WDT
26/02/2016 14:38
FLLYR
PRICE SENSITIVE
REL: 1438 HRS Wellington Drive Technologies Limited
FLLYR: WDT: Wellington Drive releases its 2015 financial statements
Continued Improvement in Operating Performance
Wellington has today released its financial statements for the year ended 31
December 2015. The result for the year is consistent with the market update
provided on 18 February 2016.
The company delivered full year 2015 revenues of $24.6 million, a 38% growth
in year over year revenue. This result was in part due to a significant
rebound in Latin American sales with 48% revenue growth in US Dollar terms
versus 2014. New customer wins in Asia Pacific generated US Dollar revenue
growth of 18% versus 2014. Europe US Dollar revenues decreased by 35% as the
macro-economic situation continued to impact customer demand. We are
encouraged by the winning of new ECR motor customers in Europe that will
start production in 2016. Global motor volumes increased by 23% to over 1
million motors shipped in 2015.
Gross margin (see note 1 below) improved to 21.4%, an increase from 18% in
2014 as a result of continued improvement in manufacturing efficiencies and
supplier costs. Gains were offset somewhat by pricing strategies that were
implemented to secure new business.
The continued focus on operational excellence is demonstrated by improvement
in both operating costs and inventory performance. The company continued its
tight control of operating expenses with $7.8 million in 2015, versus $8.4
million in 2014, an 8% reduction. Inventory was $3.7 million at the end of
2015, a $1 million reduction versus 2014 and a result of ongoing efforts to
streamline supply chain process.
Losses continued to decline with the company delivering an EBITDA performance
of a $1.4 million loss versus the $4 million loss in 2014 (see note 2 below).
Earnings before Interest and Taxation (EBIT) was a $1.8 million loss, a $2.7
million improvement on the $4.5 million loss in 2014. The lower NZ Dollar
versus the US Dollar positively impacted the result. The average NZD/USD rate
for the 2015 year was 0.707 compared to 0.830 for 2014.
Operating cash flow was a positive inflow of $0.8 million and the cash
balance at 31 December was $2.9 million.
Wellington's Chief Financial Officer, Howard Milliner commented, "We are
pleased to be able to deliver continual improvement in our financial results,
and particularly the operational metrics such as operating cost, inventory
performance and positive operating cash flows. We look forward to improving
even further in 2016."
For further information visit www.wdtl.com.
Note 1 - Gross margin is the gross profit percentage calculated from GAAP
measures of revenue and gross profit
Note 2 - EBITDA (ie Earnings before interest, tax, depreciation, amortisation
and impairment) is a non-GAAP earnings figure that equity analysts tend to
focus on for comparable company performance analysis. Wellington considers
that it is a useful financial indicator because it avoids the distortions
caused by the differences in amortisation and impairment policies. EBITDA is
calculated as the loss before interest and taxation of $1,802,000 for 2015
(2014 $4,509,000) less depreciation, amortisation and impairment of $399,000
for 2015 (2014 $502,000).
_________________________________________________________________
Contact:
Greg Allen
Chief Executive Officer
Phone +1-778-238-6494
+64 9 477 4500
Howard Milliner
Chief Financial Officer
+64 27-587-0455
+64-9-477-4500 ext 228
End CA:00278430 For:WDT Type:FLLYR Time:2016-02-26 14:38:26
