Evs Reports First Half 2021 Results
Publication on August 24, 2021, before market openingRegulated
information – Press release first half 2021 resultsEVS Broadcast
Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB),
Reuters (EVSB.BR)
EVS REPORTS FIRST HALF
2021
RESULTSPreparing
to deliver
strong results in
2021
During the first semester, EVS has experienced its best H1
revenue and profit generation of the last 5 years while also
further growing a solid order book for the future. These H1
revenues are based on a continuous and even accelerated growth in
the LAB market pillar and an after-Covid catch-up in the LSP market
pillar, with some of the customers recovering their investments to
deliver the one-year delayed summer events and some peak of events
packed at the same time.H1 Financial
performance
- Revenue in the first six months of the year, amounts to EUR
61,8 million, + 56.1% YoY (+49% compared to 1H20 excl. big event
rentals).
- Higher Operating expenses (+15.4% in 1H21 compared with 1H20),
mainly explained by increased of remuneration costs due to the
acquisition of Axon in May 2020.
- EBIT amounts to EUR 15,4 million (24.9% of revenue), which is +
367.7% compared to 1H20
- Net profit amounts to EUR 15,6 million in 1H21, which is +
378.7% compared to 1H20.
Outlook
- Full year revenue guidance is being increased with EUR 5
million and is expected to land between EUR 115 million and EUR 125
million.
- In accordance with the previously announced policy of the Board
of Directors to pay a stable dividend and subject to market
conditions, a dividend of EUR 1.00 per share for the financial year
2021 is expected to be paid.
- Booked revenues: 85.5MEUR excl. Big Events Rental and 98.5MEUR
incl. Big Events Rental
- Order intake June YTD: +56% vs June 30th, 2020 (excl. Big Event
Rentals)
- Order book of EUR 67,8 million on June 30th, 2021 (incl. Axon)
out of which:
- EUR 23 million (excl. Big Events Rentals) to be recognized as
revenue in 2022 and beyond (+70.3% YoY)
- EUR 8,1 million for Big Events Rentals related to large events
that will be held in 2022
- OPEX for the full year is expected to slightly increase YoY
based on the renewed occurrence of certain trade shows and the full
year impact of the Media Infrastructure acquisition (Axon).
- The gross margin percentage is expected to be negatively
impacted by the rising prices of products thereof.
The lower gross margin on MediaInfra (ex Axon) products will
also have a negative impact on the gross margin percentage.
KEY FIGURES
EUR millions, except earnings per share expressed in
EUR |
Reviewed |
1H21 |
1H20 |
1H21/1H20 |
Revenue |
61,8 |
39,6 |
56.1% |
Gross profit |
42,6 |
27,0 |
57.6% |
Gross margin % |
68.9% |
68.2% |
- |
Operating profit – EBIT |
15,4 |
3,3 |
367.7% |
Operating margin – EBIT % |
24.9% |
8.3% |
- |
Net profit (Group share) |
15,6 |
3,3 |
378.7% |
Basic earnings per share (Group share) |
1,16 |
0,24 |
392.3% |
COMMENTS
Serge Van Herck, CEO comments
:“We are very grateful to our customers and channel partners for
our strong H1 results. Thanks to their increased trust in our
products, services and solutions, we are posting strong financial
results, both on the revenue side as on the profit side. This is
clearly an impressive achievement as it is our strongest H1
recorded over the last 5 years.
EVS is recognized for the support of major
sporting events and these long-awaited events finally took place
this summer. Despite the very special Covid-19 related conditions
to operate, I’m impressed that all EVS teams managed to deliver
once again at the highest level of service quality, and for the
first time based on our new generation of products and solutions
(e.g. LSM-VIA and IPD-VIA) with some parts of the solution being
hosted in the cloud.”
Concerning the evolution of the business, Serge
Van Herck adds: “We are proud of the successes that we are
currently experiencing and which are translated in a further
strengthening of our order book. We have won during the first
semester key deals with major LAB customers that support the
acceleration of our growth in this market pillar. For our LSP
customers, we observe both a short-term post Covid-19 catch-up and
a continuous commitment to EVS solutions to modernize their overall
infrastructure. The fact that we helped our customers to accelerate
their transition to more remote operations, that we further
accelerated our product developments during the pandemic and that
we extended our product portfolio through the acquisition of Axon
in May last year, are for sure some of the reasons that helped us
achieving such strong results.
During this first semester, we also communicated
about the new structure of our offerings based on 3 main solutions:
LiveCeption, MediaCeption and MediaInfra. Every solution is
supporting our customers for different kinds of modernization
projects. One of our main new product launches we did this semester
is our Media Infra Strada evolutive routing solution – a first step
for EVS in this category – with already a first 1MUSD+ key contract
in North America.”
Serge Van Herck finally comments the COVID-19
situation: “Based on the levels of vaccination and the regulations
in the different countries where we have subsidiary companies, we
will gradually re-open our offices for normal operation as of
September onwards. We will be leveraging all the benefits of the
experience about remote cooperation that we acquired over the last
18 months. We aim to include all our Team Members in a new hybrid
way of working.”
Commenting on the results and the outlook,
Ingrid Rogy, CFO
ai, said: “I am really pleased to announce such H1
results. Thanks to a strong order book at the end of 2020 and
additional MediaInfrastructure revenues, we report a revenue
increase of 49% YoY excluding big events. For 2021, we expect
revenues to be between EUR 115 million and EUR 125 million. OPEX
should slightly increase YoY based on the occurrence of trade shows
end of the year and the full year impact of the MediaInfrastructure
acquisition (Axon). The Cash Flow is positively impacted by the
increase of Net Cash coming from operating activities.
EVS Market Dynamics,
PLAYForward transformation
program and customer wins
The broadcast and media industry is evolving
towards a new normal. The occurrence of the major summer sport
events did push our LSP customers to restart their investments to
deliver the best viewing experience for the audience based on our
latest technologies for delivering high quality live production.
Our LAB customers continue to proceed to the modernization of their
overall infrastructure leveraging the key technological foundations
based on IP, virtualization, 4K, HDR and remote production.Due to
Covid, LAB customers have delivered major summer events with much
less staff in the host country Japan compared to previous events.
Thanks to EVS MediaHub - partially deployed in the cloud,
journalists in their home country experienced very efficient access
to all media as if they were attending the event.
Inline with our PLAYForward strategy to sell
more solutions, we did launch the new version of our website better
highlighting the 3 categories of solutions:
- LiveCeption: Live production, replay and highlights that
elevate the fan experience
- MediaCeption: Production Asset Management for fast and easy
turnaround
- MediaInfra: Routing and infrastructure solutions to control and
process all media workflows
We did launch the innovative and evolutive MediaInfra Strada
routing solution based on Cerebrum, Neuron platform and IP routers.
Our customers can now enjoy a smooth evolution path for their
modernization towards a full IP infrastructure, while making sure
all their investment is future-safe thanks to the form of
virtualization enabled by the solid Neuron platform.In the domain
of Media Infrastructure, the Axon integration project is now
finalized. The remaining integration aspects are now part of the
continuous EVS transformation projects.
We also observe a significant traction for our XtraMotion cloud
service, recently launched as part of our LiveCeption offering,
which enables our customers to generate super-slow-motion replays
from any camera based on hybrid workflows leveraging AI in the
cloud.
Our new Channel Partner program has been launched with some
traction already for “essential” versions of EVS solutions allowing
EVS to address different market tiers, as defined in the
PLAYForward strategy.
Some key wins in H1:
- Success in the delivery and support of dedicated solutions for
major events, including Superbowl and summer sport events
- More and more solutions of the new generation in operation to
support customers in their transformation
- Major broadcast & media production centers deals confirming
the acceleration of the adoption of EVS new VIA Platform leveraging
IP based network (SMPTE 2110 protocol) and its new generation of
live production asset management:
- Mid-term commitment of LSPs all over the world for continuous
upgrade of their replay servers
- New customers buying our solutions in their “essential”
versions for production replay and VAR, sometimes through direct
sales, sometimes thanks to the new Channel Partner program
- First 1MUSD+ deal in NALA with MediaInfra Strada evolutive
routing solution
- Contracts for major 2022 events secured
Revenue in
1H21
In 1H21, EVS revenue, negatively impacted by
currency fluctuation, reached EUR 61,8 million, an increase of 56.1
% compared to 1H20. At constant currency, revenue increased by
59.6% YoY and increased by 52.9% excluding big event rentals.
Revenue – EUR millions |
1H21 |
1H20 |
1H21/1H20 |
Total reported |
61.8 |
39.6 |
+56.1% |
Total at constant currency |
63.2 |
39.6 |
+59.6% |
Total at constant currency and excluding big event
rentals |
58.7 |
38.4 |
+52.9% |
EVS revenues are impacted by the EUR/USD
currency fluctuation and can have a significant impact on our
results even if EUR/USD fluctuations also impact the cost of our US
operations and our cost of goods sold.
In the first half of the year, (excl. Big Event
Rentals) LSP represented 43% (42% in 1H20) of the revenue, LAB 50%
(56% in 1H20).
Geographically, revenues (excl. big event
rentals) are distributed in 1H21 as follows:
- Europe, Middle East and Africa
(EMEA): EUR 32,1 million (EUR 18,2 million in 1H20)
- Americas (NALA): EUR 15,8 million
(EUR 12,9 million in 1H20)
- Asia & Pacific (APAC): EUR 9,4
million (EUR 7,3 million in 1H20)
First half
2021
results
Consolidated gross margin was 68.9% for 1H21,
compared to 68.2% in 1H20 explained by lower gross margin on
MediaInfra (ex Axon) products and an increase of team member costs
in the service department. Operating expenses increased by 15.4%
YoY explained by the general increase of the total amount of team
members and their associated remuneration; the increase of the
total number of team members is mainly linked to the acquisition of
Axon in May 2020. The 1H21 EBIT margin was 24.9%, compared to 8.3%
in 1H20 mainly driven by the increase in revenues. Income taxes are
positive mainly due to the effect of the various tax incentives
which are not directly correlated to the level of revenues. Group
net profit amounted to EUR 15,6 million in 1H21, compared to
EUR 3,3 million in 1H20. Basic net profit per share amounted
to EUR 1,16 in 1H21, compared to EUR 0,24 in 1H20.
Team members
At the end of June 2021, EVS employed 542 team
members (FTE). This is an increase by 10 team members compared to
the end of June 2020. The size of the overall team is expected to
slightly increase in 2021.
Balance sheet and cash flow statement
EVS has further strengthened its balance sheet
resulting in a net cash position of EUR 41.795 million and with a
low debt level (of which EUR 10.7 million relates to IFRS 16)
resulting in a total equity representing 73.4% of the total balance
sheet as of the end of June 2021.
Lands and building mainly include the
headquarters in Belgium (Liège) as well as the right of use for the
offices abroad (IFRS16). Six months depreciations on buildings and
other tangible assets (including the right of use assets) reached
EUR 3.4 million. Liabilities include EUR 15.1 million of financial
debt (including long term and short-term portion of it), mainly
related to the lease liabilities for EUR 10.7 million and
borrowings for EUR 4.4 million.
Inventories amount to EUR 24.8 million and
include around EUR 2.8 million value of MediaInfra (ex Axon)
equipment.
During 1H 2021, EUR 1.5 million were recognized as a net write
off on inventories accounted as charges in the costs of sales,
compared EUR 0.9 million in the same period for 2020. This increase
is triggered by the continuous review of the technological
obsolescence of some inventory items linked to a range of products
classified as end of life at end of June 2021.
In the liabilities, long-term provisions include
the provision for technical warranty on EVS products for labor and
parts. The other amounts payables include the expected earn out
liability for Axon and some customer advances received.
The net cash from operating activities amounts
to EUR 13.7 million in 1H21 compared to EUR 8.5 million in 1H20. On
June 30, 2021, cash and cash equivalents total EUR 56.9 million.
This is an increase compared to the end of 2020 mainly explained by
the growth of the net cash from operating activities together with
the overall decrease of the net cash used in investing activities
and the net cash used in financing activities. The latter includes
mainly the dividends paid during 2021 and payments of borrowings
and leases.
At the end of June 2021, there were 14,327,024
EVS shares outstanding, of which 925,140 were owned by the company.
At the same date, 138,832 warrants were outstanding with an average
exercise price of EUR 28.90 and a maturity of December 2022
together with 187,000 warrants with an average exercise price of
EUR 13.69 and a maturity of October 2026.
Share buyback update
On May 6, 2020, EVS announced the end of the
2018 Share buyback program, having purchased 528,684 shares at an
average price of EUR 18.9149. On May 6, 2020, EVS announced the
launch of a new share buyback program of a maximum EUR 5 million.
In 2020, EVS has bought 337,155 shares at an average price of EUR
14,8300, representing in total EUR 4,999,999.During 2021, EVS has
not bought additional shares. There are no additional Share buyback
programs announced.
Aside of the share buyback program, no shares
were used to satisfy the exercise of warrants by employees. The
Ordinary General Meeting of shareholders of May 18, 2021, approved
the allocation of 3,016 shares to EVS employees (grant of 10 shares
to each staff member in proportion to their effective or
assimilated time of occupation in 2020) as a reward for their
contribution to the group successes.
Corporate update
During last General Assembly on May 18th, the mandate of 7
Capital SRL, represented by Chantal De Vrieze, as Director has been
renewed for 4 years. The Board of Directors is currently composed
of six directors:
- Johan Deschuyffeleer, independent director & President
(representing The House of Value BVBA);
- Michel Counson, managing director;
- Martin De Prycker, independent director (representing
InnoConsult BVBA);
- Chantal De Vrieze, independent director (representing 7 Capital
SRL);
- Philippe Mercelis, independent director; and
- Anne Cambier, independent director (representing Accompany You
SRL)
2H
2021
outlook
The booked revenues on June 30, 2021 amounts to
EUR 85,5 million, which is +47.2% compared to EUR 58,1 million of
last year at the same date (excluding Big Events Rentals).
In addition to these booked revenues to be
invoiced in 2021, EVS already won EUR 31.1 million of orders to be
invoiced in 2022 and beyond (including EUR 8.1 million for 2022 Big
Event Rentals), which represents an increase of 18.7% (or 70.4%
excluding Big Event Rentals) compared to EUR 26.2 million at the
same date last year.
Thanks to this continued strong order book evolution the revenue
guidance for the full year 2021 is being increased with EUR 5
million to a range between EUR 115 million and EUR 125 million.
Operational expenses continue to be closely managed and EVS
expects those costs to slightly increase compared to 2020 based on
the occurrence of trade shows end of year and the full year impact
of the Media Infrastructure acquisition (Axon). The gross margin
percentage is expected to be negatively impacted by potential
shortage and delay of component and raw material as well as the
rising prices thereof. The lower gross margin on MediaInfra (ex
Axon) products will also have a negative impact on the gross margin
percentage.
Glossary
Term |
Definition |
Booked revenues |
Revenues already recognized from previous years and current year
orders & previous years and current year orders currently
planned to be recognized in the current calendar year |
Short term order book |
Revenues planned to be recognized during next calendar year based
on current orders |
Long term order book |
Revenues planned to be recognized in the years after next calendar
year based on current orders |
Order book <date> |
Revenues planned to be recognized after the <date> based on
current orders. |
LAB market pillar |
LAB – Live Audience BusinessRevenue from customers
leveraging EVS products and solutions to create content for their
own purposeThis market pillar covers the following types of
customers: Broadcasters, Stadium, House of Worship, Corporate Media
Centers, Sports organizations, Government & institutions,
University & Colleges |
LSP market pillar |
LSP – Live Service ProvidersRevenue from customers
leveraging EVS products and solutions to serve “LAB customers”This
market pillar covers the following types of customers: Rental &
facilities companies, Production companies, Freelance operators,
Technology partners & system integrators buying for their own
purpose |
BER market pillar |
BER – Big Events RentalRevenue from major
non-yearly big events rental.This market pillar covers the
following types of customers: host broadcasters for major
events. |
Conference call
EVS will hold a conference call in English today
at 3.30 pm CEST for financial analysts and institutional investors.
Other interested parties may join the call in a listen-only mode.
The presentation used during the conference call will be available
shortly before the call on the EVS website.
Conference call – Registration
required
- Online registration :
http://emea.directeventreg.com/registration/6174585
- Webcast player URL:
https://edge.media-server.com/mmc/p/fbzqhedw
Corporate Calendar:November 18,
2021: 3Q21 Trading update
For more information, please contact:Ingrid Rogy,
CFO aiEVS Broadcast Equipment S.A., Liege Science Park, 13 rue du
Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70 00.
E-mail:corpcom@evs.com; www.evs.com |
Forward Looking Statements This press release contains
forward-looking statements with respect to the business, financial
condition, and results of operations of EVS and its affiliates.
These statements are based on the current expectations or beliefs
of EVS's management and are subject to a number of risks and
uncertainties that could cause actual results or performance of the
Company to differ materially from those contemplated in such
forward-looking statements. These risks and uncertainties relate to
changes in technology and market requirements, the company’s
concentration on one industry, decline in demand for the company’s
products and those of its affiliates, inability to timely develop
and introduce new technologies, products and applications, and loss
of market share and pressure on pricing resulting from competition
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. EVS undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. |
About EVSEVS is globally recognized as the leader in live video
technology for broadcast and new media productions. Our passion and
purpose are to help our clients craft immersive stories that
trigger the best return on emotion. Through a wide range of
products and solutions, we deliver the most gripping live sports
images, buzzing entertainment shows and breaking news content to
billions of viewers every day – and in real-time.The company is
headquartered in Belgium with around 530 employees in offices in
Europe, the Middle East, Asia and North America, and provides sales
and technical support to more than 100 countries. EVS is a public
company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For
more information, please visit www.evs.com |
Condensed Interim
Consolidated financial statements
NOTE 1:
CONDENSED CONSOLIDATED INCOME
STATEMENT
(EUR thousands) |
Annex |
1H21Reviewed |
1H20Reviewed |
Revenue |
5.3 |
61,779 |
39,573 |
Cost of sales |
|
-19,221 |
-12,569 |
|
|
|
|
Gross profit |
|
42,558 |
27,004 |
Gross margin % |
|
68.9% |
68.2% |
Selling and administrative
expenses |
|
-14,837 |
-12,566 |
Research and development
expenses |
|
-12,221 |
-10,874 |
Other income |
|
51 |
65 |
Other expenses |
|
-43 |
-42 |
Stock based compensation and
ESOP plan |
|
-125 |
-298 |
Operating profit (EBIT) |
|
15,383 |
3,289 |
Operating margin (EBIT) % |
|
24.9% |
8.3% |
|
|
|
|
Interest revenue on loans and
deposits |
|
68 |
8 |
Interest charges |
|
-447 |
-383 |
Other net financial income /
(expenses) |
5.6 |
322 |
7 |
Share in the result of the
enterprise accounted for using the equity method |
|
213 |
37 |
Profit before taxes (PBT) |
|
15,539 |
2,960 |
Income taxes |
5.7 |
56 |
298 |
|
|
|
|
Net profit |
|
15,595 |
3,258 |
Attributable to : |
|
|
|
Non controlling interest |
|
- |
- |
Equity holders of the parent company |
|
15,595 |
3,258 |
|
|
|
|
EARNINGS PER SHARE (in number of shares and in
EUR) |
|
1H21Reviewed |
1H20Reviewed |
Weighted average number of
subscribed shares for the period less treasury shares |
|
13,399,342 |
13,818,500 |
Weighted average fully diluted
number of shares |
|
13,586,342 |
13,818,500 |
Basic earnings – share
of the group |
|
1.16 |
0.24 |
Fully diluted earnings – share of the group
(1) |
|
1.15 |
0.24 |
|
|
|
|
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME |
|
|
|
(EUR thousands) |
|
1H21Reviewed |
1H20Reviewed |
Net profit |
|
15,595 |
3,258 |
Other comprehensive
income of the period |
|
|
|
Currency translation
differences |
|
199 |
7 |
Other increase/(decrease) |
|
- |
-3 |
Total of recyclable éléments |
|
199 |
4 |
Total comprehensive income for the period |
|
15,794 |
3,262 |
Attributable to : |
|
|
|
Non controlling interest |
|
- |
- |
Group
share |
|
15,794 |
3,262 |
(1) The
diluted earnings per share does include 187,000 warrants attributed
in December 2020 and outstanding at the end of the year with an
exercise price below the share price. These 187,000 warrants have
maturity of October 2026. It does not include 138,832 warrants
outstanding at the end of 2010 as these are not exercisable given
the exercise prices were above the share price.
NOTE 2:
CONDENSED STATEMENT OF FINANCIAL
POSITION (BALANCE SHEET)
ASSETS (EUR thousands) |
Notes |
June 30,
2021Reviewed |
Dec 31, 2020Audited |
|
|
|
|
Non-current assets
: |
|
|
|
Goodwill |
|
2,832 |
2,832 |
Other intangible assets |
|
6,468 |
7,041 |
Lands and buildings |
5.11 |
50,392 |
51,662 |
Other tangible assets |
|
4,391 |
5,034 |
Investment accounted for using
equity method |
|
1,973 |
1,760 |
Other long term amounts
receivables |
|
1,754 |
543 |
Deferred tax assets |
|
7,238 |
8,725 |
Other financial assets |
|
396 |
395 |
Total non-current assets |
|
75,444 |
77,992 |
|
|
|
|
Current assets
: |
|
|
|
Inventories |
|
24,813 |
22,579 |
Trade receivables |
|
39,123 |
30,728 |
Other amounts receivable,
deferred charges and accrued income |
|
7,516 |
5,930 |
Other financial assets |
|
175 |
120 |
Cash and cash equivalents |
|
56,921 |
52,668 |
Total current assets |
|
128,548 |
112,024 |
Assets classified as held for sale |
5.3.5 |
- |
- |
Total assets |
|
203,992 |
190,016 |
EQUITY AND LIABILITIES(EUR
thousands) |
Notes |
June 30,
2021Reviewed |
Dec 31, 2020Audited |
|
|
|
|
Equity : |
|
|
|
Capital |
|
8,772 |
8,772 |
Reserves |
|
158,267 |
149,309 |
Treasury shares |
|
-17,776 |
-17,835 |
Total consolidated reserves |
|
140,491 |
131,474 |
Translation differences |
|
475 |
276 |
Equity attributable to equity holders of the parent
company |
|
149,739 |
140,522 |
|
|
|
|
Non-controlling interest |
|
- |
- |
|
|
|
|
Total equity |
5.4 |
149,739 |
140,522 |
|
|
|
|
Long term provisions |
|
1,360 |
1,299 |
Deferred taxes
liabilities |
|
12 |
1,389 |
Financial long term debts |
5.11 |
11,174 |
12,251 |
Other long term debts |
|
993 |
993 |
Non-current liabilities |
|
13,540 |
15,932 |
|
|
|
|
Short term portion of
financial debts |
5.11 |
3,951 |
4,713 |
Trade payables |
|
7,483 |
5,775 |
Amounts payable regarding
remuneration and social security |
|
7,773 |
7,005 |
Income tax payable |
|
2,308 |
2,259 |
Other amounts payable,
advances received, accrued charges and deferred income |
5.6 |
19,199 |
13,811 |
Current liabilities |
|
40,714 |
33,562 |
Total equity and liabilities |
|
203,992 |
190,016 |
NOTE 3:
CONDENSED STATEMENT OF CASH
FLOWS
|
Notes |
1H21Reviewed |
1H20Reviewed |
Cash flows from operating activities |
|
|
|
Net profit, group share |
|
15,595 |
3,258 |
|
|
|
|
Adjustment for: |
|
|
|
- Other income |
|
- |
-4 |
- Depreciation and write-offs
on fixed assets |
|
3,443 |
2,985 |
- Stock based compensation and
ESOP |
5.4 |
125 |
298 |
- Provisions |
|
61 |
-258 |
- Income tax expense (+) /
Gain (-) |
|
-56 |
-298 |
-Interests expense (+) /
Income (-) |
|
58 |
367 |
-Share of the result of
entities accounted for under the equity method |
|
-213 |
-37 |
|
|
|
|
Adjustment for changes in working capital
items: |
|
|
|
-Inventories |
|
-2,153 |
-5,968 |
-Trade receivables |
|
-9,118 |
8,354 |
-Other amounts receivable,
deferred charges and accrued income |
|
-1,398 |
-562 |
-Trade payables |
|
1,690 |
-1,664 |
-Amounts payable regarding
remuneration and social security |
|
664 |
-2,555 |
-Other amounts payable,
advances received, accrued charges and deferred income |
|
4,777 |
2,459 |
-Conversion differences |
|
184 |
109 |
|
|
|
|
Cash
generated from operations |
|
13,658 |
6,484 |
Income taxes paid |
5.7 |
88 |
2,029 |
Net cash from operating activities |
|
13,746 |
8,513 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of intangible
assets |
|
-133 |
-38 |
Purchase of tangible assets
(lands and building and other tangible assets) |
|
-590 |
-4,647 |
Disposal of tangible
assets |
|
- |
- |
Business acquisitions |
|
0 |
-9,614 |
Other financial assets |
|
-1 |
-56 |
Net cash used in investing activities |
|
-725 |
-14,356 |
|
|
|
|
Cash flows from financing activities |
|
|
|
Reimbursement of
borrowings |
5.11 |
-521 |
-2,025 |
Proceeds from new
borrowings |
|
- |
8,547 |
Payment of lease
liabilities |
|
-1,324 |
-737 |
Interests paid |
|
-231 |
-382 |
Interests received |
|
68 |
8 |
Dividend received from
investee |
|
- |
- |
Dividend paid - interim
dividend |
|
- |
- |
Dividend paid - final
dividend |
|
-6,761 |
- |
Other allocation |
|
- |
-300 |
Acquisition / sale of treasury
shares |
5.4 |
- |
-4,059 |
Net cash used in financing activities |
|
-8,769 |
1,052 |
|
|
|
|
Net increase
/ decrease in cash and cash
equivalents |
|
4,252 |
-4,790 |
Net foreign exchange
difference (included in Net increase in cash in 2021) |
|
364 |
-22 |
Cash and cash equivalents at beginning of
period |
|
52,668 |
59,010 |
Cash and cash equivalents at end of period |
|
56,921 |
54,199 |
NOTE 4:
CONDENSED STATEMENT OF CHANGE IN
EQUITY
(EUR thousands) |
Capital |
Reserves |
Treasury shares |
Currency translation differences |
Equity, group share |
Non-controlling
interest |
Total equity |
Balance as at January 1, 2020
(reported) |
8,772 |
142,149 |
-9,927 |
767 |
141,761 |
- |
141,761 |
Total comprehensive income for the period |
|
3,255 |
|
7 |
3,262 |
|
3,262 |
Acquisition of non-controlling
interest |
|
|
|
|
|
|
- |
Share-based payments |
|
298 |
|
|
298 |
|
298 |
Acquisition/sale of treasury
shares |
|
|
-4,059 |
|
-4,059 |
|
-4,059 |
Final dividend |
|
- |
|
|
- |
|
- |
Interim dividend |
|
|
|
|
|
|
- |
Other allocation |
|
-300 |
|
|
-300 |
|
-300 |
Balance as per June 30, 2020 |
8,772 |
145,403 |
-13,986 |
774 |
140,962 |
- |
140,962 |
(EUR thousands) |
Capital |
Reserves |
Treasury shares (Note 5.4) |
Currency translation differences |
Equity, group share |
Non-controlling interest |
Total equity |
Balance as at January 1, 2021
(reported) |
8,772 |
149,308 |
-17,835 |
276 |
140,522 |
- |
140,522 |
Total comprehensive income for
the period |
|
15,595 |
|
199 |
15,794 |
|
15,794 |
Increase in shareholders'
equity |
- |
- |
|
|
- |
- |
- |
Share-based payments |
|
125 |
|
|
125 |
|
125 |
Operations with treasury
shares |
|
|
59 |
|
59 |
|
59 |
Final dividend |
|
-6,761 |
|
|
-6,761 |
|
-6,761 |
Interim dividend |
|
|
|
|
- |
|
- |
Other allocation |
|
|
|
|
- |
|
- |
Balance as per June 30, 2021 |
8,772 |
158,267 |
-17,776 |
475 |
149,739 |
- |
149,739 |
NOTE 5: NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
NOTE
5.1: BASIS OF PREPARATION OF THE FINANCIAL
STATEMENTS
The consolidated financial statements of EVS
Group for the 6 month-period ended June 30, 2021, are established
and presented in accordance with the International Financial
Reporting Standards (IFRS), as adopted for use in the European
Union. The accounting framework and standards adopted by the
European Commission can be accessed through the following link on
the website:
http://ec.europa.eu/finance/company-reporting/index_en.htm. The
condensed interim financial statements of the Group for the 6
month-period ended June 30, 2021, were authorized for issue by the
Board of Directors on August 20, 2021 This interim report only
provides an explanation of events and transactions that are
significant to an understanding of the changes in financial
position and reporting since the last annual reporting period and
should therefore be read in conjunction with the consolidated
financial statements for the financial year ended on December 31,
2020.
NOTE
5.2: SIGNIFICANT ACCOUNTING POLICIES AND
METHODS
These condensed interim financial statements
have been prepared in accordance with IAS 34 Interim Financial
Reporting, as issued by the IASB, and as adopted by the EU. The
accounting policies and methods adopted for the preparation of the
Company's IFRS consolidated financial statements are consistent
with those applied in the 2020 consolidated financial statements.
The Company’s IFRS accounting policies and methods are available in
the 2020 annual report on www.evs.com, except for the new, amended
or revised IFRS standards and IFRIC Interpretations that have been
adopted as of January 1, 2021 which are listed hereunder:
- Amendments to IFRS 9, IAS 39, IFRS
7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase
2.
- Amendment to IFRS 16 Leases:
COVID-19-Related Rent Concessions beyond 30 June 2021 (applicable
for annual periods beginning on or after 1 April 2021 but not
yet endorsed in the EU).
The adoption of these new, amended or revised
pronouncements did not have a significant impact on the
consolidated financial statements of the Group.
NOTE
5.3: SEGMENT
REPORTING
From an operational point of view, the company
is vertically integrated with the majority of its staff located in
the headquarters in Belgium, including the R&D, production,
marketing and administration departments. This explains why the
majority of the investments and costs are located at the level of
the Belgian parent company. The foreign subsidiaries are primarily
sales and representative offices. The Chief Operating Decision
Maker, being the Executive Committee, reviews the operating
results, operating plans, and makes resource allocation decisions
on a company-wide basis. Revenue related to products of the same
nature (digital broadcast production equipment) are realized by
commercial polyvalent teams. The company’s internal reporting is
the reflection of the above-mentioned operational organization and
is characterized by the strong integration of the activities of the
company.
By consequence, the company is composed of one
segment according to the IFRS 8 definition, and the consolidated
income statement of the group reflects this unique segment. All
long-term assets are located in the parent company EVS Broadcast
Equipment SA in Belgium.
The company provides only one type of solution:
solutions based on tapeless workflows with a consistent modular
architecture. This is the product of EVS. There are no other
significant classes of business, either singularly or in aggregate.
Indeed, identical modules can meet the needs of different markets.
Our customers themselves are often multi-markets. Providing
information for each module is therefore not relevant for EVS.
At the geographical level, our activities are
divided into the following regions: Asia-Pacific (“APAC”), Europe,
Middle East and Africa (“EMEA”), and America (“NALA”). This
division follows the organization of the commercial and support
services within the group, which operate worldwide. A fourth region
is dedicated to the worldwide events (“big event rentals”).
The company provides additional information with
a presentation of the revenue by market pillar: “Live Service
provider”, “Live Audience Business” and “big event rentals” for
rental contracts relating to the big sporting events.
Finally, sales are presented by nature: systems
and services.
5.3.1. Information
on revenue by
destination
Revenue can be presented by Market Pillar: “Live
Service provider”, “Live Audience Business” and “Big event
rentals”. Maintenance and after sale service are included in the
complete solution proposed to the clients.
Revenue (EUR thousands) |
1H21 |
1H20 |
%
1H21/1H20 |
Live Audience Business |
30,614 |
21,996 |
+39.2% |
Live Service Provider |
26,655 |
16,436 |
+62.2% |
Big
event rentals |
4,510 |
1,141 |
+293.4% |
Total Revenue |
61,779 |
39,573 |
+56.1% |
5.3.2. Information
on revenue by geographical
information
Activities are divided by three regions:
Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and
“Americas”. Aside of them, we also identify the “big event
rentals”.
Revenue for the YTD period (EUR thousands) |
APACexcl. events |
EMEAexcl. events |
Americasexcl. events |
Big eventrentals |
TOTAL |
1H21 revenue |
9,379 |
32,133 |
15,757 |
4,510 |
61,779 |
Evolution
versus 1H20 (%) |
+28.1% |
+76.9% |
+21.9% |
+293.4% |
+56.1% |
Variation versus 1H20 (%) at constant currency |
+28.1% |
+76.9% |
+33.2% |
+293.4% |
+59.8% |
1H20 revenue |
7,324 |
18,178 |
12,930 |
1,141 |
39,573 |
Revenue realized in Belgium (the country of
origin of the company) with external clients represent less than 5%
of the total revenue for the period. In the last 12 months, the
group realized significant revenue with external clients (according
to the definition of IFRS 8) in one country: The United States
(Americas, EUR 24.9 million in the last 12 months).
5.3.3. Information
on revenue by nature
Revenue can be presented by nature: systems and
services.
Revenue
(EUR thousands) |
1H21 |
1H20 |
%
1H21/1H20 |
Sale of
Equipment |
52,733 |
33,154 |
+59.1% |
Others
services |
9,046 |
6,419 |
+40.9% |
Total
Revenue |
61,779 |
39,573 |
+56,1% |
Others services include the advice,
installations, project management, training, maintenance, and
distant support. Work in progress (“WIP”) contract are included in
both categories.
5.3.4.
Information on important clients
Over the last 6 months, no external client of
the company represented more than 10% of the revenue.
5.3.5 Other
income and assets held for sale
At the end of June 2021, there were no Assets held for sale
anymore.
NOTE
5.4: EQUITY
SECURITIES
The number of treasury shares has changed as
follows during the period, together with the outstanding
warrants:
|
2021 |
2020 |
Number of own shares at January 1 |
928,207 |
400,180 |
Acquisition of own shares on the market |
- |
281,611 |
Sale of own shares on the market |
- |
- |
Allocation to Employees Profit Sharing Plans |
-3,067 |
-16,280 |
Sale related to Employee Stock Option Plan (ESOP) and other
transactions |
- |
- |
Number of own shares at June 30 |
925,140 |
665,511 |
|
|
|
Outstanding warrants at June 30 |
325,832 |
138,832 |
In 1H21, the Group did not repurchase their own
shares on the stock market. No shares were used to satisfy the
exercise of warrants by employees.
The Ordinary General Meeting of shareholders of
May 18, 2021, approved the allocation of 3,067 shares to EVS
employees (grant of 10 shares to each staff member in proportion to
their effective or assimilated time of occupation in 2020) as a
reward for their contribution to the group successes.
NOTE
5.5: DIVIDENDS
The Ordinary General Meeting of May 18, 2021,
approved the payment of a total gross dividend of EUR 0.50 per
share.
(EUR thousands) |
# Coupon |
2021 |
2020 |
- Interim dividend for 2019
(EUR 0.50 per share less treasury shares) |
29 |
- |
6,914 |
- Final dividend for 2020 (EUR
0.50 per share less treasury shares) |
30 |
6,761 |
- |
Total paid dividends |
|
6,761 |
6,914 |
In accordance with the previously announced policy of the Board
of Directors to pay a stable dividend and subject to market
conditions, a dividend of EUR 1.00 per share for the financial year
2021 is expected to be paid.
NOTE
5.6: OTHER NET FINANCIAL
INCOME / (EXPENSES)
(EUR thousands) |
1H21 |
1H20 |
Fair value variation of
financial instruments |
-7 |
-89 |
Exchange results |
268 |
30 |
Other financial results |
61 |
67 |
Other net financial income / (expenses) |
322 |
7 |
The functional currency of EVS Broadcast
Equipment SA as well as all subsidiaries is the euro, except for
the EVS Inc. subsidiary, whose functional currency is the US dollar
and Axon Digital Design LTD. subsidiary whose functional currency
is the GBP. The presentation currency of the consolidated financial
statements of EVS Group is the euro. For more information on
exchange rates, see also the note 5.9.
The estimated fair values of the financial
assets and liabilities are equal to their fair book values in the
balance sheet.
Periodically, EVS measures the group’s
anticipated exposure to transactional exchange risk over one year,
mainly relating to the EUR/USD risk. Given the group has a “long”
position in USD and based on revenue forecasts, EVS hedges future
USD net in-flows by forward foreign exchange contracts. The change
in the fair value of the forward foreign exchange contracts goes
directly through the income statement (other financial results)
because the Group does not apply hedge accounting on these
transactions.The valuation techniques used are mainly based on spot
rates, forward rates and interest rate curves.
On June 30, 2021, the group holds USD 1.5
million in forward exchange contracts, with an average maturity
date of December 2021, and an average exchange rate of EUR/USD of
1.2182 and GBP 2 million in forward exchange contracts, with an
average maturity date of December 2021, and an average exchange
rate of GBP/EUR of 1.1320. The fair value of those financial
instruments on June 30, 2021, amounts to EUR -0.1 million.
A contingent consideration ranging between EUR
-0,5 million (reverse earn-out to be paid back by the sellers) and
maximum EUR 2,5 million (earn-out to be paid by the Company)
depending on the gross margin realized by Axon over the period 1
January 2020 to 31 January 2021. The fair value of the contingent
consideration amounts to EUR 1,0 million at acquisition date and
has not changed at the reporting date. The fair value categorized
as level 3 has been estimated based on a model in which the
possible outcomes are probability weighted. The unobservable input
to which this fair value measurement is most sensitive is the
estimated amount of Axon’s gross margin over the reference period.
Depending on the actual level of Axon’s gross margin, the Company
is exposed to a future income statement impact ranging between a
loss of EUR 1.5 million (in case the maximum earnout is reached)
and a gain of EUR 1.5 million (in case of reverse earn-out).'
NOTE
5.7:
INCOME TAX EXPENSE
Income taxes remain positive mainly due to various tax
incentives (cfr 2020 annual report) which are not directly
correlated to the level of revenues.
(EUR thousands) |
1H2021 |
1H2020 |
- Current tax (expense) / income |
494 |
-188 |
- Deferred tax (expense) / income |
-438 |
486 |
Total |
56 |
298 |
The effective tax rate for the period ended on
June 30, 2021, is –0.4% (-10.2% for same period in 2020). The
evolution of effective tax rate is mainly explained by:
- The decrease of the current tax due
a tax relief of EUR 0.7 million received during the first half
of 2021; and
- The increase of the deferred tax
expenses due to the increase of the profit before tax for
EUR 12.6 million impacting the recoverable tax loss for
EUR 0.2 million together with the reversal of some temporary
differences.
NOTE 5.8: HEADCOUNT
(in full time equivalents) |
|
At June 30 |
2021 |
|
542 |
2020 |
|
532 |
Variation |
|
+1.9% |
NOTE
5.9: EXCHANGE
RATES
The main exchange rate that influences the
consolidated financial accounts is USD/EUR and GBP/EUR which has
been taken into account as follows:
Exchange rate USD/EUR |
Average 1H |
At June 30 |
2021 |
1.2049 |
1.1884 |
2020 |
1.1024 |
1.1198 |
Variation |
+9.3% |
+6.13% |
Exchange rate GBP/EUR |
Average 1H |
At June 30 |
2021 |
0.8682 |
0.8580 |
2020 |
0.8746 |
0.9124 |
Variation |
+0.73% |
-5.97% |
NOTE
5.10:
FINANCIAL DEBT
On June 16, 2020, a new loan of EUR 5.5 million
has been negotiated with BNP Paribas Fortis in order to partially
finance the acquisition of Axon. The repayment schedule foresees a
first repayment of EUR 0.6 million in the last quarter of 2020 and
annual installments of EUR 1.1 million between 2021 and 2024 with a
final repayment of EUR 0.6 million in 2025 when the loan will
mature. On June 2021, EVS paid EUR 0.6 million interest
included.
On June 29, 2020, a roll over credit line of EUR
5.0 million has been negotiated with Belfius bank in order to
partially finance the acquisition of Axon. This amortizing credit
line will end at the latest on 30/06/2025. As of this date, EVS has
not used this credit facility.
NOTE
5.11:
SUBSEQUENT EVENTS
EVS stock options have been accepted by EVS
personnel under the EVS stock option plan offered to the EVS
personnel in June 2021. On 07 April 2021, the board of directors
approved the launch of a new warrant plan for a maximum of 171,000
warrants for some of EVS employees. The acceptance period started
on June 22, 2021 and will end August 21,2021. The warrants accepted
by the end of June 2021 has no significant impact on EVS financial
statements. As such, this plan will be recognized entirely once the
acceptance period ends. Additional information regarding this plan
will be detailed in year end 2021 annual
report. There were
no other subsequent events that may have a material impact on the
balance sheet or income statement of EVS.
NOTE
5.12:
RISK AND UNCERTAINTIES
Investing in the stock of EVS involves risks and
uncertainties. The risks and uncertainties relating to the
remainder of the year 2021 are similar to the risks and
uncertainties that have been identified by the management of the
company and that are listed in the management report of the annual
report (available at www.evs.com).
NOTE
5.13:
RELATED PARTIES TRANSACTIONS
During 1H 2021, the members of the executive management
considered as related parties received a total amount of
EUR 646.765.
Report of the statutory auditor on the accounting data
presented in the semi-annual press
release of EVS Broadcast Equipment SA
We have compared the accounting data presented
in the semi-annual press release of EVS Broadcast Equipment SA with
the Interim Condensed Consolidated Financial Statements as at June
30, 2021, which show a balance sheet total of K€ 203.992 and net
income (group share) for the period of K€ 15.595. We confirm that
these accounting data do not show any significant discrepancies
with the Interim Condensed Consolidated Financial Statements.
We have issued a review report on these Interim
Condensed Consolidated Financial Statements, in which we declare
that, based on our review, nothing has come to our attention that
causes us to believe that these Interim Condensed Consolidated
Financial Statements are not prepared, in all material aspects, in
accordance with IAS 34 Interim Financial Reporting, as adopted for
use in the European Union.
Liège, August 23, 2021
Ernst & Young Réviseurs d’Entreprises
SCRLStatutory auditorrepresented by
Marie-Laure MoreauPartner* Acting on behalf of a
SRL
Ref: 22MLM0017
Certification of responsible
persons
Serge Van Herck & CEO*Ingrid Rogy, CFO
ai*
Certify that, based on their
knowledge,a) the condensed financial statements,
prepared in accordance with the International Financial Reporting
Standards (IFRS) adopted by the European Union, fairly present in
all material respects the financial condition and results of
operations of the issuer and the companies included in the
consolidation,b) the Directors’ report fairly
presents the important events and related parties transactions of
the first six months of 2021, including their impact on the
condensed financial statements, and a description of the existing
risks and uncertainties for the remaining months of the fiscal
year.
* acting on behalf of a BV
- Press release in PDF format
EVS Broadcast Equipment (EU:EVS)
Historical Stock Chart
From Jun 2024 to Jul 2024
EVS Broadcast Equipment (EU:EVS)
Historical Stock Chart
From Jul 2023 to Jul 2024