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

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). Contact paragon AG Schwalbenweg 29 33129 Delbrück Germany 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 service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 33129 Delbrück Germany 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, Stuttgart End of News DGAP News Service --------------------------------------------------------------------- 414523 2015-11-19