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B&C Speakers SpA B&C Speakers SpA: 3Q2018 financials 15-Nov-2018 / 09:53 GMT/BST *PRESS RELEASE* *B&C Speakers S.p.A.:* *The Board of Directors approves the Interim Report on Operations at 30 September 2018* *- Consolidated revenues equal to Euro 41.23 million (an increase of 39.04% compared to the Euro 29.65 million for the same period of 2017);* *- Consolidated EBITDA equal to Euro 8.60 million (an increase of 19.48% compared to the Euro 7.20 million for the same period of 2017);* *- Group profit equal to Euro 5.42 million (20.85% up from the Euro 4.72 million for the same period of 2017);* *- Group net financial position negative and equal to Euro 7.01 million (negative and equal to Euro 6.72 million at year-end 2017);* - Tax contribution relative to the _Patent Box for the three-year period 2015-2017 determined, after the close of the period_. _Bagno a Ripoli (prov. Florence), 14 November 2018_ - The *Board of Directors* of *B&C Speakers S.p.A.*, one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustic transducers, approved the Interim Report of the Group for the first nine months of 2018 in accordance with IFRS international accounting standards. The period in question includes the full contribution of Eighteen Sound S.r.l. in the economic and financial figures of the B&C Speakers Group. To better understand the economic trends during the period, an indication of trends with the scope of consolidation held equal (B&C Speakers S.p.A. and its foreign subsidiaries) is provided at the end of this press release (see table on page 5). *Consolidated revenues *in the first nine months of 2018 amounted to Euro 41.23 million, resulting in growth of 39.04% over the same period of 2017 when turnover stood at Euro 29.65 million. This significant increase was the result of solid growth of 6.89% achieved by the B&C Speakers Group when the scope of consolidation is held constant with respect to the first nine months of 2017, to which the turnover achieved by Eighteen Sound was added, providing a net contribution of EUR 9.53 million. During the period, thanks also the effects of the acquisition, the Group significantly increased turnover in all operating areas. In particular we note the significant growth in the European market (+33% with sales of EUR 18.36 million), the domestic market (+50% with sales of EUR 2.8 million) and in the Latin American market (+99% with sales of EUR 4.19 million). Growth in North America and in the Asia-Pacific area was also very strong, at a rate of 35%. A full breakdown for the first nine months of 2018 by geographic area (amounts in euros) is provided below: / / During the first nine months of 2018, the proportion of the *cost of sales* to revenues increased compared to the same period of 2017, rising from 58.20% to 62.13%. The greater impact of the Cost of Sales with respect to revenues was due to the inclusion of the subsidiary Eighteen Sound within the scope of consolidation, which still has margins which are much lower than those of B&C Speakers. The positive effects deriving from the integration of the two structures, mainly associated with synergies in acquisitions and production, will be progressively seen during the year and will be achieved to a greater extent during 2019. *Indirect Personnel* Costs for indirect personnel increased in both absolute terms and in terms of impact on turnover. This increase can mainly be attributed to the acquisition of Eighteen Sound. *Commercial Expenses* Commercial expenses showed a slight increase in absolute value compared to the first nine months of the previous year. Therefore, their impact was slightly reduced, given the strong corporate growth. *Administrative and General* General and administrative costs also increased in a manner less than proportional to the increase in Group sales, reducing their impact by almost one percent; essentially due to greater production volumes following the acquisition. *EBITDA and EBITDA Margin* Mainly as a result of the trends described above, EBITDA in the first nine months of 2018 increased to EUR 8.60 million, an increase of 19.48% over the same period of 2017 (when the amount was EUR 7.20 million). *The EBITDA margin* for the first nine months of 2018 was 20.86% of revenues (24.27% in the first nine months of the previous year). The decrease is due to the combined effect of the increase in volumes and the inclusion of Eighteen Sound, which still has lower margins with respect to B&C Speakers. _Group Net Result and Net Financial Position_ The Group's net profit at the end of the first nine months of 2018 amounted to EUR 5.71 million and represents 13.84% of consolidated revenues with a total increase of 20.85% with respect to the corresponding period in 2017. The Group maintains good financial stability; the Net Financial Position at the end of the first nine months of 2018 was negative, equalling Euro 7.01 million against a value of 6.72 at the end of 2017. However, it should be noted that in the same period, dividends were paid totalling Euro 4.61 million. *The Group's reclassified Income Statement schedule relative to the first nine months of 2018 is shown below, compared with the same period in 2017 (the schedule represents the situation of the B&C Speakers Group at the end of the first nine months of 2018, following the acquisition of Eighteen Sound S.r.l.):* / *For a better comparison of the economic trends, the figures for the first nine months of 2018 and the corresponding period in 2017 are provided below, with the same scope of consolidation net of the acquisition:* / *Events subsequent to 30 September 2018* With the Regional Revenue Office finalising their ruling (on 11 July 2018) for the Patent Box scheme presented from 2015, B&C Speakers calculated the relevant tax credit for each period, namely 2015, 2016 and 2017. At the date of this release, supplementary returns have already been submitted for 2015 and 2016, whereas the tax return for 2017 is currently been submitted. The table below sets out the contribution obtained for each individual period: / The tax credits resulting from the agreement will be used as from the upcoming tax deadlines. *Business outlook* The available data, as at the date this document was prepared, suggests that 2018 will be a year of significant growth for the B&C Speakers Group, supported by the following elements: - The first nine months of 2018 were very positive for B&C Speakers, both in terms of the order collection data and the number of projects already approved, and this would suggest that 2018 will close with significant growth; - At the same time, positive signs were also seen from the customers of Eighteen Sound and Sound&Vision; after a year of greater uncertainties associated with the transfer of ownership, the market reacted positively, with orders collected in line with management forecasts. The B&C Speakers S.p.A. Financial Reporting Manager Francesco Spapperi confirms - in accordance with art. 154-bis, paragraph 2 of Italian Legislative Decree No. 58/1998, that the accounting disclosures contained in this press release are consistent with company's accounting documents, books and records. *B&C Speakers S.p.A.* Simone Pratesi (Investor Relator), Tel: +39 055/6572 303 Email: spratesi@bcspeakers.com *Consolidated Equity Financial Position at 30 September 2018.* / *Consolidated Income Statement for the first nine months of 2018* / Attachment Document title: B&C Speakers - 3Q2018 finacials Document: http://n.eqs.com/c/fncls.ssp?u=FUGRJEVDTR [1] Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. End of Announcement - EQS News Service 746343 15-Nov-2018 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3b6c791ed30dc10a088288fe5e19f5f4&application_id=746343&site_id=vwd&application_name=news
(END) Dow Jones Newswires
November 15, 2018 04:54 ET (09:54 GMT)
