CONSOLIDATED OPERATING PROFIT ON THE RISE, OPER. PROFIT FORECAST BY SEGMENT FOR 2006 REVISED DOWN
Done Solutions Corporation
Stock Exchange Release October 31, 2006, at 9:00 a.m.
CONSOLIDATED OPERATING PROFIT ON THE RISE, OPERATING PROFIT FORECAST BY SEGMENT
FOR 2006 REVISED DOWN
Done Solutions Corporation's Interim Report Q1-Q3/2006 (IFRS)
- Consolidated net sales for Q1-Q3/2006 came to EUR 10.2 million (EUR 8.4 million
in Q1-Q3/2005). Like-for-like net sales for Q1-Q3/2005 came to EUR 10.2 million.
- Consolidated operating profit for Q1-Q3/2006 amounted to EUR 0.99 million (EUR
0.64 million), or 10 percent of net sales (8 percent). Like-for-like consolidated
operating profit for Q1-Q3/2005 amounted to EUR 1.29 million, or 13 percent of
net sales. All business segments were in the black.
- Net profit from continuing operations for Q1-Q3/2006 totaled EUR 0.88 million
(EUR 0.50 million), or 9 percent of net sales (6 percent).
- Earnings per share from continuing operations for Q1-Q3/2006 were EUR 0.015
(EUR 0.010). Like-for-like earnings per share from continuing operations for Q1-
Q3/2005 were EUR 0.016.
- At the period-end, equity ratio was 60.2 percent (27.9 percent) and return on
investment (ROI) 17.6 percent (34.4 percent).
- Period-end liquid assets totaled EUR 2.0 million (EUR 2.0 million).
- The Services (Done Information) and Systems (Done Logistics) segments will
continue to show moderate growth. The inclusion of the Health Care segment as
from January 1, 2006 will increase consolidated net sales and profit from the
previous year's levels.
- The Company changes its forecast for Group's operating profit. All of the
Group's segments are projected to record the same operating results for 2006 as a
year ago (higher operating results stated in the previous forecast).
FINANCIAL REPORTING
The figures, including their comparatives, are in compliance with IFRS, and this
Interim Report and the Annual Report 2005 apply the same accounting policies.
Data in this Interim Report are based on unaudited figures.
The comparatives for Q1-Q3/2005 are based on the official financial statements.
Q1-Q3/2005 income and expenses recorded by Tiolat Oy, acquired on December 19,
2005 and with a Group holding of 100.00 percent since August 22, 2006, are not
included in the comparative figures.
The SBU profit (Strategic Business Unit) stated below refers to IFRS-compliant
segment operating profit before parent company expenses. Business areas stated in
this Interim Report stand for business segments under IFRS.
NET SALES AND PROFITABILITY
Net sales and SBU profit by business area (IFRS primary reporting segment):
Net sales Net sales SBU profit SBU profit
Q1-Q3/2006 Q1-Q3/2005 Q1-Q3/2006 Q1-Q3/2005
MEUR Share MEUR Share MEUR % MEUR %
Services 3.7 36% 3.4 41% 0.5 14 0.5 16
Systems 4.6 45% 5.0 59% 0.5 10 0.6 11
Health Care 1.9 19% - - 0.5 23 - -
Total 10.2 100% 8.4 100% 1.4 14 1.1 13
Parent company expenses -0.5 -4 -0.4 -5
Operating profit 1.0 10 0.6 8
Consolidated net sales for Q1-Q3/2006 came to EUR 10.2 million (EUR 8.4 million
in Q1-Q3/2005). Like-for-like net sales for Q1-Q3/2005 came to EUR 10.2 million.
Consolidated net sales for Q3/2006 came to EUR 2.9 million (EUR 2.5 million).
Like-for-like net sales for Q3/2005 came to EUR 3.1 million. The like-for-like
unaudited Q1-Q3/2005 and Q3/2005 figures include Tiolat's income under continuing
operations as if Tiolat Oy were acquired on January 1, 2005.
Consolidated operating profit for Q1-Q3/2006 amounted to EUR 0.99 million (EUR
0.64 million), or 10 percent of net sales (8 percent). Like-for-like consolidated
operating profit for Q1-Q3/2005 amounted to EUR 1.29 million, or 13 percent of
net sales. Consolidated operating profit for Q3/2006 amounted to EUR 0.27 million
(EUR 0.31 million), or 9 percent of net sales (12 percent). Like-for-like
consolidated operating profit for Q3/2005 amounted to EUR 0.51 million, or 16
percent of net sales. The like-for-like unaudited Q1-Q3/2005 and Q3/2005 figures
include Tiolat's income and expenses under continuing operations as if Tiolat Oy
were acquired on January 1, 2005.
The SBU profit by Health Care, the segment acquired in late December 2005 with a
holding of 57.14 percent, is squeezed by EUR 0.13 million in expenses for Q1/2006
allocated to inventories. After the purchase of 42.86 percent minority holding in
late August 2006, the SBU profit by Health Care is squeezed by EUR 0.04 million
in expenses for September 2006 allocated to inventories. Expenses for Q1-Q3/2006
due to the allocation of purchase prices for Health Care to intangible assets
totaled EUR 0.16 million.
Both diluted and undiluted earnings per share from continuing operations were EUR
0.015 (EUR 0.010). Equity per share was EUR 0.126 (EUR 0.034). A decrease in
provisions had no effect on net profit.
FINANCIAL POSITION
The period-end consolidated balance-sheet total amounted to EUR 13.9 million (EUR
6.4 million on September 30, 2005). Shareholders' equity came to EUR 8.4 million
(EUR 1.7 million) while FAS-compliant parent-company shareholder's equity
amounted to EUR 9.1 million (EUR 3.6 million). At the period-end, equity ratio
was 60.2 percent (27.9 percent) and equity ratio, including subordinated loans,
was 67.5 percent (41.8 percent). Gearing stood at 1.6 percent (-12.2 percent).
Group interest-bearing liabilities totaled EUR 2.2 million (EUR 1.8 million).
Liquid assets totaled EUR 2.0 million (EUR 2.0 million) at the end of September.
PRODUCT DEVELOPMENT
Product development costs for Q1-Q3/2006 came to EUR 0.2 million (EUR 0.0
million) and were expensed as incurred.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 132. Done Logistics had
a staff of 57, Done Information 66, Tiolat 6 and parent company 3. A year ago,
the Group's staff numbered 124.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On September 30, 2006, Done Solutions had a share capital of EUR 5,314,918.72 and
the number of shares totaled 66,436,484.
The company's largest shareholders are listed on Done's website at
www.donesolutions.com (Investors / Financial Information / Largest shareholders).
The highest share quotation for the period was EUR 0.45 and the lowest EUR 0.24.
The share averaged EUR 0.35 and closed at EUR 0.29 on September 30, 2006. The
reported share turnover of Done Solutions Corporation was EUR 9.5 million,
representing 30.9 million shares. The company's market capitalization on
September 30, 2006 totaled EUR 19.3 million.
The unexercised share-issue authorization given by the Annual General Meeting of
March 31, 2006 to the Board of Directors applied to 5,988,496 shares on September
30, 2006.
The Board of Directors is not authorized to buy back own shares, and the company
did not hold any treasury shares during the reporting period.
EVENTS DURING Q3/2006
The stock exchange release on August 22, 2006 provides information on Done
Solutions Corporation's purchase on the same day of Eyemaker's Finland Oy's
(19.51 percent holding in Tiolat Oy), Jukka Lunden's (19.51 percent) and Lauri
Soratie's (3.83 percent) holdings in Tiolat Oy.
The stock exchange release on September 1, 2006 provides information on an
increase in Eyemaker's Finland Oy's shareholding in Done Solutions Corporation to
more than one twentieth (1/20) of the shares and voting rights, as a result of
the trade register registration on September 1, 2006 of the subscribed shares
based on a private placement with Eyemaker's Finland Oy.
EVENTS AFTER Q3/2006
From October 31, 2006, Done Solutions' Corporate Management Group consists of
Pekka Pystynen, President and CEO; Elina Karjalainen, Managing Director, Done
Information, a subsidiary; Juha Mikkola, Managing Director, Done Logistics, a
subsidiary; Kari Serjamaa, Managing Director, Tiolat, a subsidiary; and Mika
Söyring, CFO. Juha Kujala, General Counsel, acts as the secretary of the
Corporate Management Group.
FUTURE PROSPECTS
The Services (Done Information) and Systems (Done Logistics) segments will
continue to show moderate growth. The inclusion of the Health Care segment as
from January 1, 2006 will increase consolidated net sales and profit from the
previous year's levels. The Company changes its forecast for Group's operating
profit. All of the Group's segments are projected to record the same operating
results for 2006 as a year ago (higher operating results stated in the previous
forecast).
Done Solutions Corporation
Board of Directors
For further information, please contact:
Pekka Pystynen, President and CEO, tel. +358 (0)50 0508 962,
pekka.pystynen@donesolutions.com
Mika Söyring, CFO, tel. +358 40 777 0033, mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution
Helsinki Stock Exchange
Major media
With its shares having been quoted on the Helsinki Stock Exchange's NM List since
2001, Done Solutions is organized into three business areas: Services (Done
Information) provides multilingual documentation services; Systems (Done
Logistics) provides comprehensive logistics systems, based on automated materials-
handling and supporting information systems; and Health Care (Tiolat) provides
iCare-tonometers for eye specialists and opticians. The Group's largest customers
are based in the Nordic countries, Central Europe and the United States.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1-Q3/2006 Q1-Q3/2005 Q1-Q4/2005
Net sales 10.2 8.4 11.5
Operating profit 1.0 0.6 0.9
Operating margin % 9.7 7.7 8.2
Pre-tax profit 1.0 0.5 0.8
Pre-tax profit, % 9.8 6.0 7.1
Net profit 0.9 2.0 0.8
Net profit,% 8.6 23.5 7.1
Gross capital expenditure 4.9 0.0 3.0
Gross capital expenditure,% of net sales 47.5 0.2 25.8
R&D costs 0.2 0.0 0.1
R&D costs, % 1.5 0.4 0.4
Gearing, % 1.6 -12.2 -33.4
Equity ratio, % 60.2 27.9 47.5
Return on investment (ROI), % 17.6 34.4 21.6
Return on equity (ROE), % 17.6 64.8 34.3
Undiluted earnings per share,
continuing operations EUR 0.015 0.010 0.016
Diluted earnings per share,
continuing operations EUR 0.015 0.010 0.016
Undiluted earnings per share,
discontinuing operations EUR 0.000 0.030 0.029
Diluted earnings per share,
discontinuing operations EUR 0.000 0.030 0.029
Equity per share, EUR 0.126 0.034 0.067
Average number of employees 132 143 135
CONSOLIDATED INCOME STATEMENT (MEUR) Q1-Q3/2006 Q1-Q3/2005 Q1-Q4/2005
NET SALES 10.2 8.4 11.5
Other operating income 0.1 0.0 0.1
Materials and services -3.0 -2.8 -3.6
Employee benefits -4.5 -3.6 -5.1
Depreciation -0.2 -0.2 -0.2
Other operating expenses -1.6 -1.2 -1.7
OPERATING PROFIT 1.0 0.6 0.9
Share of associates' results 0.0 -0.0 0.0
Financial expenses (net) -0.0 -0.1 -0.1
PRE-TAX PROFIT 1.0 0.5 0.8
Income tax charge -0.1 -0.0 -0.0
Minority interest 0.0 0.0 0.0
NET PROFIT, continuing operations 0.9 0.5 0.8
Net profit, discontinuing operations 0.0 1.5 1.5
NET PROFIT 0.9 2.0 2.3
Undiluted earnings per share,
continuing operations EUR 0.015 0.010 0.016
Diluted earnings per share,
continuing operations EUR 0.015 0.010 0.016
Undiluted earnings per share,
discontinuing operations EUR 0.000 0.030 0.029
Diluted earnings per share,
discontinuing operations EUR 0.000 0.030 0.029
CONSOLIDATED INCOME STATEMENT (MEUR) Q3/2006 Q3/2005
NET SALES 2.9 2.5
Other operating income 0.1 0.0
Materials and services -0.7 -0.7
Employee benefits -1.4 -1.1
Depreciation -0.1 -0.1
Other operating expenses -0.5 -0.4
OPERATING PROFIT 0.3 0.3
Share of associates' results 0.0 0.0
Financial expenses (net) -0.0 -0.0
PRE-TAX PROFIT 0.3 0.3
Income tax charge -0.1 -0.0
Minority interest 0.0 0.0
NET PROFIT, continuing operations 0.2 0.3
Net profit, discontinuing operations 0.0 1.2
NET PROFIT 0.2 1.5
CONSOLIDATED BALANCE SHEET (MEUR)
Sept. 30, 2006 Sept. 30, 2005 Dec. 31, 2005
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 0.5 0.6 0.5
Goodwill 3.1 0.1 1.2
Intangible assets 5.0 0.0 1.8
Holdings in associates 0.4 0.3 0.4
Available-for-sale investments 0.0 0.0 0.0
Receivables 0.4 0.5 0.5
TOTAL NON-CURRENT ASSETS 9.4 1.5 4.4
CURRENT ASSETS
Inventories 0.3 0.1 0.3
Account and other receivables 2.2 2.8 2.3
Cash and cash equivalents 2.0 2.0 3.7
TOTAL CURRENT ASSETS 4.5 4.9 6.4
TOTAL ASSETS 13.9 6.4 10.8
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 5.3 4.0 4.8
Share premium 2.4 0.4 1.0
Contingency reserve 0.0 0.2 0.0
Fair value reserve 0.3 0.0 0.3
Appreciation reserve 1.5 0.0 0.0
Retained earnings/loss -1.2 -2.8 -2.0
TOTAL EQUITY, attributable to
parent company shareholders 8.4 1.7 4.0
MINORITY INTEREST 0.0 0.0 1.0
TOTAL SHAREHOLDERS' EQUITY 8.4 1.7 5.0
LIABILITIES
LONG-TERM LIABILITIES
Deferred tax liabilities 1.3 0.0 0.5
Provisions 0.6 0.9 0.7
Interest-bearing liabilities 1.1 1.8 1.0
Other payables 0.0 0.0 0.1
TOTAL LONG-TERM LIABILITIES 3.0 2.7 2.3
SHORT-TERM LIABILITIES
Account and other payables 1.5 2.1 2.3
Provisions 0.0 0.0 0.1
Interest-bearing liabilities 1.0 0.0 1.0
TOTAL SHORT-TERM LIABILITIES 2.5 2.1 3.5
TOTAL LIABILITIES 5.6 4.8 5.7
TOTAL EQUITY AND LIABILITIES 13.9 6.4 10.8
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (MEUR)
Share Share pre- Other Retained Minority Total
capital mium reserves earnings inter. equity
Equity Jan. 1, 2005 4.0 0.4 0.2 -4.8 0.0 -0.3
Net profit 0.0 0.0 0.0 2.0 0.0 2.0
Equity Sept. 30, 2005 4.0 0.4 0.2 -2.8 0.0 1.7
Private placement 0.8 0.9 0.3 0.0 0.0 2.0
Loss covering 0.0 -0.3 -0.2 0.5 0.0 0.0
Net profit 0.0 0.0 0.0 2.3 0.0 2.3
Equity Dec. 31, 2005 4.8 1.0 0.3 -2.0 1.0 5.0
Equity Jan. 1, 2006 4.8 1.0 0.3 -2.0 1.0 5.0
Share subscriptions based
on stock options 0.1 0.1 0.0 0.0 0.0 0.2
Private placement 0.5 1.4 1.5 0.0 0.0 3.4
Net profit 0.0 0.0 0.0 0.9 0.0 0.9
Equity Sept. 30, 2006 5.3 2.4 1.8 -1.2 0.0 8.4
CONSOLIDATED CASH FLOW STATEMENT (MEUR) Q1-Q3/2006 Q1-Q3/2005 Q1-Q4/2005
Net profit 0.9 0.5 0.8
Adjustments to net profit 0.4 0.2 0.4
Change in working capital -1.2 -1.1 -0.1
Interest paid -0.1 -0.1 -0.1
Interest received 0.0 0.0 0.0
CASH FLOW FROM OPERATING ACTIVITIES 0.1 -0.5 1.0
Acquisition of subsidiary -2.0 0.0 0.3
Disposal of operations 0.0 1.3 1.3
Purchase of PPE and intangible assets -0.0 -0.0 -0.0
Purchase of other investments 0.0 0.0 0.0
NET CASH USED IN INVESTING ACTIVITIES -2.0 1.3 1.6
Rights issue 0.2 0.0 0.0
Repayments of long-term borrowings 0.0 -0.4 -0.4
Finance lease principal payments -0.0 -0.0 -0.1
NET CASH USED IN FINANCING ACTIVITIES 0.2 -0.4 -0.4
Net change in cash and equivalents -1.7 0.4 2.2
Cash and equivalents, Jan.1 3.7 1.6 1.6
Cash and equivalents, Sept. 31 2.0 2.0 3.7
CONTINGENT LIABILITIES (MEUR)
Mortgages given 0.3 0.3 0.3
Pledges given 2.7 3.0 3.0
Securities given 1.0 1.0 0.7
Finance lease liabilities 0.1 0.1 0.1
Operating lease liabilities 0.2 0.3 0.2
