DGAP-News: paragon AG / Key word(s): Quarter Results

2015-11-19 / 09:28


paragon AG posts ongoing dynamic performance 
for first three quarters of 2015 

  - 9-month revenue 20.4% up on prior year

  - EBIT margin almost doubles year-on-year

  - Sharp rise in operating cash flow to EUR 6.6 million (prior year's
    period: EUR -0.3 million)

  - Production plants opened in US and China 

Delbrück, November 19, 2015 - paragon AG upheld the very strong business
performance already seen in the first half of the year in the third quarter
as well and further boosted its revenue momentum in particular. At EUR 67.4
million, consolidated revenue for the first nine months of 2015 was 20.4%
ahead of the figure of EUR 56.0 million for the prior year's period. In the
3rd quarter alone, revenue surged by 24.9% to EUR 22.7 million. EBIT more
than doubled to EUR 4.6 million (prior year: EUR 2.0 million), while the
EBIT margin also rose sharply from 3.6% to 6.8%. Indications for the rest
of the year also remain positive.

"For us, the second half of the year has been shaped by very strong revenue
momentum across all business divisions accompanied by groundbreaking steps
on the investment front. In recent months we have opened our new production
plants in the US and China. Not only that, our far-reaching product
campaign presented at the IAA Motor Show in Frankfurt has received superb
feedback in professional circles," remarked Klaus Dieter Frers, CEO of
paragon AG.

All business divisions post growing revenue momentum 
In addition to the pleasing development of the new divisions - Body
Kinematics and Electromobility - the original core business also generated
substantial growth in the first nine months of 2015. The Sensors business
division benefited from strong demand for its air quality management
solutions (AQS, AQI) and increased its revenue from EUR 22.5 million to EUR
25.1 million. The Acoustics business division grew from EUR 10.9 million to
EUR 11.9 million, while revenue in the Cockpit business division rose from
EUR 20.2 million to EUR 24.0 million. At EUR 25.5 million, total
investments at the paragon Group remained high (prior year: EUR 9.0
million) and related in particular to the acquisition of SphereDesign GmbH,
replacement and new investments in machinery, and the current product
campaign. Furthermore, in the current year paragon has consistently
invested in its Voltabox subsidiaries, in real estate at its headquarters
in Delbrück and in the US to expand its production capacity, and
additionally and substantially in its Body Kinematics and Acoustics
business divisions. These additional investments alone were EUR 3.3 million
higher than in the prior year. The company has thus laid a foundation to
generate further significant growth.

paragon's nine-month earnings performance was also significantly ahead of
the prior year's period. Despite the one-off expenses referred to above,
EBIT grew by 127.9% from EUR 2.0 million to EUR 4.6 million and the EBIT
margin improved from 3.6% to 6.8%. Excluding the aforementioned additional
expenses of EUR 3.3 million, EBIT would have amounted to EUR 7.9 million
(adjusted prior year's figure: EUR 4.6 million) with an adjusted margin of
11.7% (prior year: 8.2%). Unadjusted consolidated net income (IFRS) as of
September 30, 2015 rose to EUR 1.8 million (prior year: EUR 0.2 million),
while earnings per share showed a corresponding increase to EUR 0.45 (prior
year: EUR 0.04).

Internationalization progressing apace 
Voltabox of Texas, Inc., paragon's US subsidiary, opened its new production
plant close to Austin/Texas at the beginning of the third quarter already.
This was followed in early November by the opening of the new plant in
Kunshan/China. The key focus of production here is on air quality systems,
as this is where the Chinese market offers the greatest revenue potential.
paragon is the world leader in the global market for AQS air quality
sensors and has already acquired notable orders from Chinese carmakers. The
assembly of battery systems, initially for the Chinese market and later
also for export, is due to be launched in 2016. With these activities,
paragon is consistently pressing ahead with the further implementation of
its previously announced internationalization strategy.

The key highlight in the Electromobility business in the third quarter was
the major order for starter batteries for conventionally powered vehicles
received from a German carmaker and worth around EUR 72 million. In the
context of the IAA Motor Show in Frankfurt in September 2015, paragon also
presented numerous further innovations from across all business divisions,
such as a modular sound system, a connectivity platform, steering wheel
control elements and interior components, aerodynamic systems and a
substantially extended Electromobility product range.

The Managing Board sees the ongoing positive performance in the current
fourth quarter as confirming its full-year revenue forecast for 2015, which
predicts consolidated revenue of up to EUR 100 million. Despite the
substantial additional expenses for the far-reaching development of new
business divisions, the full-year EBIT margin will match the prior year's
figure. On an adjusted basis, however, it will clearly exceed the prior
year's figure. The forecast for fiscal 2016 will as usual be published in
December of this year. It can be assumed now already that the coming year
will see a nearly double-digit revenue growth accompanied by a further
improvement in earnings.

Company profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt am Main, paragon AG develops, produces, and sells advanced
automotive electronics solutions. The portfolio of this direct supplier to
the automotive industry includes products in the following business
divisions: Sensors, Acoustics, Cockpit, Electromobility, and Body
Kinematics. Headquartered in Delbrück (North Rhine-Westphalia), paragon AG
has branches in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen
(Baden-Württemberg), and Bexbach (Saarland), as well as subsidiaries in
Bexbach (SphereDesign), Kunshan (China), and Austin (Texas, USA).


paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon.ag
E-mail: info@paragon.ag

Financial press and investor relations contact
Instinctif Deutschland GmbH
Michael Müller
Tel.:  +49 (0) 221/42075-0
E-mail: michael.mueller@instinctif.com


2015-11-19 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                    
Company:     paragon AG                                                 
             Schwalbenweg 29                                            
             33129 Delbrück                                             
Phone:       +49 (0)5250 97 62 - 0                                      
Fax:         +49 (0)5250 97 62 - 60                                     
E-mail:      investor@paragon.ag                                        
Internet:    www.paragon.ag                                             
ISIN:        DE0005558696, DE000A1TND93                                 
WKN:         555869, A1TND9                                             
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
End of News    DGAP News Service  
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