Voltabox Doubles Revenue in First Nine Months of the Year With Increasing Profitability - Forecast for the Year as a Whole Confirmed

Nov 13, 2018 7:30 AM

DGAP-News: Voltabox AG / Key word(s): Interim Report

13.11.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


Voltabox Doubles Revenue in First Nine Months of the Year With Increasing Profitability - Forecast for the Year as a Whole Confirmed

- Group sales double to EUR 33.5 million

- Increasing market penetration in intralogistics results in high level of utilization

- EBITDA grows from EUR -0.3 million in the prior year to EUR 4.9 million

- EBIT increases to EUR 2.3 million; EBIT margin improves considerably to 7.0 percent

- Number of employees doubles to 193 in the first nine months of the year

- Forecast for 2018 confirmed: revenue of EUR 65-70 million with an EBIT margin of about 7 percent

Delbrück, Germany, November 13, 2018 - Voltabox AG [ISIN DE000A2E4LE9] published its results for the first nine months of 2018 today and confirmed its forecast for the year as a whole.

"Our focus on lucrative e-mobility niche markets is beginning to pay off," says Jürgen Pampel, Chief Executive Officer of Voltabox AG. "Especially in the area of intralogistics, there is a very strong level of demand for our technology. We had an accordingly high level of utilization in the highly automated field of modules production in the third quarter. A significant part of this increased demand is attributable to our cooperation with our partner Triathlon, which we relaunched in the second quarter. We are also benefiting from our direct market access in the area of intralogistics."

Thanks to the further rise in demand, Voltabox achieved revenue of EUR 15.4 million in the third quarter. The increase in the inventory of finished goods and work in progress should also be included in an assessment of the company's total operating performance. The former amounts to EUR 7.2 million and is mainly attributable to inventory build-up of modules produced for use in forklifts and other intralogistics applications. In the period from January to September, Voltabox generated revenue of EUR 33.5 million and thus grew by 105 percent over the prior year (EUR 16.3 million). The EBIT margin also increased very strongly year-over-year and amounted to 7.0 percent for the first nine months of the year (prior year: -10.7 percent).

Modules for Intralogistics and Battery Systems for Trolleybuses Shape Revenue Growth

In addition to large quantities of battery modules for intralogistics, Voltabox produced battery systems for use in trolleybuses in the third quarter. These are intended for the local public transport grids of Seattle, San Francisco and Lucerne. Voltabox also serially produced and delivered the first battery systems for Schäffer, a compact-, wheel- and teleloader provider, in the third quarter. It's the company's intention to at least maintain the same level of production output in the fourth quarter. At the same time, series production of starter batteries for BMW Motorrad is now finally set to begin. This should be reflected in additional revenue at the start of the coming fiscal year at the latest. In addition, battery systems for mass-market applications such as pedelecs and e-bikes contributed to revenue for the first time in the third quarter.

Focus on Integrating Acquisitions

Following its acquisition of ACCURATE Smart Battery Systems, Voltabox has completed its M&A growth for the time being. As previously announced as of the company's IPO, through its latest purchase, Voltabox will also be able to tap into selected high-margin mass markets for lithium-ion battery systems. ACCURATE develops and produces tailor-made, standardized battery systems for pedelecs and e-bikes, particularly in the premium segment. ACCURATE's solutions are also attractive for other high-growth mass markets which Voltabox aims to gradually tap into.

The closing of the acquisition of Navitas Systems is still subject to the condition precedent of approval from the American authorities for the overall transaction. Due to the delay of the execution, the purchase price has been revised - Voltabox will now pay around USD 41.5 million (equivalent to about EUR 35.7 million) for Navitas instead of the original amount of USD 43 million (equivalent to around EUR 37 million). In addition, the parties have agreed to a payment of the purchase price in four yearly installments, the largest of which will become due upon execution of the contract. Currently, the Management Board expects approval from the US authorities in the near future, so that the entire transaction can be executed in November.

High Total Operating Performance Thanks to Stockpiling of Finished Goods and Work in Progress

Due to the higher production volumes, the cost of materials increased by 122.2 % to EUR 23.9 million (prior year: EUR 10.8 million). The cost of materials ratio (calculated from the ratio of cost of materials to sales and changes in inventories) fell to 57.9 % (previous year: 63.8 %) primarily as a result of economies of scale. In the context of this high total operating performance, a gross profit for the period under review resulted in the amount of EUR 22.1 million (prior year: EUR 9.2 million), which constitutes a gross profit margin of 66.1 % (prior year: 56.2 %). Mainly as a result of the new hires in connection with the operational growth as well as the acquisitions, personnel costs increased by 97.1 % to EUR 8.8 million (prior year: EUR 4.5 million). The personnel expense ratio decreased slightly to 26.2 % (prior year: 27.3 %). The number of employees increased from 94 to 193 in the first nine months of the year.

Profit After Tax Achieved for the First Time

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose considerably to EUR 4.9 million (prior year: EUR -0.3 million), which corresponds to an EBITDA margin of 14.8 % (prior year: -1.5 %). After an expected increase in depreciation and amortization totaling EUR 2.6 million (prior year: EUR 1.5 million), earnings before interest and taxes (EBIT) improved to EUR 2.3 million (prior year: EUR -1.8 million). Accounting for the considerable increase in revenue, the EBIT margin rose clearly to 7.0 % (prior year: -10.7 %). Given that net finance costs improved slightly to EUR -0.4 million (prior year: EUR -0.5 million) while income tax expenses amounted to EUR 0.1 million (prior year: EUR 0.7 million in income, mainly due to the change in deferred tax assets), in the period under review consolidated net income increased to EUR 1.8 million (prior year: EUR -1.5 million). This corresponds to earnings per share of EUR 0.11.

Net Assets and Financial Position Remain Very Solid

Noncurrent assets increased by EUR 15.2 million to EUR 46.3 million (December 31, 2017: EUR 31.1 million). In particular, this is due to the EUR 7.3 million increase in intangible assets to EUR 23.8 million (December 31, 2017: EUR 16.5 million) as well as the increase in goodwill to EUR 9.7 million due to the consolidation of Concurrent Design and ACCURATE (December 31, 2017: EUR 3.2 million).

Current assets decreased to EUR 130.0 million (December 31, 2017: EUR 139.6 million). Inventories rose by EUR 13.5 million to EUR 17.7 million and trade receivables by EUR 16.9 million to EUR 39.0 million. These increases were attributable to expanded business activities as well as the payment periods extended for the current year for the company's customer Triathlon, for the purpose of its sales financing. Other assets rose by EUR 7.9 million to EUR 8.1 million in the second quarter in particular, due to the early restructuring of the cooperation agreement with Triathlon (mainly on account of capitalization of the one-time investment contribution for capacity expansion). At the same time, cash and cash equivalents decreased by EUR 46.8 million to EUR 55.8 million (December 31, 2017: EUR 102.7 million). The decline in the third quarter was mainly due to operating expenses in connection with dynamic growth in the market for intralogistics and also the acquisition of ACCURATE.

Strong Equity Ratio of 89 percent

Voltabox AG's equity amounts to EUR 157.1 million (December 31, 2017: 155.0 million) The equity ratio decreased marginally to 89.1 % (December 31, 2017: 90.8 %) as of the balance sheet date due to the slightly higher balance sheet total.

Cash flow from operating activities decreased significantly in the period under review to EUR -30.1 million (prior year: EUR -6.4 million). This was mainly a result of the significant increase in trade receivables of EUR 23.7 million (prior year: EUR 3.1 million) as well as higher inventories of EUR 13.5 million (prior year: EUR 1.8 million).

Cash flow from investing activities decreased by EUR 13.1 million to EUR -16.3 million in the period under review (prior year: EUR -3.2 million). This was mainly due to payments for investments in property, plant and equipment in the amount of EUR 1.1 million, payments for investments in intangible assets in the amount of EUR 6.6 million as well as payments resulting from the acquisition of consolidated companies and other business units, specifically the purchase price payments for ACCURATE Smart Battery Systems GmbH and Concurrent Design, Inc., in the amount of EUR 8.7 million.

Cash and cash equivalents totaled EUR 55.8 million as of the end of the reporting period (December 31, 2017: EUR 102.7 million).

Management Board Confirms Forecast for Revenue and Profitability

In view of the positive order situation, the Management Board expects that Voltabox will experience growth in its existing market segments that clearly outstrips the rest of the market, along with increasing profitability. In addition to intralogistics, the trolleybus and agricultural and construction market segments will be key growth drivers. The revenue forecast of EUR 65 million to EUR 70 million for fiscal year 2018 is confirmed, as is the outlook for operating profitability. However, the strategically important restructuring of the partnership with Triathlon in order to hedge the market leadership that the company seeks in the intralogistics growth market is burdening EBIT in the current fiscal year by about EUR 2 million. An EBIT margin of around 7 % is therefore envisaged for the year as a whole, as was indicated in the half-year report.

The Management Board expects to see an investment volume of around EUR 13.4 million in the current year. Own work capitalized should amount to around 43 % of the investment total for the current year.

The interim report and condensed consolidated financial statements as of September 30, 2018, are available for download at http://ir.voltabox.ag.

About Voltabox AG

Voltabox AG (ISIN DE000A2E4LE9), which is listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, is a rapidly growing system provider for e-mobility in industrial applications. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion batteries that are modular and in serial production. The battery systems are primarily used in buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion batteries for select mass-market applications, such as high-performance motorcycles and pedelecs.

Voltabox has production sites at its headquarters in Delbrück, Germany, in Austin, Texas, USA, and in Kunshan, China, as well as a development sites in Aachen and Korntal-Münchingen, Germany.

Additional information about Voltabox can be found at www.voltabox.ag.

Financial Presse and Investor Relations Contact

Voltabox AG

Dr. Kai Holtmann
Artegastraße 1
D-33129 Delbrück
Phone: +49 (0) 52 50 - 99 30-964
Fax: +49 (0) 52 50 - 99 30-901
Email: investor@voltabox.ag

13.11.2018 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.
Archive at www.dgap.de

show this