Interim report January - September 2000

Interim report January - September 2000 HL Display AB (publ) The Group's net sales improved by 13,9 per cent to SEK 642.5 m (564.1). Profit before tax was SEK 36.0 m (36.8). Higher PVC prices and currency effects had a negative effect on earnings. Full year forecast; net sales SEK 880 m (768.5), profit before tax approx. SEK 50 m (47.1). Interim report January to September 2000 Sales and profit The Group's net sales during the period amounted to SEK 642.5 m (564.1), an increase of 13.9 per cent from the corresponding period of 1999. During 900 9 800 8 700 7 600 6 500 5 400 4 300 3 200 2 100 1 0 0 Net sales, moving 12 months Earnings/share (after standard September sales amounted to SEK 81.9 m (72.0). Of HL Display's total sales, 83 per cent go to export. During the period, 68 per cent was sold to EU member states. The recent strengthening of the krona, primarily against the Euro, has resulted in exchange rate effects that weakened the period's net sales by 1.9 per cent or SEK 12.2 m. The periods profit before tax was SEK 36.0 m (36.8). Profit for the month of September was SEK 5.9 m (6.9). In April, the funds allocated to the Group from the pension insurance company SPP, were reported in full according to the notice from SPP. This has increased the Group's accumulated profit by a total of SEK 4.5 m. Earnings were negatively affected in an amount of SEK 8.8 m by a sharp rise in prices for the Group's primary raw material, PVC, relative to the same period of 1999. Compared with the preceding year, exchange rate effects weakened profit before tax by SEK 2.4 m. Reporting dates Monthly 10 months16.11. Monthly 11 months18.12. Year-end 12 months23.01. Monthly 1 month15.02. Monthly 2 months19.03. Shareholder 19.03. Market The market is undergoing a consolidation process through acquisitions and mergers, in many cases across the borders. In the increasingly large chains that are arising, profiling and display decisions are moving higher up in the organisations. Through the HL Display Key Account Management-organisation as well as the newly launched Merchandising concept Optishop TM , the demands of these customers can be met. The patented innovations that serves as a base for the concept will reassure HL Display's position as market leader within the merchandising sector in Europe. The result is exposure that is attractive and thereby increases sales in the same time as the store work is facilitated and the cost for that is being reduced. Acquisitions and sales No new acquisitions or sales of companies were carried out during the period. A subsidiary in Singapore has been founded from were the Asian market will be approached. Investments The period's net investments in fixed assets amounted to SEK 37.9 m (40,9). Depreciation according to plan totalled SEK 28.7 (21.8). Financial position Liquid funds amounted to SEK 11.6 m (18.2) on September 30. The equity/assets ratio was 48.3 (51.4) per cent, compared with 51.6 per cent at year-end 1999. Share data Earnings per share after full tax amounted for the past 12-month period to SEK 4.32 (2.96). Shareholders' equity per share at the end of the period was SEK 30.69 (27.67). The total number of shares outstanding is 7,688,872. Personnel The average number of employees during the period was 770 (667), compared with 787 (707) at end of period. Full-year forecast For the full year of 2000 we expect net sales amounting to SEK 880 m (768.5) and a result before tax of approx. SEK 50 m (47.1). This result would, after 28% standard tax, imply a profit per share of SEK 4.68 (4.41). Key figures for the 1) Group SEK (000s) 9 9 9 12 12 12 Full months months months monthsmonthsmonthsyear Jan Jan Jan Oct Oct Oct 1999 2000 - 1999 - 1998 - 1999 -1998 -1997 - Sept Sept Sept Sept Sept Sept 2000 1999 1998 2000 1999 1998 Net sales 642 564 479 846 730 611 768 476 056 864 871 838 850 451 Operating profit 40 032 43 903 65 640 51 53047 30575 79855 401 Profit before tax 36 009 36 751 66 085 46 38341 63577 63247 125 Profit margin, % 5.6 6.5 13.8 5.5 5.7 12.7 6.1 Equity/assets ratio, 48.3 51.4 51.8 48.3 51.4 51.8 51.6 % Investments, SEK m 37.9 40.9 47.3 65.0 57.2 75.8 67.9 Return on capital, % - - - 11.8 11.4 25.7 12.9 Return on - - - 14.8 11.0 30.4 15.3 shareholders' equity, % Shareholders' equity - - - 30.69 27.67 26.01 28.89 per share, SEK Earnings per share - - - 4.35 3.90 7.27 4.41 after standard tax, SEK Earnings per share - - - 4.32 2.96 6.88 4.20 after full tax, SEK Summary of consolidated income statement Jan - Jan - Change Full Sept Sept in year SEK (000s) 2000 1999 percent 1999 Net sales 642 476 564 056 + 13.9% 768 451 Cost of goods sold -360 169-301 779+ 19.3% -415 643 Gross profit 282 307 262 277 + 7.6% 352 808 Selling expenses -143 058-124 362+ 15.0% -167 185 Administrative expenses -82 374 -76 231 + 8.1% -105 641 Development expenses -19 731 -17 781 + 11.0% -24 581 Other operating 2 888 - - - income/expenses Operating profit 40 032 43 903 -8.8% 55 401 Financial income and -4 023 -7 152 -43.8% -8 276 2) expenses Profit before tax 36 009 36 751 -2.0% 47 125 3) Tax -12 195 -13 870 -12.1% -14 848 Net profit 23 814 22 881 4.1% 32 277 Summary of consolidated balance sheet SEK (000s) September September December 30, 2000 30, 1999 31, 1999 Fixed assets 177 336 150 604 168 241 Current assets 311 646 263 788 262 131 Total assets 488 982 414 392 430 372 Shareholders' equity 235 986 212 766 222 168 Provisions 15 958 12 723 14 051 Long-term liabilities 90 725 66 733 71 207 Current liabilities 146 313 122 170 122 946 Total shareholders' equity 488 982 414 392 430 372 and liabilities Summary of consolidated cashflow 4) statement Jan - Jan - Full Sept Sept year SEK (000s) 2000 1999 1999 Operating profit 40 032 43 903 55 401 Depreciation 28 741 21 841 31 255 Other items not affecting 600 -5 114 -4 598 2) liquidity Interest received 1 461 1 102 1 425 Interest paid -5 289 -3 346 -4 923 Income tax paid -9 173 -23 779 -29 007 Change in working capital -40 724 -13 080 -2 259 Cash flow from operating 15 648 21 527 47 294 activities Investing activities -38 383 -40 952 -57 367 Financing activities 11 354 -1 028 -4 623 Cash flow for the period -11 381 -20 453 -14 696 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/17/20001017BIT00580/bit0001.doc http://www.bit.se/bitonline/2000/10/17/20001017BIT00580/bit0002.pdf