Satair A/S
Q3 and first nine months of FY 2010/11

Satair A/S 

10.05.2011 07:57
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Satair reports sustained strong growth, raises full-year guidance

Third-quarter revenue and profit went above expectations. Revenue totaled USD
102.0 million, up 33% of which 23% is organic; profit before tax on continuing
activities came to USD 9.1 million, up 144%, and the free cash flow came to USD
0.1 million against the year-earlier level of USD 8.0 million. Year over year
the amount tied up in working capital increased USD 23.8 million in support of
the growth that follows naturally from strong revenue growth. 

CEO John Stær comments: 'Satair remains on the growth trail and reached a
milestone in the third quarter, when revenue went beyond USD 100 million in a
reflection of third-quarter revenue growth of 33% of which 23% is organic. At
the same time the SG&A margin is declining noticeably, contributing to an
all-time high EBITDA margin of 10%. Against this background it has been decided
to raise once again the guidance for the full year. It has been an
exceptionally good quarter, fuelled by factors such as inventory build-ups by
many customers', explains CEO John Stær. 

Q3 2010/11 in brief

  -- Revenue: USD 102.0 million (33%, of which 23% is organic)
  -- Gross margin: 21.2 (21.5)
  -- SG&A margin: 11.6 (13.5)
  -- EBITDA: USD 10.2 million (USD 5.5 million) and margin: 10.0% (7.2%)
  -- EBIT: USD 8.8 million (USD 4.3 million) and margin: 8.7% (5.6%)
  -- Profit before tax: USD 9.1 million (USD 3.7 million)
  -- Free cash flow: USD 0.1 million (USD 8.0 million)

Nine months of 2010/11 in brief

  -- Revenue: USD 287.3 million USD (31%, of which 20% is organic)
  -- Gross margin: 20.8 (20.9)
  -- SG&A margin: 11.6 (13.7)
  -- EBITDA: USD 27.8 million (USD 16.6 million) and margin: 9.7% (7.6%)
  -- EBIT: USD 23.8 million (USD 13.0 million) and margin 8.3% (5.9%)
  -- Profit before tax: USD 21.4 million (USD 10.1 million)
  -- Free cash flow: USD 155.6 million (USD -5.9 million)
  -- Profit including discontinuing activities: USD 82.5 million

Acquisition of company
After the closing of Q3, Satair acquired the activities of Aero Quality
Services (AQS). See note 5 for more information. 

Raising the 2010/11 guidance
Satair is raising its revenue and profit forecast for the full year, now
expecting revenue in the region of USD 390-395 million (previously USD 380
million), reflecting growth from the year-earlier level of approx. 30%. The
growth margin is now forecast at around 20.5-21.0% (previously 20.0-20.5%),
EBITDA at approx. USD 36-37 million (previously USD 32-34 million) and an
EBITDA margin of around 9.5% (previously approx. 8.5-9.0%). Profit before tax
of the continuing activities is forecast at around USD 28-29 million
(previously around USD 23-25 million). Profit for the year including gain from
the sale of the OEM Division is forecast at around USD 88 million (previously
USD 85 million). After the acquisition of AQS the free cash flow is forecast at
USD 132 million (previously USD 162 million). The free cash flow before
acquisitions and divestments of companies is expected to remain unchanged at
around USD 15 million. 


         CEO John Stær, jst@satair.com, +45 4015 9286
         CFO Michael Højgaard, mih@satair.com, +45 4030 4349
News Source: NASDAQ OMX



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Language:     English
Company:      Satair A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010230390
WKN:          
 
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