May 21, 2015

USU Software AG reports figures for Q1 2015

Sales increase of 6%, adjusted EBIT rises strongly by 128%

  • Organic sales increase of 6% in line with planning
  • International sales account for approximately 30% of total sales
  • Product business expands by 9% – service business still muted
  • Strong earnings growth – adjusted EBIT up 128%
  • Group liquidity rises 34% as against December 31, 2014
  • Orders on hand up 32%
  • Sales and earnings planning reiterated

Möglingen, May 21, 2015 – USU Software AG (ISIN DE000A0BVU28) increased its IFRS Group-wide sales by 5.7% year-on-year to EUR 14,069 thousand (Q1 2014: EUR 13,314 thousand) in the first quarter of 2015. The rise in sales reported for USU Software AG and its subsidiaries (hereinafter referred to as “USU” or the “USU Group”) results from consistently expansive international business, which grew by 51.8% as against the previous year to EUR 4,196 thousand in the reporting quarter (Q1 2014: EUR 2,764 thousand). Accordingly, the share of consolidated sales accounted for by international sales at USU climbed from 20.8% in the first quarter of 2014 to currently 29.8%.

Maintenance business grew strongly in the first quarter of 2015 by 11.8% to EUR 3,466 thousand (Q1 2014: EUR 3,099 thousand). USU mainly benefited here from the increase in income from software maintenance agreements and new software-as-a-service (SaaS) projects. Software license business from on-premises projects was up slightly by 1.2% at EUR 1,915 thousand (Q1 2014: EUR 1,892 thousand). USU also expanded its consulting business to EUR 8,492 thousand (Q1 2014: EUR 8,143 thousand), an increase of 4.3% as against Q1 2014.

Broken down by segment, USU generated total sales of EUR 10,666 thousand in its Product Business division in the first three months of fiscal 2015 (Q1 2014: EUR 9,766 thousand). This represents year-on-year growth of 9.2%.

By contrast, consulting sales in the Service Business segment were down 4.2% year-on-year at EUR 3,349 thousand (Q1 2014: EUR 3,496 thousand) owing to reduced business with freelancers. Accordingly, USU increased the share of its consolidated sales attributable to the product segment to 75.8% (Q1 2014: 73.4%). Sales not assigned to the segments amounted to EUR 54 thousand in total in the months January to March 2015 (Q1 2014: EUR 52 thousand).

As a result of the substantial expansion in international business and the associated sales growth, combined with an only minor increase in costs, the USU Group’s profitability improved significantly in the opening quarter of 2015. Adjusted for the extraordinary effects of acquisitions, USU’s adjusted EBIT climbed by 127.7% year-on-year in the first quarter of 2015 to EUR 1,077 thousand (Q1 2014: EUR 473 thousand). Unadjusted, USU generated EBIT of EUR 743 thousand (Q1 2014: EUR 97 thousand), a year-on-year increase of 674%. At the same time, USU doubled its EBITDA as against Q1 2014 to EUR 1,288 thousand (Q1 2014: EUR 642 thousand). The consolidated net profit amounted to EUR 929 thousand in the first quarter of 2015 after a loss of EUR 82 thousand in the same period of the previous year. USU’s earnings per share improved accordingly from EUR -0.01 in the previous year to EUR 0.09 in the first quarter of 2015.

The consolidated earnings generated led to a rise in the Group’s equity to EUR 56,466 thousand as of March 31, 2015 (December 31, 2014: EUR 55,608 thousand). Liabilities increased to EUR 33,138 thousand as of the end of the reporting period (December 31, 2014: EUR 29,566 thousand), mainly as a result of higher deferred income for maintenance agreements invoiced at the start of the year for which the service will be rendered and the sales recognized later in the year. With total assets of EUR 89,604 thousand (December 31, 2014: EUR 85,174 thousand), the equity ratio was 63.0% as of March 31, 2015 (December 31, 2014: 65.3%). At the same time, USU significantly increased its Group liquidity in the form of cash and cash equivalents to EUR 25,421 thousand (December 31, 2014: EUR 18,920 thousand), corresponding to a rise of 34.4%.

After the positive start to the year, the Management Board of USU Software AG expects the growth trend of the previous years to continue successfully in 2015 as a whole. International business particularly is set to increase significantly. This will be aided by the ongoing penetration of the US market and the expansion of activities in Central Europe.

At the same time, business in Germany should grow again as well. A positive indication for the advised growth is the Group-wide orders on hand at USU, which increased by 32.0% as against the previous year to EUR 33,049 thousand as of March 31, 2015 (March 31, 2014: EUR 25,029 thousand). Overall, the Management Board is reiterating its planning of an increase in consolidated sales to between EUR 64 and EUR 68 million in fiscal 2015, together with a strong rise in adjusted EBIT to between EUR 8 and EUR 9.5 million. On the basis of this forecast, the Management Board is planning to let the shareholders of USU Software AG participate in the company’s business success in 2015 as well, as it has done in previous years, thereby upholding the shareholder-friendly dividend policy in the spirit of sustainable continuity. For fiscal 2014 the Management Board and the Supervisory Board have proposed a profit distribution of EUR 0.30 per share to the Annual General Meeting of USU Software AG, an increase in the dividend of 20% as against the previous year.

With international business flourishing, potential on the core German market remaining high and the growth-oriented acquisition policy of the USU Group, the Management Board is also still assuming the successful implementation of its medium-term planning of sales of more than EUR 100 million with an adjusted EBIT margin in excess of 15% by 2017.

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