LECTRA
- Revenues: €205.7 million (+8%)*
- Income from operations: €29.1 million (+8%)*
- Net income: €20.1 million (+7%)
- Free cash flow: €19.2 million
- Net cash: €84 million
*like-for-like
| In millions of euros | July 1 - September 30 | January 1 - September 30 | ||
| 2017 | 2016 | 2017 | 2016 | |
| Revenues | 67.2 | 64.4 | 205.7 | 190.7 |
| Change like-for-like (%) | +7% | +8% | ||
| Income from operations | 10.6 | 11.2 | 29.1 | 26.6 |
| Change like-for-like (%) | +3% | +8% | ||
| Operating margin (in % of revenues) | 15.8% | 17.4% | 14.1% | 13.9% |
| Net income | 7.3 | 8.1 | 20.1 | 18.7 |
| Change at actual exchange rates (%) | -9% | +7% | ||
| Free cash flow | 2.9 | 9.1 | 19.2 | 16.2 |
| Shareholders' equity(1) | 141.8 | 132.6 | ||
| Net cash(1) | 84.0 | 75.7 | ||
- At September 30, 2017 and December 31, 2016
Paris, October 30, 2017. Today, Lectra's Board of Directors, chaired by Daniel Harari, reviewed the unaudited consolidated financial statements for the third quarter and first nine months of 2017.
Comparisons between 2017 and 2016 are based on 2016 exchange rates ("like-for-like") unless stated otherwise.
Third Quarter 2017
After increasing by 12% in the first half, orders for new systems (€26.5 million) rose by 15% compared to Q3 2016.
Revenues (€67.2 million) increased by 7% (+4% at actual exchange rates).
Income from operations amounted to €10.6 million, up 3% like-for-like but down by 5% at actual exchange rates. The operating margin was 15.8%, down 0.8 percentage points (-1.6 percentage points at actual exchange rates).
Net income amounted to €7.3 million, down €0.7 million (-9%) at actual exchange rates.
First Nine Months 2017
Strong growth in orders for new systems
Orders for new systems (€90.8 million) increased by 13% relative to the first nine months of 2016: +11% for new CAD/CAM and PLM software licenses, +15% for CAD/CAM equipment and accompanying software and +7% for training and consulting.
Orders for new systems were stable in Asia-Pacific and increased in all other regions. They increased 25% in Europe, 13% in the Americas, and 30% in the rest of the world (Northern Africa, South Africa, Turkey, the Middle East, etc.).
Orders increased in all market sectors: in the fashion and apparel market they were up 19%, 6% in the automotive market, and 14% in the furniture market. In the other industries, they increased by 22%.
Increase in revenues and results
Revenues (€205.7 million) were up 8% both like-for-like and at actual exchange rates. Revenues from new systems sales (€90.8 million) increased by 10% and recurring revenues (€114.9 million) by 6%.
Income from operations (€29.1 million) increased by €2.3 million (+8%) like-for-like and €2.4 million (+9%) at actual exchange rates.
The operating margin (14.1%) was up 0.1 percentage points like-for-like and 0.2 percentage points at actual exchange rates.
Net income amounted to €20.1 million, up 7% at actual exchange rates.
Particularly high free cash flow - A zero-debt company, a very strong balance sheet
Free cash flow amounted to €19.2 million, rising by €8.1 million at actual exchange rates compared to the first nine months of 2016, before receipt of the balance of the 2012 French research tax credit of €5.1 million. The Company expects to receive reimbursement of the balance (€6.3 million) of the 2013 research tax credit in Q4.
At September 30, 2017, consolidated shareholders' equity amounted to €141.8 million, after payment of the dividend of €11 million (€0.35 per share) declared in respect of FY 2016.
Cash and cash equivalents and net cash position totaled €84 million.
2017 Outlook
In its February 9, 2017 financial report and its 2016 annual report, to which readers are invited to refer, the Company reported its long-term vision, its new 2017-2019 strategic roadmap, and its 2017 business trends and outlook.
Lectra entered 2017 with stronger than ever operating fundamentals and an even stronger balance sheet.
Nevertheless, persistent macroeconomic, geopolitical, political and currency uncertainties, together with increased related risks, continue to weigh heavily on businesses' investment decisions.
In these conditions, the Company targeted, at the beginning of the year, 6% to 12% revenue growth for 2017, and 7% to 15% growth in income from operations before non-recurring items, like-for-like.
In view of its first nine months business activity and financial results, the Company remains confident of achieving this objective.
On another note, the recent appreciation of the euro against the dollar and many other currencies, if it were to be confirmed, would mechanically reduce revenues in Q4 by approximately €3 million and income from operations by €1.8 million based on parities at September 30, 2017 compared to Q4 2016 (in particular $1.18/€1 against $1.08/€1).
Bolstered by the strength of its business model and a new roadmap fully geared to the demands of Industry 4.0, the Company remains confident in its growth prospects for the medium term.
Q4 and FY 2017 earnings will be published on February 12, 2018.
The management discussion and analysis of financial condition and results of operations and the financial statements for the third quarter and the first nine months of 2017 are available on lectra.com.
With 1,600 employees worldwide, Lectra is the world leader in integrated technology solutions (software, automated cutting equipment, and associated services) specifically designed for industries using fabrics, leather, technical textiles, and composite materials to manufacture their products.
Lectra serves major global markets: fashion and apparel, automotive (car seats and interiors, airbags), and furniture as well as a broad array of other industries (aeronautics, marine, wind power, etc.).
Lectra (code ISIN FR0000065484) is listed on Euronext (compartment B).
lectra.com
Lectra - World Headquarters: 16-18, rue Chalgrin · 75016 Paris · France
Tel. +33 (0)1 53 64 42 00 - Fax +33 (0)1 53 64 43 00 - www.lectra.com
A French Société Anonyme with capital of € 31,250,212 · RCS Paris B 300 702 305
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: LECTRA via Globenewswire
