Revenio Group Corporation: Revenio Group Corporation Financial Statement Bulletin, January 1-December 31, 2013 - Strengthened growth in Health Care segment in Q4
Revenio Group Corporation Stock exchange release February 12, 2014 at 9.00 hrs.
Revenio Group Corporation Financial Statement Bulletin, January 1-December
31, 2013 - Strengthened growth in Health Care segment in Q4
Extremely favorable trends were seen in the Revenio Group's net sales and
profitability during 2013. During the review period, Revenio launched strategic
development projects that will pave the way for planned growth in the Health
Tech segment over the coming years.
October-December 2013 in brief:
* The net sales and profit of the Revenio Health Tech segment grew vigorously
during the last quarter.
* Strong sales growth was seen in the USA in particular, where the highest
ever net sales were achieved in December. Sales were also brisk in Japan,
the UK and Australia.
* The Information Display business, which was part of Revenio Technology and
Services, was divested. This divestment forms part of Revenio's strategic
focus on healthcare technology.
* Revenio increased its holding in Oscare Medical Oy, a company that makes
osteoporosis measurement devices, to 53 percent.
* An Extraordinary General Meeting held on December 9, 2013 decided on a EUR
0.30 capital repayment.
* 2014 profit guidelines: In continuing operations, net sales and operating
profit excluding non-recurring items are expected to see year-on-year
growth. Growth will focus on the Health Tech segment. Operating profit will
see slowed growth due to the ongoing investment phase. The growth outlook
for the Technology and Services segment has become more uncertain due to
delayed investment decisions.
January-December 2013 in brief:
* The Revenio Health Tech segment achieved strong growth in both net sales and
operating profit.
* A strong year for the Software and Contact Center businesses also helped the
Revenio Technology and Services segment to achieve vigorous growth in both
net sales and operating profit.
Group key figures:
10-12/2013
* Net sales EUR 7.2 million (6.3), growth of 13.2%.
* Operating profit EUR 1.7 million (1.2), or 23.3% (18.4) of net sales.
* The net sales of the Revenio Health Tech segment amounted to EUR 4.1 million
(3.2), up 27.8%.
* Revenio Health Tech's operating profit totaled EUR 1.7 million (1.2),
representing 41.6% (35.8) of net sales, a change of EUR 0.6 million and
growth of 48.2%.
* The net sales of the Revenio Technology and Services segment were EUR 3.0
million (3.1), a fall of 2.7%.
* The Revenio Technology and Services segment's operating profit totaled EUR
0.2 million (0.3), representing 5.8% (5.6) of net sales and a change of EUR
-0.1 million.
* The result for discontinued operations was EUR 0.0 million (-1.8), including
the divestment of the Information Display business and the operations of the
discontinued Done Logistics Oy.
* Diluted and undiluted earnings per share came to EUR 0.17 (0.07).
1-12/2013
* Net sales EUR 25.7 million (21.1), growth of 21.8%.
* Operating profit EUR 5.6 million (4.3), or 21.7% (20.1) of net sales.
* Revenio Health Tech segment's net sales EUR 13.5 million (11.1), growth of
22.2%.
* Revenio Health Tech's operating profit was EUR 5.4 million (4.4),
representing 39.4% (39.7) of net sales, a change of EUR 0.9 million and
growth of 21.3%.
* Revenio Technology and Services' net sales EUR 12.2 million (10.1), growth
of 21.3%.
* Revenio Technology and Services' operating profit was EUR 1.1 million (0.8),
representing 9.1% (7.9) of net sales, a change of EUR 0.3 million and growth
of 40.2%.
* The net result for discontinued operations was EUR 0.0 (-3.3) million.
* Pre-tax profit, continuing operations, EUR 5.5 million (4.0).
* Undiluted earnings per share, continuing operations, EUR 0.55 (0.50).
* Diluted earnings per share, continuing operations, EUR 0.55 (0.50).
* Undiluted and diluted earnings per share, discontinued operations, EUR 0.00
(-0.54).
* Undiluted earnings per share, continuing and discontinued operations, EUR
0.55 (-0.04).
* Diluted earnings per share, continuing and discontinued operations, EUR
0.56 (-0.04).
* Cash flow from continuing operations EUR 5.5 million (3.9).
Olli-Pekka Salovaara, President & CEO:
"2013 was an extremely favorable year for the Revenio Group's development. We
launched strategic development projects that will pave the way for planned
growth in the Health Tech segment over the coming years. These measures
constitute some of the most significant investments in R&D, sales and marketing
in Revenio's history. Although they will impact 2014 operating profit as
investments, we are expecting them to generate profit over the coming years.
Our new focus on healthcare technology has also required divestments. During
2013, we have divested the majority of Done Logistics Oy's business operations
and the entire share capital of FLS Finland Oy, which constituted the
Information Display business. Our Technology and Services segment still contains
the Contact Center, Software and Rigid Inflatable Boats businesses. The
segment's businesses are prominent actors in their fields and generate positive
cash flow for the Group.
On December 4, 2013, we acquired a majority holding in Oscare Medical Oy as a
growth driver for the Health Tech segment. The company's osteoporosis detection
device is designed for the detection, screening, postoperative monitoring and
diagnosis of osteoporosis. A majority holding in Oscare Medical fits in well
with our strategic objective to expand as a health technology corporation.
Measures to launch sales of Oscare products have already begun. Our goal is to
offer healthcare professionals cost-effective and easy-to-use tools.
Icare Finland Oy, which represents the Health Tech segment, achieved its all-
time sales and profit record in the fourth quarter. The segment's full-year net
sales for 2013 totaled EUR 13.5 million (11.1) and its operating profit EUR 5.4
million (4.4). This reinforces our opinion that we have continued to win market
shares from traditional technologies and are on the way to being the global
market leader in the measurement and screening of intraocular pressure.
In line with our strategy, the Technology and Services segment will focus on
securing profitable growth. The segment's full-year net sales for 2013 totaled
EUR 12.2 million (10.1) and its operating profit EUR 1.1 million (0.8). The
segment's strongest growth was seen in the Software and Contact Center
businesses. The Rigid Inflatable Boats business also achieved clear growth,
although trends in profitability lagged behind growth.
2014 will be above all a year of product development for the Revenio Group. We
have launched R&D projects that will have a favorable impact on net sales growth
over the coming years but will have a cost impact in 2014. We have made a
deliberate decision to make greater investments in our future during 2014 than
we have in previous years. In addition to R&D, and on the condition that sales
permits are granted, further investments will be required to market Icare's home
measurement devices in the USA and for general marketing in China. Oscare is
also in the investment phase. I believe that now is the time to make investments
in key projects with respect to our strategy, and that this is the best way to
support growth potential for net sales and operating profit over the coming
years."
JANUARY-DECEMBER 2013, COMMENTS:
REVENIO HEALTH TECH
Excellent trends were seen in the net sales and operating profit of the Revenio
Health Tech segment. The segment's net sales totaled EUR 13.5 million (11.1) in
2013. Net sales rose by 22.2%. The operating profit for the Revenio Health Tech
segment totaled EUR 5.4 million (4.4), up 21.3% on the previous year.
Icare Finland Oy, which represents the Health Tech segment, is seeking to
further strengthen its market position by expanding its current customer base,
growing existing customer relationships, and boosting sales of probes.
The market situation was favorable throughout the review period, and sales
growth was particularly strong in major markets, such as the USA, Japan,
Australia and Canada. The segment's current main markets are in North America,
Europe, and selected Asian countries, such as Japan and India.
During the review period, product changes were made to version of a
tonometer designed for the home measurement of intraocular pressure in
preparation for an upcoming FDA permit application in the USA. The device and a
plan for the permit application have been presented to the FDA and, on the basis
of feedback, usability tests were conducted in the US in late 2013. An FDA
permit application will be filed after the clinical tests, which will begin in
2014.
Sales of the disposable probes used in intraocular pressure measurement devices
grew noticeably during the review period due to a growing instrument base.
Growth in probe sales is a good indication that previously sold devices are in
active use. During the review period, probe manufacture was restructured with
the aim of enhancing the production process, increasing capacity, and improving
margins.
During 2013, Icare Finland made considerable investments in marketing,
particularly to new user groups such as emergency rooms, defense administration,
and home care. The company was granted sales permits in ten countries. A permit
application to launch sales of the Icare TA01 in China was filed in December
2013.
On December 4, 2013 Revenio increased its holding in Oscare Medical Oy, which
specializes in the diagnosis, screening and monitoring of osteoporosis. A
majority holding in Oscare Medical fits in well with Revenio's strategic
objective to expand as a health technology corporation. Oscare Medical was
merged as a Group subsidiary on December 31, 2013, and therefore has no impact
on the Group's result for 2013. Owing to the investments required at the launch
phase, initial result expectations are conservative. Entry into the market is
expected to take around two or three years.
REVENIO TECHNOLOGY AND SERVICES
In 2013, the net sales of the Revenio Technology and Services segment totaled
EUR 12.2 million (10.1) and its operating profit EUR 1.1 million (0.8).
The Contact Center business had a record-breaking year. Business was conducted
extremely profitably in rapidly changing markets that required fast reactions
and good price competitiveness.
The Rigid Inflatable Boats business was able to achieve strong net sales growth.
Large fluctuations in net sales are typical in businesses that consist of
project deliveries. The smallish size of individual orders took its toll on
profitability for the period. Operational efficiency was weakened by both small
production series and the manufacture of custom boats containing many new
technical solutions.
The Software business had a successful year. The business's customers include
noteworthy major companies that invested in boosting the efficiency of their
logistics during the review period. The business was extremely successful in its
project operations and was able to keep demanding customer promises and stick to
challenging implementation schedules. Towards the end of the review period, the
business implemented development measures that are expected to further increase
competitiveness. Both net sales and the operating profit rose on 2012, which was
itself a successful year.
The Group divested the entire share capital of FLS Finland Oy, which represented
the segment's Information Display business, to Teknopower Oy on November
28, 2013. The divestment forms part of the Revenio Group's new strategy. From
now on, the Group will focus on healthcare technology and is therefore ready to
divest other business operations under certain conditions.
Net sales and segment margins, continuing operations
Segment Segment
Net Sales Net Sales profit profit
margin margin
2013 2012 2013 2012
MEUR share-% MEUR share-% MEUR % MEUR %
Revenio Health
Tech 13.5 52 11.1 52 5.4 39 4.4 40
Revenio
Technology and
Services 12.2 47 10.1 48 1.1 9 0.8 8
Total 25.7 100,0 21.1 100,0 6.5 25 5.3 25
Parent company
expenses -0.8 -1.0
Operating
Profit, Group
Total 5.6 22 4.3 20
The net sales, margin, and profit, by segment and quarter , excluding non-
recurring items, were as follows:
MEUR Q4/13 Q3/13 Q2/13 Q1/13
Net sales:
Revenio Health Tech 4.1 3.0 3.2 3.1
Revenio Technology
and Services 3.0 2.8 3.1 3.3
Total 7.2 5.8 6.3 6.4
Segment profit margin:
Revenio Health Tech 1.7 1.2 1.3 1.1
Revenio Technology
and Services 0.2 0.4 0.4 0.2
Total 1.9 1.6 1.7 1.3
Parent co. expenses -0.2 -0.2 -0.2 -0.2
Operating profit 1.7 1.4 1.4 1.2
Q4/12 Q3/12 Q2/12 Q1/12
3.2 2.6 2.6 2.6
3.1 2.2 2.3 2.5
6.3 4.8 4.8 5.1
1.2 1.1 1.0 1.2
0.3 0.2 0.1 0.2
1.5 1.3 1.1 1.4
-0.3 -0.2 -0.2 -0.3
1.2 1.1 0.9 1.1
18 22 17 20
PERSONNEL
During the review period, the number of personnel employed by the Group in
continuing operations averaged 209 (198). At the end of the period, the number
of employees stood at 221 (202).
The average number of personnel employed by the Group during the period by
segment:
31 Dec 2013 31 Dec 2012 Change
Revenio Health Tech 19 13 6
Revenio Technology
and Services 183 181 2
Parent Company 7 4 3
Group Total 209 198 11
During the review period, a total of EUR 7.3 million (6.4) was paid in salaries,
wages and fees.
NET SALES AND FINANCIAL PERFORMANCE
Consolidated net sales from the Revenio Group's continuing operations for the
period January 1-December 31, 2013 totaled EUR 25.7 million (21.1). This
represented net sales growth of 21.8%. Earnings before interest, taxes,
depreciation and amortization (EBITDA) from continuing operations were EUR 6.3
million (4.9), or 24.3% (23.3) of net sales. Consolidated operating profit
(EBIT) from continuing operations was EUR 5.6 million (4.3), representing 21.7%
(20.1) of net sales. Profit before taxes for continuing operations totaled EUR
5.5 million (4.0), or 21.3% (19.0) of net sales. The net result for continuing
operations was EUR 4.4 million (3.0), or 16.7% (14.4) of net sales. The net
result for discontinued operations was EUR 0.0 million (-3.3). Net profit for
the period totaled EUR 4.3 million (-0.3). Undiluted earnings per share from
continuing operations were EUR 0.55 (0.39) and diluted earnings per share EUR
0.55 (0.39). Diluted and undiluted earnings per share for discontinued
operations came to EUR 0.00 (-0.43). Diluted earnings per share for continuing
and discontinued operations came to EUR 0.55 (-0.04) for the financial year.
Equity per share was EUR 1.91 (1.91).
The consolidated net sales of continuing operations achieved a year-on-year
increase of 21.8 percent. The Revenio Health Tech segment and the Revenio
Technology and Services segment's Contact Center and Rigid Inflatable Boats
businesses accounted for the strongest net sales growth.
The Revenio Health Tech segment's operating profit for the financial year
noticeably exceeded the figure for the previous year. In line with Revenio's
strategy, operations are currently undergoing a strong development phase in
which systematic investments are being made in future growth by strengthening
sales and product development in particular. Significant R&D projects were also
launched during the financial year. Nevertheless, the segment's operating profit
still rose to EUR 5.4 million (4.4). In the Technology and Services segment,
operating profit rose to EUR 1.1 million (0.8).
The result for discontinued operations consists of capital gains from the
Information Display business, which was divested on November 28, 2013, and from
the operations of Done Logistics Oy, which were largely divested on February
7, 2013. A decision to completely wind down Done Logistics Oy was made on
December 18, 2012. The remaining operations consist of finishing projects in
Norway, which should occur during 2014. In accordance with IFRS regulations, the
results for both businesses are presented under discontinued operations for the
entire financial year and for the comparison period.
BALANCE SHEET, FINANCIAL POSITION AND INVESTMENTS
The consolidated balance sheet total stood at EUR 22.6 million (25.0) on
December 31, 2013. Shareholders' equity came to EUR 15.0 million (14.7). At the
end of the financial year, interest-bearing net liabilities totaled EUR -2.5
million (-1.8) and gearing stood at -16.8% (-12.2). The consolidated equity
ratio was 65.9% (62.2). The Group's liquid assets amounted to EUR 4.6 million
(5.0) at the end of the financial year.
Thanks to favorable trends in operations, the Group's financial position
remained stable throughout the financial year. It was favorably affected by the
divestment of the Information Display business combined with good earnings
trends in the Health Tech segment and in the Technology and Services segment's
Software and Contact Center businesses. Capital repayments and the 2013 dividend
reduced cash and cash equivalents by a total of EUR 4.8 million. On December
31, 2013 cash and cash equivalents totaled EUR 4.6 million (5.0).
No financing was raised through borrowed capital during the financial year.
Revenio's financial position was also bolstered by funds received from shares
subscribed to via options, a total of EUR 0.7 million. Cash flow from continuing
operations totaled EUR 5.5 million (3.9). The Group's purchases of PPE and
intangible assets totaled EUR 0.9 million (0.3). These investments were
concentrated on product development and, to a lesser degree, information
technology and software.
SHARES, SHARE CAPITAL AND MANAGEMENT HOLDINGS
On December 31, 2013, the Revenio Group Corporation's fully paid-up share
capital registered with the Trade Register was EUR 5,314,918.72 and the number
of shares totaled 7,850,479. During the financial year, the number of shares
increased by 157,506 following subscriptions made on the basis of the 2007 stock
option scheme. During the current accounting period, Series 2007A option rights
were used to subscribe for 100,624 shares, 2007B option rights to subscribe for
21,212 shares and 2007C option rights to subscribe for 35,670 shares. The
subscription period for 2007A options ended on May 1, 2013. The outstanding
2007B options (646,002 shares) and 2007C options (603,300 shares) can still be
used to subscribe for a total of 124,930 shares until the close of the
subscription periods on November 1, 2014 (2007B), and May 1, 2016 (2007C). The
company has one class of share, and all shares confer the same voting rights and
an equal right to dividends and the company's funds. On December 31, 2013, the
President & CEO, members of the Board of Directors and their closely related
parties held 6.3 % of the company's shares (499,176 shares) and 0.0 % of the
option rights.
The company did not buy back any of its own shares during the financial year.
Of the 9,594 treasury shares acquired earlier that were held by the company at
the beginning of the financial year, 4,236 were used for the payment of Board
emoluments in accordance with the decision taken by the general meeting of
shareholders on March 21, 2013. The Board members - Rolf Fryckman and Ari
Kohonen- both received 1.059 shares in Board emoluments. Pekka Tammela, the
chairman of the Board, received 2.118 shares in Board emoluments.
At the end of the financial year, the company held a total of 5,358 of its own
shares.
CHANGES IN SHAREHOLDING
On May 10, 2013, it was announced that Joensuun Kauppa ja Kone Oy's holding in
the total number of shares and voting rights in Revenio Group Corporation had
exceeded one twentieth (1/20). At the time of the announcement, Joensuun Kauppa
ja Kone Oy's holding in Revenio Group Corporation's shares and voting rights was
5.02 %, or 389,626 shares.
OPTION RIGHTS
On the basis of the share issue authorization approved by the Annual General
Meeting of April 3, 2007, the Board of Revenio Group Corporation decided, on
November 23, 2007, on a new corporate option scheme comprising a maximum of
3,684,365 option rights. Ten option rights entitle the holder to subscribe for
one (1) Revenio Group Corporation share. On December 31, 2013, the proportion of
shares to be subscribed for on the basis of the option rights issued represented
a maximum of 1.6 percent of the company's shares and votes, once all new shares
subscribed for with these option rights have been registered. New shares
subscribed for via the option program entitle the holder to a dividend from the
subscription year onwards.
The option rights have been divided into three series: Series A (1,684,365), B
(1,000,000) and C (1,000,000). The subscription periods for options are as
follows: Series A, May 1, 2009-May 1, 2013 (subscription period has ended);
Series B, November 1, 2010-November 1, 2014; and Series C, May 1, 2012-May
1, 2016. The share subscription price will be the trade-weighted average price
during the period April 1-30, 2009 multiplied by ten (EUR 2.05, Series B) and
November 1-30, 2010 multiplied by ten (EUR 1.99, Series C).
No new options were granted to employees during the period.
TRADING ON NASDAQ OMX HELSINKI
During the period January 1-December 31, 2013, the Revenio Group Corporation's
share turnover on the NASDAQ OMX Helsinki exchange totaled EUR 24.7 (13.6)
million, representing 3.0 million (3.3) shares or 37.8% (42.5) of all shares
outstanding after the reverse share split of March 27, 2013.
The highest trading price was EUR 14.30 (5.00) and the lowest EUR 4.10 (3.30).
At the end of the financial year, the closing price was EUR 12.38 (4.00), and
the average share price EUR 8.34 (4.20). Revenio Group Corporation's market
value stood at EUR 97.2 million (30.8) on December 31, 2013. These figures take
into account the effects of the reverse share split.
RISK MANAGEMENT
Revenio Group Corporation's risks are defined as strategic, operational, trade
cycle, hazard, and financial risks.
The Group's strategic risks include prevailing competition in all sectors, the
threat posed by new competing products, and any other actions of the company's
rivals that may affect the competitive situation. Another factor posing a
strategic risk is related to success in R&D operations and, therefore,
preservation of the product range's competitiveness. In sectors that, according
to the Group's strategy, require particular expertise, major risks also include
the retention and development of key personnel, and dependence on the
operational ability of the subcontractor and supplier network.
Corporate acquisitions form part of the Group's strategy. The success of these
acquisitions has a significant impact on the achievement of growth and
profitability targets. Acquisitions may also change the Group's risk profile.
Strategic risks and the need for action are regularly assessed and are monitored
in connection with routine management, monthly Group reporting, and annual
strategy updates.
Operational risks are associated with the retention and development of major
customers, the operations of the distribution network, and success in expanding
markets and the customer base. In the Revenio Health Tech segment in particular,
operational risks include factors related to expansion into new markets, such as
the national regulation of sales licenses for medical instruments in many
countries combined with associated official decisions concerning the healthcare
market.
The operational risks related to the manufacture, product development, and
production control of medical instruments are estimated to be higher than
average in the Revenio Health Tech segment, due to that sector's higher than
average quality standards.
Project-based operations, mainly carried out in the Revenio Technology and
Services segment, involve exposure to operational risks related to the
management of demanding end-to-end deliveries, which may concern the company's
own project work, subcontractors and suppliers.
Hazard risks are covered by insurance. Property and business interruption
insurance provide protection against risks in these areas. Operations are
covered by international liability insurance.
Financial risks consist of credit, interest, liquidity, and foreign exchange
risks. To manage credit loss risks, the Group has taken out credit insurance
covering all companies in the Group. Every month, and more frequently if
necessary, Board meetings assess matters related to financial issues. If
required, the Board provides decisions and guidelines for the management of
financial risks concerning interest-rate and currency hedging, for instance. The
liquidity risk can be affected by the availability of external financing, the
development of the Group's credit standing, the trend in business operations,
and changes in the payment behavior of customers. Liquidity risks are monitored
by means of cash forecasts, which are drawn up for periods of 12 months at most
at a time.
ANNUAL GENERAL MEETING AND BOARD AUTHORIZATIONS IN EFFECT
The Annual General Meeting held on March 21, 2013 approved the company's
financial statements and discharged the President & CEO and the members of the
Board of Directors from liability for the financial year January 1-December
31, 2012.
The AGM re-elected Pekka Tammela and Rolf Fryckman as members of the Board, and
elected Ari Kohonen as a new member. The AGM decided that the Chairman of the
Board should be paid a fee of EUR 36,000 per annum and other Board members EUR
18,000 per annum. 60 percent of a Board member's fee is paid as monetary
compensation and 40 percent in company shares.
The AGM re-elected PricewaterhouseCoopers Oy, Authorized Public Accountants, as
the company's auditors with Juha Tuomala, Authorized Public Accountant, as
principal auditor.
The AGM accepted the Board's proposal on profit distribution, according to which
the profit for the financial period, EUR 1,545,444.10, will be added to retained
earnings, and a dividend of EUR 0.02 per share (corresponding to EUR 0.20 per
share after the reverse share split) will be paid to a total of EUR
1,551,862.94.
The Annual General Meeting decided to authorize the Board of Directors to
distribute funds to shareholders, at its own discretion, as a capital repayment
from the invested unrestricted equity reserve. The maximum amount of equity
distributed to shareholders on the basis of the authorization would be EUR
1,000,000.00. The authorization is valid until the beginning of the next Annual
General Meeting.
The AGM authorized the Board of Directors to decide on the acquisition of a
maximum of 777,107 of the company's own shares, either in one or several
installments, using the company's unrestricted equity, in which case any buyback
will reduce the amount of distributable earnings. The AGM canceled the Board of
Directors' valid unexercised share-issue authorizations, and authorized the
Board to decide to issue a maximum of 3,000,000 shares or to grant special
rights (including stock options) entitling to shares, as referred to in Section
1 of Chapter 10 of the Limited Liability Companies Act, in one or several
installments. This authorization was granted for use in financing and
implementing any prospective corporate acquisitions or other transactions, for
implementing the company's share-based incentive plans, or for other purposes
determined by the Board. The Board has the right to decide on all terms and
conditions governing said share issue and the granting of special rights,
including the subscribers or grantees of the special rights, and the
consideration payable. The Board's authorization includes the right to waive
shareholders' preemptive subscription rights and covers the issue of new shares
and the transfer of any shares that may be held by the company. This
authorization is valid until April 30, 2014.
EXTRAORDINARY GENERAL MEETING
An Extraordinary General Meeting of Revenio Group Corporation held on December
9, 2013 decided to distribute a capital repayment of EUR 0.30 per share to
shareholders from the invested unrestricted equity reserve, to a total of EUR
2,353,536.30.
BOARD OF DIRECTORS AND AUDITORS
As of March 21, 2013, the Revenio Group Corporation's Board of Directors has
consisted of: Pekka Tammela, M.Sc. (Econ.), Authorized Public Accountant,
partner in P J Maa Partners Oy (Chairman); Rolf Fryckman, optician, Chairman of
the Board of Eyemaker's Finland Oy; and - a new member as of March 21, 2013 -
Ari Kohonen, M.Sc. (Eng.), M.Sc. (Econ.). Kohonen is Chairman of the Board of
Gerako Oy.
PricewaterhouseCoopers Oy, Authorized Public Accountants, serves as the
company's auditor, with Juha Tuomala, Authorized Public Accountant, as principal
auditor.
MAJOR EVENTS AFTER THE PERIOD
There have been no major events since the end of the financial year.
OUTLOOK FOR 2014
2014 profit guidelines: In continuing operations, net sales and operating profit
excluding non-recurring items are expected to see year-on-year growth. Growth
will focus on the Health Tech segment. Growth risks in the Technology and
Services segment have increased due to economic uncertainty.
Revenio has launched some of the most significant R&D projects in the company's
history. Their impact will be seen as net sales growth over the coming years,
although they will have a cost impact in 2014. In addition to R&D, and
investments will be required in marketing.
BRIEFING
A briefing for analysts, portfolio managers and media representatives will be
held on February 12, 2014 at 12:00.
STATEMENT OF ACCOUNTING POLICIES
The accounting and valuation principles used in this Financial Statement
Bulletin comply with International Financial Reporting Standards (IFRS). The
report does not comply with all the requirements of IAS 34, Interim Financial
Reporting. The figures are audited.
GROUP KEY FIGURES AND RATIOS (MEUR) 1-12/2013 1-12/2012
Net sales, continuing operations 25.7 21.1
Ebitda, continuing operations 6.3 4.9
Ebitda-%, continuing operations 24.3 23.3
Operating profit, continuing operations 5.6 4.3
Operating profit-%, continuing operations 21.7 20.1
Pre-tax profit, continuing operations 5.5 4.0
Pre-tax profit-%, continuing operations 21.3 19.0
Net profit from discontinued operations 0.0 -4.2
Net profit, continuing operations 4.3 3.0
Net profit-%, continuing operations 16.7 14.4
Gross capital expenditure 0.9 0.3
Gross capital expenditure-% 3.5 1.4
R&D costs 0.9 0.3
R&D costs-% from net sales 3.3 1.6
Gearing-% -16.8 -12.2
Equity ratio-% 66.1 62.2
Return on investment-% (ROI) 29.7 21.0
Return on equity-% (ROE) 25.7 26.4
Undiluted earnings per share, EUR, continuing operations 0.55 0.50
Diluted Earnings per share, EUR, continuing operations
Undiluted earnings per share, EUR, discontinued
operations 0.00 -0.54
Diluted Earnings per share, EUR, discontinued operations 0.00 -0.54
Equity per share, EUR 1.91 1.91
Average no. of employees, continuing operations 209 198
Cash flow from operating activities 5,5 3.9
Cash flow from discontinued operations -0.1 -3.1
Cash flow from investing activities 0.1 0.1
Net cash used in financing activities -5.9 -0.2
Total cash flow -0.4 0.5
CONSOLIDATED COMPREHENSIVE 1-12/2013 1-12/2012
INCOME STATEMENT (MEUR)
NET SALES 25.7 21.1
Other operating income 0.1 0.1
Materials and services -6.5 -4.4
Employee benefits -8.9 -7.7
Depreciation/amortization -0.7 -0.7
Other operating expenses -4.2 -4.1
OPERATING PROFIT, CONTINUING OPERATIONS 5.6 4.3
Share of associates' results 0.0 0.0
Financial expenses (net) -0.1 -0,3
PRE-TAX PROFIT, CONTINUING OPERATIONS 5.5 4.0
Income tax expense -1.1 -0.1
Net profit from continuing operations 4.3 3.9
Net profit from discontinued operations 0.0 -4.2
NET PROFIT 4.3 -0.3
Other comprehensive income items 0.0 0.0
Income tax expense for comprehensive income 0.0 0.0
Other comprehensive income items
after taxes 0.0 0.0
TOTAL COMPREHENSIVE INCOME 4.3 -0.3
Net profit attributable to:
Parent company shareholders 4.3 -0.3
Total comprehensive income attributable to:
Parent company shareholders 4.3 -0.3
Earnings per share, undiluted,EUR, continuing operations 0.55 0.50
Earnings per share, diluted,EUR, continuing operations 0,55 0,50
Earnings per share, undiluted,EUR, discontinued
operations 0.00 -0.54
Earnings per share, diluted,EUR, discontinued operations 0.00 -0.54
CONSOLIDATED COMPREHENSIVE
INCOME STATEMENT (MEUR) 10-12/2013 10-12/2012
NET SALES 7.2 6.3
Other operating income 0.1 0.0
Materials and services -1.9 -1.8
Employee benefits -2.6 -2.1
Depreciation/amortization -0.2 -0.2
Other operating expenses -0.9 -1.1
OPERATING PROFIT, CONTINUING OPERATIONS 1.7 1.2
Share of associates' results 0.0 0.0
Financial expenses (net) 0.0 -0.1
PRE-TAX PROFIT, CONTINUING OPERATIONS 1.7 1.1
Income tax expense -0.1 0.1
Net profit from continuing operations 1.6 1.2
Net profit from discontinued operations -0.1 -1,8
NET PROFIT 1,5 -0,6
Other comprehensive income items 0.0 0.0
Income tax expense for comprehensive income 0.0 0.0
Other comprehensive income items
after taxes 0.0 0.0
TOTAL COMPREHENSIVE INCOME 1.5 -0.6
Net profit attributable to:
Parent company shareholders 1.5 -0.6
Total comprehensive income attributable to:
Parent company shareholders 1.5 -0.6
CONSOLIDATED BALANCE SHEET (MEUR) 31 DEC 2013 31 DEC 2012
ASSETS
NON-CURRENT ASSETS
Property. plant and equipment 1.3 1.6
Goodwill 7.0 8.1
Intangible assets 2.4 0.6
Shares in associates 0.0 0.0
Deferred tax assets 0.5 1.6
TOTAL NON-CURRENT ASSETS 11.3 12.0
CURRENT ASSETS
Inventories 1.1 1.3
Trade and other receivables 4.5 4.9
Cash and cash equivalents 4.6 5.0
TOTAL CURRENT ASSETS 10.2 11.2
Non-current assets held
for sale 1.2 1.7
TOTAL ASSETS 22.6 25.0
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 5.3 5.3
Share premium 2.4 2.4
Fair value reserve 0.3 0.3
Invested unrestricted capital reserve 4.5 7.1
Retained earnings/loss 2.4 -0.4
TOTAL EQUITY. attributable to holders
of parent company equity 15.0 14.7
TOTAL SHAREHOLDERS' EQUITY 15.0 14.7
LIABILITIES
NON-CURRENT LIABILITIES
Deferred tax liabilities 0.1 0.2
Provisions 0.1 0.1
Financial liabilities 1.3 1.4
TOTAL LONG-TERM LIABILITIES 1.6 1.7
CURRENT LIABILITIES
Advance payments 1.3 1.4
Trade and other payables 3.5 3.3
Financial liabilities 0.8 1.8
TOTAL SHORT-TERM LIABILITIES 5.5 6.5
Long-term liabilities held
for sale 0.5 2.1
TOTAL LIABILITIES 7.7 10.3
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 22.6 25.0
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY (MEUR)
Share Share Other Retained Total
capital Premium Reserves Earnings Equity
Balance 1 Jan 2013 5.3 2.4 7.4 -0.4 14.7
Dividend distribution 0.0 0.0 0.0 -1.6 -1.6
Repayment of capital 0.0 0.0 -3.3 0.0 -3.3
Option rights
utilized 0.0 0.0 0.7 0.0 0.7
Net profit 0.0 0.0 0.0 4.3 4.4
Balance 31 Dec 2013 5.3 2.4 4.8 2.4 15.0
Share Share Other Retained Total
capital Premium Reserves Earnings Equity
Balance 1 Jan 2012 5.3 2.4 7.3 1.3 16.4
Dividend distribution 0.0 0.0 0.0 -1.5 -1.5
Options expense
adjustment 0.0 0.0 0.0 0.1 0.1
Option rights utilized 0.0 0.0 0.0 0.0 0.0
Net profit 0.0 0.0 0.0 -0.3 -0.3
Balance 31 Dec 2012 5.3 2.4 7.4 -0.4 14.7
CONSOLIDATED CASH FLOW STATEMENT (MEUR) 1-12/2013 1-12/2012
Net profit 4.3 0.2
Adjustments to net profit 0.9 0.9
Taxes 1.1 0.1
Change in working capital -0.8 0.5
Interest paid -0.0 -0.0
Interest received 0.0 0.0
CASH FLOW FROM OPERATING ACTIVITIES 5.5 1.7
Cash flow from discontinued operations -0.1 -3.1
Sales of subsidiaries
and associates' shares (net) 1.7 0.2
Purchase of Subsidiaries
-0.7 0.0
Purchase of PPE -0.3 -0.2
Purchase of Intangible assets -0.3 -0.1
NET CASH USED IN INVESTING ACTIVITIES -0.6 -0.1
Used options rights 0.8 0.0
Paid dividends and repayments of capital -4.8 -1.5
Repayments of long-term borrowings -1.7 -1.3
Long-term loans received 0.0 3.8
Finance lease principal payment -0.1 -0.1
Loans for associated companies granted -0.0 -0.0
NET CASH USED IN FINANCING ACTIVITIES -5.9 0.8
Net change in cash and equivalents -0.4 -0.6
Cash and equivalents. period-start 5.0 4.4
Cash and equivalents. period-end 4.6 3.8
NET SALES AND OPERATING PROFIT BY
QUARTER (MEUR)
Q4/2013 Q3/2013 Q2/2013 Q1/2013 Q4/2012 Q3/2012 Q2/2012 Q1/2012
Net sales 7.2 5.8 6.4 6.4 6.3 4.8 4.8 5.1
Oper.
Profit 1.7 1.4 1.5 1.1 1.2 1.1 0.9 1.1
Oper.
profit.-% 23 23 23 16 18 22 19 21
MAIN SHAREHOLDERS 31 DEC 2013
No. of shares %
1. Merivirta Jyri 1,000,000 12.7 %
2. Eyemakers' Finland Oy 500,000 6.4 %
3. Joensuun Kauppa ja Kone Oy 439,409 5.6 %
4. Sijoitusrahasto Evli Suomi Osake 366,986 4.7 %
5. Keskinäinen Eläkevakuutusyhtiö Etera 350,000 4.5 %
6. Gerako Oy 340,000 4.3 %
7. Alpisalo Mia 281,929 3.6 %
8. Salovaara Olli-Pekka 114,357 1.5 %
9. Kirkon Keskusrahasto 101,699 1.3 %
10. Keskinäinen vakuutusyhtiö Fennia 89,822 1.1 %
Revenio Group Corporation
Board of Directors
For additional information:
President&CEO Olli-Pekka Salovaara,
+358(0)40567 5520
olli-pekka.salovaara@revenio.fi
http://www.revenio.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
The Revenio Group in brief
Revenio is a Finnish health tech group whose core business is tonometers. The
Revenio Health Tech segment comprises the business operations of Icare Finland
Oy. The widely patented Icare product family is the current cornerstone of the
Group's success. Revenio seeks vigorous growth in health technology, both
organically and through acquisitions and mergers.
The Revenio Group also includes other business operations, which are grouped
under the Technology and Services segment. This segment's operations have a
shared global market and represent the cutting edge of technology products and
services in their industry. These businesses are extremely profitable in their
industries and generate positive cash flow.
In 2013, the Revenio Group's net sales totaled EUR 25.7 million, with its
operating margin standing at 21.7%. The Revenio Group Corporation is listed on
NASDAQ OMX Helsinki.
