DGAP-News: Voltabox AG
/ Key word(s): Half Year Results/Interim Report
Voltabox Stabilizes Operational Business in Second Quarter
- Effects of the COVID-19 pandemic also impact Voltabox earnings in second quarter - Group revenue decreases to € 9.5 million (prior year: € 32.1 million) due to disrupted supply chains, production stoppages and customers being affected
- EBITDA drops to € -10.7 million (prior year: € 0.4 million) - EBITDA margin at -112.7 % (prior year: 1.3 %)
- Positive free cash flow achieved in the first half of the year - operating cash flow at € 9.3 million (prior year: € -15.1 million)
- Range in forecast for fiscal year 2020 confirmed: Group revenue of € 25 to 45 million with an adjusted EBITDA margin of -6 % at most and slightly negative free cash flow
Delbrück, Germany, September 4, 2020 - Voltabox AG [ISIN DE000A2E4LE9] published its interim report for the first half of 2020 today and confirmed the forecast for the full year based on the existing revenue potential. Earnings in the second quarter were predominantly marked by the many weeks of ongoing interruptions in production activities as a result of the coronavirus outbreak - compared with the first three months, consolidated net income has shown a significant improvement. In addition to implementing structural optimizations, the company successfully used the period of comprehensive restrictions that resulted from the COVID-19 pandemic to make progress on pioneering innovation projects at the product level.
Against the background of almost completely restricted production and the resulting wide-ranging reduced working hours in all areas of the company, the Voltabox Group generated revenue of € 6.7 million (prior year: € 19.5 million) with an EBITDA margin of -67.3 % (prior year: -10.7 %) in the second quarter. Free cash flow in this period came to € 2.0 million (prior year: € -8.4 million). As a result of the coronavirus crisis, the company recorded a decline in revenue of 70.5 %. The EBITDA for this period comes to € -10.7 million.
"Early on, we showed to what extent our business is affected by the restrictions. So our earnings for the half-year are in line with our expectations," says Jürgen Pampel, CEO of Voltabox AG. "At the end of the first six months, we were definitely able to identify positive trends as well. Ultimately, we managed to stabilize our operating business after the interruptions to production ended. Our entire focus is now on seizing the opportunities that the second half of the year has to offer."
Voltabox used the phase of production downtime to make innovative structural adjustments and necessary process optimizations. In connection with this, the company worked on new approaches for addressing the market segments in focus, introduced significant improvements to the current product portfolio and made progress in forward-looking innovation projects with the express goal of technology and cost leadership.
"The current circumstances still dominate our key figures this year. In the meantime, however, we have enabled the Voltabox Group in every respect to strengthen our competitiveness in the future with regard to both the pricing of our solutions as well as their technological characteristics. In parallel, we have analyzed and adjusted the organization in its structures and processes. In the current situation, we are profiting tremendously from our new, fully integrated financial planning - including the worst-case scenario liquidity planning that we had introduced even before the coronavirus crisis - as well as the automated risk management that has been implemented," Patrick Zabel, CFO of Voltabox AG, points out. "Our approach to a new market presence will be most evident in our pioneering product developments. We will be able to introduce a true innovation at the module level in the foreseeable future. The new technology, the principle of which we have already successfully tested with the market consultation and shared with customers, will give us a tremendous boost in our market presence."
The earnings position in the first half-year is marked by impending losses and a burdened operating result due to the undercoverage of fixed costs as a consequence of reduced revenue. Finished goods and work in progress decreased by € 1.8 million (prior year: € 1.4 million increase) in this period. Capitalized development costs underwent a decrease to € 1.9 million (prior year: € 4.1 million) as a result of the multiple weeks of restricted business activities starting from the second half of March. Accordingly, this results in an overall performance decrease of 73.8 % to € 10.5 million (prior year: € 38.0 million) in the first six months of the fiscal year.
In view of this, the cost of materials decreased by 74.8 % to € 5.7 million (prior year: € 22.5 million). The material input ratio (calculated from the ratio of cost of materials to revenue and inventory changes) increased to 73.7 % (prior year: 67.3 %) due to the use of alternatively-sourced small series parts. Against this backdrop, the gross profit for the reporting period amounted to € 4.8 million (prior year: € 15.4 million), which corresponds to a gross profit margin of 62.9 % (prior year: 48.0 %). Personnel expenses decreased by 34.6 % to € 5.9 million (prior year: € 9.0 million) mainly due to the cost reduction measures implemented in 2019. As a result of decreased revenue, the personnel expense ratio increased to 76.6 % (prior year: 28.0 %).
Accordingly, earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to € -10.7 million (prior year: € 0.4 million), which corresponds to an EBITDA margin of -112.7 % (prior year: 1.3 %). After depreciation and amortization of € 2.8 million (prior year: € 3.8 million) and increased impairment of € 8.5 million (prior year: € 0.3 million), earnings before interest and taxes (EBIT) decreased to € -21.9 million (prior year: € -3.6 million). Correspondingly, the EBIT margin fell to -231.4 % (prior year: -11.3 %). The Voltabox Group generated consolidated net income of € -23.0 million in the period under review (prior year: € -2.7 million). This corresponds to earnings per share of € -1.45 (prior year: € -0.17).
The balance sheet total decreased by 13.2 % to € 78.0 million as of June 30, 2020 (December 31, 2019: € 89.9 million). Noncurrent assets increased by 17.8 % to € 36.8 million (December 31, 2019: € 31.3 million). Current assets decreased by 29.8 % to € 41.2 million (December 31, 2019: € 58.7 million). Trade receivables were substantially reduced by € 9.9 million to € 21.2 million (December 31, 2019: € 31.1 million). Cash and cash equivalents increased by € 0.4 million to roughly € 5.5 million (December 31, 2019: € 5.0 million).
Noncurrent provisions and liabilities increased slightly to € 15.7 million (December 31, 2019: € 15.4 million). Current provisions and liabilities increased by 48.4 % to € 31.9 million (December 31, 2019: € 21.5 million). This is primarily the result of the formation of other provisions, mainly due to an impending loss provision, by an additional € 4.4 million to a current total of € 6.2 million (December 31, 2019: € 3.8 million), as well as to the increase of trade payables to € 19.1 million (December 31, 2019: € 12.4 million).
Voltabox AG's equity amounts to € 30.5 million as of the reporting date (December 31, 2019: € 53.1 million), which results in an equity ratio of 39.0 % (December 31, 2019: 58.7 %).
Cash flow from operating activities improved in the period under review to € 9.3 million (prior year: € -15.1 million). This is mainly due to the significant increase in other provisions and provisions for pensions of € 2.2 million, the significant decline in trade receivables of € 14.0 million, the decrease in inventories of € 3.1 million as well as the increase in trade payables of € 6.8 million.
Cash flow from investment activity in the period under review amounted to € -8.7 million (prior year: € -8.9 million). This resulted from payments for investments in property, plant and equipment of € 6.9 million (prior year: € 6.2 million) and payments for investments in intangible assets amounting to € 1.9 million (prior year: € 2.8 million).
The Management Board has confirmed the forecast for fiscal year 2020. Voltabox expects a decline in revenue to between € 25 and 45 million due to the coronavirus pandemic. The adjusted Group EBITDA margin will reach -6 % at most. The Management Board expects free cash flow to be slightly negative. The major drivers of the revenue development in 2020 will be new and existing customers in the area of intralogistics, first projects in the retrofitting of conventional diesel buses, and the market segments of agriculture, construction and mobile energy storage solutions.
The company's Group interim report as of June 30, 2020 is available for download at https://www.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 system provider for e-mobility in industrial applications as well as in select mass markets. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion battery systems that are modular and in serial production. The battery systems are used for applications including commercial vehicles, such as buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion battery systems for select mass-market applications such as pedelecs and e-bikes as well as starter batteries for high-performance motorcycles.
Voltabox has production sites at its headquarters in Delbrück, Germany, in Austin, Texas, USA, and in Kunshan, China.
Additional information about Voltabox can be found at www.voltabox.ag/en.
|Phone:||+49 (0)5250 9930 964|
|Fax:||+49 (0)5250 9930 901|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1127345|
|End of News||DGAP News Service|