U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    107.72
    -0.71 (-0.65%)
     
  • Gold

    1,809.90
    +8.40 (+0.47%)
     
  • Silver

    19.77
    +0.10 (+0.52%)
     
  • EUR/USD

    1.0437
    +0.0011 (+0.10%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2105
    +0.0002 (+0.02%)
     
  • USD/JPY

    135.0640
    -0.1110 (-0.08%)
     
  • BTC-USD

    19,253.14
    +31.26 (+0.16%)
     
  • CMC Crypto 200

    416.95
    -3.19 (-0.76%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    26,140.08
    +204.46 (+0.79%)
     

Evertz Technologies Reports Fiscal 2022 Results for the Year Ended April 30, 2022

  • Oops!
    Something went wrong.
    Please try again later.
·11 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Burlington, Ontario--(Newsfile Corp. - June 23, 2022) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the fourth quarter and year ended April 30, 2022.

Fiscal 2022 Highlights

  • Revenue of $441.0 million, an increase of 29% from the prior year

  • Earnings from operations of $101.2 million, an increase of $43.2 million or 75% from the prior year

  • Net earnings of $72.7 million for the year, an increase of 73.2% from the prior year

  • Fully diluted earnings per share of $0.94 for the year, compared to $0.55 in the prior year

Fourth Quarter 2022 Highlights

  • Quarterly revenue of $116.1 million, an increase of 24% from the prior year

  • Earnings from operations of $26.9 million, an increase of $12.8 million or 91% from the prior year

  • Net earnings of $19.2 million for the quarter, an increase of 96% from the prior year

  • Fully diluted earnings per share of $0.25 for the quarter, compared to $0.13 in the prior year

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)


 

Q4'22



Q4'21



YE'22



YE'21

 

Revenue

$

116,089


$

93,293


$

441,016


$

342,888


Gross margin


68,340



55,558



255,315



199,424


Earnings from operations


26,863



14,055



101,203



57,986


Net earnings


19,213



9,810



72,677



41,960


Fully-diluted earnings per share

$

0.25


$

0.13


$

0.94


$

0.55


Fully-diluted shares


76,226,341



76,646,831



76,570,564



76,403,894​


 

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)


 

YE ' 22



YE '21

 

Cash and cash equivalents

$

33,902


$

108,771


Working capital


158,947



214,515


Total assets


422,979



451,793


Shareholders' equity


230,938



292,734


 

Revenue

For the quarter ended April 30, 2022, revenues were $116.1 million compared to revenues of $93.3 million for the quarter ended April 30, 2021. For the quarter, revenues in the United States/Canada region were $77.8 million, an increase of $14.2 million, compared to $63.6 million in the same quarter last year. The International region had revenues of $38.2 million an increase of $8.5 million compared to $29.7 million in the same quarter last year.

For the year ended, April 30, 2022, sales were $441.0 million, compared to sales of $342.9 million for the year ended April 30, 2021. For the year, revenues in the United States/Canada region were $299.4 million, an increase of $76.7 million compared to $222.7 million in the prior year. The International region had revenues of $141.7 million, an increase of $21.5 million compared to $120.2 million in the prior year.

Gross Margin

For the quarter ended April 30, 2022, gross margin was $68.3 million as compared to $55.6 million in the same quarter last year. Gross margin percentage was approximately 58.9% as compared to 59.6% in the quarter ended April 30, 2021.

For the year ended April 30, 2022, gross margin was $255.3 million as compared to $199.4 million for the year ended April 30, 2021. Gross margin percentage was approximately 57.9% as compared to 58.2% for the prior year.

Earnings

For the quarter ended April 30, 2022, net earnings were $19.2 million as compared to $9.8 million in the corresponding period last year.

For the year ended April 30, 2022, net earnings were $72.7 million as compared to $42.0 million in the corresponding period last year.

For the quarter ended April 30, 2022, earnings per share on a fully-diluted basis were $0.25 as compared to $0.13 in the corresponding period last year.

For the year ended April 30, 2022, earnings per share on a fully-diluted basis were $0.94 as compared to $0.55 in the same period in 2021.

Operating Expenses

For the quarter ended April 30, 2022, selling and administrative expenses were $16.1 million as compared to $13.0 million for the quarter ended April 30, 2021.

For the year ended April 30, 2022, selling and administrative expenses were $60.9 million as compared to $49.4 million for the year ended April 30, 2021.

For the quarter ended April 30, 2022, gross research and development expenses were $27.3 million as compared to $22.5 million for the quarter ended April 30, 2021.

For the year ended April 30, 2022, gross research and development expenses were $102.4 million as compared to $80.2 million for the year ended April 30, 2021.

Liquidity and Capital Resources

The Company's working capital as at April 30, 2022 was $158.9 million as compared to $214.5 million on April 30, 2021.

Cash was $33.9 million as at April 30, 2022 as compared to $108.8 million on April 30, 2021.

Cash generated from operations was $21.5 million for the quarter ended April 30, 2022 as compared to $33.6 million cash generated for the quarter ended April 30, 2021. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $23.9 million from operations for the quarter ended April 30, 2022 compared to $12.4 million for the same period last year.

Cash provided by operations was $68.7 million for the 2022 fiscal year as compared to cash provided by operations of $101.0 million for the 2021 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $93.0 million from operations for fiscal 2022 as compared to $59.0 million for fiscal 2021.

For the quarter, the Company used $1.3 million for investing activities.

For the year, the Company used $5.0 million in investing activities which was principally driven by the acquisition of capital equipment of $5.5 million.

For the quarter ended, the Company used cash in financing activities of $15.0 million which was principally a result of the payment of dividends of $13.7 million.

For the year ended April 30, 2022, the Company used cash in financing activities of $137.5 million which was principally a result of the payment of dividends of $131.4 million, including a special dividend of $76.3 million.

Shipments and Backlog

At the end of May 2022, purchase order backlog was in excess of $148 million and shipments during the month of May 2022 were $26 million.

Dividend Declared

Evertz Board of Directors declared a regular quarterly dividend on June 23 2022 of $0.18 per share.

The dividend is payable to shareholders of record on July 5, 2022 and will be paid on or about July 12, 2022.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)



Three month period ended



Twelve month period ended




April 30,



April 30,

 



2022



2021



2022



2021

 

Revenue

$

116,089


$

93,293


$

441,016


$

342,888

 

Cost of goods sold


47,749



37,735



185,701



143,464


Gross margin


68,340



55,558



255,315



199,424

 



 




 




 




 



Expenses


 




 




 




 



Selling and administrative


16,139



12,987



60,884



49,413

 

General


1,026



1,287



4,563



3,896


Research and development


27,328



22,516



102,438



80,187


Investment tax credits


(3,295

)


(2,942

)


(12,336

)


(13,042

)

Share based compensation


1,370



2,545



5,028



6,123


Foreign exchange (gain) loss


(1,091

)


5,110



(6,465

)


14,861

 



41,477

 


41,503

 

 

154,112


 

141,438

 

Earnings before undernoted


26,863

 


14,055

 

 

101,203


 

57,986

 



 




 




 




 



Finance income


72



66



309



687


Finance costs


(1,207

)


(516

)


(2,445

)


(1,709

)

Share of net loss of Investment in Associate


(469

)


(531

)


(1,493

)


(531

)

Other income and expenses

 

574

 

 

(157

)

 

338

 

 

(588

)

Earnings before income taxes

 

25,833

 

 

12,917

 

 

97,912

 

 

55,845

 

Provision for (recovery of) income taxes


 




 




 




 



Current


7,477



6,459



26,909



17,369


Deferred


(857

)


(3,352

)

 

(1,724

)

 

(3,484

)



6,620

 


3,107

 

 

25,185

 

 

13,885

 



 




 




 




 



Net earnings for the period

$

19,213

 

$

9,810

 

$

72,677

 

$

41,960

 



 




 




 




 



Net earnings attributable to non-controlling interest


256



(144

)


932



202

 

Net earnings attributable to shareholders


18,957

 


9,954

 


71,745

 


41,758

 

Net earnings for the period

$

19,213

 

$

9,810

 

$

72,677

 

$

41,960

 



 




 




 




 


 

Earnings per share


 




 




 




 



Basic

$

0.25


$

0.13


$

0.94


$

0.55


Diluted

$

0.25

 

$

0.13

 

$

0.94

 

$

0.55

 

 



April 30,



April 30,



April 30,




2022



2021



2020

 











Assets









 

Current assets










Cash and cash equivalents

$

33,902


$

108,771


$

75,025


Trade and other receivables


100,020



76,785



90,631


Contract assets


6,398



2,821



7,864


Prepaid expenses


5,930



6,559



9,003


Inventories


177,268



152,699



161,985

 



323,518



347,635



344,508




 



 



 

 

Property, plant and equipment


37,877



44,799



47,794


Right-of-use assets


24,637



23,570



28,823


Goodwill


21,033



21,140



20,771


Intangible assets


3,317



4,476



1,573


Investment in Associate


5,474



6,869



-


Deferred income taxes


5,123



3,304



204

 


$

420,979


$

451,793


$

443,673

 



 



 



 


Liabilities


 



 



 

 

Current liabilities


 



 



 

 

Trade and other payables

$

68,405


$

66,727


$

62,231


Provisions


7,379



4,069



5,031


Deferred revenue


74,267



58,047



45,076


Current portion of long term debt


-



-



238


Current potion of lease obligations


4,088



4,122



4,400


Current potion of redemption liability


3,423



-



-


Income tax payable


7,009



155



3,812

 



164,571



133,120



120,788


   


 



 



 

 

Long term redemption liability


-



2,523



-


Long term lease obligations


22,760



21,245



25,465

 



187,331



156,888



146,253

 



 



 



 

 

Equity


 



 



 

 

Capital stock


143,502



143,605



143,915


Share based payment reserve


10,893



9,514



8,279




 



 



 


Accumulated other comprehensive income


(4,093

)


(1,062

)


1,032


Retained earnings


80,636



140,677



141,786

 



76,543



139,615



142,818




 



 



 

 

Total equity attributable to shareholders


230,938



292,734



295,012


Non-controlling interest


2,710



2,171



2,408




233,648



294,905



297,420

 


$

420,979


$

451,793


$

443,673

 

 

Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on June 23, 2022 at 5:00 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 dialing 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 June 23, 2023. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-674-7070. The pass code for the rebroadcast is 586735.

About Evertz

Evertz Technologies Limited (TSX: ET) 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 multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP 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".

Doug Moore
Chief Financial Officer
(905) 335-7580
ir@evertz.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/128774