Munich, October 28, 2011 – Nemetschek AG (ISIN 0006452907), Europe's largest vendor of software for architecture and construction, saw a 9 percent increase in revenues in the first nine months of 2011 to 117.9 million euros. Compared to the previous year, the operating result (EBITDA) rose by 5 percent to 27.9 million euros, representing an EBITDA margin of 24 percent.
Recurring revenues from maintenance contracts rose by 13 percent
In the first nine months, revenues from license sales rose by 6 percent to 56.7 million euros. Revenues from long-term maintenance contracts increased by 13 percent to 55.3 million euros; they thus made up 47 percent of the total revenue. In foreign markets, revenues rose by 9 percent to 70.5 million euros, making up 60 percent of the total revenue. In Germany, revenues increased by 8 percent compared to the same quarter of the previous year to 47.5 million euros.
In the Design business unit, revenue rose 8 percent to 95.0 million euros. The EBITDA margin in this segment was 21 percent, compared to 22 percent in the previous year. The Multimedia segment was the front runner in terms of revenue and increased profit: Here, revenues increased by 32 percent to 10.1 million euros and consequently, the EBITDA margin rose from 38 to 46 percent. In the Build segment, revenues increased slightly by 2 percent to 10.1 million euros, and the EBITDA margin was 33 percent (previous year: 38 percent). In the Manage business unit, which is currently being restructured, revenues (2.7 million euros) and EBITDA (0.3 million euros) remained at the previous year's level.
Earnings per share 1.38 euros
The operating result (EBITDA) rose by 5 percent compared to the previous year to 27.9 million euros, which corresponds to an EBITDA margin of 24 percent. Operating expenses increased by 9 percent to 100.1 million euros. Personnel costs rose by 8 percent to 50.9 million euros. The main reason for this was a change to the employee and wage structure at Hungarian subsidiary Graphisoft, as well as a slight increase in personnel in several group companies. Other operating expenses rose in the first nine months by 14 percent to 36.1 million euros: In addition to the foreign currency losses incurred in the first six months, this is primarily due to the higher dealer commissions resulting from the increases in revenue, as well as higher marketing and sales costs generated by several product launches.
Net income stood at 14.2 million euros, 4 percent higher than the previous year's value, which was marked by a one-time gain of 1.6 million euros from the sale of 8 percent of shares in DocuWare AG. The earnings per share (consolidated shares, basic) was 1.38 euros (previous year: 1.37 euros).
Cash flow for the period increased by 12 percent
In the first nine months, the Group achieved cash flow for the period of 27.4 million euros, compared with 24.5 million euros in the previous year. Because of advance tax payments and the reduction of liabilities, the cash flow from operating activities was 24.8 million euros, compared with 27.6 million euros in the previous year. The cash flow from investment activities amounted to - 4.0 million euros (previous year: - 2.0 million euros). At 3.5 million euros, investments in fixed assets remained largely at the previous year's level (3.7 million euros), but in the previous year, an additional 1.6 million euros flowed into the company as a result of the sale of DocuWare shares. The free cash flow was thus 20.7 million euros, compared with 25.6 million euros in the same period of the previous year.
After a dividend payment of 9.6 million euros and loan repayments of 7.8 million euros, the cash and cash equivalents were 31.4 million and therefore exceeded the remaining loan for the Graphisoft acquisition by 19.7 million euros. The equity ratio of the Nemetschek Group is 60 percent.
The development in the first nine months confirms the growth in sales of around 10 percent forecast for 2011. So far, the group has experienced only a marginal weakening of the business climate in some foreign markets and in project business. In Germany, the group was able to grow strongly and expects this trend to continue. At the start of October, the construction industry association HDB (Hauptverband der deutschen Bauindustrie) revised its growth forecast for 2011 from 4.5 to 7 percent.
The group confirmed its forecasts for the current fiscal year. Unless the underlying conditions significantly worsen in the very near future, Nemetschek still expects an operating result (EBITDA) of around 40 million euros, equivalent to an EBITDA margin of around 24 percent. The liabilities resulting from the Graphisoft acquisition will be almost completely eliminated in 2011, meaning that the group's interest charges will also fall further. As a result, the net income for 2011 will probably increase to more than 20 million euros, as forecast.