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February

Telvent Announces Fourth Quarter and Fiscal Year 2008 Financial Results

February 26, 2009

February 26, 2009 – Telvent GIT, S.A. (NASDAQ: TLVT), the IT company for a sustainable and secure world, announced today its audited financial results for the fourth quarter and fiscal year ended December 31, 2008.

Pro forma revenues for the fourth quarter 2008 were € 254.4 million, an increase of 24.9% (12.9% organic), from € 203.7 million in the fourth quarter of 2007. Pro forma revenues for the fiscal year 2008 totaled € 698.8 million, a 17.5% increase from the € 594.8 million reported for fiscal year 2007.

Pro forma gross margin was 29.1% for the fourth quarter of 2008, compared to 22.1% in the fourth quarter of 2007. Pro forma gross margin for the fiscal year 2008 was 26.7%, compared to 23.3% in 2007.

Pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter 2008 were € 43.4 million, compared to € 22.6 million in the fourth quarter 2007. Pro forma EBITDA for fiscal year 2008 amounted to € 80.3 million, versus € 54.7 million reached in fiscal year 2007.

Pro forma operating margin for the fourth quarter 2008 was 15.7%, compared to 10.2% in the fourth quarter 2007. Pro forma operating margin was 10.2% for the fiscal year 2008, showing an improvement from 8.0% in 2007. Pro forma income from operations increased by 92.8% and 50.2% in the fourth quarter 2008 and the fiscal year 2008, respectively, compared to the same periods of the prior year.

Pro forma net income for the fourth quarter 2008 was € 19.6 million, compared to € 12.5 million in the fourth quarter 2007. Pro forma net income for the fiscal year 2008 amounted to € 37.5 million, versus € 29.8 million for the fiscal year 2007. Basic and diluted pro forma EPS for the fourth quarter 2008 were € 0.60, compared to € 0.43 in the fourth quarter 2007 and basic and diluted pro forma EPS for the fiscal year 2008 were € 1.25, versus € 1.02 in the previous year. Pro forma basic and diluted EPS were determined by using a weighted average number of shares issued and outstanding in the fourth quarter and fiscal year 2008 of 32,656,021 and 30,096,995, respectively, and a weighted average number of shares issued and outstanding in the fourth quarter and fiscal year 2007 of 29,247,100. Assuming the same number of shares outstanding in each period (32,656,021 for the fourth quarter and 30,096,995 for fiscal year), basic and diluted pro forma EPS for the fourth quarter 2008 were € 0.60, compared to € 0.38 in the fourth quarter 2007 and basic and diluted pro forma EPS for the fiscal year 2008 were € 1.25, versus € 0.99 in the previous year.

New order bookings (or new contracts signed) during the fourth quarter of 2008 totaled € 296.6 million, a 24.8% increase from € 237.7 million recorded in the same period in 2007. Bookings for the full year amounted to € 773.5 million, compared to € 684.7 million for the fiscal year 2007.

Backlog (representing the portion of signed contracts for which performance is pending) was € 607.8 million as of December 31, 2008, reflecting a 10.6% growth over the € 549.6 million in backlog at the end of December 2007. In addition, soft backlog (representing pending performance on multi-year frame contracts for which there is no contractual obligation on the part of the client to fulfill the full contract amount) was € 227.1 million as of December 31, 2008, versus € 141.0 million in soft backlog at the end of fiscal 2007.

Pipeline, measured as management’s estimates of real opportunities for the following six to twelve months, is approximately of € 3.8 billion.

As of December 31, 2008, cash and cash equivalents were € 85.8 million and total debt (including € 4.2 million of net credit line due from related parties) amounted to € 294.4 million, resulting in a net debt position of € 208.6 million.

For fiscal year 2008, cash provided in operating activities was € 43.1 million compared to € 13.9 million provided in fiscal year 2007. Cash used in investing activities in fiscal year 2008 amounted to € 153.5 million, compared to € 52.8 million used in 2007.

Manuel Sanchez, Chief Executive Officer, mentioned, “I am pleased that we closed another year of undeniable good performance, with double-digit revenue growth and improved operating margins. In addition, we have seen another strong fourth quarter in bookings and collections, increasing our backlog to unprecedented figures, which puts us in a very favorable and distinguished position to begin the year 2009. Our backlog and increasing pipeline of identified opportunities is particularly important this year, in light of the uncertain market conditions worldwide.”

“2008 also marks a very important milestone in Telvent’s history, as we closed the DTN acquisition at the end of October. After this, Telvent has strengthened its leadership in the Energy and Weather markets in the US, has added an important segment for both, the economy and the sustainability of any country, as the Agriculture, and has improved its revenue recurrence and operating cash flow generation”, he concluded.

Business Outlook

For fiscal year 2009, pro forma revenue growth is expected to be between the range of 18% and 21%. Pro forma gross margin is expected to be between the range of 32% and 34%. Pro forma EBITDA margin is expected to range between 13.5% and 14.5%, while pro forma operating margin between 11.5% and 12.5%. Finally, pro forma diluted EPS is expected to be in the range of € 1.54 to € 1.58. Pro forma diluted EPS were determined by using an expected weighted average number of shares issued and outstanding in the year 2009 of 34,094,159 shares.

Business Highlights

Energy

Some of the significant projects signed during the fourth quarter of 2008 were as follows:

  • Project awarded by PetroChina Company Limited for the Lan-Zheng-Chang oil pipeline SCADA system. Telvent OASyS system will monitor and control 28 stations, as well as 35 block valve stations and five remote terminals situated along the largest and longest liquid pipeline in China. The pipeline is over 2,100 kilometers in length. All data from the Lan-Zheng-Chang pipeline will be uploaded to the existing Telvent OASyS SCADA system in the Beijing Main Control Center and the Langfang Backup Control Center. In all, the solution will allow PetroChina to manage its entire product oil pipeline. The OASyS SCADA system will allow PetroChina to functionally manage the pipeline in real time and improve the security of its operation. In particular, this solution is expected improve efficiency and security of the extraction and transportation processes of the pipeline and, therefore, greater sustainability of the system by careful use of the resources and reduction of the harmful effects to the environment from potential liquid losses.
  • Contract awarded by the Spanish infrastructure administrator, Adif, to install the traction power control system along the Barcelona-Figueras railway line to connect the high-speed Madrid-Zaragoza-Barcelona railway line and the French border. The project includes the design, development, installation and maintenance of the power control system is expected to be completed in 2009. Telvent’s power control system is expected to allow better energy efficiency levels for the railway line and is expected to also help reduce energy consumption, supporting Adif’s goal of providing sustainable transportation systems.

ransportation

During the fourth quarter of 2008 some of the significant contracts signed were:

  • Contract awarded by the Pennsylvania Department of Transportation (PennDOT) to implement a new a state-wide traveler information system, 511 Pennsylvania. Telvent will serve as the prime contractor and is teaming along with other leading companies. The contract will last approximately 3 years and is valued at more than € 8 million. The project’s objective is to provide services to design, build, implement, operate, host and maintain the 511 Pennsylvania that not only meets PennDOT’s short-term goals, but also provides a basis on which additional functionality can be added to address long-term goals and future needs.
  • Contract signed with the City of Barcelona, valued at approximately € 18 million, for the maintenance of the traffic control system in Barcelona during a three-year period.

Environment

During the fourth quarter, significant contracts signed were:

  • Contract with Bosnian Civil Aviation Authorities, in Bosnia, for the supply and installation of aeronautical meteorological systems for four airports: Sarajevo, Tuzla, Banja Luka and Mostar. Telvent will supply diverse automatic weather observation systems (AWOS) for the airports, as well as other aviation information systems for the Directorate of Civil Aviation of Bosnia and Herzegovina. AWOS function will provide information on weather conditions and airport operations to air traffic services, personnel in charge of meteorology at each airport, pilots, airlines and other users. The data obtained from aviation information systems is essential in enabling efficient and secure decision-making for airport authorities.

Use of Non-GAAP Financial Information

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.

Pro forma revenues exclude the impact of joint ventures. Pro forma net income excludes the amortization of intangible assets arising from the purchase price allocations performed in our acquisitions, stock and extraordinary compensation plan expenses and mark to market of derivatives and hedged items that Telvent believes are not indicative of its core performance or results. Reconciliation between GAAP and pro forma figures is provided in this release in a table immediately following the condensed consolidated financial statements.

Conference Call Details

Manuel Sanchez, Chief Executive Officer, and Barbara Zubiria, Chief Accounting and Reporting Officer and Head of Investor Relations, will conduct a conference call to discuss fourth quarter and fiscal year 2008 results, which will be simultaneously webcast at 1:00 P.M. Eastern Time / 7:00 P.M. Madrid Time on Thursday, February 26, 2009.

To access the conference call, participants in North America should dial (800) 374-0724 and international participants +1 (706) 634-1387. A live webcast of the conference call will be available at the Investor Relations page of Telvent’s corporate website at www.telvent.com. Please visit the website at least 15 minutes prior to the start of the call to register for the teleconference webcast and download any necessary audio software.

A replay of the call will be available 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 83267137.

About Telvent

Telvent (NASDAQ: TLVT) is a unique global company listed on the NASDAQ Stock Exchange and a component of the CleanTech IndexTM — the first and only stock market index of leading clean technology ("cleantech") companies.

Telvent, the IT Company for a sustainable and secure world, specializes in high-value-added products, services and integrated solutions in the Energy, Transportation, Environmental and Agriculture industry segments, as well as Global Services. Its innovative technology and proven experience help ensure secure and efficient management of the operating and business processes of the world’s leading companies. (www.telvent.com)

Investor Relations Contact

Barbara Zubiria

Tel. +34 902 335599

Email: barbara.zubiria@telvent.com

Lucia Domville

Tel. +1 646 284 9416

Email: ldomville@hfgcg.com

Communications Contact

Patricia Malo de Molina

Tel. +34 954 93 71 11

Email: comunicacion@abengoa.com

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are proceeded by words such as “believes,” “expects,” “may,” “anticipates,” “plans,” “intends,” “assumes,” “will” or similar expressions. Forward-looking statements reflect management’s current expectations, as of the date of this press release, and involve certain risks and uncertainties. Telvent’s actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the “Risk Factors” described in Telvent’s Annual Report on Form 20-F for the year ended December 31, 2007, filed with the Securities and Exchange Commission on March 10, 2008, and updated, if applicable, on Telvent’s Quarterly Reports on Form 6-K for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008, filed with the Securities and Exchange Commission on May 22, 2008, September 26, 2008 and December 8, 2008, respectively, and on Telvent's Current Report on Form 6-K, filed with the Securities and Exchange Commission on December 4, 2008.

Telvent does not intend, and does not assume any obligation, to update or revise the forward-looking statements in this press release after the date it is issued. In light of the risks and uncertainties described above, and the potential for variation of actual results from the assumptions on which certain of such forward-looking statements are based, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this press release may not occur, and that actual results may vary materially from those described herein, including those described as anticipated, expected, targeted, projected or otherwise.

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