Contact for press

You can contact us by:

Rocio Castro. Communication Department.

Media Kit

Follow us on:

Keep up-to-date on the latest at the Abengoa website:

November

Telvent Announces Third Quarter 2006 Financial Results

November 27, 2006

  • Revenues increase 29.2% to €129.2 million in the quarter, and 22.0% to €331.2 million year to date.
  • Pro Forma diluted EPS increases 5.5% to €0.19 in the quarter, and 17.9% to €0.48 year to date.
  • 2006 Revenue and EPS guidance raised.

Madrid – November 27, 2006 – Telvent GIT, S.A. (Nasdaq: TLVT), the Global RealTime IT Company, today announced unaudited financial results for the third quarter ended September 30, 2006. /p>

Third quarter 2006 revenues totaled €129.2 million, an increase of €29.2 million or 29.2%, compared to €100.0 million for the third quarter of 2005. Year to date, revenues totaled €331.2 million, an increase of €59.8 million or 22.0% (19.1% organic), versus €271.4 million reported for the first nine months of 2005. /p>

Net income for third quarter 2006 was €3.9 million, an increase of €0.1 million or 2.0%, versus €3.8 million reported for the third quarter of 2005. Diluted EPS for the third quarter of 2006 were €0.13, the same as Q3 of 2005. Year to date, net income was €10.5 million, an increase of €1.6 million or 17.2%, versus €8.9 million reported for the first nine months of 2005. Diluted EPS year to date were €0.36, compared to €0.31 in the same period of 2005. /p>

Pro forma net income for the third quarter 2006 was €5.5 million, an increase of 5.5%, versus €5.2 million for the third quarter of 2005. Pro forma diluted EPS for the third quarter 2006 were €0.19, versus €0.18 for the third quarter of 2005. Year to date, pro forma net income was €14.0 million, an increase of 17.9%, versus €11.9 million for the first nine months of 2005. Pro forma year to date diluted EPS were €0.48, versus €0.41 for the same period of 2005./p>

New order bookings (or new contracts signed) in the third quarter of 2006 were €188.2 million, a 66.3% increase from €113.2 million during the same period in 2005. The accumulated bookings year to date were €416.9 million, a 30.5% increase from the same period in 2005./p>

Backlog (representing the portion of signed contracts for which performance is pending) as of September 30, 2006 was €493.1 million, which reflects 40.3% growth over the €351.5 million at the end of September 2005./p>

Pipeline, measured as management’s estimates of real opportunities within the next 6 to 12 months, is approximately €1.24 billion. /p>

“The strength and momentum of our business is clearly reflected in the results for the quarter and for the first nine months of 2006. We continued to record solid incremental bookings which drove a stable backlog, and we achieved excellent revenue and EPS growth in all of our core segments.” said Manuel Sánchez Ortega, Telvent’s chairman and chief executive officer./p>

He added, “I am particularly pleased with the successful status of the integration and consolidation of our acquired businesses, especially Telvent Farradyne, our North American ITS Traffic business and our largest acquisition to date, which is driving recurrent revenue in the region. In addition, integration of our first acquisition in China, Beijing Blue Shield High & New Tech Co., Ltd, is progressing according to plan./p>

“Against this positive background, we are pleased to revise upward our 2006 guidance for organic revenue growth to a range of 15% to 18%, complemented with acquisitions, and pro forma diluted EPS to a range of €0.76 to €0.79. Additionally, we expect to achieve a pro forma operating margin from 7.0 percent to 7.5 percent.” /p>

Gross margin was 21.3% in the third quarter of 2006 compared to 21.1% in the third quarter of 2005. Gross margin for the first nine months of 2006 was 22.2% compared to 21.7% in the same period last year./p>

Operating expenses, as a percentage of revenues, were 15.5% in the third quarter of 2006. This represented an increase of €5.4 million or 0.8 percentage points from the same period last year. Operating expenses, as a percentage of revenues, year to date were 17.0%, compared to 16.4% in the same period last year./p>

Income from operations, as a percentage of revenues, was 5.7% in the third quarter of 2006, compared to 6.4% in the third quarter of 2005, and year to date was 5.1% compared to 5.3% in the same period last year./p>

As of September 30, 2006, cash and cash equivalents were €45.7 million and total debt (including net €35.1 million credit line due to related parties) was €84.6 million, resulting in a net debt position of €39.0 million. As of December 31, 2005, net cash position was €58.1 million./p>

For the first nine months of 2006, cash used in operating activities net of property, plant and equipment additions, was €54.7 million. For the same period in 2005, cash used was €37.5 million. Additional cash usage of €40.7 million was invested in acquisitions./p>

“Although we had negative operating cash flow for the first nine months, inflows in the fourth quarter to date have us well on track to be cash flow positive for the full year” commented Mr. Sánchez./p>

Segment Discussion/p>

Energy/p>

Revenues for the Energy segment in the third quarter of 2006 were €59.9 million, an increase of €11.3 million, or 23.1%, from €48.7 million in the third quarter of 2005. Gross margin in this segment was 21.3% in the third quarter of 2006, versus 21.6% in 2005. /p>

In the Oil and Gas sector, Telvent successfully renewed its IT Infrastructure Services outsourcing contract with Talisman Energy Inc (“Talisman”). The renewal, which runs through December 2009, is Telvent’s fourth outsourcing contract with Talisman. Outsourcing services provided by Telvent include network services, management of distributed and micro-computerized systems, technological infrastructure management, IT assets management and Helpdesk./p>

In the Electricity sector, the most significant contract was with Cadafe, Venezuela’s main electricity company. Telvent will supply, install and commission an integrated operating system, including incident and grid management, for Venezuela’s national electricity distribution network. This €8.2 million contract represents Telvent’s capacity to deliver an integrated functionality of Electric Suite product. /p>

Revenues in the Energy segment year to date were €151.1 million, an increase of €22.4 million, or 17.4%, from €128.7 million in the same period of 2005. Gross margin in this segment was 22.4% in the first nine months of 2006 versus 22.4% in 2005./p>

Traffic/p>

Revenues for the Traffic segment during the third quarter 2006 were €37.2 million, an increase of €9.0 million, or 32.0%, from €28.2 million recorded in the same period of 2005. Gross margin in this segment was 15.5% in the third quarter of 2006, versus 13.8% in 2005. The most significant contract during the quarter was with the Traffic Department of the State of Virginia. Over a period of five years, Telvent will provide operation and consultancy services for the Smart Traffic Control Center in the State’s northern region. The value of this contract was €9.3 Million./p>

Revenues for the first nine months of 2006 were €93.7 million, an increase of €8.8 million, or 10.4%, from €84.8 million in the same period of 2005. Gross margin in this segment was 18.3% in the first nine months of 2006, versus 17.1% in 2005./p>

Transport/p>

Revenues for the Transport segment during the third quarter 2006 were €11.0 million, an increase of €2.3 million, or 26.9%, from €8.7 million during the same period in 2005. Gross margin in this segment was 32.4% in the third quarter of 2006, versus 23.6% in the same period of 2005. The most significant contract was with Renfe Cercanías, in Spain, for the supply and installation of the access control system for Recoletos, Parla and Las Rozas suburban railway stations. The access control system will allow the use of both contact-free and magnetic band technology cards at these stations. The value of this contract was €1.2 Million./p>

Revenues year to date were €27.5 million, an increase of €10.7 million, or 63.8%, from €16.8 million in the same period of 2005. Gross margin in this segment was 26.5% in the first nine months of 2006 versus 22.1% in 2005./p>

Environment/p>

Revenues for the Environment segment during Q3 of 2006 were €9.9 million, an increase of €2.9 million, or 41.3%, from €7.0 million during the same period in 2005. Gross margin in this segment was 21.5% in the third quarter of 2006, versus 15.3% in the same period of 2005. The most significant contract this quarter was with Bursa Water and Sewerage Administrations General Directorate (BUSKI), to install, operate and maintain an information and communications system that will manage and ensure the quality of the city’s drinking water supply. This project in Bursa, an important agricultural and industrial city located about 100 kilometers from Istanbul, strengthens Telvent’s presence in Turkey. The value of this contract was €3.3 Million./p>

Revenues for the first nine months of 2006 were €28.2 million, an increase of €10.4 million, or 58.4%, from €17.8 million in the same period of 2005. Gross margin in this segment was 22.8% in the first nine months of 2006, versus 22.7% in 2005./p>

Other/p>

Revenues for the Other segment (Public Administration, Healthcare IT and Managed Services) during the third quarter of 2006 were €11.3 million, an increase of €3.7 million, or 49.7%, from €7.5 million in the same period in 2005. Gross margin in this segment was 29.1% in third quarter 2006, versus 47.5% in 2005. The most significant contract in this segment was with the Saint John of God Hospital Order to renovate the Hospital Management Systems at 14 hospitals in the Spanish province of Andalusia. This project represents the first complete implementation of Telvent’s TiCares solution for hospital management. The value of this contract was €2.8 Million./p>

Year to date, revenues were €30.8 million, an increase of €7.5 million, or 32.0%, from €23.3 million in the same period of 2005. Gross margin in this segment was 28.2% in the first nine months of 2006, versus 34.2% in 2005./p>

Use of Non-GAAP Financial Information/p>

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use certain non-GAAP measures, including pro forma net income and EPS. Pro forma net income and EPS are adjusted from GAAP-based results to exclude certain costs and expenses that we believe are not indicative of our core operating results. Pro forma results are one of the primary indicators management uses for evaluating historical results and for planning and forecasting future periods. We believe pro forma results provide consistency in our financial reporting which enhances our investors’ understanding of our current financial performance as well as our future prospects. Pro forma results should be viewed in addition to, and not in lieu of, GAAP results./p>

Pro forma net income excludes the amortization of intangible assets from the purchase price allocations in our acquisitions, stock compensation plan expenses and mark to market hedging, that Telvent believes are not indicative of its core performance or results. A reconciliation between GAAP, pro forma net income and EPS is provided in this release in a table immediately following the condensed consolidated financial statements./p>

Conference Call Details/p>

Telvent Chief Financial Officer Ana Plaza, and Jose Ignacio del Barrio, Executive Vice President of Business Development and Head of Investor Relations, will conduct a conference call to discuss the third quarter 2006 results, which will be simultaneously webcast at 9:00 A.M. Eastern Time / 3:00 P.M. Madrid Time on Tuesday, November 28, 2006. /p>

To access the conference call, participants in North America should dial 800-374-0724 and international participants should dial +1 (706) 634-1387. A live webcast of the conference call will be available on the investor relations zone of Telvent’s corporate web site at www.telvent.com. Please visit the web site at least 15 minutes early to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the web site approximately two hours after the conference call is completed. To access the replay, participants in North America should dial 800-642-1687 and international participants should dial +1 (706) 645-9291. The passcode for the replay is 1903111./p>

About Telvent/p>

Telvent (Nasdaq: TLVT), the Global RealTime IT Company, specializes in high value add solutions and services in four industry segments (Energy, Traffic, Transport and Environment). Its technology allows high performing companies to make real-time business decisions using data acquisition, control, and advanced operational applications, providing secure actionable information delivery to the enterprise./p>

Investor Relations Contact: /p>

José Ignacio del Barrio
Tel.: +34 902-335599
Email: jibarrio@telvent.abengoa.com/p>

Mark Jones
Tel.: +1 646-284-9414
Email: mjones@hfgcg.com

Results



© 2019 Abengoa. All rights reserved