Earnings release
Page 1
Evertz Technologies Limited – Press Release Quarter Ended October 31, 2024 - 1 - Attention Business/Financial Editors: Evertz Technologies reports Second Quarter results for the quarter ended October 31, 2024. Burlington, December 10, 2024, Evertz Technologies Limited (TSX:ET), the leader in Software Defined Video Network (“SDVN”) technology, today reported its results for the second quarter ended October 31, 2024. Second Quarter 2025 Highlights - Quarterly revenue of $125.3 million, an increase of 12.2% or $13.6 million from the sequential quarter - Reoccurring software, services and other software revenue of $54.8 million in the qua rter, up 23.7% from the prior year - US/ Canadian quarterly revenue of $94.9 million up $20.8 million or 28.2% from the sequential quarter - Earnings from operations of $21.4 million for the quarter, an increa se of 69.7% from the sequential quarter - Net earnings of $15.9 million for the quarter, and increase of 64.1% from the sequential quarter - Fully diluted earnings per share of $0.21 for the quarter - Regular quarterly dividend increased to $0.20 per share Quarterly Selected Financial Information Consolidated Statement of Earnings Data (in thousands of dollars, except earnings per share and share data) Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars) Q2 ' 25 Q2 ' 24 Revenue 125,259$ 130,749$ Gross margin 74,260 78,019 Earnings from operations 21,391 32,150 Net earnings 15,937 22,251 Fully-diluted earnings per share 0.21$ 0.29$ Fully-diluted shares 77,077,835 76,650,240 Q2 ' 25 YE ' 24 Cash and cash equivalents 61,729$ 86,325$ Working capital 199,805 201,437 Total assets 451,165 484,722 Shareholders' equity 262,478 263,267
Page 2
Evertz Technologies Limited – Press Release Quarter Ended October 31, 2024 - 2 - Revenue For the quarter ended October 31, 2024, revenues were $125.3 million compared to revenues of $130.7 million for the quarter ended October 31, 2023. For the quarter, revenues in the United States/Canada region were $94.9 million an increase of 28% compared to $74.0 million in the same quarter last year. The International region had revenues of $30.4 million, compared to $56.7 million in the same quarter last year. Gross Margin For the quarter ended October 31, 2024, gross margin was $74.2 compared to $78.0 million in the same quarter last year. Gross margin percentage was approximately 59.3% as compared to 59.7% in the quarter ended October 31, 2023. Earnings For the quarter ended October 31, 2024, net earnings were $15.9 million compared to $22.3 million in the corresponding period last year. For the quarter ended October 31, 2024, earnings per share on a fully-diluted basis were $0.21 as compared to $0.29 in the corresponding period last year. Operating Expenses For the quarter ended October 31, 2024, selling and administrative expenses were $18.4 million as compared to $17.5 million for the quarter ended October 31, 2023. For the quarter ended October 31, 2024, gross research and development expenses were $36.3 million as compared to $32.2 million for the quarter ended October 31, 2023. Liquidity and Capital Resources The Company’s working capital as at October 31, 2024 was $199.8 million as compared to $201.4 million on April 30, 2024. Cash and cash equivalent was $61.7 million as at October 31, 2024 as compared to $86.3 million on April 30, 2024. Cash used from operations was $9.6 million for the quarter ended October 31, 2024 as compared to $20.3 million cash generated for the quarter ended October 31, 2023. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $21.8 million from operations for the quarter ended October 31, 2024 compared to $30.9 million for the same period last year. For the quarter, the Company used $1.4 million from investing activities. For the quarter ended, the Company used cash in financing activities of $18.7 million which was principally a result of the payment of dividends of $14.8 million. Shipments and Backlog At the end of November 2024, purchase order backlog was in excess of $298 million and shipments during the month of November 2024 were $50 million.
Page 3
Evertz Technologies Limited – Press Release Quarter Ended October 31, 2024 - 3 - Dividend Declared Evertz Board of Directors declared a regular quarterly dividend on December 10, 2024 of $0.20 per share. The dividend is payable to shareholders of record on December 19, 2024 and will be paid on or about December 24, 2024.
Page 4
Evertz Technologies Limited – Press Release Quarter Ended October 31, 2024 - 4 - Selected Consolidated Financial Information (in thousands of dollars except earnings per share and share data) Revenue Cost of goods sold Gross margin Ex penses Selling and adm inistrative G eneral Research and development Investment tax credits Share based compensation Foreign ex change gain Earnings before undernoted Finance income Finance costs Net loss on investm ents through profit and loss Other income and ex penses Earnings before income tax es Provision for (recovery of) incom e tax es Current Deferred Net earnings for the period Net earnings attributable to non-controlling interest Net earnings attributable to shareholders Net earnings for the period Earnings per share Bas ic Diluted 0.21$ 0.29$ 0.33$ 0.49$ 15,937$ 22,251$ 25,648$ 38,143$ 0.21$ 0.29$ 0.33$ 0.49$ 133 158 175 299 15,804 22,093 25,473 37,844 6,018 7,695 9,522 13,684 15,937$ 22,251$ 25,648$ 38,143$ 5,313 6,675 10,876 14,436 705 1,020 (1,354) (752) 101 216 311 122 21,955 29,946 35,170 51,827 (374) (341) (683) (585) - (2,492) - (2,704) 21,391 32,150 34,000 54,457 837 413 1,542 537 (761) (2,913) (782) (861) 52,869 45,869 106,522 95,598 (3,590) (3,212) (7,350) (6,607) 1,267 1,154 2,442 2,679 1,302 1,173 2,583 2,332 36,279 32,167 73,653 64,157 74,260 78,019 140,522 150,055 18,372 17,500 35,976 33,898 125,259$ 130,749$ 236,902$ 256,568$ 50,999 52,730 96,380 106,513 Three month period ended Six month period ended October 31, October 31, 2024 2023 2024 2023
Page 5
Evertz Technologies Limited – Press Release Quarter Ended October 31, 2024 - 5 - Forward-Looking Statements The report contains forward-looking statements reflecting Evertz’s objectives, estimates and expectations. Such forward looking statements use words such as “may”, “will”, “expect”, “believe”, “anticipate”, “plan”, “intend”, “project”, “continue” and other similar terminology of a forward-looking nature or negatives of those terms. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward -looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company’s actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements. Conference Call The Company will hold a conference call with financial analysts to discuss the results on December 10, 2024 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen only mode. The conference call may be accessed by dialing 1-289-514-5100 or Toll Free (North America) 1-800-717-1738. For those unable to listen to the live call, a rebroadcast will also be available until January 10, 2025. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-888-660-6264, passcode 56182. About Evertz Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new -media industries . The Company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi -channel digital, and high and ultra-high definition television (“HDTV ” and “UHD ”) and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company’s products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the “Cloud”.