DONE SOLUTIONS CORPORATION?S INTERIM REPORT FOR Q1-Q3/2004
Done Solutions Corporation
Stock Exchange Release October 29, 2004, at 9:00 a.m.
DONE SOLUTIONS CORPORATIONS INTERIM REPORT FOR Q1-Q3/2004
- Consolidated net sales came to EUR 13.9 million (EUR 17.4 million in
Q1-Q3/2003).
- Consolidated operating loss came to EUR 0.6 million (a loss of EUR 1.6
million), or 4.4 percent of net sales (9.3 percent), including EUR 0.7
million of capital gains on business divestment.
- Net loss for the period totaled EUR 0.7 million (a loss of EUR 2.2
million), or 5.2 percent of net sales (12.6 percent).
- Earnings per share were EUR 0.015 (EUR 0.045), while equity ratio
stood at 7.2 percent (28.6 percent).
- Liquid assets were EUR 0.4 million (EUR 0.6 million).
- Due to low investment demand for solutions provided by Done Logistics
and the divestment of Done Informations Software unit, consolidated net
sales for 2004 will be lower than in the previous year. The Group
expects to show an operating loss for 2004.
NET SALES AND PROFITABILITY
MEUR Q1/2004 Q2/2004 Q3/2004 Total
Net sales 5.2 4.7 4.0 13.9
Operating profit/loss -0.5 0.3 -0.4 -0.6
Profit/loss before extraordinary items 0.5 0.2 -0.4 -0.7
Net profit/loss for the period -0.5 0.2 -0.4 -0.7
Q2/2004 operating profit includes capital gains of EUR 0.7 million on
the divestment of Software Solutions.
Done Logistics
There were slight signs of recovery in demand for Done Logistics
material-handling systems during the third quarter, with its effects on
the units bottom line to be seen only in 2005. Major orders booked
during the report period included systems implementations for the paper
processing industry, Raflatac Inc.s order placed in September numbering
among the most significant. On October 1, 2004, Juha Mikkola (51), MBA,
took up his duties as Done Logistics Oys CEO.
Providor Logistics
Due to seasonal fluctuations, Providor Logistics recorded lower volumes
and profits during the third quarter than in the preceding quarters for
2004. Its largest customers for the report period included the food
processing and consumer industries, and the retail/wholesale sector.
Done Information
Due to the summer-holiday season, Done Information, specializing in
multilingual documentation and translation and localization services,
reported lower volumes and profits during the third quarter than in the
preceding quarters for 2004. The largest orders reported for the period
included multilingual documentation services for Finnish machine and
equipment manufacturers, software companies and the public sector. On
September 1, 2004, Elina Karjalainen (32), M.A. and M.Pol.Sc., took up
her duties as Done Information Oys CEO.
Net sales and operating profit by business unit:
Net Sales Net Sales Operating Profit/Loss
Q1-Q3/2004 Q1-Q3/2003 Q1-Q3/2004 Q1-Q3/2003
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics 2.6 19% 4.6 27% -1.1 42 1.1 -23
Providor Logistics 7.4 53% 7.1 41% 0.1 1 0.1 1
Done Information 4.0 28% 5.6 32% 0.4 10 -0.6 -11
Done Solutions Group 13.9 100% 17.4 100% -0.6 4 -1.6 -9
Done Informations Q2/2004 operating profit includes capital gains of
EUR 0.7 million on the divestment of Software Solutions.
FINANCIAL POSITION
Period-end consolidated balance sheet total amounted to EUR 5.0 million
(EUR 7.3 million on September 30, 2003) while shareholders equity came
to EUR 0.4 million (EUR 2.1 million). Parent company shareholders
equity amounted to EUR 3.6 million (EUR 6.3 million). At period-end, the
Groups equity ratio was 7.2 percent (28.6 percent) while parent
companys equity ratio was 47.8 percent (65.6 percent). The Groups
gearing stood at 180.2 percent (27.6 percent) and interest-bearing
liabilities totaled EUR 1.0 million (EUR 1.1 million). Earnings per
share were EUR 0.015 (EUR 0.045). Equity per share was EUR 0.007 (EUR
0.042). Liquid assets totaled EUR 0.4 million (EUR 0.6 million) at the
end of the period. The report period saw a negative cash flow from
business operations, EUR 0.5 million (EUR 0.9 million).
During the next 12 months, the Group expects to show a positive cash
flow from business operations and to hold sufficient liquid assets.
INVESTMENTS, DIVESTMENTS AND R&D
Product development costs for the period came to EUR 0.1 million, or 0.5
percent of net sales.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 156, with Done
Logistics having 67, Providor Logistics 15 and Done Information 74 on
their payrolls. A year ago, the Groups staff numbered 218.
In addition, Ametro Oy, a staffing services provider, in which Done
Solutions has a 30 percent holding, had a staff of 180 at the end of the
report period.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On June 30, 2004 Done Solutions had a share capital of EUR 3,957,398.72
and the number of shares totaled 49,467,484.
The companys largest shareholders are listed on Dones website at
www.donesolutions.com (Investors / Largest Shareholders).
The highest share quotation for the period was EUR 0.28 and the lowest
EUR 0.11. At an average price of EUR 0.14 quoted for the period, the
companys share closed at EUR 0.14 on September 30, 2004. The reported
share turnover was EUR 2.5 million, or 12,017,270 shares, and the
companys market capitalization on September 30, 2004 was EUR 6.9
million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 26, 2004 to the Board of Directors applied to 9,893,496
shares on September 30, 2004. As of the same date, the company held no
treasury shares.
MAJOR EVENTS
Please, refer to section NET SALES AND PROFITABILITYö for information
on major events during the report period.
Kari Åkman stepped down as Done Solutions Corporations President and
CEO at the end of September 2004.
Done Solutions Corporations Board of Directors elected its member, Jyri
Merivirta (40), LL.M., Chairman of the Board from October 1, 2004,
replacing Pekka Pystynen (56), Lawyer (trained on the bench) and MBA,
who continued as a Board member from October 1, 2004, and was appointed
Done Solutions Corporations President and CEO as of October 1, 2004.
FUTURE PROSPECTS
Despite the slight recovery in demand, Done Logistics will continue to
face unpredictable markets. Both Done Information and Providor Logistics
are expected to show slightly lower business volumes during the fourth
quarter than in the preceding quarters.
Due to low investment demand for solutions provided by Done Logistics
and the divestment of Done Informations Software unit, the Group
expects to show lower net sales for 2004 than in the previous year, and
an operating loss.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Pekka Pystynen, President and CEO, tel. +358 (0)205 253427, gsm +358
(0)50 0508 962, pekka.pystynen@donesolutions.com
Mika Söyring, Controller, tel. +358 (0)205 253425, gsm +358 (0)40 7770
033, mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution:
Helsinki Exchanges
Major media
With its shares having been quoted on the Helsinki Stock Exchanges NM
List since 2001, Done Solutions is organized into the three following
business units: Done Logistics provides comprehensive logistics systems,
based on automated materials-handling and supporting information
systems; Providor Logistics specializes in distribution and warehousing
services; Done Information provides multilingual documentation services.
The Groups largest customers are based in the Nordic countries, Central
Europe and the United States.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1-Q3/2004 Q1-Q3/2003 2003
Net sales 13.9 17.4 22.6
Operating profit/loss -0.6 -1.6 -2.5
Operating profit/loss, % -4.4 -9.3 -11.0
Profit/loss before extraordinary -0.7 -1.9 -2.8
items
Profit/loss before extraordinary -5.2 -10.8 -12.3
items, %
Net profit/loss for the period -0.7 -2.2 -3.2
Net profit/loss for the period % -5.2 -12.6 -14.2
Gross capital expenditure 0.0 0.2 0.1
Gearing % 180.2 27.6 4.5
Equity ratio % 7.2 28.6 16.7
Earnings per share, EUR -0.015 -0.045 -0.065
Equity per share, EUR 0.007 0.042 0.022
Average personnel 173 233 232
Cash flow from business operations -0.5 -0.9 -0.6
Cash flow from investments -0.0 -0.0 0.0
Cash flow from financing -0.1 -0.2 -0.0
Total cash flow -0.7 -1.1 -0.6
CONSOLIDATED INCOME STATEMENT (MEUR) Q1-Q3/2004 Q1-Q3/2003 2003
NET SALES 13.9 17.4 22.6
Operating income 14.7 17.6 22.8
Materials and services -7.8 -8.4 -11.0
Personnel expenses -4.8 -6.5 -8.5
Depreciation -0.5 -1.1 -1.5
Other operating expenses -2.2 -3.2 -4.4
OPERATING PROFIT/LOSS -0.6 -1.6 -2.5
Financial income 0.0 0.0 0.1
Financial expenses -0.1 -0.3 -0.4
PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS -0.7 -1.9 -2.8
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT/LOSS BEFORE APPROPRIATIONS
AND TAXES -0.7 -1.9 -2.8
Direct taxes -0.0 -0.3 -0.4
Minority interest 0.0 0.0 0.0
NET PROFIT/LOSS FOR THE PERIOD -0.7 -2.2 -3.2
CONSOLIDATED BALANCE SHEET Sept. 30, 2004 Sept. 30, 2003 Dec. 31, 2003
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.1 0.7 0.4
Tangible assets 0.3 0.7 0.5
Total long-term investments 0.7 0.8 0.8
FIXED AND OTHER NON-CURRENT ASSETS TOTAL 1.1 2.1 1.7
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1 0.1
Long-term receivables 0.2 0.7 0.9
Short-term receivables 3.2 3.8 2.8
Short-term investments 0.0 0.0 0.0
Cash and cash equivalents 0.4 0.6 1.1
INVENTORIES AND CURRENT ASSETS TOTAL 3.9 5.2 4.8
ASSETS TOTAL 5.0 7.3 6.5
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 4.0 7.4 7.4
Issue premium fund 0.4 0.4 0.4
Other funds 0.2 0.2 0.2
Retained earnings/loss -3.5 -3.7 -3.7
Net profit/loss for the period -0.7 -2.2 -3.2
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY TOTAL 0.4 2.1 1.1
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 1.1 0.9 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.0 0.1 1.0
Short-term liabilities 3.5 4.2 3.2
LIABILITIES TOTAL 3.5 4.3 4.2
LIABILITIES AND SHAREHOLDERS EQUITY 5.0 7.3 6.5
The data in this Interim Report are based on unaudited figures.
