Glaston Corporation publishes pro forma quarterly financial information related to the acquisition of Bystronic glass
Glaston Corporation Stock Exchange Release 7 August 2019 at 12.30 EET
Glaston Corporation publishes unaudited pro forma financial information per quarter for the year 2018 and for the first quarter of 2019.
The pro forma financial information is presented for illustrative purposes in order to reflect the hypothetical impact of the acquisition of Bystronic glass to the Company’s results of operations, if it had taken place as of 1 January 2018. The pro forma information is presented separately for group level and for the segments.
On 1 April 2019, Glaston Corporation completed the acquisition of Swiss-German based globally operating Bystronic glass, a company offering high-end machinery, systems and services for the processing of glass. Bystronic glass is consolidated as part of Glaston Corporation as of 1 April 2019 and consequently, the Company has two reporting segments: Glaston and Bystronic glass. In addition, the company will report net sales, order intake and order book for Heat Treatment Technologies, Bystronic Glass Technologies, Emerging Technologies (combining Emerging Technologies of the Glaston segment and Bystronic glass display business), Services (combining the service sales of the heat treatment services in the Glaston segment and Services & Spare Parts in the Bystronic glass segment) and Other product areas as of 1 April 2019.
Additional information on the basis of presentation of the pro forma financial information is included in Glaston’s Rights Issue Prospectus, dated 29 May 2019. The Finnish language prospectus is available on the company’s website.
In the following tables unaudited pro forma financial information for the group as well as for the segments for the first quarter of 2019 and each of the quarters in 2018 are presented.
Glaston is applying the new leasing standard ‘IFRS 16 leases’ fully retrospectively from 1 January 2019 and has restated the comparable figures accordingly for 2018.
Glaston’s half year financial report will be published on August 8, 2019 at 1 pm local time.
GLASTON GROUP
GLASTON AND BYSTRONIC GLASS PRO FORMA 2018
| CONDENSED STATEMENT OF PROFIT OR LOSS | ||||||||||
| EUR million | 1-3/2019 |
10-12/2018 |
7-9/2018 | 4-6/2018 |
1-3/2018 |
|||||
| Net sales | 44.3 | 44.9 | 47.3 | 55.4 | 54.2 | |||||
| Other operating income | 0.6 | 0.4 | 0.,4 | 1.2 | 0.2 | |||||
| Expenses | -41.8 | -45.8 | -43.4 | -51.5 | -49.6 | |||||
| Depreciation, amortization and impairment | -1.7 | -1.8 | -1.6 | -1.6 | -1.6 | |||||
| Depreciation of right-of-use assets | -0.6 | -0.6 | -0.6 | -0.7 | -0.6 | |||||
| Operating profit | 0,8 | -2.9 | 2.0 | 2.8 | 2.5 | |||||
| Financial items, net | -0.3 | -0.7 | -0.8 | -0.6 | -0.6 | |||||
| Interest expenses on lease liabilities | -0.1 | -0.1 | -0.1 | -0.2 | -0.2 | |||||
| Result before income taxes | 0.3 | -3.8 | 1.1 | 2.1 | 1.7 | |||||
| Income taxes | -0.7 | 0.7 | -0.2 | 0.0 | -0.8 | |||||
| Profit / loss for the period | -0.3 | -3.0 | 0.9 | 2.1 | 1.0 | |||||
| Number of shares, average, adjusted with share issue (1.000)(1 | 51302 | 51302 | 51302 | 51302 | 51302 | |||||
| Earnings per share, EUR | -0.005 | -0.059 | 0.017 | 0.042 | 0.019 | |||||
(1 Reverse share split was implemented on 1 March 2019. Rights issue was implemented during the second quarter in 2019. The number of shares and the share price for the comparative period has been restated accordingly.
Unaudited Pro Forma Statement of Profit or Loss for the year ended 31 December 2018
| In EUR million | Glaston IFRS |
Bystronic glass IFRS |
Pro forma -adjustment PPA(2 | Pro forma -adjustment Bystronic loans | Pro forma adjust-ment Financing costs | Glaston Pro Forma IFRS |
||
| Net sales | 101.1 | 100.7 | 201.8 | |||||
| Other operating income | 2.2 | 0.3 | 2.6 | |||||
| Changes in inventories of finished goods and work in progress | -1.7 | 7.3 | -0.4 | 5.3 | ||||
| Own work capitalized | 0.3 | 0.0 | 0.3 | |||||
| Materials | -49.2 | -46.3 | -95.5 | |||||
| Personnel expenses | -23.4 | -36.4 | -59.7 | |||||
| Other operating expenses | -20.8 | -20.3 | -41.1 | |||||
| Depreciation, amortization and impairment | -3.0 | -1.2 | -2.4 | -6.6 | ||||
| Depreciation of right-of-use asset | -1.8 | -0.7 | -2.6 | |||||
| Operating result | 3.8 | 3.3 | -2.8 | 4.4 | ||||
| Financial income | 0.1 | 0.1 | 0,3 | |||||
| Financial expenses | -0.8 | -0.4 | 0.2 | -2.0 | -3.0 | |||
| Net financial items | -0.7 | -0.2 | 0.2 | -2.0 | -2.7 | |||
| Interest expenses on lease liabilities | -0.5 | -0.1 | -0.6 | |||||
| Profit/loss before income tax | 2.6 | 3.0 | -2.8 | 0.2 | -2.0 | 1.1 | ||
| Income tax expense | -0.7 | -0.6 | 0.6 | 0.4 | -0.2 | |||
| Profit/loss for the period | 1.9 | 2.5 | -2.1 | 0.2 | -1.6 | 0.9 | ||
| Attributable to non-controlling interest | -0.2 | -0.2 | ||||||
| Attributable to owners of the parent | 2.1 | 2.5 | -2.1 | 0.2 | -1.6 | 1.0 | ||
| Total | 1.9 | 2.5 | -2.1 | 0.2 | -1.6 | 0.9 | ||
(2 in Glaston’s Rights Issue Prospectus,published on 29 May in 2019 the preliminary costs from purchase price allocation was EUR 3.9 million/year. Fair values have been revised and updated costs from purchase price allocation is EUR 2.8 million/year.
| PRELIMINARY FAIR VALUE ADJUSTMENTS | |||
| Fair value adjustments EUR million | Estimated useful life(years) | Depreciation/ amortization /year EUR million |
|
| Buildings | 4.8 | 20 | 0.2 |
| Land | 5.4 | N/A | - |
| Trademark | 3.1 | 3 | 1.0 |
| Customer relationships | 11.4 | 10 | 1.1 |
| Inventory | 0.7 | 2 | 0.4 |
| Total | 25.4 | 2.8 | |
| Related deferred tax liablity | 5.9 |
| COMPARABLE EBITDA, EBITA AND OPERATING RESULT (EBIT) | |||||
| Items affecting comparability | |||||
| EUR million | 1-3/ 2019 |
10-12/ 2018 |
7-9/ 2018 |
4-6/ 2018 |
1-3/ 2018 |
| Restucturings and disposals of property, plant and equipment | -0.8 | -1.8 | -0.3 | 0.0 | -0.2 |
| Items affecting comparability | -0.8 | -1.8 | -0.3 | 0.0 | -0.2 |
| Comparable EBITDA | |||||
| EUR million | 1-3/ 2019 |
10-12/ 2018 |
7-9/ 2018 |
4-6/ 2018 |
1-3/ 2018 |
| Operating result (EBIT) | 0.8 | -2.9 | 2.0 | 2.8 | 2.5 |
| Depreciation and amortization | 2.3 | 2.4 | 2.3 | 2.2 | 2.3 |
| EBITDA | 3.1 | -0.5 | 4.3 | 5.0 | 4.8 |
| Items affecting comparability | 0.8 | 1.8 | 0.3 | 0.0 | 0.2 |
| Comparable EBITDA | 3.9 | 1.3 | 4.6 | 5.0 | 5.0 |
| % of net sales | 8.8 % | 2.9 % | 9.8 % | 9.1 % | 9.1 % |
| Comparable EBITA | |||||
| EUR million | 1-3/ 2019 |
10-12/ 2018 |
7-9/ 2018 |
4-6/ 2018 |
1-3/ 2018 |
| Operating result (EBIT) | 0.8 | -2.9 | 2.0 | 2.8 | 2.5 |
| Amortization and purchase price allocation | 1.2 | 1.2 | 1.2 | 1.2 | 1.2 |
| EBITA | 2.0 | -1.7 | 3.2 | 4.0 | 3.7 |
| Items affecting comparability | 0.8 | 1.8 | 0.3 | 0.0 | 0.2 |
| Comparable EBITA | 2.8 | 0.1 | 3.5 | 4.0 | 3.9 |
| % of net sales | 6.4 % | 0.2 % | 7.5 % | 7.2 % | 7.1 % |
| Comparable result EBIT | |||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 |
| Operating result (EBIT) | 0,8 | -2,9 | 2,0 | 2,8 | 2,5 |
| Items affecting comparability | 0,8 | 1,8 | 0,3 | 0,0 | 0,2 |
| Comparable EBIT | 1,6 | -1,1 | 2,4 | 2,8 | 2,7 |
| % of net sales | 3,6 % | -2,4 % | 5,0 % | 5,1 % | 4,9 % |
SEGMENT INFORMATION
Reportable segments in Glaston Group are Glaston and Bystronic glass from 1. April 2019.
The reportable segment applies Glaston Group's accounting and measurement principles. Glaston follows the same commercial terms in transactions between the segment as with third parties. The reportable segment consists of operating segments, which have been aggregated in accordance with the criteria of IFRS 8.12.
Operating segments have been aggregated, when the nature of the products and services is similar, the nature of the production process is similar, as well as the type or class of customers. Glaston’s and Bystronic glass’s business consists of the manufacture and sale of glass processing machines as well as the service operations for these machines. There is a high level of integration between machines and maintenance. Product development as well as sales and distribution are shared functions, serving both business areas. Their customers are the same, as is their market development, which is linked to the general development of the global market. Also the methods to distribute products or to provide services are similar.
| GLASTON | |||||||||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | ||||||
| Comparable EBITA | 0.5 | 3.0 | 1.6 | 1.4 | 1.6 | ||||||
| % of net sales | 2.5 % | 10.9 % | 6.8 % | 5.4 % | 6.3 % | ||||||
| Net sales | 20.8 | 27.8 | 23.0 | 25.6 | 24.8 | ||||||
| Comparable EBIT | 0.0 | 2.6 | 1.1 | 0.9 | 1.1 | ||||||
| Comparable EBIT-% | 0.2 % | 9.2 % | 4.7 % | 3.6 % | 4.4 % | ||||||
| Items affecting comparability | -0.8 | -1.3 | -0.3 | -0.0 | -0.2 | ||||||
| Operating result EBIT | -0.8 | 1.2 | 0.7 | 0.9 | 0.9 | ||||||
| % of net sales | -3.8% | 4.5% | 3.2% | 3.6% | 3.8% | ||||||
| BYSTRONIC GLASS | ||||||||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | |||||
| Comparable EBITA | 2.3 | -2.9 | 2.0 | 2.6 | 2.3 | |||||
| % of net sales | 9.8% | -17.2% | 8.1% | 8.7% | 7.8% | |||||
| Net sales | 23.6 | 17.1 | 24.4 | 29.8 | 29.4 | |||||
| Comparable EBIT | 1.6 | -3.7 | 1.3 | 1.9 | 1.6 | |||||
| Comparable EBIT-% | 6.7% | -21.5% | 5.2% | 6.4% | 5.4% | |||||
| Items affecting comparability | - | -0,5 | - | - | - | |||||
| Operating result EBIT | 1.6 | -4.2 | 1.3 | 1.9 | 1.6 | |||||
| % of net sales | 6.7% | -24.6% | 5.2% | 6.4% | 5.4% | |||||
| Net sales by geographical areas | ||||||||
| milj. euroa | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | |||
| Americas | 12.4 | 12.9 | 11.2 | 11.5 | 10.3 | |||
| EMEA | 22.9 | 24.2 | 29.4 | 30.7 | 27.9 | |||
| APAC | 9.0 | 7.7 | 6.7 | 13.2 | 16.0 | |||
| Total Glaston Group | 44.3 | 44.9 | 47.3 | 55.4 | 54.2 | |||
| Order intake | ||||||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | |||
| Glaston | 22.9 | 33.9 | 21.7 | 25.4 | 26.5 | |||
| Bystronic glass | 22.4 | 29.5 | 22.6 | 27.4 | 29.7 | |||
| Total Glaston Group | 45.3 | 63.4 | 44.2 | 52.8 | 56.2 | |||
| Order book | ||||||||
| EUR million | 31.3.2019 | 31.12.2018 | 30.9.2018 | 30.6.2018 | 31.3.2018 | |||
| Glaston | 42.8 | 38.2 | 36.3 | 37.3 | 36.0 | |||
| Bystronic glass | 61.4 | 61.7 | 48.1 | 49.7 | 52.7 | |||
| Total Glaston Group | 104.2 | 99.9 | 84.5 | 87.0 | 88.8 | |||
| Net sales by product type | |||||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | ||
| Heat Treatment Technologies | 12.4 | 17.3 | 14.4 | 17.2 | 16.0 | ||
| Bystronic Glass Technologies | 13.6 | 7.2 | 17.0 | 20.8 | 19.9 | ||
| Emerging Technologies | 0.0 | -0.0 | -2.6 | 0.1 | 0.6 | ||
| Services | 17.2 | 17.9 | 16.1 | 14.3 | 15.5 | ||
| Other and intersegment sales | 1.1 | 2.5 | 2.5 | 3.1 | 2.2 | ||
| Total Glaston Group | 44.3 | 44.9 | 47.3 | 55.4 | 54.2 | ||
| Order intake by product type | |||||||
| EUR million | 1-3/2019 | 10-12/2018 | 7-9/2018 | 4-6/2018 | 1-3/2018 | ||
| Heat Treatment Technologies | 13.5 | 26.6 | 12.7 | 16.4 | 18.0 | ||
| Bystronic Glass Technologies | 12.4 | 19.4 | 12.2 | 18.1 | 20.5 | ||
| Emerging Technologies | 0.6 | - | - | - | - | ||
| Services | 17.4 | 15.2 | 17.3 | 15.8 | 15.9 | ||
| Other | 1.3 | 2.2 | 2.1 | 2.6 | 2.0 | ||
| Total Glaston Group | 45.3 | 63.4 | 44.2 | 52.8 | 56.2 | ||
| Order book by product type | |||||||
| EUR million | 31.3.2019 | 31.12.2018 | 30.9.2018 | 30.6.2018 | 31.3.2018 | ||
| Heat Treatment Technologies | 38.9 | 35.2 | 30.6 | 32.5 | 31.1 | ||
| Bystronic Glass Technologies | 56.6 | 57.0 | 43.4 | 47.7 | 50.7 | ||
| Emerging Technologies | 5.6 | 5.1 | 5.1 | 2.5 | 3.0 | ||
| Services | 2.7 | 2.6 | 5.1 | 4.0 | 3.3 | ||
| Other | 0.4 | 0.1 | 0.3 | 0.3 | 0.7 | ||
| Total Glaston Group | 104.2 | 99.9 | 84.5 | 87.0 | 88.8 | ||
For further information, please contact:
CFO Päivi Lindqvist , tel. +358 10 500 500
Vice President, IR, Communications and Marketing Joséphine Mickwitz, tel. +358 10 500 5070
Glaston Corporation
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of emerging technologies integrating intelligence to glass.
As of April 2019, Bystronic glass is part of Glaston Group. Together we are committed to providing our clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. We operate globally with manufacturing, services and sales offices in 12 countries. Glaston’s shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
Distrubution: Nasdaq Helsinki, key media, www.glaston.net