ARCADIS Continues Growth in Gross Revenue; Third Quarter Gross Revenue 7% Higher, Organic Growth Increases 8%; Environment Remains Main Growth Market.ARNHEM Arnhem (är`nəm), Ger. Arnheim, city (1994 pop. 133,670), capital of Gelderland prov., E Netherlands, a port on the Lower Rhine. It is an industrial, transportation, and tourist center. , Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. -- ARCADIS (Nasdaq: ARCAF; Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] : ARCAD):--Developments in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Most European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Countries Positive --Previously Announced Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). in the Netherlands is on Schedule --Income 2004 at the Same Level as in 2003 (Excluding Non-Recurring Items) ARCADIS (Nasdaq: ARCAF; Euronext: ARCAD), the international consulting and engineering firm, today announced that it has realized an increase in gross revenue in the third quarter of 2004 of 7%, primarily driven by continued growth in the environmental market. Infrastructure activities also developed favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. in most countries. Net income from operations declined by 9%, mostly due to charges for the previously announced restructuring in the Netherlands. Without non-recurring items and exchange rate declines, net income from operations rose 7%. In the first nine months, gross revenue increased 9%, while net income from operations remained almost the same. The negative currency effect for that period was 3%. In July July: see month. , a non-core activity was sold in the Netherlands, resulting in a book gain of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.2 million. The restructuring in the Netherlands is being executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. aggressively and continues on schedule. The necessary charge of EUR 6.3 million has been taken entirely in the third quarter. On balance therefore, the third quarter figures include a non-recurring charge of EUR 3.1 million. Acquisition activity has continued to be utilized to improve the position of the firm. At the end of September September: see month. , Profil Profil may refer to:
European Community member. After the third quarter several acquisitions were completed in the United States. The acquisition of Bessent, Hammack & Ruckman Ruckman may mean:
BHR Birmingham Hip Resurfacing (Smith & Nephew) BHR Bureau for Humanitarian Response (USAID) BHR Bronchial Hyper Reactivity ) strengthens the infrastructure position in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and - one of the fastest growing states in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . The recent acquisition of Construction Dynamics Group (CDG (CDMA Development Group, Costa Mesa, CA, www.cdg.org) A membership organization founded in 1995 that promotes CDMA wireless systems worldwide. It is involved with developing new features and services and promoting standards that provide global compatibility and interoperability. ) and Lewis and Zimmerman Zimmerman may refer to: People
LZA Lepidoptera of South Africa ) serves to strengthen the position in program and construction management. Combined, these global acquisitions add EUR 43 million in gross revenue and 380 employees. Commenting on these developments, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Harrie Noy said: "Organic growth in the quarter was at a good level. Our successful GRiP(R) program and the expansion of services to multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) clients allowed us to realize considerable growth in the environmental market. The infrastructure market also looks favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. in most countries. In the buildings market, the policy to focus more on project management and facility management is yielding results. The sale of parts of the activities and the restructuring in the Netherlands has strengthened the focus on core business, and lays the basis for improved profitability in this market." Key figures ---------------------------------------------------------------------- Amounts x EUR 1 million, Third quarter First nine months unless otherwise stated 2004 2003 (DELTA) 2004 2003 (DELTA) ---------------------------------------------------------------------- Gross revenue 221 207 7% 652 598 9% Operating income(1) 5.4 7.9 -/- 31% 22.3 22.7 -/- 2% Net income from operations(1) 4.6 5.1 -/- 9% 14.6 14.7 -/- 0% Net income from operations per share (in EUR)(2) 0.22 0.25 -/- 9% 0.71 0.72 -/- 0% ---------------------------------------------------------------------- (1) Before goodwill amortization (2) In 2004 based on 20.5 million shares outstanding (in 2003: 20.3 million). Analysis Third quarter Excluding a negative currency effect of 3%, gross revenue increased 10%. The contribution from acquisitions, divestments and book gains on balance was 2%. The strong organic growth of 8% was partially attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to projects with considerable subcontracting, mainly GRiP(R) and facility management. Net revenue (gross revenue minus subcontracting) grew organically by 5%. Organic growth of gross revenue was at a high level in most European countries, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Brazil. In the Netherlands, the Netherlands, The officially Kingdom of The Netherlands byname Holland Country, northwestern Europe. Area: 16,034 sq mi (41,528 sq km). Population (2005 est.): 16,300,000. Capital: Amsterdam. Seat of government: The Hague. Most of the people are Dutch. decline is slowly ending, as gross revenue modestly increased organically, versus an organic decline of 6% in the first half of the year. The 31% decline in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was mainly caused by non-recurring charges of, on balance, EUR 3.1 million, as previously announced. Without these charges, operating income would have increased 9%, which includes organic growth of 4%. Net income from operations declined by 9%, mainly because of non-recurring effects. Because this also includes the tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. book gain related to the sale of a part of the company, the effect on net income from operations is much smaller than on operating income. First nine months Gross revenue grew 9% in the first nine months, or 12% excluding currency effects. Acquisitions contributed 6% to gross revenues, while organic growth was 5%. The remaining 1% was caused by income from the sale of activities in the Netherlands. Operating income declined 2%. This includes a non-recurring charge of EUR 4.5 million. This charge is the combination of book gains on the sale of parts of the company and charges taken for restructuring of the Dutch operations. Including the charge taken in the first quarter for adjusting the overhead, total charges amounted to EUR 8.5 million. This leads to costs savings worth EUR 5 million annually. Excluding non-recurring items, operating income increased by 18%, mainly because of acquisitions. The one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. negative effect of non-recurring items on net income from operations was EUR 1.5 million. Market developments Starting with the third quarter 2004, the communications segment has been included in the other segments (particularly infrastructure). The figures mentioned below are related to gross revenue and, unless otherwise noted, discuss the first nine months of 2004 compared to the same period last year.
-- Infrastructure
The 2% increase mainly came from acquisitions completed last
year. Organically, activities declined 3% because of declining
investments in the Netherlands and Germany. This was offset by
continued growth in Belgium, France and Spain. Market
recovery, also triggered considerable growth in Brazil and
Chile. In the United States growth in the third quarter
increased to 4%, and in support of the transportation sector,
the federal government has extended the Transportation Equity
Act (TEA 21) to April 2005.
-- Environment
The third quarter saw continued growth. With 18% organic
growth, environment remains the company's most important
growth market. Although much of the growth came from the U.S.,
other countries, particularly England, contributed to growth
with expansion of services to multinational clients playing a
major role. In America, a GRiP(R) contract worth $43.5 million
(including options) was won for remediation of former Reese
Air Force Base in Lubbock, Texas, as part of an earlier
framework contract with the Department of Defense.
-- Buildings
The 45% growth mainly resulted from acquisitions that added
project management and consultancy activities. Organically,
activities grew 15%, particularly resulting from expansions in
facility management in the Netherlands and growth in other
European countries. Because of a shift of investments in the
automotive industry to Asia, activities in the U.S. declined
further.
Outlook In the Dutch infrastructure market the shift from new construction to renovation and adjustments is slowly taking shape. Public-private partnerships Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP or P3. may lead to additional investments in infrastructure. Expansion of trans-national European networks, for road as well as rail, offers significant opportunities. The strong position in the environmental market is an excellent starting point Noun 1. starting point - earliest limiting point terminus a quo commencement, get-go, offset, outset, showtime, starting time, beginning, start, kickoff, first - the time at which something is supposed to begin; "they got an early start"; "she knew from the for further growth in this segment, while a refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. in the building segment to activities with higher added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , net income from operations will come out at the same level as in 2003. The Dutch restructuring will have a one-off negative effect on net income from operations of, on balance, EUR 1.5 million. It is expected that the measures taken will have a positive effect on operating income of EUR 2 to EUR 3 million as of 2005." ARCADIS is a leading, global, knowledge-driven service provider, active in the fields of infrastructure, environment and buildings. With client success central to our total business approach, we fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. project or program needs from concept to completion and beyond. Together, we generate EUR 850 million in annual revenues. There are 9,000 of us, results-oriented people, continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. investing in our skills to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. value while creating viable solutions that assure your success. Except for historical information contained herein, the statements in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with possible changes in environmental legislation and risks with regard to the Company's ability to acquire and execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution projects. These and other risks are described in ARCADIS' filings with the Securities and Exchange Commission over the last 12 months, copies of which will be available from the SEC or may be obtained upon request from the Company.
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN EUR
Amounts in millions, except per share amounts
Amounts in accordance with NL-GAAP
Third quarter First nine months
2004 2003 2004 2003
Gross revenue 221.1 207.1 651.8 598.0
Materials. services of third parties 69.1 61.3 182.3 163.6
------- ------- ------- -------
Net revenue 152.0 145.8 469.5 434.4
Operational cost 142.8 133.9 435.4 399.9
Depreciation 3.8 4.0 11.8 11.8
------- ------- ------- -------
Operating income 5.4 7.9 22.3 22.7
Financing income/expenses net (0.8) (0.6) (2.6) (1.8)
------- ------- ------- -------
Income before taxes 4.6 7.3 19.7 20.9
Taxes (0.2) (2.5) (5.8) (7.4)
------- ------- ------- -------
Income after taxes 4.4 4.8 13.9 13.5
Income from non-consolidated
companies 0.8 0.4 2.0 2.1
------- ------- ------- -------
Group income after taxes 5.2 5.2 15.9 15.6
Minority interest (0.6) (0.1) (1.3) (0.9)
------- ------- ------- -------
Net income from operations 4.6 5.1 14.6 14.7
Amortization goodwill (0.6) (0.3) (1.7) (0.6)
------- ------- ------- -------
Net income 4.0 4.8 12.9 14.1
Net income per share (1) 0.19 0.23 0.63 0.69
Net income from operations per share 0.22 0.25 0.71 0.72
Number of shares outstanding (in
thousands) 20,578 20,336 20,578 20,336
(1) Net income per share is based on the weighted average number of
outstanding shares.
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN US$
Amounts in millions. except per share amounts
Amounts in accordance with NL-GAAP
Third quarter First nine months
2004 2003 2004 2003
------- ------- ------- -------
Gross revenue 270.2 232.9 798.3 664.5
Materials. services of third parties 84.4 68.9 223.1 182.0
------- ------- ------- -------
Net revenue 185.8 164.0 575.2 482.5
Operational cost 174.5 150.7 533.4 444.1
Depreciation 4.7 4.5 14.5 13.1
------- ------- ------- -------
Operating income 6.6 8.8 27.3 25.3
Financing income/expenses net (1.0) (0.6) (3.2) (2.0)
------- ------- ------- -------
Income before taxes 5.6 8.2 24.1 23.3
Taxes (0.2) (2.9) (7.1) (8.3)
------- ------- ------- -------
Income after taxes 5.4 5.3 17.0 15.0
Income from non-consolidated
companies 1.0 0.5 2.5 2.4
------- ------- ------- -------
Group income after taxes 6.4 5.8 19.5 17.4
Minority interest (0.8) (0.1) (1.6) (1.1)
------- ------- ------- -------
Net income from operations 5.6 5.7 17.9 16.3
Amortization goodwill (0.6) (0.3) (2.0) (0.6)
------- ------- ------- -------
Net income 5.0 5.4 15.9 15.7
Net income per share (1) 0.24 0.26 0.77 0.77
Net income from operations per share 0.27 0.28 0.87 0.80
Number of shares outstanding (in
thousands) 20,578 20,336 20,578 20,336
Dollar exchange rate 1st quarter
EUR 1= $1.25 $1.07
Dollar exchange rate 2nd quarter
EUR 1= $1.20 $1.13
Dollar exchange rate 3rd quarter
EUR 1= $1.22 $1.12
Dollar exchange rate 4th quarter
EUR 1= $1.19
(1) Net income per share is based on the weighted average number of
outstanding shares.
ARCADIS NV
CONSOLIDATED BALANCE SHEET IN EUR
Amounts in millions
Amounts in accordance with NL-GAAP
September 30. December 31.
ASSETS 2004 2003
---------------------------
Fixed assets (*) 101.0 98.7
Current assets 284.5 248.6
---------------------------
TOTAL 385.5 347.3
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 197.7 153.5
Long term debt 12.4 29.7
Provisions 24.4 20.0
Total equity 151.0 144.1
---------------------------
TOTAL 385.5 347.3
===========================
(*) Including capitalized goodwill 38.0 38.2
CHANGES IN SHAREHOLDERS' EQUITY IN EUR
Amounts in accordance with NL-GAAP
2004 2003
Shareholders' equity at January 1 136.6 134.6
Changes:
Net income current year 12.9 14.1
Options exercised 1.5 0.2
Dividend 2003 (9.6) (9.6)
Exchange rate differences 1.0 (6.1)
Other changes - 0.3
---------------------------
Shareholders' equity at balance sheet date 142.4 133.5
===========================
ARCADIS NV
CONSOLIDATED BALANCE SHEET IN US$
Amounts in millions
Amounts in accordance with NL-GAAP
September 30. December 31.
ASSETS 2004 2003
---------------------------
Fixed assets (*) 125.3 124.6
Current assets 353.0 314.0
---------------------------
TOTAL 478.3 438.6
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 245.3 193.8
Long term debt 15.4 37.6
Provisions 30.3 25.2
Total equity 187.3 182.0
---------------------------
TOTAL 478.3 438.6
===========================
(*) Including capitalized goodwill 47.1 48.2
Calculated with US dollar rate of EUR 1.00 = $1.24 $1.26
CHANGES IN SHAREHOLDERS' EQUITY IN US$
Amounts in accordance with NL-GAAP
2004 2003
Shareholders' equity at January 1 172.4 142.0
Changes:
Net income current year 15.9 15.7
Options exercised 1.8 0.2
Dividend 2003 (11.7) (11.0)
Exchange rate differences (1.8) 8.4
Other changes 0.3
---------------------------
Shareholders' equity at balance sheet date 176.7 155.6
===========================
ARCADIS NV
CONSOLIDATED CASH FLOW STATEMENT in EUR
Amounts in millions First nine months
Amounts in accordance with NL-GAAP 2004 2003
Net income 12.9 14.1
Depreciation and amortization 13.5 12.4
---------- ----------
Gross cash flow 26.4 26.5
Net working capital (18.1) (16.1)
Other changes (0.2) 0.3
---------- ----------
Total operational cash flow 8.1 10.7
Investments (net) in:
(In)tangible fixed assets (7.6) (10.4)
Acquisitions/divestments 1.2 (23.7)
Financial assets/divestments (0.4) (2.3)
Total financing activities 5.8 (8.2)
---------- ----------
Change in cash and equivalents 7.1 (33.9)
ARCADIS NV
CONSOLIDATED CASH FLOW STATEMENT in US$
Amounts in millions First nine months
Amounts in accordance with NL-GAAP 2004 2003
Net income 15.9 15.7
Depreciation and amortization 16.5 13.8
----------- ----------
Gross cash flow 32.4 29.5
Net working capital (22.5) (18.7)
Other changes (0.3) 0.3
----------- ----------
Total operational cash flow 9.6 11.1
Investments (net) in:
(In)tangible fixed assets (9.4) (12.1)
Acquisitions/divestments 1.5 (27.6)
Financial assets/divestments (0.5) (2.7)
Total financing activities 7.7 (8.2)
----------- ----------
Change in cash and equivalents 8.9 (39.5)
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