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

2016-04-27 / 07:30
The issuer is solely responsible for the content of this announcement.

paragon AG upholds unimpeded growth course in 1st quarter

- Consolidated revenue up 9.4 percent to EUR 23.2 million (prior year: EUR 21.2 million)

- Electromobility subsidiary Voltabox with substantial contribution to growth

- EBITDA up 8.3 percent to EUR 3.0 million (prior year: EUR 2.8 million)

- EBIT of EUR 1.4 million matches prior year's figure

- Investments decrease to EUR 5.0 million (prior year: EUR 9.6 million)

- Revenue and earnings forecast for current fiscal year confirmed

Delbrück, April 27, 2016 - paragon AG [ISIN DE0005558696] today published its interim report for the first quarter of 2016 and confirmed its outlook for the current fiscal year.

The company generated consolidated revenue of EUR 23.2 million in the first quarter (prior year: EUR 21.2 million). In a favorable overall climate in the automotive industry, this growth was chiefly driven by the Electromobility and Acoustics business divisions. Due to the expansion in the electromobility business, cost of material rose to EUR 13.0 million (prior year: EUR 11.8 million), resulting in gross profit of EUR 14.2 million (prior year: EUR 12.4 million). That corresponds to a current gross margin of 61.2 percent (prior year: 58.6 percent).

"The first-quarter results offer further proof of the outstanding dynamism of our unique business model", comments Klaus Dieter Frers, founder and CEO of paragon AG. "These developments give us reason to be positive about this growth course for the rest of the year as well."

The US subsidiary Voltabox of Texas, Inc. contributed EUR 1.4 million to consolidated revenue in the past quarter, up from EUR 0.9 million in the fourth quarter of 2015. Having begun to supply two US customers, the ramp-up of production activities at the production site newly built last year is progressing on schedule. The revenue growth in the Acoustics business division to EUR 4.3 million (prior year: EUR 3.8 million) mainly resulted from the success of the belt-mic(R) seatbelt microphone. Not only that, the launch of serial production for this innovation in a further platform at a German premium manufacturer was confirmed for the current fiscal year. With slight revenue growth to EUR 8.7 million (prior year: EUR 8.5 million), the Sensors business division once again proved to be a robust pillar of the business, with 37.5% and thus the largest share of consolidated revenue (prior year: 40.2%). Here, serial production for air quality sensors for a new southern European customer began in the first quarter. Furthermore, preparations were made for the launch of serial production for paragon's new CO2 sensor. While the revenue of EUR 7.4 million contributed by the Cockpit business division fell slightly short of the prior year's figure of EUR 7.7 million, this division nevertheless reported the strongest new order growth. Alongside the global premiere of a smartphone mounting with a wireless charging facility for motorcycles at a premium manufacturer, these innovations also included various new production launches of clocks and additional instruments for German and international premium manufacturers. With a revenue contribution of EUR 1.0 million (prior year: EUR 1.1 million), activities in the Body Kinematics business division in the past quarter were largely characterized by several parallel serial development projects which are all due to enter production in 2017.

"With our innovation and development process we are superbly positioned to help shape the impact of megatrends on individual niches of the automotive industry", adds Dr. Stefan Schwehr, Chief Technology Officer. "Our longstanding cooperation on a basis of trust with leading premium manufacturers is extremely valuable in this respect."

Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 8.3 percent to EUR 3.0 million (prior year: EUR 2.8 million).

Due to increased personnel expenses resulting from the expansion in the business and higher depreciation and amortization, consolidated EBIT (earnings before interest and taxes) was at the same level as last year. That corresponds to an EBIT margin of 5.9 percent (prior year: 6.6 percent).

Net of a reduced financial result of EUR -0.7 million (prior year: EUR -0.4 million) and an increased income tax charge of EUR 0.5 million (prior year: EUR 0.2 million), net income decreased to EUR 0.1 million (prior year: EUR 0.8 million). That corresponds to earnings per share of EUR 0.02 (prior year: EUR 0.19).

Driven by the high volume of investments in the past fiscal year, total assets grew to EUR 102.3 million (prior year: EUR 75.0 million). Equity increased to EUR 19.7 million (prior year: EUR 17.8 million), equivalent to a current equity ratio of 19.2 percent (prior year: 23.7 percent).

The cash flow from operating activities dropped to EUR 1.5 million in the first quarter (prior year: EUR 2.8 million), a development mainly due to a significantly lower increase in trade payables. The cash flow from investing activities reduced as planned to EUR 4.9 million (prior year: EUR 9.7 million).

Cash and cash equivalents totaled EUR 9.7 million at the balance sheet, as against EUR 8.5 million at the end of fiscal year 2015. Available liquidity decreased slightly over the same period from EUR 13.8 million to EUR 12.8 million.

Based on these first-quarter results, the Managing Board has confirmed its earlier revenue and earnings forecast for the current fiscal year. Accordingly, consolidated revenue should grow by around 8 percent in the current fiscal year and thus exceed the EUR 100 million mark. Earnings should show disproportionate growth, with an EBIT margin of around 9 percent expected. Key drivers of this growth are expected in the Sensors and Electromobility (Voltabox) business divisions.
The interim report with the condensed interim consolidated financial statements for the first quarter of 2016 can be downloaded from http://www.paragon.ag/en/investors.html.

Company Profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and sells innovative automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the business segments of Sensors, Acoustics, Cockpit, E-mobility and Body Kinematics. In addition to its headquarters in Delbrück (North Rhine-Westphalia), paragon AG has locations in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Württemberg) and Bexbach (Saarland) and subsidiaries in Bexbach (Fa. ShereDesign), Kunshan (China) and in Austin (Texas, USA).

Corporate Contact Information:

paragon AG

Schwalbenweg 29
D-33129 Delbrück
Phone: +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 Contact & Investor Relations

paragon AG

Dr. Kai Holtmann
Artegastraße 1
D-33129 Delbrück
Phone: +49 (0) 52 50 - 97 62-140
Fax: +49 (0) 52 50 - 97 62-63
E-Mail: kai.holtmann@paragon.ag

2016-04-27 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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