DONE SOLUTIONS? REPORT ON FINANCIAL STAT
Done Solutions Corporation
Stock Exchange Release, February 12, 2004, 10:30 a.m.
DONE SOLUTIONS REPORT ON FINANCIAL STATEMENTS FOR 2003
- Consolidated net sales for 2003 came to EUR 22.6 million (EUR 32.0
million in 2002). Comparable net sales for 2002 amounted to EUR 29.8
million.
- Operating results were EUR 2.5 million, or 11.0 percent of net
sales (EUR 5.0 million, or 15.7 percent). In comparable terms,
operating loss for 2002 totaled EUR 4.6 million, or 15.4 percent of
net sales.
- Earnings per share were EUR 0.065 (EUR 0.163) and equity ratio 16.7
percent (37.0 percent). Liquid assets totaled EUR 1.1 million (EUR 1.7
million).
- Focus in 2003 remained on streamlining businesses. Profitability
improved from the previous year, albeit less than targeted.
- The company posted a negative cashflow for 2003.
NET SALES AND PROFITABILITY
MEUR Q1/2003 Q2/2003 Q3/2003 Q4/2003 Total
Net sales 6.3 6.0 5.1 5.2 22.6
Operating profit/loss -0.6 -0.4 -0.6 -0.9 -2.5
Profit/loss before
extraordinary items -0.6 -0.5 -0.8 -0.9 -2.8
Net profit/loss for the period -0.7 -0.6 -0.9 -1.0 -3.2
Financial items include expenses of EUR 0.3 million incurred by an
associated company. Taxes include EUR 0.4 million in expenses reported
for the previous years avoir fiscal receivables.
BUSINESS AREAS
Done Logistics
While ERP (Enterprise Resource Planning) software and maintenance
businesses within Systems & Software posted healthy net sales during
the fourth quarter, material-handling systems order books remained
short, which was reflected in the units profit performance. The fourth
quarter saw continued efforts to streamline operations, with the aim of
boosting sales and upgrading project implementation. The Distribution
units order volumes and operating profit were as budgeted.
Done Information
Within Software & Services, multilingual documentation services showed
slightly weaker volume and profit performance than planned, whereas the
Translation and Localization services met volume and profit performance
targets. Sales of the units software solutions remained at low levels,
even though the market showed subtle signs of rebounding demand.
Within Engineering, demand remained subdued for new projects, whereas
demand for projects with existing customers remained at a satisfactory
level. Due to the low order volumes, the unit showed a weak profit
performance.
Done Information and Done Logistics net sales and profit are summarized
below:
Net Sales Net Sales Operating Profit/Loss
Q1-Q4/2003 Q1-Q4/2002 Q1-Q4/2003 Q1-Q4/2002
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics
Systems&Software 5.8 26% 11.8 37% -1.7 29% -2.1 17%
Distribution 9.5 42% 9.3 29% 0.1 1% -0.9 -10%
Total 15.3 68% 21.1 66% -1.6 -10% -2.9 14%
Done Information
Software&Services 6.2 28% 7.9 25% -0.2 -3% -0.2 -2%
Engineering 1.1 5% 3.0 9% -0.8 72% -1.9 64%
Total 7.3 32% 10.9 34% -0.9 13% -2.1 19%
Done Solutions 22.6 100% 32.0 100% -2.5 -11% -5.0 16%
The comparable figures for 2002 include Done Logistics Ab (Done
Solutions Swedish subsidiary) and its subsidiary, Actipac Ab, both
declared bankrupt in April 2002, until March 31, 2002. Their combined
net sales for JanuaryMarch 2002 totaled EUR 2.2 million (Done
Logistics Systems & Software accounting for EUR 1.8 million;
Distribution for EUR 0.4 million), while their operating loss amounted
to EUR 0.4 million (Systems & Software EUR 0.4 million and
Distribution EUR 0.0 million).
Done Information and Done Logistics net sales and profit are summarized
below:
Net sales Q1/2003 Q2/2003 Q3/2003 Q4/2003 Total__
MEUR % MEUR % MEUR % MEUR % MEUR %
Done Logistics
Systems&Software 2.0 32 1.3 22 1.4 27 1.2 22 5.8 26
Distribution 2.1 34 2.8 47 2.2 43 2.3 45 9.5 42
Total 4.1 66 4.1 68 3.6 70 3.5 67 15.3 68
Done Information
Software&Services 1.7 27 1.6 26 1.4 27 1.6 31 6.2 28
Engineering 0.5 7 0.4 6 0.1 3 0.1 2 1.1 5
Total 2.2 34 1.9 32 1.5 30 1.7 33 7.3 32
Done Solutions 6.3 100 6.0 100 5.1 100 5.2 100 22.6 100
Operating profit/loss
Q1/2003 Q2/2003 Q3/2003 Q4/2003 Total__
MEUR % MEUR % MEUR % MEUR % MEUR %
Done Logistics
Systems&Software 0.3 16 -0.4 27 -0.4 30 -0.6 52 -1.7 29
Distribution -0.1 -2 0.1 2 0.1 3 0.1 2 0.1 1
Total -0.4 -9 -0.3 -7 -0.3 10 -0.5 16 -1.6 10
Done Information
Software&Services-0.0 -2 0.1 4 -0.0 -2 -0.2 -10 -0.2 3
Engineering -0.2 36 -0.2 48 -0.3-184 -0.2-139 -0.8 72
Total -0.2 9 -0.1 -6 -0.3 19 -0.3 19 -2.1 13
Done Solutions -0.6 -9 -0.4 -7 -0.6 13 -0.9 17 -2.5 11
FINANCIAL POSITION
Consolidated balance-sheet total on December 31, 2003 amounted to EUR
6.5 million (EUR 11.9 million on December 31, 2002), while
shareholders equity came to EUR 1.1 million (EUR 4.3 million). Parent-
company shareholders equity on December 31, 2003 totaled EUR 4.2
million (EUR 8.0 million). Year-end interest-bearing liabilities were
EUR 1,1 million (EUR 1,2 million). Equity ratio was 16.7 percent (37.0
percent) and gearing 4.5 percent (-8.5 percent). The Groups liquid
assets at the end of the fiscal year totaled EUR 1.1 million (EUR 1.7
million). Earnings per share were EUR 0.065 (EUR 0.163) and equity
per share came to EUR 0.022 (EUR 0.087). The company posted a negative
cashflow from business operations.
The Group expects to show a positive cashflow from business operations
during the next 12 months, and it expects its liquid assets to be
sufficient during the same period.
The difference of EUR 3.2 million between parent-company and Group
shareholders equity was due to the higher-than-expected acquisition
costs of subsidiaries posted by the parent company, in comparison to
the subsidiaries equity. According to the companys management, the
value entered in the parent companys balance sheet for these
investments is justified.
INVESTMENTS AND DIVESTMENTS
The Engineering unit sold its product development and design for the
electrical equipment and mechanical industries, and interior design for
office premises projects, as well as structural steelwork engineering
for plant projects, to PIC Engineering Oyj in November 2003.
PRODUCT DEVELOPMENT
The company has commercialized and incorporated software products and
solutions into the overall concept of Done Solutions logistics-chain
and technical-information management. Development costs for 2003
totaled EUR 0.1 million, all of them entered in the income statement
with an effect on results. The capitalized year-end product development
costs came to EUR 0.3 million (EUR 0.9 million a year ago). The
amortization for the period was carried out according to plan. Planned
amortisation on product development costs will terminate during 2004.
HUMAN RESOURCES
At the end of the period, the Group had a staff of 197, three of whom
worked abroad. A year ago, the number of employees totaled 247, four of
whom worked abroad.
In addition, Ametro Oy, a staffing service provider in which Done
Solutions has a 30 percent holding, had a staff of 123 at the end of
the report period.
BOARD OF DIRECTORS, PRESIDENT AND CEO, AND THE CORPORATE MANAGEMENT
GROUP
Done Solutions Corporations Board of Directors is made up of the
following members: Pekka Pystynen (Chairman), Jaakko Asanti, Jyri
Merivirta and Tapio Sarpola.
Done Solutions Corporate Management Group consists of CEO Kari Åkman,
HR Manager Eija Häyrinen, General Counsel Juha Kujala, Director Juha
Mikkola, Director of the subsidiary Providor Logistics Tuomo Rannila
and Controller Mika Söyring.
DECISIONS BY THE ANNUAL GENERAL MEETING OF MARCH 21, 2003
The Annual General Meeting (AGM) adopted the financial statements for
2002 and discharged the Board members and the CEO from liability for
the period of January 1December 31, 2002. The AGM decided to approve
the Boards proposal for loss allocation, whereby loss for the
accounting year is added to retained loss, and no dividend is
distributed. The AGM also decided to cover retained loss by using the
profit-distribution and redemption fund included in the unrestricted
equity, and the issue premium fund. The AGM re-elected Jyri Merivirta,
Jaakko Asanti and Pekka Pystynen to the Board of Directors, and elected
Tapio Sarpola as a new Board member. Deloitte & Touche Oy, Authorized
Public Accountants, was elected the companys auditor with Eero Lumme,
Authorized Public Accountant, as the principal auditor. Jonathan Bäck,
Authorized Public Accountant, was elected as deputy auditor.
In addition, the AGM authorized the Board to decide, within one year of
the authorization, to issue convertible bonds and/or issue stock
options and/or increase share capital in one or several tranches in
such a way that the votes entitled by such issued shares account for a
maximum of one-fifth of the votes of the shares registered with the
Trade Register on the date of the AGMs authorization, and that the
total share capital increase accounts for a maximum of one-fifth of the
share capital registered with the Trade Register on the date of the
AGMs authorization.
SHARE CAPITAL AND SHARES
On December 31, 2003, Done Solutions had a share capital of EUR
7,420,122.60 and the number of shares totaled 49,467,484.
The companys largest shareholders are listed on Dones website at
www.donesolutions.com (Investors / Financial Information / Largest
shareholders).
The highest share quotation for the period was EUR 0.21 and the lowest
EUR 0.10. With an average price of EUR 0.16, the companys share closed
at EUR 0.17 on December 31, 2003. The reported value of share turnover
amounted to EUR 4.0 million, or 25,689,579 shares, and the companys
market capitalization on December 31, 2003 was EUR 8.4 million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 21, 2003 to the Board of Directors applies to
9,893,496 shares on December 31, 2003. As of the same date, the company
held no treasury shares.
MANAGEMENT SHAREHOLDINGS
On December 31, 2003, the Board of Directors and CEO held 33.3 percent
of the companys shares, or 16,451,886 shares, and 33.3 percent of
stock options, or 247,338 shares.
LEGAL PROCEEDINGS
Done Solutions Corporation is alternately a claimant and defendant in
lease litigation, with Tukirahoitus Oy, Sampo Finance Ltd and RSL COM
Networks Oy acting as adverse parties. The claim lodged against Done
Solution Corporation totals EUR 0.2 million, exclusive of VAT. During
the report period, Done recorded an expense reserve resulting from the
dispute, according to the companys practice.
ADOPTION OF IFRS
In 2003, the company initiated a project for the adoption of
International Financial Reporting Standards, its IFRS-compliant interim
report being prepared for the first quarter of 2005 and Financial
Statements for 2005. The adoption of IFRS is not expected to have a
significant effect on consolidated income statement and balance sheet.
MAJOR EVENTS
In November 2003, Done Solutions entered into partnership with PIC
Engineering Oyj, with the aim of creating a comprehensive service
package, on the basis of which Done Information Oy would focus on
multilingual documentation and document management software solutions,
and PIC Engineering Oyj would concentrate on the provision of product
development and design services. As part of the agreement, Done
Information Oy sold its Engineering business, excluding naval
architecture and drawing services, to PIC Engineering Oyj on December
1, 2003.
MAJOR EVENTS AFTER THE PERIOD
On January 1, 2004, the Group spun off its subsidiary Done Logistics
Oys Distribution unit, a provider of distribution and warehousing
services, as part of Providor Logistics Oy, a sister company.
Following the spin-off, Done Solutions Corporation has three operating
subsidiaries and business areas: Done Logistics, Providor Logistics and
Done Information.
Systems & Software units within Done Logistics Oy - Done Solutions
Corporation subsidiary - entered into joint discussions with their
employees as governed by the Act on Joint Discussions with Employees.
Joint discussions relate to possible layoffs for a maximum of 60
persons and dismissals for a maximum of 10 persons. The rationale
behind the discussions relates to financial reasons. Through these
measures, the company aims to adjust its cost structure to the market
situation.
PROSPECTS
In 2004, the group expects to record somewhat higher net sales and
positive operating results. It also expects to improve its profit
performance, resulting from streamlining measures and focus on core
businesses. The company is expected to show an operating loss for the
first quarter of 2004.
BOARDS PROPOSAL FOR LOSS ALLOCATION
The Board of Directors will propose to the AGM of March 26, 2004 that
the parent companys loss of EUR 3,773,900.67 for 2003 be entered in
retained loss, and no dividend for the fiscal year be distributed.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Kari Åkman, President and CEO, tel. + 358 (0)205 253427, gsm +358 40
586 5927, kari.akman@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm +358 40 777
0033, mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution
Helsinki Exchanges
Major media
With its shares having been quoted on the Helsinki Exchanges NM list
since 2001, the company is organized into three business areas: Done
Logistics provides comprehensive logistics systems, based on automated
materials handling and supporting information systems. Providor
Logistics provides distribution and warehousing services. Done
Information provides multilingual documentation services and software
solutions. Done Solutions Corporation operates in selected industries
in the Nordic countries, Central Europe and the United States.
GROUP KEY FIGURES AND RATIOS (MEUR) 2003 2002
Net sales 22.6 32.0
Operating profit/loss -2.5 -5.0
Operating profit/loss, % -11.0 -15.7
Profit/loss before extraordinary items -2.8 -6.0
Profit/loss before extraordinary items, % -12.3 -18.6
Net profit/loss for the period -3.2 -7.7
Net profit/loss for the period, % -14.2 -24.1
Gross capital expenditure 0.1 0.2
Gross capital expenditure, % of net sales 0.2 0.7
R&D costs 0.1 0.3
R&D costs, % 0.6 0.8
Gearing % 4.5 -8.5
Equity ratio % 16.7 37.0
Return on investment % (ROI) 47.5 -54.1
Return on equity % (ROE) -120.3 -102.1
Earnings per share, EUR -0.065 -0.163
Equity per share, EUR 0.022 0.087
Dividend per share, EUR 0.00 0.00
Payout ratio % 0.0 0.0
Effective dividend yield % 0.0 0.0
Price-earnings ratio neg. neg.
Average no. of issue adjusted shares 49,467,484 38,638,848
Issue adjusted number of shares at period end 49,467,484 49,467,484
Average no. of personnel 232 300
Cashflow from business operations -0.6 -3.9
Cashflow from investments 0.0 0.3
Cashflow from financing -0.0 2.6
Total cashflow -0.6 -1.0
CONSOLIDATED INCOME STATEMENT (MEUR) 2003 2002
NET SALES 22.6 32.0
Operating income, total 22.8 32.6
Materials and services -11.0 -15.5
Personnel expenses -8.5 -12.4
Depreciation -1.5 -1.9
Other operating expenses -4.4 -7.8
OPERATING PROFIT/LOSS -2.5 -5.0
Financial income 0.1 0.1
Financial expenses -0.4 -1.1
PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS -2.8 -6.0
Extraordinary income 0.0 0.0
Extraordinary expenses 0.0 -1.4
PROFIT/LOSS BEFORE APPROPRIATIONS AND TAXES -2.8 -7.4
Direct taxes -0.4 -0.3
Minority interest 0.0 0.0
PROFIT/LOSS FOR THE PERIOD -3.2 -7.7
CONSOLIDATED BALANCE SHEET (MEUR) Dec. 31, 2003 Dec. 31, 2002
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.4 1.6
Tangible assets 0.5 0.9
Long-term investments 0.8 1.0
FIXED AND OTHER NON-CURRENT ASSETS 1.7 3.5
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1
Long-term receivables 0.9 1.2
Short-term receivables 2.8 5.4
Short-term investments 0.0 0.0
Cash and cash equivalents 1.1 1.7
INVENTORIES AND CURRENT ASSETS 4.8 8.4
ASSETS 6.5 11.9
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 7.4 7.4
Issue premium fund 0.4 4.8
Other funds 0.2 0.2
Other unrestricted funds 0.0 3.7
Retained earnings/loss -3.7 -4.2
Net profit/loss for the period -3.2 -7.7
Subordinated loans 0.0 0.0
SHAREHOLDERS EQUITY 1.1 4.3
DEPRECIATION DIFFERENCE AND VOLUNTARY RESERVES 0.0 0.0
STATUTORY RESERVES 1.2 1.2
MINORITY INTEREST 0.0 0.0
Long-term liabilities 1.0 0.2
Short-term liabilities 3.2 6.2
LIABILITIES 4.2 6.4
LIABILITIES AND SHAREHOLDERS EQUITY 6.5 11.9
