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18.11.2016 09:30:01
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DGAP-News: va-Q-tec AG
DGAP-News: va-Q-tec AG: Quarterly Statement 9M | 2016
18.11.2016 / 09:30 The issuer is solely responsible for the content of this announcement.
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va-Q-tec Quarterly Statement 9M | 2016
va-Q-tec reports on first nine months of 2016
Highlights
- Successful IPO, raising EUR 46.1 million of growth capital
- 54% revenue growth in 9M/2016 to EUR 24.3 million vs. EUR 15.8 million in 9M/2015 on a consolidated Group level
- Adjusted Group EBITDA margin for 9M/2016 increased to 16% vs. 12% in FY 2015
- On track to achieve 2016 targets, positive momentum for 2017
- Multibank loan agreement signed allowing for increased financial flexibility
- Manufacturing output significantly increased, yield improved
Today, va-Q-tec AG published its quarterly report on the company's development in the first nine months of 2016. Sales increased by 54% to EUR 24.3 million compared with 9M / 2015. With strong growth in adjusted EBITDA at EUR 5.0 million, the EBITDA margin reached 16% versus 12% for the full year 2015. The company is confident it will meet the financial targets set for 2016. The successful IPO end of September was a critical milestone as it generated EUR 46.1 million of growth equity and established the company on the capital markets. Management has already started implementing the IPO investment plans. The quarterly statement for the 9 months 2016 will be available on our website.
Key financial figures
in EUR million 01.01.-30.09.2016 01.01.-31.12.2015 Revenues 24.3 22.5 Total income 30.6 29.6 EBITDA[1] 5.0 3.6 EBITDA margin1 (%) 16% 12% EBIT1 0.9 0.4 EBIT margin1 (%) 3% 1% Equity ratio 58% 24% Net cash / (Net debt) 19.4 -23.1
Successful IPO in September 2016
On September 30, 2016 va-Q-tec AG successfully listed in the Prime Standard of the Frankfurt Stock Exchange. This was one of the very few high-tech IPO's of the past years in Germany and the first IPO by a member of Deutsche Börse's Venture Network.
The IPO generated gross equity proceeds of EUR 46.1 million for the company, enabling it to fund its plans for accelerated growth and product innovation over the coming years. The listing also allowed early stage investors who had supported the company's development over the past 15 years to successfully exit their investment. The stock now has a free float of roughly 51%. Our two founders, Joachim Kuhn und Roland Caps each still hold between 12-15% of the company which demonstrates their significant commitment going forward and aligns their interests with new shareholders.
At EUR 12.30 per share the IPO was priced in the middle of the price range announced prior to book-building. Due to high demand in the aftermarket the stock started trading at an initial price of EUR14 per share and has mostly been trading between EUR13.80 and EUR 14.10 since IPO. This performance reflects the attractiveness of va-Q-tec's business model and strategy aiming for continued growth and profitability improvements.
Via the IPO the company was able to attract a diversified group of high quality institutional investors with long-term investment horizons. The majority of new investors are based in UK, Germany and Switzerland.
The equity raised in the IPO has allowed us to significantly strengthen our balance sheet and increase our equity ratio to 58%. This will enhance our standing as a financially reliable partner for our customers, suppliers and banks.
Strong Q3 results with accelerating growth, on track to achieve 2016 targets
The Group increased its revenues for the first nine months of 2016 by 54% to EUR 24.3 million (9M 2015: EUR 15.8 million). This substantial growth is attributable to the successful development of all three major business lines of the Group, i.e. Products, Systems and Services. It comes as the result of years of seeding new markets and applications for our innovative products and services which are in many cases pioneering solutions in their respective markets.
Growth in our Products business - selling primarily vacuum insulation panels (VIPs) - has been driven by additional demand and new customers in the areas of domestic refrigeration and hot water storage. Products revenue grew to EUR 8.1 million in 9M / 2016 (39% higher than 9M / 2015 revenues of EUR 5.8 million). Our Systems business (selling thermal packaging systems) has grown as a result of increased demand from existing customers as well as the successful on-boarding of new pharma and logistics customers. Systems revenue grew to EUR 6.9 million in 9M / 2016 (92% higher than 9M / 2015 revenues of EUR 3.6 million). Finally, our Services business was propelled forward by higher numbers of container rentals in our UK operation as well as the highly successful ramp-up of our first box rental projects. As a result, Services revenue grew to EUR 8.9 million in 9M / 2016 (48% higher than 9M / 2015 revenues of EUR 6.0 million).
As we strengthened our Service business we manufactured and capitalized additional containers and boxes to expand our service fleets. This fleet expansion is reflected in total income which has grown to EUR 30.6 million for 9M / 2016 (vs. EUR 29.6 million in FY 2015).
The growth of higher margin Systems and Services revenue has led to a tangible increase in gross margin, which reached 62% in Q3 2016 and 59% for the first nine months, vs. 58% for the full year 2015. We have also been successful in reducing key cost ratios directly impacting adjusted EBITDA: in 9M / 2016 personnel expenses (adjusted for IPO stock option costs of EUR 168 thousand) declined to 28% of total income (FY 2015: 30%), and other OPEX (adjusted for IPO costs of EUR 1.5 million) declined to 14% of total income (2015: 16%). The improved cost structure is primarily due to improved economies of scale as revenue growth outpaces growth in personnel and overhead costs.
As a result of revenue growth and cost improvements, va-Q-tec has been able to generate EUR 5.0 million of adjusted EBITDA in the first nine months of the year, a number that is already 39% above the EUR 3.6 million achieved in the full year 2015. The adjustments to 9M / 2016 EBITDA comprise of one- off costs caused by the IPO, in particular personnel expenses for stock options valued at EUR 168 thousand and direct IPO costs of EUR 1.5 million accounted for in other OPEX.
Adjusted EBIT for 9M / 2016 increased to EUR0.9 million, significantly outperforming FY 2015 EBIT of EUR 0.4 million.
With this strong performance in the first nine months of 2016 we are well on track to achieve our revenue and profitability targets for 2016.
As a result of the IPO our balance sheet has also significantly strengthened. Our equity ratio has improved to 58% and, assuming the IPO cash proceeds had been transferred to our accounts by 30 September (i.e. on the day of the IPO), our net debt has moved from EUR 23.1 million as of 31 December 2015 to net cash of EUR 19.5 million post IPO.
Progress in manufacturing operations
As a manufacturing company by heart, we are very focused on improvements in our production technology and efficiency. In the first nine months of 2016, we have made tangible progress in this area. In particular, we have been able to substantially increase the output of our installed capacity through technology and process improvements. In addition, we have been able to visibly decrease our scrap rates on our serial production lines, allowing for efficiency gains and reduced manufacturing costs.
Multibank loan agreement signed
In addition to strengthening our equity via the IPO we also worked on building a scalable debt platform for the future. To this end, we structured and signed a multibank loan agreement with our house banks Commerzbank, Landesbank Baden-Württemberg, Santander and Sparkasse Mainfranken in September 2016. This agreement nearly doubles our available working capital funding to EUR 11 million and harmonizes relevant terms of our debt funding across banks. It is designed to allow growth over the coming years and will be regularly reviewed and adjusted to our evolving funding needs. The agreement reflects the strong commitment of our house banks to support the growth of va-Q-tec in the long term and represents a necessary complement to our capital structure.
Recent developments in Q4 2016
Q4 2016 has continued on a positive note with significant new customer orders, in particular in our Systems business. We have been able to secure large orders of multi-use boxes from logistics players for the distribution of temperature-sensitive pharma and biotech goods. In certain cases, we will also be offering on-going fulfilment services on these fleets of boxes.
A major win for va-Q-tec is a contract with Swiss Post. In January 2017, Swiss Post is launching its new offering "ThermoCare Ambient" in order to realize a regulatory compliant distribution of medicinal products across Switzerland. In a first step, va-Q-tec will supply a fleet of multi-use boxes based on va-Q-tec's platform "va-Q-med(R)". These assets will ensure a temperature-controlled transport without deviation throughout the desired temperature range. For va-Q-tec, the cooperation with Swiss Post represents one of the largest individual contracts in the company's history and the start of a larger long-term partnership to serve the Swiss market. In turn, Swiss Post will benefit from va-Q-tec's leading technological position and process experience in the field of temperature-controlled shipments.
In Q4 2016 we have also made progress in our Products and Services business lines, expanding the scope of our relationships with our existing customers and bringing new customers on board for 2017. Our offerings of VIPs in Appliance & Food (domestic and commercial refrigeration) and in Technics & Industry (hot water storage tanks) are meeting increasing levels of demand, permeating their respective markets and showing clear signs of further growth in 2017. In our Services business which addresses the logistics challenges of the global healthcare industry, we are continuously converting new customers to our box and container rental offerings and ramping up shipment volumes. We are observing a sustained shift from active transport solutions offered by our competitors to our often superior advanced passive solutions. We therefore expect continued growth in above our underlying market for healthcare logistics and from gains in market share.
With the tail wind of the IPO, we have also started investing our IPO proceeds as planned. In order to meet growing demand for our VIPs we have placed orders for additional manufacturing capacity to be installed in H1 2017. Furthermore, we have kicked off the planning process for two major expansion projects at our German manufacturing sites in Kölleda and Würzburg. These projects will allow us to substantially expand our manufacturing and services capacity, as well as our R&D over the coming years. Finally, we have used a small part of our IPO proceeds to push ahead our technology roadmap: In early November we increased our stake in the young materials company SUMTEQ GmbH which is developing highly differentiated insulation foams that we intend to deploy in our VIPs in the future. This investment is in line with our strategy of selectively investing in internal or external know-how along the value chain in order to secure product USPs.
Correction of the securities prospectus with regard to number of issued stock options
As mentioned in our historical financials and in our IPO prospectus the company has a virtual stock option plan, primarily to incentivize members of the management team towards an IPO. As a matter of precaution we would like to make the following clarifying correction to the information about the virtual stock option plan provided in our IPO prospectus dated 20 September 2016:
"Correction for clarifying purposes according to section 23 (2) (4) of the German Securities Prospectus Act regarding the information provided in the securities prospectus of va-Q-tec AG dated September 20, 2016 concerning the virtual stock option plan of the company
With regard to the information provided in the securities prospectus of va- Q-tec AG dated 20 September 2016 concerning the virtual stock option plan of the company it has to be clarified that the figures quoted refer to the factual situation prior to the implementation of the capital increase from the company's financial resources on May 31, 2016. Upon the entry of the nominal capital increase into the commercial register on July 19, 2016 the dilution protection provision contained in the virtual stock option plan and mentioned in the securities prospectus came into effect. Pursuant to this provision the number of virtual stock options granted to a beneficiary shall be increased accordingly upon the occurrence of a capital increase from the company's financial resources.
Since the share capital and the number of shares of va-Q-tec AG doubled as a result of the nominal capital increase, the number of virtual stock options held by Mr. Christopher Hoffmann also doubled in accordance with the dilution protection provision, so that as of September 20, 2016 188,592 and not only 94,296 virtual stock options, as set out in the securities prospectus[2], were allocated to him. In addition, on July 23, 2016 an amendment agreement to the virtual stock option plan was entered into between va-Q-tec AG and Mr. Hoffmann. According to this amendment agreement, payments made to Mr. Hoffmann under the virtual stock option plan are capped. However, as a result of the nominal capital increase the agreed cap on payments to Mr. Hoffmann doubled as well and amounted to 130,000 shares or an equivalent cash amount as of September 20, 2016 and not to 65,000 shares or an equivalent cash amount, as set out in the securities prospectus[3].
As of September 20, 2016, 94,296 and not only 47,148 virtual stock options, as set out in the securities prospectus[4], were in total allocated to two key employees of the company.
Simultaneously, as a result of the nominal capital increase the book value of each virtual stock option halved, so that as of September 20, 2016 the strike price per virtual stock option amounted to EUR 3.865 and not to EUR 7.73, as set out in the securities prospectus[5], for all beneficiaries."
It is important to note that the above clarifications and corrections refer exclusively to the description of the virtual stock option program in our securities prospectus. In our historical financial statements, all information on virtual stock options has been properly presented. The capital increase from the company's financial resources (stock split) had only an impact on the number of options granted, it did not however lead to any substantial increase in the value of the options. Accordingly, the company's asset, financial and earnings position has not been affected by the change in the number of options. Since the costs of the stock option program are classified as one-off costs of the IPO they also have no impact on the adjusted profits of the company (EBITDA, EBIT or net profit).
Consolidated income statement
In EUR 1.1. - 30.09.2016 2015 Revenue 24,274,409 22,543,223 Change in inventory and 331,300 724,219 finished goods Other own work capitalized 3,654,328 4,870,963 Other operating income 2,355,381 1,419,330 Total Income 30,615,417 29,557,735 Cost of raw materials and -12,624,628 -12,354,411 services Gross profit 17,990,789 17,203,324
Personnel expenses -8,593,073 -8,853,712 Other operating expenses -6,040,126 -4,751,021
EBITDA 3,357,590 3,598,592
Depreciation and -4,076,957 -3,169,484 amortization
Earnings before interest -719,367 429,108 and taxes (EBIT) Result from equity -47,989 -4,903 accounted investments
Net finance costs -1,324,404 -1,058,831
Earnings before taxes -2,091,760 -634,626 (EBT)
Income tax expense -622,137 305,443
Net income -2,713,897 -329,183
Of which attributable to 2,652,774 357,971 controlling shareholders Of which attributable to 61,123 -28,787 non-controlling shareholders
Earnings per share - basic -0.30 -0.08 and diluted in EUR
Consolidated statement of comprehensive income
1.1 - 30.09.2016 2015 Net Income -2,713,897 -329,183 Other comprehensive income Foreign currency translation 7,971 -12,912 difference 7,971 -12,912 Total comprehensive income -2,705,926 -342,095
Of which attributable to -2,644,803 -370,883 controlling shareholders Of which attributable to non- -61,123 28,787 controlling shareholders
Consolidated statement of financial position
Assets, In EUR 30.09.2016 31.12.2015 Non-current assets Intangible assets 386,407 364,960 Property, plant and 31,736,923 28,043,616 equipment Investments accounted at 322,108 370,097 equity method Financial assets 50,568 46,214 Other non-financial assets 164,097 54,450 Deferred tax assets 2,094,035 2,146,935 Total non-current assets 34,754,139 31,026,273
Current assets Inventories 5,112,686 4,577,210 Trade accounts receivable 5,475,511 4,415,527 Other financial assets 41,286,002 16,107 Current tax assets 235,808 25 Other current assets 1,004,857 704,435 Cash and cash equivalents 4,003,178 1,186,045 Total current assets 57,118,041 10,899,349
Total Assets 91,872,180 41,925,622
Equity and Liabilities in EUR Equity Issued capital 12,955,036 4,578,187 Additional paid-in capital 46,262,055 9,030,470 Cumulative other -13,405 -21,376 comprehensive income Retained earnings -6,241,758 -3,588,984 Equity attributable to 52,961,928 9,998,298 owners of parent company Non-controling interest -6,588 Total Equity 52,961,928 9,991,709
Non-current liabilities and provisions Long-term provisions 21,400 46,400 Bank liabilities 2,302,727 2,016,575 Other financial 4,503,935 5,108,042 liabilities Other non-financial 7,258,268 7,450,750 liabilities Deferred tax liabilities Total non-current 14,086,330 14,621,766 liabilities and provisions
Current liabilities and provisions Provisions 5,778 77,000 Bank liabilities 10,887,538 6,893,775 Other financial 8,845,221 5,785,142 liabilities Trade accounts payable 2,154,808 1,633,172 Current tax liabilities 341,055 518,996 Other non-financial 2,589,523 2,404,061 liabilities Total current liabilities 24,823,921 17,312,147 and provisions
Total Equity and 91,872,180 41,925,622 Liabilities
Consolidated cash flow statement
In EUR 1.1 - 30.09.2016 31.12.2015 Cash flow from operating activities Net income -2,713,897 -329,184 Current income taxes recognised in 622,137 528,989 income statement Income taxes paid 3,818 -32,341 Net finance costs recognised in income 1,324,404 1,058,831 statement Interest received 379,327 590 Interest paid -541,843 -815,726 Non-cash losses from equity accounted 47,989 4,903 investments Depreciation, amortisation and 4,077,157 3,169,484 impairment losses Gain/loss from disposal of non-current -219,095 -6,979 assets Change in other assets -41,920,101 533,828 Change in other liabilities 2,487,822 551,103 Change in provisions -96,222 26,915 Other non-cash expenses or income 40,674,497 -2,518,589 Cash flow from operating activities 4,125,993 2,171,824 before working capital changes Change in inventories -765,044 -403,220 Change in trade receivables -1,059,984 -1,021,600 Change in trade payables 521,635 -586,212 Net cash flow from operating 2,822,600 160,792 activities
Cash flow from investing activities
Payments for investment in intangible -99,135 -308,083 assets Proceeds from disposal of property, 219,095 15,594 plant and equipment Payments for investments in property, -4,698,389 -6,525,261 plant and equipment
Payments for acquisition of interests - -375,000 in associates Net cash flow from investing -4,578,429 -7,192,750 activities
Cash flow from financing activities Proceeds from equity increases 3,750,000 - Payments acquisition of treasury -763,398 - shares Payments for equity transaction costs -2,401,623 -35,218 Proceeds from bank loans 4,593,763 4,290,732 Repayments of bank loans -313,848 -640,764 Repayments of other financial - - liabilities Proceeds from sale-and-finance- 3,095,913 7,214,881 leaseback transactions Proceeds from government grants - 637,761 Net cash inflow from factoring 84,087 155,933 Payments for finance leases -3,472,204 -4,648,670 liabilities Change in restricted cash - - Net cash flow from financing 4,572,690 6,974,655 activities
Net cash flows before exchange rate 2,816,861 -57,303 effects Effect of exchange rate changes on 272 -360 cash and cash equivalents Net change in cash and cash 2,817,133 -57,663 equivalents Cash and cash equivalents at start of 1,186,045 1,243,708 period Cash and cash equivalents at end of 4,003,178 1,186,045 period
Financial calendar 2017
Full year 2016 2017 Q1 Results 2017 H1 Results 2017 Q3 Results Financials April 17 May 2017 September 17 October 2017
About va-Q-tec
va-Q-tec is a leading provider of highly efficient tech products and solutions in the field of thermal insulation. The Company develops, manufactures and sells innovative, thin vacuum insulation panels ("VIPs") and phase change materials ("PCMs") for reliable and energy efficient temperature control and insulation. Furthermore, by optimally integrating VIPs and PCMs, va-Q-tec manufactures passive thermal packaging solutions (containers and boxes), which offer constant temperature conditions between 24 and over 200 hours without using external energy sources. Within its rental services business, the company has built a global partner network to provide for an extensive fleet of containers and boxes fulfilling highly demanding thermal protection standards in temperature sensitive supply chains. Besides Healthcare & Logistics as main market, va-Q-tec addresses additional markets such as Appliances & Food, Technics & Industry, Building and Mobility. The strongly growing Company was founded in 2001, and has its headquarters in Würzburg. More information on va-Q-tec under www.va-q- tec.com
IR Contact
va-Q-tec AG
Telephone: +49 931 35942 - 0
Email: IR@va-Q-tec.com
[1] 2016 figure adjusted for one-off items resulting from the IPO, in particular external advisory costs
[2] Section 1, subsection E.4, page 30, second last paragraph; section 2, subsection E.4, page 68, second last paragraph; section 6.2, page 124, second last paragraph; section 17.2.3, page 249, last paragraph; section 17.4, page 257, fourth paragraph; section 17.5, page 257, second paragraph.
[3] Section 6.2, page 124, second last paragraph; section 17.4, page 257, fourth paragraph; section 17.5, page 257, last paragraph.
[4] Section 17.5, page 257, second paragraph.
[5] Section 6.2, page 124, second last paragraph; section 17.4, page 257, fourth paragraph.
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18.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
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Language: English Company: va-Q-tec AG Karl-Ferdinand-Braun Str. 7 97080 Würzburg Germany Phone: +49 (0)931 35 942 0 Fax: +49 (0)931 35 942 10 E-mail: info@va-Q-tec.com Internet: www.va-Q-tec.com ISIN: DE0006636681 WKN: 663668 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------
522371 18.11.2016
DGAP-News: va-Q-tec AG / Key word(s): 9-month figures va-Q-tec AG: Quarterly Statement 9M | 2016
18.11.2016 / 09:30 The issuer is solely responsible for the content of this announcement.
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va-Q-tec Quarterly Statement 9M | 2016
va-Q-tec reports on first nine months of 2016
Highlights
- Successful IPO, raising EUR 46.1 million of growth capital
- 54% revenue growth in 9M/2016 to EUR 24.3 million vs. EUR 15.8 million in 9M/2015 on a consolidated Group level
- Adjusted Group EBITDA margin for 9M/2016 increased to 16% vs. 12% in FY 2015
- On track to achieve 2016 targets, positive momentum for 2017
- Multibank loan agreement signed allowing for increased financial flexibility
- Manufacturing output significantly increased, yield improved
Today, va-Q-tec AG published its quarterly report on the company's development in the first nine months of 2016. Sales increased by 54% to EUR 24.3 million compared with 9M / 2015. With strong growth in adjusted EBITDA at EUR 5.0 million, the EBITDA margin reached 16% versus 12% for the full year 2015. The company is confident it will meet the financial targets set for 2016. The successful IPO end of September was a critical milestone as it generated EUR 46.1 million of growth equity and established the company on the capital markets. Management has already started implementing the IPO investment plans. The quarterly statement for the 9 months 2016 will be available on our website.
Key financial figures
in EUR million 01.01.-30.09.2016 01.01.-31.12.2015 Revenues 24.3 22.5 Total income 30.6 29.6 EBITDA[1] 5.0 3.6 EBITDA margin1 (%) 16% 12% EBIT1 0.9 0.4 EBIT margin1 (%) 3% 1% Equity ratio 58% 24% Net cash / (Net debt) 19.4 -23.1
Successful IPO in September 2016
On September 30, 2016 va-Q-tec AG successfully listed in the Prime Standard of the Frankfurt Stock Exchange. This was one of the very few high-tech IPO's of the past years in Germany and the first IPO by a member of Deutsche Börse's Venture Network.
The IPO generated gross equity proceeds of EUR 46.1 million for the company, enabling it to fund its plans for accelerated growth and product innovation over the coming years. The listing also allowed early stage investors who had supported the company's development over the past 15 years to successfully exit their investment. The stock now has a free float of roughly 51%. Our two founders, Joachim Kuhn und Roland Caps each still hold between 12-15% of the company which demonstrates their significant commitment going forward and aligns their interests with new shareholders.
At EUR 12.30 per share the IPO was priced in the middle of the price range announced prior to book-building. Due to high demand in the aftermarket the stock started trading at an initial price of EUR14 per share and has mostly been trading between EUR13.80 and EUR 14.10 since IPO. This performance reflects the attractiveness of va-Q-tec's business model and strategy aiming for continued growth and profitability improvements.
Via the IPO the company was able to attract a diversified group of high quality institutional investors with long-term investment horizons. The majority of new investors are based in UK, Germany and Switzerland.
The equity raised in the IPO has allowed us to significantly strengthen our balance sheet and increase our equity ratio to 58%. This will enhance our standing as a financially reliable partner for our customers, suppliers and banks.
Strong Q3 results with accelerating growth, on track to achieve 2016 targets
The Group increased its revenues for the first nine months of 2016 by 54% to EUR 24.3 million (9M 2015: EUR 15.8 million). This substantial growth is attributable to the successful development of all three major business lines of the Group, i.e. Products, Systems and Services. It comes as the result of years of seeding new markets and applications for our innovative products and services which are in many cases pioneering solutions in their respective markets.
Growth in our Products business - selling primarily vacuum insulation panels (VIPs) - has been driven by additional demand and new customers in the areas of domestic refrigeration and hot water storage. Products revenue grew to EUR 8.1 million in 9M / 2016 (39% higher than 9M / 2015 revenues of EUR 5.8 million). Our Systems business (selling thermal packaging systems) has grown as a result of increased demand from existing customers as well as the successful on-boarding of new pharma and logistics customers. Systems revenue grew to EUR 6.9 million in 9M / 2016 (92% higher than 9M / 2015 revenues of EUR 3.6 million). Finally, our Services business was propelled forward by higher numbers of container rentals in our UK operation as well as the highly successful ramp-up of our first box rental projects. As a result, Services revenue grew to EUR 8.9 million in 9M / 2016 (48% higher than 9M / 2015 revenues of EUR 6.0 million).
As we strengthened our Service business we manufactured and capitalized additional containers and boxes to expand our service fleets. This fleet expansion is reflected in total income which has grown to EUR 30.6 million for 9M / 2016 (vs. EUR 29.6 million in FY 2015).
The growth of higher margin Systems and Services revenue has led to a tangible increase in gross margin, which reached 62% in Q3 2016 and 59% for the first nine months, vs. 58% for the full year 2015. We have also been successful in reducing key cost ratios directly impacting adjusted EBITDA: in 9M / 2016 personnel expenses (adjusted for IPO stock option costs of EUR 168 thousand) declined to 28% of total income (FY 2015: 30%), and other OPEX (adjusted for IPO costs of EUR 1.5 million) declined to 14% of total income (2015: 16%). The improved cost structure is primarily due to improved economies of scale as revenue growth outpaces growth in personnel and overhead costs.
As a result of revenue growth and cost improvements, va-Q-tec has been able to generate EUR 5.0 million of adjusted EBITDA in the first nine months of the year, a number that is already 39% above the EUR 3.6 million achieved in the full year 2015. The adjustments to 9M / 2016 EBITDA comprise of one- off costs caused by the IPO, in particular personnel expenses for stock options valued at EUR 168 thousand and direct IPO costs of EUR 1.5 million accounted for in other OPEX.
Adjusted EBIT for 9M / 2016 increased to EUR0.9 million, significantly outperforming FY 2015 EBIT of EUR 0.4 million.
With this strong performance in the first nine months of 2016 we are well on track to achieve our revenue and profitability targets for 2016.
As a result of the IPO our balance sheet has also significantly strengthened. Our equity ratio has improved to 58% and, assuming the IPO cash proceeds had been transferred to our accounts by 30 September (i.e. on the day of the IPO), our net debt has moved from EUR 23.1 million as of 31 December 2015 to net cash of EUR 19.5 million post IPO.
Progress in manufacturing operations
As a manufacturing company by heart, we are very focused on improvements in our production technology and efficiency. In the first nine months of 2016, we have made tangible progress in this area. In particular, we have been able to substantially increase the output of our installed capacity through technology and process improvements. In addition, we have been able to visibly decrease our scrap rates on our serial production lines, allowing for efficiency gains and reduced manufacturing costs.
Multibank loan agreement signed
In addition to strengthening our equity via the IPO we also worked on building a scalable debt platform for the future. To this end, we structured and signed a multibank loan agreement with our house banks Commerzbank, Landesbank Baden-Württemberg, Santander and Sparkasse Mainfranken in September 2016. This agreement nearly doubles our available working capital funding to EUR 11 million and harmonizes relevant terms of our debt funding across banks. It is designed to allow growth over the coming years and will be regularly reviewed and adjusted to our evolving funding needs. The agreement reflects the strong commitment of our house banks to support the growth of va-Q-tec in the long term and represents a necessary complement to our capital structure.
Recent developments in Q4 2016
Q4 2016 has continued on a positive note with significant new customer orders, in particular in our Systems business. We have been able to secure large orders of multi-use boxes from logistics players for the distribution of temperature-sensitive pharma and biotech goods. In certain cases, we will also be offering on-going fulfilment services on these fleets of boxes.
A major win for va-Q-tec is a contract with Swiss Post. In January 2017, Swiss Post is launching its new offering "ThermoCare Ambient" in order to realize a regulatory compliant distribution of medicinal products across Switzerland. In a first step, va-Q-tec will supply a fleet of multi-use boxes based on va-Q-tec's platform "va-Q-med(R)". These assets will ensure a temperature-controlled transport without deviation throughout the desired temperature range. For va-Q-tec, the cooperation with Swiss Post represents one of the largest individual contracts in the company's history and the start of a larger long-term partnership to serve the Swiss market. In turn, Swiss Post will benefit from va-Q-tec's leading technological position and process experience in the field of temperature-controlled shipments.
In Q4 2016 we have also made progress in our Products and Services business lines, expanding the scope of our relationships with our existing customers and bringing new customers on board for 2017. Our offerings of VIPs in Appliance & Food (domestic and commercial refrigeration) and in Technics & Industry (hot water storage tanks) are meeting increasing levels of demand, permeating their respective markets and showing clear signs of further growth in 2017. In our Services business which addresses the logistics challenges of the global healthcare industry, we are continuously converting new customers to our box and container rental offerings and ramping up shipment volumes. We are observing a sustained shift from active transport solutions offered by our competitors to our often superior advanced passive solutions. We therefore expect continued growth in above our underlying market for healthcare logistics and from gains in market share.
With the tail wind of the IPO, we have also started investing our IPO proceeds as planned. In order to meet growing demand for our VIPs we have placed orders for additional manufacturing capacity to be installed in H1 2017. Furthermore, we have kicked off the planning process for two major expansion projects at our German manufacturing sites in Kölleda and Würzburg. These projects will allow us to substantially expand our manufacturing and services capacity, as well as our R&D over the coming years. Finally, we have used a small part of our IPO proceeds to push ahead our technology roadmap: In early November we increased our stake in the young materials company SUMTEQ GmbH which is developing highly differentiated insulation foams that we intend to deploy in our VIPs in the future. This investment is in line with our strategy of selectively investing in internal or external know-how along the value chain in order to secure product USPs.
Correction of the securities prospectus with regard to number of issued stock options
As mentioned in our historical financials and in our IPO prospectus the company has a virtual stock option plan, primarily to incentivize members of the management team towards an IPO. As a matter of precaution we would like to make the following clarifying correction to the information about the virtual stock option plan provided in our IPO prospectus dated 20 September 2016:
"Correction for clarifying purposes according to section 23 (2) (4) of the German Securities Prospectus Act regarding the information provided in the securities prospectus of va-Q-tec AG dated September 20, 2016 concerning the virtual stock option plan of the company
With regard to the information provided in the securities prospectus of va- Q-tec AG dated 20 September 2016 concerning the virtual stock option plan of the company it has to be clarified that the figures quoted refer to the factual situation prior to the implementation of the capital increase from the company's financial resources on May 31, 2016. Upon the entry of the nominal capital increase into the commercial register on July 19, 2016 the dilution protection provision contained in the virtual stock option plan and mentioned in the securities prospectus came into effect. Pursuant to this provision the number of virtual stock options granted to a beneficiary shall be increased accordingly upon the occurrence of a capital increase from the company's financial resources.
Since the share capital and the number of shares of va-Q-tec AG doubled as a result of the nominal capital increase, the number of virtual stock options held by Mr. Christopher Hoffmann also doubled in accordance with the dilution protection provision, so that as of September 20, 2016 188,592 and not only 94,296 virtual stock options, as set out in the securities prospectus[2], were allocated to him. In addition, on July 23, 2016 an amendment agreement to the virtual stock option plan was entered into between va-Q-tec AG and Mr. Hoffmann. According to this amendment agreement, payments made to Mr. Hoffmann under the virtual stock option plan are capped. However, as a result of the nominal capital increase the agreed cap on payments to Mr. Hoffmann doubled as well and amounted to 130,000 shares or an equivalent cash amount as of September 20, 2016 and not to 65,000 shares or an equivalent cash amount, as set out in the securities prospectus[3].
As of September 20, 2016, 94,296 and not only 47,148 virtual stock options, as set out in the securities prospectus[4], were in total allocated to two key employees of the company.
Simultaneously, as a result of the nominal capital increase the book value of each virtual stock option halved, so that as of September 20, 2016 the strike price per virtual stock option amounted to EUR 3.865 and not to EUR 7.73, as set out in the securities prospectus[5], for all beneficiaries."
It is important to note that the above clarifications and corrections refer exclusively to the description of the virtual stock option program in our securities prospectus. In our historical financial statements, all information on virtual stock options has been properly presented. The capital increase from the company's financial resources (stock split) had only an impact on the number of options granted, it did not however lead to any substantial increase in the value of the options. Accordingly, the company's asset, financial and earnings position has not been affected by the change in the number of options. Since the costs of the stock option program are classified as one-off costs of the IPO they also have no impact on the adjusted profits of the company (EBITDA, EBIT or net profit).
Consolidated income statement
In EUR 1.1. - 30.09.2016 2015 Revenue 24,274,409 22,543,223 Change in inventory and 331,300 724,219 finished goods Other own work capitalized 3,654,328 4,870,963 Other operating income 2,355,381 1,419,330 Total Income 30,615,417 29,557,735 Cost of raw materials and -12,624,628 -12,354,411 services Gross profit 17,990,789 17,203,324
Personnel expenses -8,593,073 -8,853,712 Other operating expenses -6,040,126 -4,751,021
EBITDA 3,357,590 3,598,592
Depreciation and -4,076,957 -3,169,484 amortization
Earnings before interest -719,367 429,108 and taxes (EBIT) Result from equity -47,989 -4,903 accounted investments
Net finance costs -1,324,404 -1,058,831
Earnings before taxes -2,091,760 -634,626 (EBT)
Income tax expense -622,137 305,443
Net income -2,713,897 -329,183
Of which attributable to 2,652,774 357,971 controlling shareholders Of which attributable to 61,123 -28,787 non-controlling shareholders
Earnings per share - basic -0.30 -0.08 and diluted in EUR
Consolidated statement of comprehensive income
1.1 - 30.09.2016 2015 Net Income -2,713,897 -329,183 Other comprehensive income Foreign currency translation 7,971 -12,912 difference 7,971 -12,912 Total comprehensive income -2,705,926 -342,095
Of which attributable to -2,644,803 -370,883 controlling shareholders Of which attributable to non- -61,123 28,787 controlling shareholders
Consolidated statement of financial position
Assets, In EUR 30.09.2016 31.12.2015 Non-current assets Intangible assets 386,407 364,960 Property, plant and 31,736,923 28,043,616 equipment Investments accounted at 322,108 370,097 equity method Financial assets 50,568 46,214 Other non-financial assets 164,097 54,450 Deferred tax assets 2,094,035 2,146,935 Total non-current assets 34,754,139 31,026,273
Current assets Inventories 5,112,686 4,577,210 Trade accounts receivable 5,475,511 4,415,527 Other financial assets 41,286,002 16,107 Current tax assets 235,808 25 Other current assets 1,004,857 704,435 Cash and cash equivalents 4,003,178 1,186,045 Total current assets 57,118,041 10,899,349
Total Assets 91,872,180 41,925,622
Equity and Liabilities in EUR Equity Issued capital 12,955,036 4,578,187 Additional paid-in capital 46,262,055 9,030,470 Cumulative other -13,405 -21,376 comprehensive income Retained earnings -6,241,758 -3,588,984 Equity attributable to 52,961,928 9,998,298 owners of parent company Non-controling interest -6,588 Total Equity 52,961,928 9,991,709
Non-current liabilities and provisions Long-term provisions 21,400 46,400 Bank liabilities 2,302,727 2,016,575 Other financial 4,503,935 5,108,042 liabilities Other non-financial 7,258,268 7,450,750 liabilities Deferred tax liabilities Total non-current 14,086,330 14,621,766 liabilities and provisions
Current liabilities and provisions Provisions 5,778 77,000 Bank liabilities 10,887,538 6,893,775 Other financial 8,845,221 5,785,142 liabilities Trade accounts payable 2,154,808 1,633,172 Current tax liabilities 341,055 518,996 Other non-financial 2,589,523 2,404,061 liabilities Total current liabilities 24,823,921 17,312,147 and provisions
Total Equity and 91,872,180 41,925,622 Liabilities
Consolidated cash flow statement
In EUR 1.1 - 30.09.2016 31.12.2015 Cash flow from operating activities Net income -2,713,897 -329,184 Current income taxes recognised in 622,137 528,989 income statement Income taxes paid 3,818 -32,341 Net finance costs recognised in income 1,324,404 1,058,831 statement Interest received 379,327 590 Interest paid -541,843 -815,726 Non-cash losses from equity accounted 47,989 4,903 investments Depreciation, amortisation and 4,077,157 3,169,484 impairment losses Gain/loss from disposal of non-current -219,095 -6,979 assets Change in other assets -41,920,101 533,828 Change in other liabilities 2,487,822 551,103 Change in provisions -96,222 26,915 Other non-cash expenses or income 40,674,497 -2,518,589 Cash flow from operating activities 4,125,993 2,171,824 before working capital changes Change in inventories -765,044 -403,220 Change in trade receivables -1,059,984 -1,021,600 Change in trade payables 521,635 -586,212 Net cash flow from operating 2,822,600 160,792 activities
Cash flow from investing activities
Payments for investment in intangible -99,135 -308,083 assets Proceeds from disposal of property, 219,095 15,594 plant and equipment Payments for investments in property, -4,698,389 -6,525,261 plant and equipment
Payments for acquisition of interests - -375,000 in associates Net cash flow from investing -4,578,429 -7,192,750 activities
Cash flow from financing activities Proceeds from equity increases 3,750,000 - Payments acquisition of treasury -763,398 - shares Payments for equity transaction costs -2,401,623 -35,218 Proceeds from bank loans 4,593,763 4,290,732 Repayments of bank loans -313,848 -640,764 Repayments of other financial - - liabilities Proceeds from sale-and-finance- 3,095,913 7,214,881 leaseback transactions Proceeds from government grants - 637,761 Net cash inflow from factoring 84,087 155,933 Payments for finance leases -3,472,204 -4,648,670 liabilities Change in restricted cash - - Net cash flow from financing 4,572,690 6,974,655 activities
Net cash flows before exchange rate 2,816,861 -57,303 effects Effect of exchange rate changes on 272 -360 cash and cash equivalents Net change in cash and cash 2,817,133 -57,663 equivalents Cash and cash equivalents at start of 1,186,045 1,243,708 period Cash and cash equivalents at end of 4,003,178 1,186,045 period
Financial calendar 2017
Full year 2016 2017 Q1 Results 2017 H1 Results 2017 Q3 Results Financials April 17 May 2017 September 17 October 2017
About va-Q-tec
va-Q-tec is a leading provider of highly efficient tech products and solutions in the field of thermal insulation. The Company develops, manufactures and sells innovative, thin vacuum insulation panels ("VIPs") and phase change materials ("PCMs") for reliable and energy efficient temperature control and insulation. Furthermore, by optimally integrating VIPs and PCMs, va-Q-tec manufactures passive thermal packaging solutions (containers and boxes), which offer constant temperature conditions between 24 and over 200 hours without using external energy sources. Within its rental services business, the company has built a global partner network to provide for an extensive fleet of containers and boxes fulfilling highly demanding thermal protection standards in temperature sensitive supply chains. Besides Healthcare & Logistics as main market, va-Q-tec addresses additional markets such as Appliances & Food, Technics & Industry, Building and Mobility. The strongly growing Company was founded in 2001, and has its headquarters in Würzburg. More information on va-Q-tec under www.va-q- tec.com
IR Contact
va-Q-tec AG
Telephone: +49 931 35942 - 0
Email: IR@va-Q-tec.com
[1] 2016 figure adjusted for one-off items resulting from the IPO, in particular external advisory costs
[2] Section 1, subsection E.4, page 30, second last paragraph; section 2, subsection E.4, page 68, second last paragraph; section 6.2, page 124, second last paragraph; section 17.2.3, page 249, last paragraph; section 17.4, page 257, fourth paragraph; section 17.5, page 257, second paragraph.
[3] Section 6.2, page 124, second last paragraph; section 17.4, page 257, fourth paragraph; section 17.5, page 257, last paragraph.
[4] Section 17.5, page 257, second paragraph.
[5] Section 6.2, page 124, second last paragraph; section 17.4, page 257, fourth paragraph.
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18.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
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Language: English Company: va-Q-tec AG Karl-Ferdinand-Braun Str. 7 97080 Würzburg Germany Phone: +49 (0)931 35 942 0 Fax: +49 (0)931 35 942 10 E-mail: info@va-Q-tec.com Internet: www.va-Q-tec.com ISIN: DE0006636681 WKN: 663668 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------
522371 18.11.2016
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