DONE SOLUTIONS CORPORATION'S PROFIT IMPROVES
Done Solutions Corporation
Stock Exchange Release April 28, 2006, at 9:00 a.m.
DONE SOLUTIONS CORPORATION'S PROFIT IMPROVES
Interim Report Q1/2006 (IFRS)
- Consolidated net sales for Q1/2006 came to EUR 3.8 million (EUR 2.9 million in
Q1/2005). Like-for-like net sales for Q1/2005 came to EUR 3.4 million.
- Consolidated operating profit amounted to EUR 0.41 million (EUR 0.14 million),
or 11 percent of net sales (5 percent). Like-for-like consolidated operating
profit for Q1/2005 amounted to EUR 0.23 million, or 7 percent of net sales. All
business segments were in the black.
- Net profit totaled EUR 0.41 million (EUR 0.15 million), or 11 percent of net
sales (5 percent). Like-for-like net profit for Q1/2005 totaled EUR 0.19 million,
or 6 percent of net sales.
- Earnings per share from continuing operations were EUR 0.007 (EUR 0.001). Like-
for-like earnings per share from continuing operations for Q1/2005 were EUR
0.002.
- At the period-end, equity ratio was 49.4 percent (-2.4 percent) and return on
investment (ROI) 29.9 percent (59.5 percent).
- Period-end liquid assets totaled EUR 4.2 million (EUR 1.2 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. All of the Group's segments are projected to record
higher operating results than a year ago.
FINANCIAL REPORTING
Q1/2006 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 are based on the official financial statements. Q1/2005 income
and expenses from Tiolat Oy, acquired on December 19, 2005 and with a Group
holding of 57.14 percent, are not included in comparative figures. The like-for-
like unaudited Q1/2005 figures stated above include Tiolat's income and expenses
under continuing operations in a situation where Tiolat Oy was acquired January
1, 2005.
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 (primary reporting segment):
Net sales Net sales SBU profit SBU profit
Q1/2006 Q1/2005 Q1/2006 Q1/2005
MEUR Share MEUR Share MEUR % MEUR %
Services 1.3 35% 1.1 40% 0.2 15 0.1 13
Systems 1.7 46% 1.7 60% 0.2 14 0.1 8
Health Care 0.7 19% - - 0.1 21 - -
Total 3.8 100% 2.9 100% 0.6 16 0.3 10
Parent company expenses -0.2 -5 -0.2 -5
Operating profit 0.4 11 0.1 5
The SBU profit by Health Care, the segment acquired in late December 2005, is
squeezed by EUR 0.13 in expenses for Q1/2006 allocated to inventories, which will
not incur after March 31, 2006.
Diluted earnings per share from continuing operations were EUR 0.007 (EUR 0.001)
and undiluted earnings per share EUR 0.007 (EUR 0.001). Equity per share was EUR
0.075 (EUR -0.003). A decrease in provisions had no effect on net profit.
FINANCIAL POSITION
The period-end consolidated balance-sheet total amounted to EUR 11.3 million (EUR
5.8 million on March 31, 2005). Shareholders' equity came to EUR 5.6 million (EUR
-0.1 million) while FAS-compliant parent-company shareholder's equity amounted to
EUR 7.6 million (EUR 4.7 million). At the period-end, equity ratio was 49.4
percent (-2.4 percent) and equity ratio, including subordinated loans, was 59.2
percent (12.8 percent). Gearing stood at -37.5 percent (268.3 percent). Group
interest-bearing liabilities totaled EUR 2.1 million (EUR 0.8 million). Liquid
assets totaled EUR 4.2 million (EUR 1.2 million) at the end of March.
The Group expects to show a positive cash flow from business operations over the
next twelve months. The company projects its liquid assets to suffice during the
next 12-month period.
PRODUCT DEVELOPMENT
Product development costs for Q1/2006 came to EUR 0.1 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 130. Done Logistics had
a staff of 56, Done Information 65, Tiolat 6 and parent company 3. A year ago,
the Group's staff numbered 143.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On March 31, 2006, Done Solutions had a share capital of EUR 4,795,398.72 and the
number of shares totaled 59,942,484.
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 0.36 and closed at EUR 0.35 on March 31, 2006. The
reported share turnover of Done Solutions Corporation was EUR 5.6 million,
representing 15.7 million shares. The company's market capitalization on March
31, 2006 totaled EUR 21.0 million.
The unexercised share-issue authorization given by the Annual General Meeting of
March 31, 2006 to the Board of Directors applied to 11,988,496 shares on March
31, 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.
Based on stock options, the period saw subscriptions of 475,000 new company
shares at a per-share subscription price of EUR 0.23, with the result that the
share capital increased by EUR 38,000.00, from EUR 4,757,398.72 to EUR
4,795,398.72, i.e. from 59,467,484 shares to 59,942,484.
The stock option scheme is based on a decision made by the AGM on April 12, 2002.
As a result of the share subscriptions based on these stock options, the number
of company shares may increase by a maximum of 1,484,028 shares and the share
capital by a maximum of EUR 118,721.92. The subscription period for all stock
options will expire on April 30, 2006.
DECISIONS BY THE ANNUAL GENERAL MEETING OF MARCH 31, 2006
The AGM's decisions can be found in the company's stock exchange release of March
31, 2006.
EVENTS AFTER Q1/2006
Done Solutions Corporation reached a settlement with the bankruptcy estate of
Done Logistics AB, a subsidiary of Done Solutions Corporation in Sweden, on April
7, 2006. The bankruptcy estate demanded a payment of a maximum amount of about
EUR 3.2 million from Done Solutions Corporation. According to the settlement,
Done Solutions Corporation made a one-time payment of EUR 0.2 million to the
bankruptcy estate. The settlement has no effect on results since, in connection
with Done Logistics AG's bankruptcy, Done Solutions Corporation entered a
provision for any bankruptcy expenses that may incur.
As a part of the settlement, Done Solutions Corporation represents the bankruptcy
estate of Done Logistics AB in the dispute between the estate and Arla Foods AB
over a supply agreement. Arla Foods AB's claim lodged against Done Logistics AB's
bankruptcy estate comes to around EUR 1.0 million and the claim filed by Done
Logistics AB's bankruptcy estate against Arla Foods AB totals approximately EUR
0.6 million. Done Solutions Corporation agreed in 2001 to grant a reguarantee to
Done Logistics AB for the performance guarantee granted by SEB and Construction
Dexion AB, related to the supply agreement in question. Following the payment of
EUR 0.2 million, the remaining provision stated above totals EUR 0.6 million.
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. All of the Group's segments are projected to record
higher operating results than a year ago.
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, CFO, tel. + 358 (0)205 253425, GSM +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) Q1/2006 Q1/2005 Q1-Q4/2005
Net sales 3.8 2.9 11.5
Operating profit 0.4 0.1 0.9
Operating margin % 10.9 4.8 8.2
Pre-tax profit 0.5 0.1 0.8
Pre-tax profit, % 13.2 2.6 7.1
Net profit 0.4 0.1 0.8
Net profit,% 11.0 5.2 7.1
Gross capital expenditure 0.0 0.0 3.0
Gross capital expenditure, % of net sales 0.9 0.5 25.8
R&D costs 0.1 0.0 0.1
R&D costs, % 1.4 0.7 0.4
Gearing, % -37.5 268.3 -33.4
Equity ratio, % 49.4 -2.4 47.5
Return on investment (ROI), % 29.9 59.5 21.6
Return on equity (ROE), % 34.7 -142.3 34.3
Undiluted earnings per share,
continuing operations EUR 0.007 0.001 0.016
Diluted earnings per share,
continuing operations EUR 0.007 0.001 0.016
Undiluted earnings per share,
discontinuing operations EUR 0.000 0.002 0.029
Diluted earnings per share,
discontinuing operations EUR 0.000 0.002 0.029
Equity per share, EUR 0.075 -0.003 0.067
Average number of employees 130 145 135
CONSOLIDATED INCOME STATEMENT (MEUR) Q1/2006 Q1/2005 Q1-Q4/2005
NET SALES 3.8 2.9 11.5
Other operating income 0.0 0.0 0.1
Materials and services -1.1 -1.0 -3.6
Employee benefits -1.6 -1.2 -5.1
Depreciation -0.1 -0.1 -0.2
Other operating expenses -0.6 -0.4 -1.7
OPERATING PROFIT 0.4 0.1 0.9
Share of associates' results 0.0 -0.0 0.0
Financial expenses (net) 0.0 -0.1 -0.1
PRE-TAX PROFIT 0.5 0.1 0.8
Income tax charge -0.0 -0.0 -0.0
Minority interest -0.0 0.0 0.0
NET PROFIT, continuing operations 0.4 0.1 0.8
Net profit, discontinuing operations 0.0 0.1 1.5
NET PROFIT 0.4 0.1 2.3
Undiluted earnings per share,
continuing operations EUR 0.007 0.001 0.016
Diluted earnings per share,
continuing operations EUR 0.007 0.001 0.016
Undiluted earnings per share,
discontinuing operations EUR 0.000 0.002 0.029
Diluted earnings per share,
discontinuing operations EUR 0.000 0.002 0.029
CONSOLIDATED BALANCE SHEET (MEUR)
March 31, 2006 March 31, 2005 Dec. 31, 2005
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 0.5 0.8 0.5
Goodwill 1.2 0.1 1.2
Intangible assets 1.7 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 0.6 0.5
TOTAL NON-CURRENT ASSETS 4.3 1.9 4.4
CURRENT ASSETS
Inventories 0.1 0.1 0.3
Account and other receivables 2.7 2.6 2.3
Cash and cash equivalents 4.2 1.2 3.7
TOTAL CURRENT ASSETS 7.1 3.9 6.4
TOTAL ASSETS 11.3 5.8 10.8
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.8 4.0 4.8
Share premium 1.0 0.4 1.0
Contingency reserve 0.0 0.2 0.0
Fair value reserve 0.3 0.0 0.3
Retained earnings/loss -1.7 -4.7 -2.0
TOTAL EQUITY, attributable to
parent company shareholders 4.5 -0.1 4.0
MINORITY INTEREST 1.1 0.0 1.0
TOTAL SHAREHOLDERS' EQUITY 5.6 -0.1 5.0
LIABILITIES
LONG-TERM LIABILITIES
Deferred tax liabilities 0.4 0.0 0.5
Provisions 0.8 0.9 0.7
Interest-bearing liabilities 1.1 0.8 1.0
Other payables 0.0 1.0 0.1
TOTAL LONG-TERM LIABILITIES 2.3 2.8 2.3
SHORT-TERM LIABILITIES
Account and other payables 2.4 3.2 2.3
Provisions 0.0 0.0 0.1
Interest-bearing liabilities 1.1 0.0 1.0
TOTAL SHORT-TERM LIABILITIES 3.5 3.2 3.5
TOTAL LIABILITIES 5.8 6.0 5.7
TOTAL EQUITY AND LIABILITIES 11.3 5.8 10.8
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (MEUR)
Share Share Other Retained Minority Total
capital premium reserves earnings inter. equity
Equity Jan. 1, 2005 4.0 0.4 0.2 -4.8 0.0 -0.3
Equity March 31, 2005 4.0 0.4 0.2 -4.7 0.0 -0.1
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 0.0 0.1 0.0 0.0 0.0 0.1
Net profit 0.0 0.0 0.0 0.4 0.0 0.4
Equity March 31, 2006 4.8 1.0 0.3 -1.7 1.1 5.6
CONSOLIDATED CASH FLOW STATEMENT (MEUR) Q1/2006 Q1/2005 Q1-Q4/2005
Net profit 0.4 0.1 0.8
Adjustments to net profit 0.2 0.1 0.4
Change in working capital -0.2 -0.2 -0.1
Interest paid -0.0 -0.0 -0.1
Interest received 0.0 0.0 0.0
CASH FLOW FROM OPERATING ACTIVITIES 0.4 0.1 1.0
Acquisition of subsidiary 0.0 0.0 0.3
Disposal of operations 0.0 0.0 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 -0.0 -0.0 1.6
Rights issue 0.1 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 0.1 -0.4 -0.4
Net change in cash and equivalents 0.5 -0.4 2.2
Cash and equivalents, Jan.1 3.7 1.6 1.6
Cash and equivalents, March 31 4.2 1.2 3.7
CONTINGENT LIABILITIES (MEUR)
Mortgages given 0.3 0.3 0.3
Pledges given 2.9 3.3 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
