Mr. Doug Moore reports

EVERTZ TECHNOLOGIES LIMITED EXCEEDS HALF BILLION IN ANNUAL REVENUE IN FISCAL 2024

Evertz Technologies Ltd. has released its results for the fourth quarter and year ended April 30, 2024.

Fiscal 2024 highlights:

• Record revenue of $514.6-million, an increase of 13 per cent or $60.0-million from the prior year;
• Reoccurring software, services and other software of $188.9-million, representing 37 per cent of total revenue;
• International revenue of $176.6-million, an increase of 50 per cent or $59.1-million from the prior year;
• Earnings from operations of $100.4-million;
• Net earnings of $71.0-million for the year, an increase of 10 per cent from the prior year;
• Fully diluted earnings per share of 91 cents for the year.

Fourth quarter 2024 highlights:

• Quarterly revenue of $122.8-million;
• Earnings from operations of $19.6-million;
• Net earnings of $13.9-million for the quarter;
• Fully diluted earnings per share of 18 cents for the quarter;
• Cash and cash equivalents of $86.3-million.

Revenue

For the quarter ended April 30, 2024, revenue was $122.8-million compared with revenue of $128.9-million for the quarter ended April 30, 2023. For the quarter, revenue in the U.S./Canada region was $96.5-million, a decrease of $1.5-million, compared with $98.0-million in the same quarter last year. The international region had revenue of $26.3-million compared with $30.9-million in the same quarter last year.

For the year ended April 30, 2024, sales were $514.6-million (including $325.7-million in hardware and $188.9-million in reoccurring software, services and other software) compared with sales of $454.6-million (including $281.2-million in hardware and $173.4-million in reoccurring software, services and other software) for the year ended April 30, 2023. For the year, revenue in the U.S./Canada region was $338.0-million, an increase of $900,000 compared with $337.1-million in the prior year. The international region had revenue of $176.6-million compared with $117.5-million, an increase of $59.1-million from the prior year.

Gross margin

For the quarter ended April 30, 2024, gross margin was $72.7-million as compared with $76.6-million in the same quarter last year. Gross margin percentage was approximately 59.2 per cent as compared with 59.5 per cent in the quarter ended April 30, 2023.

For the year ended April 30, 2024, gross margin was $302.4-million as compared with $268.3-million for the year ended April 30, 2023. Gross margin percentage was approximately 58.8 per cent as compared with 59.0 per cent for the prior year.

Earnings

For the quarter ended April 30, 2024, net earnings were $13.9-million as compared with $18.6-million in the corresponding period last year.

For the year ended April 30, 2024, net earnings were $71.0-million as compared with $64.6-million in the corresponding period last year.

For the quarter ended April 30, 2024, earnings per share on a fully diluted basis were 18 cents as compared with 24 cents in the corresponding period last year.

For the year ended April 30, 2024, earnings per share on a fully diluted basis were 91 cents as compared with 84 cents in the same period in 2023.

Operating expenses

For the quarter ended April 30, 2024, selling and administrative expenses were $20.1-million as compared with $17.5-million for the quarter ended April 30, 2023.

For the year ended April 30, 2024, selling and administrative expenses were $72.3-million as compared with $61.5-million for the year ended April 30, 2023.

For the quarter ended April 30, 2024, gross research and development expenses were $36.7-million as compared with $29.9-million for the quarter ended April 30, 2023.

For the year ended April 30, 2024, gross research and development expenses were $134.8-million as compared with $117.1-million for the year ended April 30, 2023.

Liquidity and capital resources

The company's working capital as at April 30, 2024, was $201.4-million as compared with $171.4-million on April 30, 2023.

Cash was $86.3-million as at April 30, 2024, as compared with $12.5-million on April 30, 2023.

Cash generated from operations was $34.2-million for the quarter ended April 30, 2024, as compared with $25.9-million cash generated for the quarter ended April 30, 2023. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $19.6-million from operations for the quarter ended April 30, 2024, compared with $26.7-million for the same period last year.

Cash generated by operations was $144.7-million for the 2024 fiscal year as compared with cash provided by operations of $53.8-million for the 2023 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $95.4-million from operations for fiscal 2024 as compared with $91.5-million for fiscal 2023.

For the quarter, the company used $3.3-million for investing activities.

For the year, the company used $2.3-million in investing activities, which was principally driven by the acquisition of property, plant and equipment for $9.6-million and partly offset by the disposal of instruments held for trading for $7.2-million.

For the quarter, the company used cash in financing activities of $15.0-million, which was principally a result of the payment of dividends of $14.8-million.

For the year ended April 30, 2024, the company used cash in financing activities of $70.2-million, which was principally a result of the payment of dividends of $58.6-million.

Shipments and backlog

At the end of May, 2024, purchase order backlog was in excess of $295-million, and shipments during the month of May, 2024, were $32-million.

Dividend declared

Evertz's board of directors declared a regular quarterly dividend on June 19, 2024, of 19.5 cents per share.

The dividend is payable to shareholders of record on July 2, 2024, and will be paid on or about July 10, 2024.

Conference call

The company will hold a conference call with financial analysts to discuss the results on June 19, 2024, at 5 p.m. EDT. Media and other interested parties are invited to join the conference call in listen-only mode. The conference call will be available by dialling 289-514-5100 or toll-free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until July 21, 2023. The rebroadcast will be available at 289-819-1325 or toll-free 1-888-660-6264. The passcode for the rebroadcast is 11656 followed by the number sign.

About Evertz Technologies Ltd.

Evertz 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 and next-generation high-bandwidth low-latency 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.

We seek Safe Harbor.