07 September 2022
Somero® Enterprises, Inc.
(“Somero” or “the Company” or “the Group”)
Interim Results for the six months ended June 30, 2022
Record H1 revenue driven by continued strength in the US market
Financial Highlights
- H1 2022 revenues were US$ 68.5m (H1 2021: US$64.4m), a record level for H1
o Led by US revenues which were up 9% on H1 2021, reflecting a strong, active non-residential construction market and the positive impact of 2022 price increases
o Three of the Company's five regions reported revenues up over H1 2021 including the US, with Australia and Latin America contributing a combined US$ 1.9m to H1 2022 growth
- Record H1 revenue translated efficiently to strong profits and operating cash flow
o US$ 24.1m in H1 2022 adjusted EBITDA (H1 2021: US$ 24.6m)
o US$ 12.8m in H1 2022 cash flow from operations (H1 2021: US$ 16.0m)
- Based on strong H1 2022 results and a positive H2 2022 outlook, the Board anticipates the business to trade in line with expectations for 2022 revenues of approximately US$ 138.8m, EBITDA of approximately US$ 47.7m, and year-end cash of approximately US$ 39.9m
|
H1 2022 US$ |
H1 2021 US$ |
% Change |
|
|
Revenue |
$68.5m |
$ 64.4m |
6% |
|
Adjusted EBITDA(1,2) |
$24.1m |
$ 24.6m |
-2% |
|
Adjusted EBITDA margin(1,2) |
35.3% |
38.2% |
-290bps |
|
Profits before tax |
$22.4m |
$ 23.5m |
-5% |
|
Adjusted net income(1,3) |
$17.3m |
$ 18.2m |
-5% |
|
Diluted adjusted net income per share(1,3) |
$0.31 |
$ 0.32 |
-3% |
|
Cash flow from operations |
$12.8m |
$ 16.0m |
-20% |
|
Net cash(4) |
$27.2m |
$ 32.8m |
-17% |
|
Interim dividend per share |
$ 0.10 |
$ 0.09 |
11% |
Operational Highlights
- Re-investing for sustainable long-term growth
o The US$ 9.5m expansion project for the Houghton, Michigan, Operations and Support Offices remains on track for Q3 2022 completion
o The Company added a total of seventeen employees since June 30, 2021 primarily in sales, customer support and operational roles, with six employees added in Europe and Australia combined
- Developing new products to expand the addressable market and contribute to growth
o The SkyScreed® 36, S-PS50, SkyStrip ® and Somero Broom+CureTM, all launched since 2019 to target new market segments, combined to contribute US$ 3.2m to H1 2022 revenues (H1 2021: US$ 1.4m)
o The customer-led product development process made substantial progress in H1 2022 driven by a high volume of job site visits with customers and innovation council events
Post-Period Highlights
- The Board has also declared a US$ 0.10 per share interim dividend, an 11% increase compared to the 2021 interim dividend
Notes:
- The Company uses non-US GAAP financial measures to provide supplemental information regarding the Company's operating performance. See further information regarding non-GAAP measures below.
- Adjusted EBITDA as used herein is a calculation of the Company's net income plus tax provision, interest expense, interest income, foreign exchange loss, other expense, depreciation, amortization stock-based compensation and non-cash lease expense.
- Adjusted net income as used herein is a calculation of net income plus amortization of intangibles and excluding the tax impact of stock option and RSU settlements and other special items.
- Net cash is defined as cash and cash equivalents less borrowings under bank obligations exclusive of deferred financing costs.
Jack Cooney, CEO of Somero, said:
“The Company delivered record H1 2022 revenues thanks to the remarkable performance by our talented and dedicated employees who managed to keep pace with a highly active US market, delivering equipment to meet our customers' needs and continuing to reinforce our reputation as reliable partners. Outside of a very strong US market, we are pleased with the contribution to revenues from our international regions, and in particular with the activity levels and interest in our equipment, new and existing, that we continue to see in Europe and Australia.
Equally impressive was the efficiency of our operations during this period. The Company delivered a very healthy level of profit and generated a high-level of cash from operations, providing the financial strength necessary to fund investment in new employees and a major expansion of our Houghton facility.
The Company also made good progress on executing its product development growth strategy. New products contributed materially to H1 2022 revenues and we took meaningful steps to enhance our product development pipeline.
Based on the success of the first half and current market conditions, we confirm our guidance for 2022. We expect to deliver strong revenues, profits and cash flow for our shareholders and, most importantly, we remain committed to making sound strategic investments to deliver healthy profits and cash flows to our shareholders in the years that follow.”
For further information, please contact:
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Enquiries:
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Somero Enterprises, Inc. www.somero.com Jack Cooney, CEO +1 239 210 6500 John Yuncza, President Vincenzo LiCausi, CFO Howard Hohmann, EVP Sales
finnCap Ltd (NOMAD and Broker) Matt Goode /Seamus Fricker/Fergus Sullivan(Corporate Finance) +44 (0)20 7220 0500 Tim Redfern/Richard Chambers (ECM)
Alma PR (Financial PR Advisor) somero@almapr.co.uk David Ison +44 (0)20 3405 0205 Pippa Crabtree |