11:45:18 EST Tue 31 Jan 2023
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Evertz Technologies Ltd
Symbol ET
Shares Issued 76,196,202
Close 2022-12-06 C$ 12.90
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Evertz Technologies earns $19.97-million in Q2 2023

2022-12-06 16:16 ET - News Release

Mr. Doug Moore reports

EVERTZ TECHNOLOGIES REPORTS SECOND QUARTER RESULTS FOR THE QUARTER ENDED OCTOBER 31, 2022

Evertz Technologies Ltd. has released its results for the second quarter ended Oct. 31, 2022.

Second quarter 2023 highlights:

  • Quarterly revenue of $113.2-million, an increase of $6-million from the prior-year quarter;
  • United States/Canada quarterly revenue up 13 per cent from the prior-year quarter;
  • Earnings from operations of $28.4-million for the quarter, an increase of 20 per cent from the prior-year quarter;
  • Net earnings of $20-million for the quarter, an increase of $2.8-million from the prior-year quarter;
  • Fully diluted earnings per share of 26 cents for the quarter;
  • Regular quarterly dividend increased to 19 cents.

Revenue

For the quarter ended Oct. 31, 2022, revenues were $113.2-million, an increase of $6-million compared with revenues of $107.2-million for the quarter ended Oct. 31, 2021. For the quarter, revenues in the United States/Canada region were $88.3-million, an increase of 13 per cent compared with $78.2-million in the same quarter last year. The international region had revenues of $25-million compared with $29-million in the same quarter last year.

Gross margin

For the quarter ended Oct. 31, 2022, gross margin was $67.5-million as compared with $61.1-million in the same quarter last year. Gross margin percentage was approximately 59.6 per cent as compared with 57 per cent in the quarter ended Oct. 31, 2021.

Earnings

For the quarter ended Oct. 31, 2022, net earnings were $20-million as compared with $17.2-million in the corresponding period last year.

For the quarter ended Oct. 31, 2022, earnings per share on a fully diluted basis were 26 cents as compared with 22 cents in the corresponding period last year.

Operating expenses

For the quarter ended Oct. 31, 2022, selling and administrative expenses were $14.7-million as compared with $14.8-million for the quarter ended Oct. 31, 2021.

For the quarter ended Oct. 31, 2022, gross research and development expenses were $29.6-million as compared with $24.4-million for the quarter ended Oct. 31, 2021.

Liquidity and capital resources

The company's working capital as at Oct. 31, 2022, was $154.1-million as compared with $158.9-million on April 30, 2022.

Bank indebtedness was $4.2-million as at Oct. 31, 2022, as compared with cash and cash equivalents of $33.9-million on April 30, 2022.

Cash used from operations was $7.7-million for the quarter ended Oct. 31, 2022, as compared with $900,000 cash generated for the quarter ended Oct. 31, 2021. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $27.5-million from operations for the quarter ended Oct. 31, 2022, compared with $23.1-million for the same period last year.

For the quarter, the company used $5.6-million for investing activities, including acquisitions of $3.2-million of investments.

For the quarter, the company used cash in financing activities of $16-million, which was principally a result of the payment of dividends of $13.7-million.

Shipments and backlog

At the end of November, 2022, purchase order backlog was in excess of $149-million and shipments during the month of November, 2022, were $39-million.

Dividend declared

The Evertz board of directors declared a regular quarterly dividend on Dec. 6, 2022, of 19 cents per share.

The dividend is payable to shareholders of record on Dec. 16, 2022, and will be paid on or about Dec. 22, 2022.

Conference call

The company will hold a conference call with financial analysts to discuss the results on Dec. 6, 2022, at 5 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialling 416-764-8646 or toll-free (North America) 1-888-396-8049.

For those unable to listen to the live call, a rebroadcast will also be available until Dec. 6, 2023. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-674-7070. The pass code for the rebroadcast is 898266.

About Evertz Technologies Ltd.

Evertz Technologies designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multichannel digital and high- and ultrahigh definition television (HDTV and UHD) and next-generation high-bandwidth, low-latency IP (Internet protocol) network environments and by telecommunications and new-media companies. The company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the cloud.

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