Pankl Racing Systems AG - 2016Q1-3

Kapfenberg, 7 November 2016

  • Favourable Q3 results - Operating earnings increased by 61% to €2.2m

  • Ongoing stable motor racing business, good utilisation in high performance business

  • Persistently weak aerospace orders

€k

2016Q1-3

2015Q1-3

CHG

2016Q3

2015Q3

CHG

Revenues

138,648

129,566

7%

43,263

41,276

5%

EBITDA

19,890

18,000

11%

5,347

4,666

15%

EBIT

10,232

8,034

27%

2,230

1,381

61%

Earnings after tax

6,755

5,019

35%

1,266

486

160%

EBITDA margin

14%

14%

-

12%

11%

-

EBIT margin

7%

6%

-

5%

3%

-

In the first nine months of the fiscal year 2016, Pankl Group achieved revenues of €138.6m, an increase of 7.0% versus the same period last year. After a favourable Q2 we were also able to generate revenues and substantial earnings growth in Q3, the weakest seasonal quarter during the year.

In the first nine months of the fiscal year 2016, EBIT was improved significantly and increased by 27.4% to €10.2m or 7.4% of revenues (2015Q1-3: €8.0m or 6.2% of revenues). The net financial results amounted to €-2.2m, a €0.7m deterioration versus the same period last year (2015Q1-3: €-1.5m). This was due to the foreign exchange development of the USD and the GBP against the EUR. In 2016Q1-3, income taxes were slightly lower than last year, so that the overall earnings after tax amounted to €6.8m versus €5.0m in the same period last year. Earnings per share amounted to €2.17 (2015Q1-3: €1.52).

Also cash flow improved significantly. In 2016Q1-3, cash flow from operating activities amounted to €18.8m versus €13.3m in 2015Q1-3. Despite an increase in capital expenditure, we improved operating free cash flow from €2.9m in 2015Q1-3 to €4.8m in 2016Q1-3.

Racing/High Performance Segment

In 2016Q1-3, Racing/High Performance Segment revenues increased by 7.5% from €112.0m to €120.4m. This was due to ongoing good utilisation in the high performance business and a stable motor racing business. As a result operating earnings (EBIT) improved significantly and increased by 42.7% to €9.3m or 7.7% of revenues (2015Q1-3: €6.5m or 5.8% of revenues).

Aerospace Segment

Due to the ongoing adverse market environment for helicopters, Aerospace Segment orders remained at weak levels. Nevertheless, revenues increased by 5.9% to €18.7m during the reporting period (2015Q1-3: €17.7m). Also operating earnings (EBIT) improved slightly and amounted to €0.6m or 3.2% of revenues (2015Q1-3: €0.5m or 3.0% of revenues).

Outlook

CEO Wolfgang Plasser: "We are very pleased with the development of revenues and especially earnings as the overall market environment continued to be difficult. Profitability improved overproportionally due to a for us more favourable product mix and significant productivity improvements. The helicopter market, which was extremely difficult in the last two years, seems to have reached a bottom and started to stabilise at low levels. Due to current order intake and order levels we also expect solid results in Q4. Preparations for the 2017 start of production at our new high performance drivetrain facility are running at full speed according to plan."

For further information:

Investor Relations

Tel.: +43 3862 33 999 815

e-mail: ir@pankl.com Internet: www.pankl.com

Pankl Racing Systems AG published this content on 07 November 2016 and is solely responsible for the information contained herein.
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