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Cision AB (publ) - Year-end report January-December 2010, February 15 2011

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Continued operating improvements
Solid cash-flow

October–December

  • The Group’s operating revenue amounted to SEK 268 million (315). Organic growth was negative at 1 percent, compared with negative 4 percent for July–September 2010 and negative 16 percent for October–December 2009. Exchange rate effects decreased revenue by SEK 11 million compared with the same period last year and the net effect of divestments and acquisitions decreased revenue by SEK 45 million.
  • Operating profit excluding restructuring costs, goodwill impairment, and other one-off costs amounted to SEK 37 million (24) and the operating margin was 13.7 percent (7.5). Exchange rate effects had a negative impact on operating profit of SEK 1 million compared with the same period last year.
  • Operating cash flow amounted to SEK 52 million (47) and free cash flow amounted to SEK 37 million (16).
  • Organic growth for the fourth quarter was close to neutral and the positive development for the organic growth trend quarter on quarter has thereby continued. In the US, Cision’s most important market, organic growth was positive 2 percent.
  • Good fourth quarter cash flows implied further improvement in financial position, with Net Debt/12M Rolling EBITDA at 2.3 as of December 31.
  • For 2010, the board proposes no dividend in order to strengthen the group’s competitiveness and financial flexibility. However, due to the group’s positive development and strong cash-flow generation, the board’s view is that the company over the longer term shall have a policy to distribute approximately 50% of earnings after tax as dividend.

January–December

  • The Group’s operating revenue amounted to SEK 1,132 million (1,476). Organic growth was negative at 5 percent (-13). Exchange rate effects decreased revenue by SEK 59 million and the net effect of divestments and acquisitions decreased revenue by SEK 240 million.
  • Operating profit excluding restructuring costs, goodwill impairment, and other one-off costs amounted to SEK 142 million (96) and the operating margin was 12.6 percent (6.5). Exchange rate effects had a negative impact on operating profit of SEK 8 million compared with the same period last year.
  • Operating profit amounted to SEK 123 million (-260) and profit before tax was SEK 83 million (-341). Restructuring costs were SEK 19 million (46). The comparative figures for last year include the impact of goodwill impairment (SEK 267 million in 2009) and other one-off costs (SEK 43 million in 2009).
  • Earnings per share were SEK 0.40 (-3.48).
  • Operating cash flow amounted to SEK 105 million (90) and free cash flow amounted to SEK 5 million (-49).

Comment by Cision CEO Hans Gieskes:

"Cision’s fourth quarter reflected the developments we have seen throughout the year, with an improving organic growth trend and very solid profitability, with margins just below our 20% EBITDA margin target. In addition, very good fourth quarter cash flows implied further improvement in our financial position, with Net Debt/EBITDA at 2.3, ahead of our target of 2.5. The improved financial performance is a result of our much stronger operations in 2010 compared to previous years, with a sales-driven and software-based business model, anchored in our award-winning CisionPoint software platform.

We are optimistic about continued positive developments for Cision over the next few years, both due to improved market conditions as well as continued strengthening of the competitiveness of our company. Our near-term priority is to gradually return to organic growth during 2011, which we aim to achieve through the continued roll-out of CisionPoint in Europe, upselling to our large US customer base, increased investments in sales and marketing expenditures, as well as the launch of new service features."

For further information, please contact:

Hans Gieskes, President and CEO, phone +46 (0)8 507 410 11
e-mail: hans.gieskes@cision.com

Erik Forsberg, CFO, telephone +46 (0)8 507 410 91
e-mail: erik.forsberg@cision.com

Cision AB (publ)
P.O. Box 24194
SE-104 51 Stockholm, Sweden
Corp Identity No. SE556027951401
Telephone: +46 (0)8 507 410 00
http://corporate.cision.com

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Cision Hans Gieskes Cision AB Year-End Report financial report Erik Forsberg

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