization of their senior
management structure, and a strengthening of the sales management and the sales
team.
In Columbus Norway, we lost a large number of consultants in Q2 due to
headhunting activities from a competitor. This has led to extraordinary legal
fees, recruiting costs and free work when completing projects with new
consultants. Columbus Norway is executing recovery plans including a
re-organization of their senior management structure.
We expect that both subsidiaries will gradually improve performance during 2015.
Strong focus on industry solutions continues
The strong focus on customers in the industries food, retail and manufacturing
is successful. Revenues from key industries increased to 79% of total revenues
in Q3 YTD. The retail segment has experienced the greatest development with an
increase of 12 percentage points. The acquisition of Omnica in January, a
leading retail and eCommerce company in the UK, means that Columbus has
strengthened its offerings to this segment.
Revenue decline of 1%
Revenue declined by 1% despite a 7% increase in consultancy revenue. The
decline is due to lower external software sales, declining by DKK 35.2m
corresponding to 21%. The decline in sales is primarily due to discontinued
sales of low margin software in Russia and secondarily due to the lack of sales
in US.
DKK '000 YTD 2014 YTD 2013 Q3 2014 Q3 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Columbus licenses 16,707 18,884 5,291 6,031
Columbus subscriptions 21,949 19,716 6,527 5,226
External licenses 46,277 60,980 14,163 10,381
External subscriptions 83,054 103,521 24,640 26,761
Consultancy 445,935 417,713 136,216 129,464
Other 13,153 15,387 3,820 4,748
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net revenues 627,075 636,201 190,657 182,611
EBITDA before share-based compensation 45,521 41,288 9,238 6,630
Share-based compensation -2,136 -1,179 -842 -781
----------------------------------------------------------------------------
EBITDA 43,385 40,109 8,396 5,849
----------------------------------------------------------------------------
Columbus Software at the same level as in 2013
Revenue from Columbus Software amounted to DKK 38.7m in Q3 YTD, which is in
line with 2013. However, Columbus subscriptions increased by 11% compared to
2013. This is recurring revenue, which is an important part of ensuring
continuous earnings.
Continuous improvement of the consultancy business
The sale of consultancy services increased by 7% in Q3 YTD due to an increase
in productivity in the consultancy business, consequently invoicable hours
increased from 52% to 54%. The positive development is in line with
expectations.
Global Delivery continues the positive trend
Columbus Global Delivery Center continues to expand the capacity and delivered
4,262 days of customer support and implementations in Q3 YTD. This corresponds
to an increase of 37% compared to the same period last year.
Expectations to revenue and EBITDA are maintained
The announced expectations to 2014 are being maintained, and thus Columbus
expects revenue in the level of DKK 900m and an EBITDA1 in the level of DKK
80m.
Latest developments
No events or transactions with a material effect on the company's financial
position have occurred since the balance sheet date.
Ib Kunøe Thomas Honoré
Chairman CEO & President
Columbus A/S Columbus A/S
For further information, please contact:
CEO Thomas Honoré, T: +45 70 20 50 00.
1 EBITDA before share-based compensation
2 Profit before tax, from continuing operations
Income statement
DKK '000 YTD 2014 YTD 2013 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net revenue 627,075 636,201 879,805
External project costs -139,176 -156,601 -216,278
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gross profit 487,899 479,600 663,527
Staff expenses -355,284 -351,013 -476,207
Other external costs -87,677 -87,985 -116,145
Other operating income 604 686 914
Other operating costs -21 0 -5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EBITDA before share-based payment 45,521 41,288 72,084
Share-based payment -2,136 -1,179 -1,960
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EBITDA 43,385 40,109 70,124
Depreciation -17,555 -19,037 -25,352
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings before write down of goodwill (EBITA) 25,830 21,072 44,772
Write down of goodwill 0 0 0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating profit (EBIT) 25,830 21,072 44,772
Results in associated companies 0 -4,109 -4,109
Financial income 4,942 45 190
Financial expense -684 -3,734 -4,123
----------------------------------------------------------------------------
Profit before tax, continuing operations 30,088 13,274 36,730
----------------------------------------------------------------------------
Balance sheet
DKK '000 YTD 2014 YTD 2013 2013
-------------------------------------------------------------
-------------------------------------------------------------
ASSETS
Goodwill 187,606 168,564 167,705
Other intangible assets 2,640 2,128 1,446
Development projects finalized 35,116 35,686 43,288
Development projects in progress 11,018 11,895 3,593
-------------------------------------------------------------
Intangible assets 236,380 218,273 216,032
-------------------------------------------------------------
-------------------------------------------------------------
Leasehold improvements 161 912 781
Plant and operating equipment 7,683 8,818 8,873
-------------------------------------------------------------
Tangible assets 7,844 9,730 9,654
-------------------------------------------------------------
-------------------------------------------------------------
Deferred tax assets 17,885 19,733 19,418
-------------------------------------------------------------
-------------------------------------------------------------
Total long-term assets 262,109 247,736 245,104
-------------------------------------------------------------
-------------------------------------------------------------
Inventories 153 225 40
-------------------------------------------------------------
-------------------------------------------------------------
Trade receivables 117,400 117,445 138,929
Contract work in progress 13,133 17,374 9,471
Corporation tax 40 1,081 40
Other receivables 5,718 7,649 5,232
Prepayments 8,090 9,778 9,478
-------------------------------------------------------------
Receivables 144,381 153,327 163,150
-------------------------------------------------------------
-------------------------------------------------------------
Cash 81,788 49,105 75,410
-------------------------------------------------------------
-------------------------------------------------------------
Total short-term assets 226,322 202,657 238,600
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL ASSETS 488,431 450,393 483,704
-------------------------------------------------------------
Balance sheet
DKK '000 YTD 2014 YTD 2013 2013
---------------------------------------------------------------------
---------------------------------------------------------------------
LIABILITIES
Share capital 137,831 132,793 132,793
Reserves on foreign currency translation -9,794 -8,968 -10,680
Retained profit 171,096 149,445 144,940
Proposed dividends 0 0 13,279
---------------------------------------------------------------------
---------------------------------------------------------------------
Group shareholders equity 299,133 273,270 280,332
Minority interests 3,357 7,820 3,646
---------------------------------------------------------------------
Equity 302,490 281,090 283,978
---------------------------------------------------------------------
---------------------------------------------------------------------
Deferred tax 207 90 74
Provisions 5,696 507 121
Debt to credit institutions 0 21 6
Other debt 1,270 1,270 1,270
---------------------------------------------------------------------
Long-term debt 7,173 1,888 1,471
---------------------------------------------------------------------
---------------------------------------------------------------------
Credit institutions 7,403 6,112 2,385
Prepayments received from customers 20,339 12,405 14,946
Trade accounts payable 35,267 33,392 52,694
Corporation tax 4,606 6,540 5,235
Other debt 91,049 92,942 103,704
Accruals 20,104 16,024 19,291
---------------------------------------------------------------------
Short-term debt 178,768 167,415 198,255
---------------------------------------------------------------------
---------------------------------------------------------------------
Total debt 185,941 169,303 199,726
---------------------------------------------------------------------
---------------------------------------------------------------------
TOTAL LIABILITIES 488,431 450,393 483,704
---------------------------------------------------------------------
Segment data
In order to support decisions about allocation of resources and assessment of
performance of the segments, the Group's internal reporting to the Board of
Directors of the Parent Company is based on the following grouping of operating
segments:
Strategic business Description Geographical segment
areas
--------------------------------------------------------------------------------
ISV (Independent Development and sale of industry No specific area
Software Vendor) specific software within
Columbus' three focus
industries: Retail, food and
manufacturing
--------------------------------------------------------------------------------
Consultancy Sale and implementation of Western Europe
standard business systems. Eastern Europe
North America
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Information about the Group's segment is stated below.
Consultancy
---------------------------
---------------------------
DKK '000 ISV Western Eastern North Parent Total
Europe Europe America company/
Elimination
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
YTD 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Columbus licenses 11,807 7,599 1,835 1,583 -6,117 16,707
Columbus subscriptions 18,739 6,066 642 2,464 -5,962 21,949
External licenses 0 23,108 13,305 10,022 -158 46,277
External subscriptions 241 43,992 15,253 24,707 -1,139 83,054
Consultancy 10,471 294,025 81,689 68,573 -8,823 445,935
Other 625 7,788 2,026 2,539 175 13,153
--------------------------------------------------------------------------------
Total net revenue 41,883 382,578 114,750 109,888 -22,024 627,075
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross earnings 38,029 286,548 86,949 74,171 2,202 487,899
EBITDA 17,516 33,959 10,281 1,129 -19,500 43,385
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Consultancy
---------------------------
---------------------------
DKK '000 ISV Western Eastern North Parent Total
Europe Europe America company/
Elimination
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
YTD 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Columbus licenses 12,626 8,530 2,093 2,018 -6,383 18,884
Columbus subscriptions 16,481 4,947 675 2,782 -5,169 19,716
External licenses 19 19,935 27,399 13,668 -41 60,980
External subscriptions 1,123 50,579 23,587 28,333 -101 103,521
Consultancy 9,758 257,312 70,659 89,431 -9,447 417,713
Other 449 7,659 2,385 3,379 1,515 15,387
--------------------------------------------------------------------------------
Total net revenue 40,456 348,962 126,798 139,611 -19,626 636,201
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross earnings 36,460 266,053 82,294 99,357 -4,564 479,600
EBITDA 15,600 29,545 7,686 12,552 -25,274 40,109
--------------------------------------------------------------------------------
News Source: NASDAQ OMX
---------------------------------------------------------------------
04.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Columbus A/S
Denmark
ISIN: DK0010268366
End of News DGAP News-Service
---------------------------------------------------------------------
294923 04.11.2014
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found