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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February 2004
LEICA GEOSYSTEMS FINANCE PLC
Davy Avenue, Knowlhill
Milton Keynes, MK5 8LB
England
(Exact name of registrant and address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]
Form 20-F.......................X..................... Form 40-F..............................
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]
Yes....................................No.................X....................
[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):]
Enclosure: Third Quarter Results of FY 2003/04
Press Release dated February 4, 2004 | ||||||||
Signatures |
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Contact | Communication to Investors and Media More detailed information at www.leica-geosystems.com 3rd Quarter Results FY 2003/04 (February 2004) George Aase, Investor Relations, Phone +41 (0)71 727 3064 | Leica Geosystems AG Heinrich-Wild-Strasse CH-9435 Heerbrugg (Switzerland) www.leica-geosystems.com |
Leica Geosystems reports solid third quarter results
o | Sales increase 1.8% to CHF 174.4 million; 3.4% on a currency-adjusted basis; | |
o | Order intake of CHF 179.7 million with a corresponding book-to-bill ratio of 1.03; | |
o | EBIT of CHF 6.8 million up from CHF 6.5 million (continuing operations) in Q3 FY03; | |
o | EBITDA of CHF 23.9 million (13.7%) up from CHF 22.6 million (13.2%) (continuing operations) in Q3 FY03; | |
o | Net income of CHF 1.6 million compared with adjusted net income of CHF 2.0 million in Q3 FY03 (excludes contribution from discontinued operations); | |
o | Improved net working capital ratio to sales of 15.7% of sales compared with 18.2% in Q3 FY03; | |
o | Operating cash flow of CHF 28.5 million up from CHF 11.8 million in Q3 FY03 (continuing operations). |
Heerbrugg (Switzerland), 4 February, 2004- Leica Geosystems (SWX: LGSN) today reported third quarter sales growth of 1.8%, or 3.4% on a local currency basis. The Company stated that underlying demand for its products and solutions remained solid despite the weaker US dollar, with stable demand in Europe and continued momentum in the United States. The Company also reported improved operating earnings, with EBIT of CHF 6.8 million and EBITDA of CHF 23.9 million, or 13.7% of sales. Group net income was CHF 1.6 million, or CHF 0.70 per share. Leica Geosystems generated CHF 28.5 million of operating cash flow in the quarter, and further reduced its net debt down to CHF 150.3 million.
Anticipation building for new product releases
“Business conditions in the third quarter remained stable and we enter the fourth quarter with a healthy order book,” said Hans Hess, CEO of Leica Geosystems. “Our primary challenge over the next few months will be the timely launch and shipment of a significant number of new products, including our new range of TPS and GPS products planned for shipment in the fourth quarter,” concluded Hess.
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Moderate sales growth in quarter three
In the Company’s largest division, Surveying & Engineering, sales grew by 2.1%, or 2.6% on a currency-adjusted basis, fueled by healthy demand for both its top-end Surveying Systems (TPS/GPS) as well as its mid-range construction products, particularly in China. Sales growth in the Metrology division was robust (+10.8%), with particularly strong results in the US market. Sales in the Company’s Consumer Products division continued to improve over the previous year (+4.9%), with renewed strength in central Europe and the UK. GIS & Mapping sales were heavily impacted by the weaker US Dollar, which declined by 11.8% in comparison with the previous year. Cyra sales declined by (37.7%) in advance of shipments of its new HDS products, planned for the end of March.
Modest growth in operating profits
Operating expenses in the third quarter increased by CHF 3.7 million over the second quarter, as the Company ramped up its marketing and sales activities in support of several new product launches. Through higher sales volumes and a moderately improved gross margin, Leica Geosystems was nevertheless able to extend its streak of earnings growth, with EBIT for the quarter improving to CHF 6.8 million compared with CHF 6.5 million in the previous year, and EBITDA of CHF 23.9 million, or 13.7% of sales, compared with prior year EBITDA from continuing operations of CHF 22.6 million (13.2% of sales). The Company recorded net income of CHF 1.6 million in the third quarter compared with an adjusted CHF 2.0 million in the previous year (net income for the previous year included CHF 6.0 million in operating profit from discontinued operations, which the Company divested in January 2003). Cash earnings per share were CHF 6.78 in the third quarter, compared with a reported CHF 10.28 in the previous year.
Continued positive operating cash flow
Through significant improvements in its working capital investments, the Company generated cash flow from operations of CHF 28.5 million in the third quarter compared with CHF 11.8 million (continuing operations) in the previous year. Leica Geosystems’ net debt fell by CHF 9.3 million by the end of the quarter, down to CHF 150.3 million.
Further progress made in divestment program
The Company mentioned that in January 2004 (Leica Geosystems’ fourth quarter) it had divested the remaining 25% of its holdings in SwissOptic and Escatec (previously Wiltronic) for a combined CHF 7.1 million. The transactions, for which Leica Geosystems expects to recognize a small profit, will be accounted for in the Company’s fourth quarter results.
Leica Geosystems, 4 February, 2004 | 2 | 3rd Quarter Results FY2003/04 |
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Business Outlook — Full Year 2004
(Barring any unforeseen circumstances)
During the fourth quarter Leica Geosystems is expected to begin shipments of several new products. The initial market response to these new products has been very positive, with the expected impact to be reflected in the Company’s sales figures over the next three to six months. In terms of full year’s sales, Leica Geosystems mentioned that since its last guidance statement in November 2003, the US Dollar had weakened further against the Swiss franc. As such, the Company now expects sales growth for the current fiscal year (ending March 31, 2004) to be between 5% and 6%. In terms of earnings, as previously communicated, Leica Geosystems continues to expect its EBITDA margin for the full year to be comfortably above the previous year, and net income for the year to be positive.
* * *
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, we caution investors that all statements other than statements of historical fact included in this document, including without limitation, those regarding our financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to our existing and future products), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our 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. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we expect to operate in the future. Important factors that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements include, among other factors: (i) our ability to develop and introduce new products and technologies that gain market acceptance on a timely basis; (ii) our ability to respond to competitive challenges, such as the introduction of innovative products or technologies by our competitors; (iii) our ability to identify and realize growth opportunities; and (iv) overall levels of investment in infrastructure and capital spending in our markets. Additionally, any forward-looking statements speak only as of the date of this document. We expressly disclaim any obligation or undertaking to release publicly any update of or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard hereto or any change in events, conditions or circumstances on which any such statement is based.
Leica Geosystems, 4 February, 2004 | 3 | 3rd Quarter Results FY2003/04 |
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3rd Quarter Results FY2003/04 of Leica Geosystems at a Glance
Current | Prior | |||||||||||
year | year | |||||||||||
(in million Swiss Francs) | (27.09.03 to | (28.09.02 to | Changes | |||||||||
26.12.03) | 27.12.02) | (%) | ||||||||||
ORDER INTAKE(continuing operations) | 179.7 | m | 180.0 | m | -0.2 | % | ||||||
SALES(continuing operations) | 174.4 | m | 171.3 | m | 1.8 | % | ||||||
Surveying & Engineering | 105.9 | m | 103.7 | m | 2.1 | % | ||||||
GIS & Mapping | 23.2 | m | 26.3 | m | -11.8 | % | ||||||
Consumer Products | 15.0 | m | 14.3 | m | 4.7 | % | ||||||
Metrology | 18.4 | m | 16.6 | m | 10.8 | % | ||||||
New Businesses | 2.4 | m | 3.9 | m | -37.7 | % | ||||||
Special Products (continuing operations) | 9.5 | m | 6.1 | m | 56.3 | % | ||||||
Central Services | 0.0 | m | 0.4 | m | — | |||||||
Gross margin(continuing operations) | ||||||||||||
in percentage of sales | 50.4 | % | 51.3 | % | -0.9pts | |||||||
EARNINGS | ||||||||||||
EBITDA(continuing operations) | 23.9 | m | 22.6 | m | 5.7 | % | ||||||
- in percentage of sales | 13.7 | % | 13.2 | % | ||||||||
EBITA(continuing operations) | 19.5 | m | 18.0 | m | 8.6 | % | ||||||
- in percentage of sales | 11.2 | % | 10.5 | % | ||||||||
EBIT(continuing operations) | 6.8 | m | 6.5 | m | 4.7 | % | ||||||
- in percentage of sales | 3.9 | % | 3.8 | % | ||||||||
Operating profit(continuing operations) | 6.6 | m | 6.3 | m | 4.5 | % | ||||||
- in percentage of sales | 3.8 | % | 3.7 | % | ||||||||
Net income | 1.6 | m | 8.0 | m | -80.5 | % | ||||||
- in percentage of sales | 0.9 | % | 4.1 | % | ||||||||
Earnings per share (CHF) | -80.4 | % | ||||||||||
-basic | 0.70 | 3.57 | -80.9 | % | ||||||||
- diluted | 0.68 | 3.57 | ||||||||||
Cash earnings per share (CHF) | ||||||||||||
- basic | 6.78 | 10.28 | -34.1 | % | ||||||||
- diluted | 6.59 | 10.28 | -35.9 | % |
Leica Geosystems, 4 February, 2004 | 4 | 3rd Quarter Results FY2003/04 |
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Year to date Results FY2003/04 of Leica Geosystems at a Glance
Current | Prior | |||||||||||
year | year | |||||||||||
(in million Swiss Francs) | (01.04.03 to | (01.04.02 to | Changes | |||||||||
26.12.03) | 27.12.02) | (%) | ||||||||||
ORDER INTAKE(continuing operations) | 518.6 | m | 517.5 | m | 0.2 | % | ||||||
SALES— Continuing operations | 504.1 | m | 478.6 | m | 5.3 | % | ||||||
Surveying & Engineering | 309.0 | m | 296.0 | m | 4.4 | % | ||||||
GIS & Mapping | 69.1 | m | 74.0 | m | -6.6 | % | ||||||
Consumer Products | 41.4 | m | 34.0 | m | 21.7 | % | ||||||
Metrology | 49.4 | m | 43.3 | m | 14.2 | % | ||||||
New Businesses | 9.5 | m | 10.0 | m | -4.8 | % | ||||||
Special Products (continuing operations) | 25.6 | m | 19.7 | m | 30.1 | % | ||||||
Central Services | 0.0 | m | 1.6 | m | — | |||||||
Gross margin(continuing operations) | ||||||||||||
in percentage of sales | 51.1 | % | 52.7 | % | -1.7pts | |||||||
EARNINGS | ||||||||||||
EBITDA(continuing operations) | 74.7 | m | 52.2 | m | 43.2 | % | ||||||
- in percentage of sales | 14.8 | % | 10.9 | % | ||||||||
EBITA(continuing operations) | 61.3 | m | 37.9 | m | 61.7 | % | ||||||
- in percentage of sales | 12.2 | % | 7.9 | % | ||||||||
EBIT(continuing operations) | 23.2 | m | 3.1 | m | 653.8 | % | ||||||
- in percentage of sales | 4.6 | % | 0.6 | % | ||||||||
Operating profit(continuing operations) | 22.1 | m | 3.0 | m | 634.2 | % | ||||||
- in percentage of sales | 4.4 | % | 0.6 | % | ||||||||
Net income | 3.5 | m | 6.9 | m | -49.60 | % | ||||||
- in percentage of sales | 0.7 | % | 1.2 | % | ||||||||
Earnings per share (CHF) | ||||||||||||
-basic | 1.56 | 3.05 | -48.9 | % | ||||||||
- diluted | 1.53 | 3.04 | -49.7 | % | ||||||||
Cash earnings per share (CHF) | ||||||||||||
-basic | 23.38 | 22.91 | 2.1 | % | ||||||||
- diluted | 22.94 | 22.91 | 0.1 | % |
Leica Geosystems, 4 February, 2004 | 5 | 3rd Quarter Results FY2003/04 |
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3rd Quarter FY 2003/04 Divisional Results Leica Geosystems
Percentage | ||||||||||||||||
of | Division | Division | EBITDA- | |||||||||||||
Division | Total Sales | Sales | EBITDA | Margin % of | ||||||||||||
(%) | (CHF) | (CHF) | Sales | |||||||||||||
Surveying & Engineering | 61 | % | 105.9m | 21.2m | 20.0 | % | ||||||||||
GIS & Mapping | 13 | % | 23.2m | 0.3m | 1.2 | % | ||||||||||
Consumer Products | 9 | % | 15.0m | 1.8m | 12.2 | % | ||||||||||
Metrology | 11 | % | 18.4m | 3.0m | 16.4 | % | ||||||||||
New Businesses | 1 | % | 2.4m | -2.7m | -112.1 | % | ||||||||||
Special Products | 5 | % | 9.5m | 4.2m | 43.6 | % | ||||||||||
Central Services | 0 | % | 0.0m | -3.9m | — | |||||||||||
Total 3rd Quarter | 100 | % | 174.4m | 23.9m | 13.7 | % |
Year to date FY 2003/04 Divisional Results Leica Geosystems
Percentage | ||||||||||||||||
of | Division | Division | EBITDA- | |||||||||||||
Division | Total Sales | Sales | EBITDA | Margin of | ||||||||||||
(%) | (CHF) | (CHF) | Sales | |||||||||||||
Surveying & Engineering | 61 | % | 309.0m | 59.4m | 19.2 | % | ||||||||||
GIS & Mapping | 14 | % | 69.1m | 5.6m | 8.1 | % | ||||||||||
Consumer Products | 8 | % | 41.4m | 5.0m | 12.1 | % | ||||||||||
Industrial Measurement | 10 | % | 49.4m | 10.7m | 21.6 | % | ||||||||||
New Businesses | 2 | % | 9.5m | -6.2m | -65.1 | % | ||||||||||
Special Products | 5 | % | 25.6m | 9.0m | 35.2 | % | ||||||||||
Central Services | 0 | % | 0.0m | -8.8m | — | |||||||||||
Total Year to date | 100 | % | 504.1m | 74.7m | 14.8 | % |
* * *
Leica Geosystems, 4 February, 2004 | 6 | 3rd Quarter Results FY2003/04 |
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Balance Sheet Summary Leica Geosystems
Balance Sheet Summary* | FY04 | FY04 | FY04 | FY03 | FY03 | |||||||||||||||
Dec.26, | Sep.26, | June 27, | March 31, | Dec.27, | ||||||||||||||||
(in million Swiss Francs) | 2003 | 2003 | 2003 | 2003 | 2002 | |||||||||||||||
Net Working Capital (NWC) | 109.3 | m | 125.6 | m | 128.2 | m | 112.1 | m | 143.3 | m | ||||||||||
NWC / Sales | 15.7 | % | 19.2 | % | 19.3 | % | 16.0 | % | 18.2 | % | ||||||||||
Total Assets | 685.2 | m | 688.1 | m | 693.1 | m | 683.1 | m | 749.1 | m | ||||||||||
Net Debt** | 150.3 | m | 159.6 | m | 166.5 | m | 154.0 | m | 220.3 | m | ||||||||||
Total Equity | 312.0 | m | 314.7 | m | 312.3 | m | 313.6 | m | 305.7 | m | ||||||||||
Equity / Assets Ratio | 45.5 | % | 45.7 | % | 45.1 | % | 45.9 | % | 40.8 | % | ||||||||||
Capital Expenditureson Tangible and Intangible Assets (excl.Goodwill) | 16.3 | m | 15.3 | m | 11.8 | m | 17.2 | m | 11.7 | m | ||||||||||
Goodwill | 174.0 | m | 168.3 | m | 172.5 | m | 177.5 | m | 197.6 | m | ||||||||||
Cash provided on Operating activities | 28.5 | m | 18.0 | m | 7.1 | m | 27.4 | m | 16.2 | m |
*) | Balance Sheet as of March 31, 2003 reflects the impact of the divestments of Wiltronic and Leica Vectronix. | |
**) | Q3 FY04 amount is shown net of cash of CHF 2.2 million and capitalized dept issue cost/discounts of CHF 3.1 million. |
* * *
Share Related Data Leica Geosystems
2,222,564 Registered shares
- | @ | 50 CHF nominal per share: Share capital CHF 111.1m | ||
- | @ | 140.4 CHF carrying amount per share: Shareholders’ equity: CHF 312m | ||
- | @ | 192.7 CHF average quarterly share price: | ||
Market capitalization (average 3rd quarter): CHF 428.3m |
* * *
Comprehensive and detailed information on Leica Geosystems’ third quarter FY 2003/04 results is available on our website www.leica-geosystems.com, Investor Relations, Shareholder News No 14.
* * *
Contact Person:
George Aase, Director Investor Relations, Leica Geosystems AG, Heinrich-Wild-Strasse, CH-9435
Heerbrugg (Switzerland) — Internet: www.leica-geosystems.com
Telephone (direct) Telephone (operator) | +41 +41 | (0)71 727 3064 (0)71 727 3131 | E-Mail Fax | George.Aase@leica-geosystems.com +41 (0)71726 5064 |
Leica Geosystems, 4 February, 2004 | 7 | 3rd Quarter Results FY2003/04 |
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Leica Geosystems’ Shareholder News
Issue 14 – Heerbrugg (Switzerland), 4 February, 2004
Third Quarter – Fiscal Year 2004
At a Glance
• | Sales increase 1.8% to CHF 174.4 million; 3.4% on a currency-adjusted basis; | |
• | Order intake of CHF 179.7 million with a corresponding book-to-bill ratio of 1.03; | |
• | EBIT of CHF 6.8 million up from CHF 6.5 million (continuing operations) in Q3 FY03; | |
• | EBITDA of CHF 23.9 million (13.7%) up from CHF 22.6 million (13.2%) in Q3 FY03 (continuing operations); | |
• | Net income of CHF 1.6 million compared with adjusted net income of CHF 2.0 million in Q3 FY03 (excludes contribution from discontinued operations); | |
• | Improved net working capital ratio to sales of 15.7% of sales compared with 18.2% in Q3 FY03; | |
• | Operating cash flow of CHF 28.5 million up from CHF 11.8 million in Q3 FY03 (continuing operations). |
Contents
1
Sales
2
Operating Expenses
Earnings
4
Balance Sheet and Cash Flow
5
Divisional Performance
8
Other Matters
Business Outlook
9
Condensed Financial
Statements
15
Notes to the Financial
Information
Sales
Market position solid in advance of new product releases
Third quarter sales from continuing operations increased 1.8% over the previous year, rising to CHF 174.4 million; sales in local currency grew by 3.4%. Our market position remains very strong across all divisions, as anticipation of new products begins to grow. We enter the fourth quarter with a healthy order book, evidenced by order intake of CHF 179.7 million and a corresponding book-to-bill ratio of 1.03. Our primary challenge for the upcoming quarter will be to ensure the timely launch and shipment of our many new products.
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Financial Overview
Third quarter sales by Region
In Surveying & Engineering, sales grew by 2.1%, or 2.6% on a currency-adjusted basis, fueled by healthy demand for both our top-end Surveying Systems (TPS/GPS) as well as mid-range construction products. Sales growth in the Metrology division was robust (+10.8%), with particularly strong results in the US market. In Consumer Products, sales continued to improve over the previous year (+4.9%), with renewed strength in central Europe and the UK. GIS & Mapping and Cyra sales were both heavily impacted by the weaker US Dollar, which declined by 11.8% in comparison with the previous year. Sales in GIS & Mapping were lower by (11.8%), and lower by (5%) on a currency-adjusted basis. Cyra sales declined by (37.7%) in the third quarter ahead of shipments of the new HDS 3000 products planned for the end of March.
Gross profit margins remain above 50% with strength in core surveying business
Margins remained above 50% in the third quarter, with a slight improvement over the second quarter, but were below previous year levels. Margins rebounded strongly in Surveying & Engineering as demand for top-end Surveying Systems favorably impacted the product mix in that division. Margins in the Consumer Products division also recovered. In our other divisions, margins retreated from Q2 levels, as product mix and phase-out programs for older generation products impacted results. Year-to-date margins through December were 51.1%.
Stable operating costs despite increased marketing expenses
Operating expenses were CHF 81.3 million, or 47% of sales, in the third quarter, on par with the previous year but 4.7% above the second quarter. Operating costs this quarter were mainly impacted by higher marketing and selling costs, as several divisions initiated large marketing campaigns in advance of product launches. Marketing and selling costs were CHF 1.1 million higher than the previous year and rose CHF 2.2 million against the second quarter. In contrast to marketing and selling costs, general and administrative costs declined in the third quarter, and were CHF 1.9m lower than the previous year. Costs in this category were lower due to the on-going benefits of Fit-Together, combined with the favorable impact of a lower US dollar.
Quarterly Operating Expenses
Net research and development expenses were CHF 16.3 million, in line with the previous year and the second quarter. Net research and development expenses amounted to 9.3% of total sales this quarter, consistent with the high level of product development at present. Cash costs and amortization increased during the quarter, but were offset by increased capitalization, as many projects approach final development stages.
Net currency exposure hedged at over 60%
The Company has a net foreign currency exposure of approximately CHF 121 million, of which 12% is in US Dollars, 60% in Euro, 16% in Sterling, and the balance in other currencies. At the end of the third quarter, approximately 62% of this net exposure has been hedged forward for the coming twelve months. The balance sheet is also exposed to movements in exchange rates, with approximately 50% of intangible assets and material levels of working capital in US Dollars. Net translation adjustments to equity in the third quarter were a negative CHF 6.7 million.
Moderate gains in operating profits
Operating profits rose moderately in the third quarter compared with the previous year, as gains from higher sales were partially offset by lower gross margins. EBIT from continuing operations grew to CHF 6.8 million, or 3.9% of sales, compared with CHF 6.5 million, or 3.8% of sales, in the previous year. Current period EBITDA from continuing operations was CHF 23.9 million, or 13.7% of sales, compared with CHF 22.6 million, or 13.2% of sales, in the pre-
2
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Financial Overview
Results at a glance
Third Quarter | (In million CHF) | Year to date | ||||||||||||||||||||
Changes | Prior | Current | Current | Prior | Changes | |||||||||||||||||
(%) | year | year | year | year | (%) | |||||||||||||||||
(28.09.02 to | (27.09.03 to | (01.04.03 to | (01.04.02 to | |||||||||||||||||||
27.12.02) | 26.12.03) | 26.12.03) | 27.12.02) | |||||||||||||||||||
-0.2% | 180.0 | 179.7 | ORDER INTAKE- Continuing operations | 518.6 | 517.5 | 0.2 | % | |||||||||||||||
1.8% | 171.3 | 174.4 | SALES- Continuing operations | 504.1 | 478.6 | 5.3 | % | |||||||||||||||
2.1% | 103.7 | 105.9 | Surveying & Engineering | 309.0 | 296.0 | 4.4 | % | |||||||||||||||
-11.8% | 26.3 | 23.2 | GIS & Mapping | 69.1 | 74.0 | -6.6 | % | |||||||||||||||
4.7% | 14.3 | 15.0 | Consumer Products (Disto) | 41.4 | 34.0 | 21.7 | % | |||||||||||||||
10.8% | 16.6 | 18.4 | Metrology | 49.4 | 43.3 | 14.2 | % | |||||||||||||||
-37.7% | 3.9 | 2.4 | New Businesses (Cyra) | 9.5 | 10.0 | -4.8 | % | |||||||||||||||
56.3% | 6.1 | 9.5 | Special Products - Continuing operations | 25.6 | 19.7 | 30.1 | % | |||||||||||||||
n.m | 0.4 | 0.0 | Central Services | 0.0 | 1.6 | n.m. | ||||||||||||||||
Gross margin(Continuing operations) | ||||||||||||||||||||||
-0.9% | 51.3 | % | 50.4 | % | in percentage of sales | 51.1 | % | 52.7 | % | -1.7 | % | |||||||||||
EARNINGS | ||||||||||||||||||||||
5.7% | 22.6 | 23.9 | EBITDA- Continuing operations | 74.7 | 52.2 | 43.2 | % | |||||||||||||||
13.2 | % | 13.7 | % | - in percentage of sales | 14.8 | % | 10.9 | % | ||||||||||||||
8.6% | 18.0 | 19.5 | EBITA- Continuing operations | 61.3 | 37.9 | 61.7 | % | |||||||||||||||
10.5 | % | 11.2 | % | - in percentage of sales | 12.2 | % | 7.9 | % | ||||||||||||||
4.7% | 6.5 | 6.8 | EBIT- Continuing operations | 23.2 | 3.1 | 653.8 | % | |||||||||||||||
3.8 | % | 3.9 | % | - in percentage of sales | 4.6 | % | 0.6 | % | ||||||||||||||
4.5% | 6.3 | 6.6 | Operating profit/(loss)- Contin. operat | 22.1 | 3.0 | 634.2 | % | |||||||||||||||
3.7 | % | 3.8 | % | - in percentage of sales | 4.4 | % | 0.6 | % | ||||||||||||||
-80.5% | 8.0 | 1.6 | Net income / (loss) | 3.5 | 6.9 | -49.6 | % | |||||||||||||||
4.1 | % | 0.9 | % | - in percentage of sales | 0.7 | % | 1.2 | % | ||||||||||||||
Earnings per share (CHF) | ||||||||||||||||||||||
-80.4% | 3.57 | 0.70 | - basic | 1.56 | 3.05 | -48.9 | % | |||||||||||||||
-80.9% | 3.57 | 0.68 | - diluted | 1.53 | 3.04 | -49.7 | % | |||||||||||||||
Cash earnings per share (CHF) | ||||||||||||||||||||||
-34.1% | 10.28 | 6.78 | - basic | 23.38 | 22.91 | 2.1 | % | |||||||||||||||
-35.9% | 10.28 | 6.59 | - diluted | 22.94 | 22.91 | 0.1 | % |
vious year. For the year to date, EBIT was 23.2 million, or 4.6% of sales, compared with CHF 3.1 million in the previous year. Year to date EBITDA from continuing operations stands at CHF 74.7 million, or 14.8% of sales, in comparison with the previous years level of CHF 52.2 million, or 10.9% of sales.
Total finance costs in the third quarter were CHF 3.6 million versus CHF 3.2 million in the previous year. Cash interest costs were CHF 3.5 million for the quarter, on par with the previous year. The benefit of lower interest rates on our revolving debt was offset by higher Euro-denominated costs on the High-Yield Bond. Amortization costs were CHF 0.2 million in the quarter. Taxes in the third quarter were CHF 1.7 million compared with CHF 1.3 million in the previous year.
Net income for the quarter was CHF 1.6 million, or CHF 0.70 per share, compared with an adjusted net income of CHF 2.0 million in the previous year (adjusted for CHF 6.0 million in operating profit from discontinued operations divested in January 2003). Cash earnings per share for the third quarter were CHF 6.78, compared with a reported CHF 10.28 in the previous year.
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Financial Overview
Balance Sheet Summary * | FY04 | FY04 | FY04 | FY03 | FY03 | |||||||||||||||
Dec. 26, | Sep. 26, | June 27, | March 31, | Dec. 27, | ||||||||||||||||
(Amounts in million CHF) | 2003 | 2003 | 2003 | 2003 | 2002 | |||||||||||||||
Net Working Capital (NWC) | 109.3 | 125.6 | 128.2 | 112.1 | 143.3 | |||||||||||||||
NWC/Sales | 15.7 | % | 19.2 | % | 19.3 | % | 16.0 | % | 18.2 | % | ||||||||||
Total Assets | 685.2 | 688.1 | 693.1 | 683.1 | 749.1 | |||||||||||||||
Net Debt ** | 150.3 | 159.6 | 166.5 | 154.0 | 220.3 | |||||||||||||||
Total Equity | 312.0 | 314.7 | 312.3 | 313.6 | 305.7 | |||||||||||||||
Equity / Assets Ratio | 45.5 | % | 45.7 | % | 45.1 | % | 45.9 | % | 40.8 | % | ||||||||||
Capital Expenditures on Tangible and Intangible Assets (excl. Goodwill) | 16.3 | 15.3 | 11.8 | 17.2 | 11.7 | |||||||||||||||
Goodwill | 174.0 | 168.3 | 172.5 | 177.5 | 197.6 | |||||||||||||||
Cash provided in Operating activities | 28.5 | 18.0 | 7.1 | 27.4 | 16.2 |
*) Balance Sheet as of March 31, 2003 reflects the impact of the divestments of Wiltronic and Leica Vectronix.
**) Q3 FY04 amount is shown net of cash of CHF 2.2 million and capitalized debt issue cost/discounts of CHF 3.1 million.
Balance Sheet and Cash Flow
Improvements in net working capital generate strong operating cash flow
Net working capital was 15.7% of sales at the end of the third quarter, significantly improved over previous quarters. In relation to the second quarter, net working capital improvements were realized in all major categories, including trade receivables, where Days Sales Outstanding (DSO) improved 7 days to 69 DSO, Net Inventory, where the average Days In Inventory (DII) fell 17 days to 139, and Accounts Payable, where Days Payables Outstanding (DPO) increased 4 days to 67.
Operating cash flow from continuing operations was CHF 28.5 million (16.3% of sales) compared with CHF 11.8 million (6.8% of sales) in the previous year. Capital Expenditures were CHF 16.3 million, with tangible capital expenditures of CHF 4.7 million, and intangible capital expenditures of CHF 11.6 million. Net cash used for investing activities in the third quarter included CHF 6.5 million for the acquisition of the assets of Tritronics (Australia) in October 2003. In the previous year, the Company generated CHF 4.2 million in proceeds from the sales of buildings in Heerbrugg. Free Operating Cash Flow, net of capital expenditures, cash generated from disposal of assets, and cash used for acquisitions, was CHF 5.8 million, versus CHF 4.5 million in the previous year.
Further decline in Net Debt
Net debt at the end of the third quarter was CHF 150.3 million, a decline of CHF 9.0 million compared with the second quarter. Net debt is comprised of # 65.0 million in long-term, high-yield bonds (equivalent to CHF 101.3 million at quarter end), CHF 46.2 million under the Revolving Credit Facility and CHF 3.6 million in various other borrowings, less cash of CHF 2.2 million and capitalized debt issue costs of CHF 3.1 million.
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Divisional Results
Divisional Performance
Surveying & Engineering Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
2.1% | 2.2 | 103.7 | 105.9 | SALES | 309.0 | 296.0 | 13.1 | 4.4% | ||||||||||||||||||||||
2.6% | 0.4 | 15.6 | 16.0 | EBIT | 44.5 | 38.1 | 6.4 | 16.9% | ||||||||||||||||||||||
11.0% | 2.1 | 19.1 | 21.2 | EBITDA | 59.4 | 49.5 | 9.9 | 20.0% | ||||||||||||||||||||||
1.6 pts | — | 18.4 | % | 20.0 | % | EBITDA Margin | 19.2 | % | 16.7 | % | — | 2.5 pts |
Sales in Surveying and Engineering rose by 2.1% to CHF 105.9 million in the third quarter, up from CHF 103.7 million in the previous year. On a currency-adjusted basis, sales would have increased by 2.6% above the previous year. The strength of the Surveying Systems (TPS/GPS) business in the quarter had a favorable impact on margins. Demand for lower-end products in the Survey Instruments segment also remained strong, with the TPS 400 and GS20 both performing very well. Regionally, sales in the US grew by 12% on a local currency basis, as sales momentum in this region builds. European markets were more or less stable, whereas in Asia, sales were slightly lower across the region, mainly from the influence of the lower US dollar on dollar-linked currencies. The division’s EBITDA margin recovered to 20% in the quarter, in large part due to a favorable sales mix.
GIS & Mapping Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
-11.8% | -3.1 | 26.3 | 23.2 | SALES | 69.1 | 74.0 | -4.9 | -6.6% | ||||||||||||||||||||||
-2234.6% | -2.9 | -0.1 | -3.1 | EBIT | -4.6 | -8.3 | 3.6 | 44.0% | ||||||||||||||||||||||
-91.0% | -2.9 | 3.1 | 0.3 | EBITDA | 5.6 | 3.2 | 2.4 | 74.7% | ||||||||||||||||||||||
-10.8 pts | — | 12.0 | % | 1.2 | % | EBITDA Margin | 8.1 | % | 4.3 | % | — | 3.8 pts |
The GIS & Mapping division recorded sales of CHF 23.2 million in the third quarter, a decline of 11.8% against the previous year, and a decline of 5.0% on a currency-adjusted basis. The results for the quarter were negatively impacted by several orders for sensors that slipped into later quarters, partially offset by strong sales of IMAGINE products, the division’s market leading suite of geographic imaging software, in the US market. During the quarter the division successfully released the Leica Photogrammetry Suite. Profitability in the quarter declined against the previous year as a result of lower sales volume, a lower proportion of software sales in the mix, and various one-off charges recorded in the quarter.
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Divisional Results
Consumer Products Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
4.9% | 0.7 | 14.3 | 15.0 | SALES | 41.4 | 34.0 | 7.3 | 21.6% | ||||||||||||||||||||||
-3.7% | 0.0 | 0.7 | 0.6 | EBIT | 1.1 | 0.9 | 0.2 | 21.7% | ||||||||||||||||||||||
-23.3% | -0.6 | 2.4 | 1.8 | EBITDA | 5.0 | 4.4 | 0.6 | 14.1% | ||||||||||||||||||||||
-4.5 pts | — | 16.7 | % | 12.2 | % | EBITDA Margin | 12.1 | % | 12.9 | % | — | -0.8 pts |
In the Consumer Products division, sales increased 4.9% above the previous year, which was the launch quarter for the DISTO™ 5. Currency-adjusted sales growth was 4.0%, reflecting the impact of a stronger Euro against the Swiss franc. Sales in Central Europe, including the UK, along with Asia, recovered from recent lows, contributing to the growth in sales this quarter. EBITDA in the quarter was lower due to a larger proportion of DISTO™ Lite sales in the sales mix, combined with sales of older generation DISTO™ Pro units in advance of new products coming to market in the fourth quarter.
Metrology Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
10.8% | 1.8 | 16.6 | 18.4 | SALES | 49.4 | 43.3 | 6.1 | 14.1% | ||||||||||||||||||||||
-39.4% | -0.9 | 2.2 | 1.4 | EBIT | 5.8 | 5.2 | 0.6 | 10.8% | ||||||||||||||||||||||
-19.5% | -0.7 | 3.8 | 3.0 | EBITDA | 10.7 | 8.6 | 2.1 | 24.8% | ||||||||||||||||||||||
-6.2 pts | — | 22.6 | % | 16.4 | % | EBITDA Margin | 21.6 | % | 19.8 | % | — | 1.8 pts |
The Metrology division recorded sales of CHF 18.4 million, an increase of 10.8%, and 14.8% on a currency-adjusted basis. General momentum in the US market remained strong, with solid performance in military aerospace projects, as well as key accounts in the automotive sector. European sales were also solid in the third quarter, particularly in central and southern Europe. The division’s order book remains healthy, as demand continues to build for the new T-Products. The division expects to begin first shipments of these products towards the end of the fourth quarter. The division recorded a lower EBITDA margin in the quarter, reflecting decreased capitalization of research & development costs, coupled with a greater proportion of lower margin products in the sales mix.
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Divisional Results
New Businesses Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
-37.7% | -1.5 | 3.9 | 2.4 | SALES | 9.5 | 10.0 | -0.5 | -5.2% | ||||||||||||||||||||||
-38.0% | -1.3 | -3.5 | -4.8 | EBIT | -12.5 | -13.5 | 1.0 | 7.2% | ||||||||||||||||||||||
-89.3% | -1.3 | -1.4 | -2.7 | EBITDA | -6.2 | -7.0 | 0.8 | 11.6% | ||||||||||||||||||||||
-75.2 pts | — | -36.9 | % | -112.1 | % | EBITDA Margin | -65.1 | % | -69.8 | % | — | 4.7 pts |
Cyra sales slowed in the third quarter in advance of shipments of the new HDS 3000 products, which are planned to start at the end of March. During the quarter the division conducted extensive world-wide road shows for the HDS 3000, and was encouraged by the robust order gathering during these events. During the quarter, Cyra sold the older generation 2500 with attractive upgrade options, and continued to increase its proportion of software sales, which reached 34% of total revenue in the quarter.
Special Products Division
Third Quarter | Sales and results | Year to date | ||||||||||||||||||||||||||||
(In million CHF) | ||||||||||||||||||||||||||||||
Change | Prior | Current | Current | Prior | Change | |||||||||||||||||||||||||
(%) | (mCHF) | year | year | year | year | (mCHF) | (%) | |||||||||||||||||||||||
56.3% | 3.4 | 6.1 | 9.5 | SALES | 25.6 | 19.7 | 5.9 | 30.1% | ||||||||||||||||||||||
755.9% | 3.0 | 0.4 | 3.4 | EBIT | 6.9 | 3.8 | 3.1 | 81.8% | ||||||||||||||||||||||
277.9% | 3.1 | 1.1 | 4.2 | EBITDA | 9.0 | 6.3 | 2.8 | 44.3% | ||||||||||||||||||||||
25.6 pts | — | 18.0 | % | 43.6 | % | EBITDA Margin | 35.2 | % | 31.7 | % | — | 3.5 pts |
The Special Products division includes our Polymeca mechanical engineering manufacturing facility, the GPS Marine business, and our 50% participation in Leica Instruments, Singapore. Sales from continuing operations exceeded the previous year by 56.3% in the third quarter. The division generated EBITDA of CHF 4.2 million in the quarter.
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Other Matters / Outlook
Other Matters
Employees
The Company had 2,377 employees at the end of December 2003, an increase of 39 above the level at the end of September 2003. The geographical distribution of our workforce at the end of the quarter was as follows: 58% in Europe (including Heerbrugg), 25% in the Americas, and 17% in Asia and the rest of the world.
Divestment of minority interest – SwissOptic and Escatec
In January 2004, after the close of our third quarter, we concluded two separate transactions for the sale of our 25% holdings in SwissOptic and Escatec (formerly Wiltronic). We received combined proceeds of CHF 7.1 million, and expect to record a small net gain in the fourth quarter.
Date set for launch of new TPS and GPS instruments
On February 16, 2004, we will launch our new range of TPS and GPS products. This new range of products will offer unprecedented performance, with users expected to recognize significant productivity gains, depending on their current configuration. The specific details of the new products will be provided in a formal media release on February 16. The new products should be available for shipment towards the end of the fourth quarter.
2,222,564 registered shares
– @ 50 CHF nominal per share:Share capital CHF 111.1m
– @ 140.4 CHF carrying amount per share:Shareholders’ equity CHF 312.0m
– @ 192.7 CHF average quarterly share price:
Market capitalization (average 3nd quarter) CHF 428.3m
Business Outlook –Full Year 2004
(Barring any unforeseen circumstances)
During the fourth quarter we expect to begin shipments of several new products. Market response to these new products has been very positive and should be reflected in our sales figures over the next three to six months. However, since our last guidance the US Dollar has weakened further against the Swiss Franc. Accordingly, we now expect Swiss Franc sales for this fiscal year to grow between 5% and 6%. In terms of earnings, as previously communicated, we continue to expect our EBITDA margin for the full year to be comfortably above the previous year, and net income for the year to be positive.
On behalf of the Board of Directors, the management team and the employees of Leica Geosystems, thank you for your support and continued investment in Leica Geosystems.
Sincerely,
Mario Fontana | Hans Hess | |
Chairman of the | CEO and Member | |
Board | of the Board of | |
Leica Geosystems | Directors | |
Leica Geosystems |
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Financial Statements
CONDENSED FINANCIAL STATEMENTS
LEICA GEOSYSTEMS HOLDINGS AG
3 Months (3rd Quarter)
for the periods from September 28, 2002 to December 27, 2002
and September 27, 2003 to December 26, 2003
9 Months (Year to date)
for the periods from April 1, 2002 to December 27, 2002
and April 1, 2003 to December 26, 2003
According to International Financial Reporting Standards (IFRS)
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, we caution investors that all statements other than statements of historical fact included in this document, including without limitation, those regarding our financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to our existing and future products), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our 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. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we expect to operate in the future. Important factors that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements include, among other factors: (i) our ability to develop and introduce new products and technologies that gain market acceptance on a timely basis; (ii) our ability to respond to competitive challenges, such as the introduction of innovative products or technologies by our competitors; (iii) our ability to identify and realize growth opportunities; and (iv) overall levels of investment in infrastructure and capital spending in our markets. Additionally, any forward-looking statements speak only as of the date of this document. We expressly disclaim any obligation or undertaking to release publicly any update of or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard hereto or any change in events, conditions or circumstances on which any such statement is based.
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LEICA GEOSYSTEMS HOLDINGS AG
CONSOLIDATED STATEMENTS OF INCOME
(in thousand CHF, except share data)
unaudited | unaudited | ||||||||||||||||
3 Months (3rd Quarter) | 9 Months (Year to date) | ||||||||||||||||
This year | Last year | This year | Last year | ||||||||||||||
For the period | For the period | For the period | For the period | ||||||||||||||
Sep. 27, 2003 to | Sep. 28, 2002 to | April 1, 2003 to | April 1, 2002 to | ||||||||||||||
Dec. 26, 2003 | Dec. 27, 2002 | Dec. 26, 2003 | Dec. 27, 2002 | ||||||||||||||
CHF | CHF | CHF | CHF | ||||||||||||||
Total Sales | 174’396 | 196’295 | 504’154 | 560’639 | |||||||||||||
Sales from discontinued operations | 25’026 | — | 81’982 | ||||||||||||||
Sales from continuing operations | 174’396 | 171’269 | 504’154 | 478’657 | |||||||||||||
Cost of sales | -86’453 | -83’423 | -246’710 | -226’198 | |||||||||||||
Gross profit | 87’944 | 87’846 | 257’444 | 252’459 | |||||||||||||
Research and development costs | -16’273 | -16’355 | -49’244 | -46’280 | |||||||||||||
Selling and marketing costs | -40’781 | -39’728 | -117’867 | -121’926 | |||||||||||||
General and administrative costs | -18’689 | -20’565 | -57’113 | -62’281 | |||||||||||||
Other operating income/(expense) net | -5’613 | -4’585 | -11’144 | -18’009 | |||||||||||||
Gain/(loss) on disposal of property, plant and equipment net | 23 | -287 | 51 | -936 | |||||||||||||
Operating result from continuing operations | 6’611 | 6’327 | 22’127 | 3’027 | |||||||||||||
Operating result from discontinued operations | — | 5’985 | — | 21’503 | |||||||||||||
Operating result | 6’611 | 12’312 | 22’127 | 24’530 | |||||||||||||
Income from associated companies | 203 | 183 | 1’032 | 20 | |||||||||||||
Finance costs | -3’573 | -3’183 | -11’144 | -13’210 | |||||||||||||
Income before tax | 3’241 | 9’312 | 12’015 | 11’340 | |||||||||||||
Income tax expense | -1’683 | -1’317 | -8’561 | -4’487 | |||||||||||||
Net income | 1’558 | 7’995 | 3’454 | 6’853 | |||||||||||||
Weighted average number of ordinary shares in issue | 2’222’564 | 2’237’039 | 2’215’043 | 2’246’409 | |||||||||||||
Basic earnings per share (single CHF) | 0.70 | 3.57 | 1.56 | 3.05 | |||||||||||||
Adjustments for share options | 63’186 | — | 42’688 | 9’461 | |||||||||||||
Weighted average number of shares for diluted earnings per share | 2’285’750 | 2’237’039 | 2’257’731 | 2’255’870 | |||||||||||||
Diluted earnings per share (single CHF) | 0.68 | 3.57 | 1.53 | 3.04 | |||||||||||||
10 | ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) |
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LEICA GEOSYSTEMS HOLDINGS AG
CONSOLIDATED BALANCE SHEETS
(in thousand CHF)
unaudited | unaudited | audited | |||||||||||
Dec. 26, 2003 | Sep. 26, 2003 | March 31, 2003 | |||||||||||
CHF | CHF | CHF | |||||||||||
ASSETS | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | 2’160 | 2’113 | 1’701 | ||||||||||
Trade accounts receivable | 138’986 | 143’834 | 141’624 | ||||||||||
Inventories | 111’660 | 112’894 | 104’507 | ||||||||||
Prepayments and accrued income | 5’950 | 10’228 | 12’999 | ||||||||||
Other current assets | 21’095 | 19’972 | 15’039 | ||||||||||
Total current assets | 279’851 | 289’040 | 275’870 | ||||||||||
Non-current assets | |||||||||||||
Property, plant and equipment | 89’653 | 90’095 | 93’545 | ||||||||||
Goodwill | 174’022 | 168’291 | 177’484 | ||||||||||
Other intangible assets | 98’120 | 94’435 | 92’066 | ||||||||||
Investments in associates | 9’280 | 9’053 | 8’091 | ||||||||||
Deferred taxes | 32’292 | 35’258 | 34’202 | ||||||||||
Other non-current assets | 1’972 | 1’909 | 1’795 | ||||||||||
�� | |||||||||||||
Total non-current assets | 405’339 | 399’042 | 407’183 | ||||||||||
TOTAL ASSETS | 685’190 | 688’082 | 683’053 | ||||||||||
of which discontinued operations | — | — | — | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||
Current liabilities | |||||||||||||
Bank overdrafts | 77 | 522 | 1’269 | ||||||||||
Loans and borrowings | 6’386 | 3’780 | 5’829 | ||||||||||
Trade accounts payable | 58’134 | 54’909 | 57’891 | ||||||||||
Advance payments | 4’780 | 700 | 502 | ||||||||||
Accrued compensation | 31’395 | 31’741 | 26’127 | ||||||||||
Other accrued liabilities | 39’052 | 34’294 | 32’831 | ||||||||||
Provisions | 8’034 | 7’713 | 10’609 | ||||||||||
Corporate tax, current | 15’343 | 19’734 | 20’201 | ||||||||||
Other current liabilities | 11’678 | 12’249 | 13’910 | ||||||||||
Total current liabilities | 174’879 | 165’642 | 169’169 | ||||||||||
of which discontinued operations | — | — | — | ||||||||||
Non-current liabilities | |||||||||||||
Loans and borrowings | |||||||||||||
Revolving Credit Facility | 44’987 | 57’532 | 52’945 | ||||||||||
9 7/8% Notes | 99’437 | 98’426 | 93’842 | ||||||||||
Other loans & borrowings | 1’536 | 1’429 | 1’959 | ||||||||||
Pension obligations | 11’433 | 11’834 | 12’959 | ||||||||||
Deferred taxes | 37’186 | 35’379 | 35’132 | ||||||||||
Other non-current liabilities | 3’694 | 3’112 | 3’427 | ||||||||||
Total non-current liabilities | 198’271 | 207’712 | 200’264 | ||||||||||
Total liabilities | 373’150 | 373’354 | 369’433 | ||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||
Share capital | 111’129 | 110’768 | 110’478 | ||||||||||
Share premium | 62’493 | 60’432 | 59’918 | ||||||||||
Reserves | 250’788 | 250’788 | 250’788 | ||||||||||
Accumulated deficit | -73’148 | -74’706 | -76’602 | ||||||||||
Hedging and currency translation adjustment | -39’222 | -32’553 | -30’962 | ||||||||||
Total shareholders’ equity | 312’040 | 314’728 | 313’620 | ||||||||||
TOTAL LIABILITIES AND EQUITY | 685’190 | 688’082 | 683’053 | ||||||||||
ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) | 11 |
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LEICA GEOSYSTEMS HOLDINGS AG
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousand CHF, except number of shares)
Number of | Hedging and | ||||||||||||||||||||||||
registered | Share | Accumu- | currency | ||||||||||||||||||||||
shares | Share | Premium/ | lated | translation | |||||||||||||||||||||
issued | Capital | Reserves | Deficit | adjustment | TOTAL | ||||||||||||||||||||
No. | CHF | CHF | CHF | CHF | CHF | ||||||||||||||||||||
Balance at March 31, 2002 | 2’251’101 | 112’554 | 316’178 | -98’517 | 2’060 | 332’275 | |||||||||||||||||||
Issuance of common stock | 3’154 | 158 | 444 | — | — | 602 | |||||||||||||||||||
Treasury shares movement | -17’216 | -861 | -5’201 | — | — | -6’062 | |||||||||||||||||||
Net Income | — | — | — | 6’853 | — | 6’853 | |||||||||||||||||||
Cash flow hedging adjust. (net of tax) | — | — | — | — | 955 | 955 | |||||||||||||||||||
Currency translation adjustment | — | — | — | — | -28’954 | -28’954 | |||||||||||||||||||
Balance at December 27, 2002 | 2’237’039 | 111’852 | 311’421 | -91’664 | -25’939 | 305’669 | |||||||||||||||||||
Balance at March 31, 2003 | 2’209’554 | 110’478 | 310’706 | -76’602 | -30’962 | 313’620 | |||||||||||||||||||
Issuance of common stock | 9’248 | 463 | 2’079 | — | — | 2’542 | |||||||||||||||||||
Treasury shares movement | 3’762 | 188 | 496 | — | — | 685 | |||||||||||||||||||
Net Income | — | — | — | 3’454 | — | 3’454 | |||||||||||||||||||
Cash flow hedging adjust. (net of tax) | — | — | — | — | -652 | -652 | |||||||||||||||||||
Currency translation adjustment | — | — | — | — | -7’608 | -7’608 | |||||||||||||||||||
Balance at December 26, 2003 | 2’222’564 | 111’129 | 313’282 | -73’148 | -39’222 | 312’040 | |||||||||||||||||||
12 | ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) |
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LEICA GEOSYSTEMS HOLDINGS AG
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousand CHF)
unaudited | unaudited | ||||||||||||||||
3 Months (3rd Quarter) | 9 Months (Year to date) | ||||||||||||||||
This year | Last year | This year | Last year | ||||||||||||||
For the period | For the period | For the period | For the period | ||||||||||||||
Sep. 27, 2003 to | Sep. 28, 2002 to | April 1, 2003 to | April 1, 2002 to | ||||||||||||||
Dec. 26, 2003 | Dec. 27, 2002 | Dec. 26, 2003 | Dec. 27, 2002 | ||||||||||||||
CHF | CHF | CHF | CHF | ||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Operating profit/(loss) | 6’611 | 12’312 | 22’127 | 24’530 | |||||||||||||
Net interest expense paid | -5’903 | -5’608 | -12’939 | -13’517 | |||||||||||||
Taxes paid | -1’998 | -1’192 | -9’484 | -3’320 | |||||||||||||
Depreciation and amortization | 17’124 | 16’537 | 51’554 | 50’223 | |||||||||||||
Other non-cash items | 281 | -1’585 | 480 | -936 | |||||||||||||
Changes in net working capital | 12’423 | -4’306 | 1’893 | -12’205 | |||||||||||||
Cash provided by / (used in) operating activities | 28’537 | 16’158 | 53’632 | 44’775 | |||||||||||||
of which discontinued operations | — | 4’334 | — | 13’790 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Purchase of property, plant and equipment | -4’673 | -2’056 | -11’845 | -14’493 | |||||||||||||
Cash expended on intangible assets | -11’639 | -9’627 | -31’656 | -30’116 | |||||||||||||
Cash expended on acquisition | -6’469 | -129 | -11’899 | -313 | |||||||||||||
Disposal of subsidiary, net of cash | — | — | 7’000 | — | |||||||||||||
Sale of assets | — | 4’201 | 1’500 | 17’390 | |||||||||||||
Cash provided by / (used in) investing activities | -22’781 | -7’611 | -46’901 | -27’532 | |||||||||||||
of which discontinued operations | — | -270 | — | -1’251 | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Loans and borrowings | -6’571 | -5’294 | -6’474 | -16’231 | |||||||||||||
Debt issuance costs | — | — | -1’336 | — | |||||||||||||
Proceeds from issue of share capital and own shares | 748 | -349 | 1’552 | -566 | |||||||||||||
Cash provided by /(used in) financing activities | -5’822 | -5’643 | -6’258 | -16’797 | |||||||||||||
of which discontinued operations | — | -1’877 | — | -9’665 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 113 | -163 | -14 | -458 | |||||||||||||
Net increase/(decrease) in cash and cash equivalents | 47 | 2’741 | 459 | -12 | |||||||||||||
Cash and cash equivalents at beginning of specified period | 2’113 | 237 | 1’701 | 2’990 | |||||||||||||
Cash and cash equivalents at end of specified period | 2’160 | 2’978 | 2’160 | 2’978 | |||||||||||||
of which discontinued operations | — | 2’921 | — | 2’921 |
ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) | 13 |
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LEICA GEOSYSTEMS HOLDINGS AG
CONDENSED CONSOLIDATED SEGMENT INFORMATION
(in thousand CHF)
unaudited | unaudited | ||||||||||||||||
3 Months (3rd Quarter) | 9 Months (Year to date) | ||||||||||||||||
This year | Last year | This year | Last year | ||||||||||||||
For the period | For the period | For the period | For the period | ||||||||||||||
Sep. 27, 2003 to | Sep. 28, 2002 to | April 1, 2003 to | April 1, 2002 to | ||||||||||||||
Dec. 26, 2003 | Dec. 27, 2002 | Dec. 26, 2003 | Dec. 27, 2002 | ||||||||||||||
CHF | CHF | CHF | CHF | ||||||||||||||
Sales to external customers: | |||||||||||||||||
Surveying & Engineering | 105’876 | 103’682 | 309’049 | 295’993 | |||||||||||||
GIS & Mapping | 23’208 | 26’300 | 69’126 | 74’016 | |||||||||||||
Consumer Products | 14’974 | 14’272 | 41’383 | 34’039 | |||||||||||||
Metrology | 18’389 | 16’604 | 49’447 | 43’347 | |||||||||||||
New Business | 2’416 | 3’878 | 9’520 | 10’047 | |||||||||||||
Total Segments | 164’862 | 164’736 | 478’524 | 457’442 | |||||||||||||
Special Products — Continuing operations | 9’535 | 6’107 | 25’630 | 19’665 | |||||||||||||
Special Products — Discontinued operations | — | 25’026 | — | 81’982 | |||||||||||||
Central Services | — | 426 | — | 1’550 | |||||||||||||
Total sales to external customers | 174’396 | 196’295 | 504’154 | 560’639 | |||||||||||||
Results: | |||||||||||||||||
Surveying & Engineering | 15’992 | 15’494 | 44’539 | 38’097 | |||||||||||||
GIS & Mapping | -2’992 | -93 | -4’413 | -8’148 | |||||||||||||
Consumer Products | 637 | 661 | 1’088 | 894 | |||||||||||||
Metrology | 1’359 | 2’311 | 5’763 | 5’476 | |||||||||||||
New Business | -4’775 | -3’461 | -12’508 | -13’475 | |||||||||||||
Total Segments | 10’221 | 14’912 | 34’467 | 22’844 | |||||||||||||
Special Products — Continuing operations | 3’129 | 361 | 5’672 | 3’551 | |||||||||||||
Special Products — Discontinued operations | — | 5’985 | — | 21’503 | |||||||||||||
Gain on sale of discontinued operations | — | — | — | — | |||||||||||||
Central Services | -6’740 | -8’946 | -18’012 | -23’368 | |||||||||||||
Total operating profit | 6’611 | 12’312 | 22’127 | 24’530 | |||||||||||||
Income/(loss) from associated companies: | |||||||||||||||||
Surveying & Engineering | — | 89 | — | -4 | |||||||||||||
GIS & Mapping | -66 | -38 | -218 | -124 | |||||||||||||
Consumer Products | — | — | — | — | |||||||||||||
Metrology | — | -68 | — | -275 | |||||||||||||
New Business | — | — | — | — | |||||||||||||
Total Segments | -66 | -17 | -218 | -403 | |||||||||||||
Special Products — Continuing operations | 294 | 78 | 1’191 | 301 | |||||||||||||
Special Products — Discontinued operations | — | — | — | — | |||||||||||||
Central Services | -25 | 122 | 59 | 122 | |||||||||||||
Total associates gain/(loss) | 203 | 183 | 1’032 | 20 | |||||||||||||
Depreciation and Amortization: | |||||||||||||||||
Surveying & Engineering | -5’220 | -3’530 | -14’892 | -11’445 | |||||||||||||
GIS & Mapping | -3’342 | -3’279 | -10’233 | -11’479 | |||||||||||||
Consumer Products | -1’192 | -1’723 | -3’908 | -3’485 | |||||||||||||
Metrology | -1’664 | -1’515 | -4’935 | -3’374 | |||||||||||||
New Business | -2’067 | -2’031 | -6’309 | -6’462 | |||||||||||||
Total Segments | -13’485 | -12’078 | -40’277 | -36’245 | |||||||||||||
Special Products — Continuing operations | -733 | -676 | -2’155 | -2’371 | |||||||||||||
Special Products — Discontinued operations | — | -408 | — | -1’103 | |||||||||||||
Central Services | -2’905 | -3’375 | -9’122 | -10’504 | |||||||||||||
Total depreciation and amortization | -17’123 | -16’537 | -51’554 | -50’223 | |||||||||||||
EBITDA: | |||||||||||||||||
Surveying & Engineering | 21’212 | 19’113 | 59’430 | 49’538 | |||||||||||||
GIS & Mapping | 284 | 3’148 | 5’601 | 3’207 | |||||||||||||
Consumer Products | 1’829 | 2’384 | 4’996 | 4’379 | |||||||||||||
Metrology | 3’023 | 3’758 | 10’697 | 8’575 | |||||||||||||
New Business | -2’707 | -1’430 | -6’199 | -7’013 | |||||||||||||
Total Segments | 23’640 | 26’973 | 74’526 | 58’686 | |||||||||||||
Special Products — Continuing operations | 4’157 | 1’115 | 9’018 | 6’223 | |||||||||||||
Special Products — Discontinued operations | — | 6’393 | — | 22’606 | |||||||||||||
Central Services | -3’860 | -5’449 | -8’831 | -12’742 | |||||||||||||
Total EBITDA | 23’937 | 29’032 | 74’713 | 74’773 | |||||||||||||
14 | ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) |
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LEICA GEOSYSTEMS HOLDINGS AG
NOTES TO THE UNAUDITED, CONDENSED AND CONSOLIDATED FINANCIAL INFORMATION
(in thousand CHF)
1 Accounting policies
These consolidated interim condensed financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies used in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year ended March 31, 2003.
These condensed and consolidated interim financial statements should be read in conjunction with the annual financial statements for the Fiscal Year ended March 31, 2003.
2 Finance costs
Finance costs (in thousand CHF) for the comparative periods are itemized below:
unaudited | unaudited | |||||||||||||||
3 Months (3rd Quarter) | 9 Months (Year to date) | |||||||||||||||
This year | Last year | This year | Last year | |||||||||||||
For the period | For the period | For the period | For the period | |||||||||||||
Sep. 27, 2003 to | Sep. 28, 2002 to | April 1, 2003 to | April 1, 2002 to | |||||||||||||
Dec. 26, 2003 | Dec. 27, 2002 | Dec. 26, 2003 | Dec. 27, 2002 | |||||||||||||
CHF | CHF | CHF | CHF | |||||||||||||
Interest income | 17 | 72 | 42 | 414 | ||||||||||||
Interest expense: | ||||||||||||||||
Revolving Credit Facility | -917 | -1’127 | -2’822 | -4’281 | ||||||||||||
9 7/8% Notes | -2’520 | -2’212 | -7’516 | -7’022 | ||||||||||||
Other | -34 | -66 | -119 | -519 | ||||||||||||
Total interest expense | -3’471 | -3’405 | -10’457 | -11’822 | ||||||||||||
Debt acquisition, issuance and share offering costs: | ||||||||||||||||
Amort. of debt acquisition cost – Revolving Credit Facility | -127 | -572 | -849 | -1’715 | ||||||||||||
Amort. of debt acquisition cost – 9 7/8% Notes | -96 | -95 | -287 | -290 | ||||||||||||
Total debt acquisition, issuance and share offering costs | -223 | -768 | -1’136 | -2’106 | ||||||||||||
Foreign exchange gains/(losses) on borrowings | 104 | 918 | 407 | 304 | ||||||||||||
Total finance costs | -3’573 | -3’183 | -11’144 | -13’210 | ||||||||||||
3 Acquisition of Tritronics (Australia)
On October 13, 2003 Leica Geosystems completed the acquistion of the assets and liabilities of Tritronics (Australia) in a cash transaction for AUD 12 million (CHF 11,1 million), plus a maximum earn out of an additional AUD 6 million (CHF 5,5 million) payable over three years if certain targets are met.
The acquisition will leverage the Company’s current mining-segment product offering and strengthen Leica Geosystems’ overall portfolio with complementary solutions for machine automation and site management for mining and construction. This business is reported within the business segment “Surveying & Engineering”.
The goodwill is amortized on a straight-line basis over its estimated useful life, which is assessed to be 10 years.
ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) | 15 |
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LEICA GEOSYSTEMS HOLDINGS AG
NOTES TO THE UNAUDITED, CONDENSED AND CONSOLIDATED FINANCIAL INFORMATION
(in thousand CHF)
Following is a summary of the key elements of this acquistion:
Oct. 13, 2003 | |||||
CHF | |||||
Cash paid | 11’095 | ||||
Accrued purchase consideration | 5’548 | ||||
Aggregate purchase price | 16’643 | ||||
Acquisition expenses | 804 | ||||
Total purchase consideration | 17’447 | ||||
Fair value of net assets / liabilities acquired | (2’685 | ) | |||
Goodwill | 14’762 | ||||
Total purchase consideration | 17’447 | ||||
Less accrued purchase consideration | (5’548 | ) | |||
Less cash and cash equivalents in subsidiaries acquired | — | ||||
Cash expended on acquisition | 11’899 | ||||
4 Post balance sheet events
The Company sold the remaining 25% of its interest in Escatec AG (former Wiltronic) and SwissOptic AG to their majority shareholders as of January 1, 2004. Leica Geosystems received proceeds of CHF 7.1 million and realized a small gain. Both will be recorded in quarter four of the fiscal year.
There are no other events to report which could have a significant influence on the financial statements for the period ended December 26, 2003.
For electronic copies of this publication and other company information, please visit our web-site at: www.leica-geosystems.com/investor/index.htm |
Company contact information: |
Investor Relations: George Aase Director Investor Relations Phone +41-71-727-3064 Email: investor@leica-geosystems.com |
Leica Geosystems
CH-9435 Heerbrugg
(Switzerland)
Phone +41 71 727 31 31
Fax +41 71 727 46 73
www.leica-geosystems.com
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
LEICA GEOSYSTEMS FINANCE PLC | ||||||
Date: 5 February, 2004 | By: | /s/ Christian Leu | ||||
Name: | Christian Leu | |||||
Title: | Chief Financial Officer |