Interim Report for January-March 2016

19/05/2016 - (Numbers Q1 2015 are for Sensys Traffic stand alone)
- Net sales amounted to SEK 164.1 m (54.3)
- Order intake amounted to SEK 27.1 m (43.2)
- One off cost for the transformation program amounts to SEK 30.0 m
- The EBITDA (adj.) totalled SEK 33.4 m (17.4)
- The operating profit (adj.) totalled SEK 15.6 m (17.2)
- The operating margin (adj.) was 9.5 per cent (31.6)
- The profit after taxation (adj.) totalled SEK 10.1 m (13.5)
- Earnings per share, before and after dilution, totalled SEK -0.03 (0.02)
- Cash flow from operating activities amounted to SEK 4.2 m (19.9)

Comments from the CEO
The year has started according to plan with focus to deliver on our strategic priorities, i.e. transforming Sensys Gatso Group into a global leader in traffic management solutions, services and software with a streamlined business model.

During the first quarter, net sales amounted to SEK 164.1 million (54.3), EBITDA amounted to SEK 3.4 million (17.4) and operating profit was SEK -14.4 million, corresponding to a negative operating margin (31.6). In the first quarter the estimated financial effects of the transformation program amounting to SEK 30 million have been taken into account. This resulted in the EBITDA and operating profit as stated above. The adjusted EBITDA amounted to SEK 33.4 million and the adjusted operating profit amounted to SEK 15.6 million corresponding to an operating margin of 9.5%.

Order intake amounted to SEK 27.1 million (43.2) which was lower than the previous quarter and can to some extent be explained by seasonality patterns, as public tenders normally are not finalised in the beginning of the year.

Transformation program on target
2016 is a year of transformation and the program that was launched during the quarter is progressing well. All key metrics are on target; operational expenses, cost of goods sold and net working capital. Full effect is expected to be reached in the first quarter of 2017, i.e. reduction of the annual cost run-rate of SEK 20 million and a reduction of the net working capital of SEK 30 million. As part of the program we are reorganizing the system units into centres of excellence in Sweden and the Netherlands, as well as streamlining the supply chain and downsizing the assembly operations in the Netherlands.

After the end of the quarter, we have completed the negotiations with Employee Representatives and Trade Unions in Sweden and the Netherlands and affected employees have been informed. The outcome of the final negotiations was in line with the previously estimated cost of SEK 30 million, which have been taken into account in the first quarter as stated above.

Focus on recurring revenue
Starting this quarter, we are reporting the breakdown of our two business areas System Sales and Managed Services. In the quarter, sales in System Sales amounted to SEK 147.8 million, and Managed Services amounted to SEK 16.3 million.

The system sales area is generally a very volatile business with a mix of a few big contracts, and many smaller agreements. Managed services however provide a recurring and predictable revenue stream for the group, why our ambition is to grow its share of the business. With a stable foundation of managed services, the impact from order intake quarter-on-quarter will become less significant.

One company with improved scale and reach
2016 marks the first full year as one company for Sensys and Gatso, and we are optimistic about our future prospects thanks to our extended size, scale and reach. The short-term outlook will however be affected by continued volatility. Throughout the year, we will continue transforming the company in line with our strategy, ensuring a larger proportion of recurring revenues and a more streamlined business.


Invitation to presentation for press and analysts
On 19 May at 09:30, CEO Torbjörn Sandberg and CFO Niki Gatsonides will present the report and
answer questions in an audiocast. The presentation can be followed online via the link on Sensys’ website:
www.sensysgatso.com. It is also possible to listen to the presentation and ask questions by phone; you can register via the two following options:

Pre-registration via web link
To take part in the telephone conference, we would ask you to pre-register in good time ahead of the event via the following web link:
http://emea.directeventreg.com/registration/10922456
Open the link and follow the instructions. When registration has been completed, a confirmation email will be sent to the email address specified during registration. This email will contain phones number and a code (Direct Event Passcode). Select the appropriate number to call.
When prompted, enter the code followed by “#” to take part in the conference.

Directly by phone:
As an alternative to online registration to take part in the event via the telephone conference function, the following phone numbers may be called:
Sweden: +46 (0) 856619425
USA: +18669049624
UK: +44 (0) 8445718931

You will be prompted to enter an event code; ignore this and wait instead (1-2 mins) until the operator speaks, and then state your: Conference ID: 10922456 or “Sensys” to register.

Please call ten minutes before the time specified.

 

This report has not been the subject of a summary audit by the Group’s auditor.

This is information that Sensys Gatso Group AB (publ) must publish pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act.

The information was submitted for publication on 19 May 2016 at 08:30.

 Interim Report Q1
 

For further information please contact:
Torbjörn Sandberg, CEO
+46 76 843 43 76

Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners.  Sensys Gatso Group has subsidiaries in Australia, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates.  The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm.  The Group has 175 employees and is the result of a merger of Sensys Traffic AB and Gatso Beheer B.V. following the aquistion of Gatso Beheer.

Published: 19/05/2016