ARCADIS NV Announces Second Quarter and First Half 2002 Results.Business Editors 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. , The Netherlands--(BUSINESS WIRE)--Aug. 13, 2002 ARCADIS (Nasdaq: ARCAF; Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] : ARCAD) today reported results for
the second quarter and six-month period ended June June: see month. 30, 2002.ARCADIS realized an increase of 7% in net income from operations in the second quarter of 2002. Profit growth was hampered as a result of the decline in value of the U.S. Dollar and Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. against the euro. Excluding this exchange rate effect, growth in net income from operations was 11%. 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. rose by 11%, while gross revenue stayed level with last year, due to exchange rate developments. In the first six months of 2002, net income from operations rose 8%. Excluding exchange rate effects, net income from operations rose 10%. Gross revenue in the same period rose 3%. Acquisitions At the end of the second quarter the company Casta was acquired through ARCADIS' Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. unit, Grupo EP, in which ARCADIS has a 50% stake. Casta specializes in managing housing and related services for senior citizens. With this activity, the Company intends to benefit from the strong market growth in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. in senior citizen housing. After the close of the second quarter, agreement was reached on the acquisition of FC International SA (FCI (Flux Changes per Inch) The measurement of polarity reversals on a magnetic surface. In MFM, each flux change is equal to one bit. In RLL, a flux change generates more than one bit. ), a French company with 800 employees, which delivers consultancy and engineering services in the infrastructure and environmental markets. Of total gross revenues of FCI 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. 60 million, 70% was generated in France, where the company operates under the names EEG/Simecsol and Gester and belongs to the top 5 in its markets. The remaining revenues were generated in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. (8%) and in projects in predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. the Far East (22%). Further details about this acquisition were made public in a separate press release today. Casta has been consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: as of April 1, 2002, while FCI will be included in ARCADIS' results from July July: see month. 1, 2002 onward on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. . Both companies are expected to be accretive to earnings this year.
Financial Highlights
----------------------------------------------------------------------
Amounts in millions of euros
unless otherwise stated
2nd quarter 1st half year
2002 2001 increase 2002 2001 increase
----------------------------------------------------------------------
Gross revenue 202 201 0% 395 382 3%
Operating income 12.6 11.3 12% 20.3 18.0 13%
Net income from
operations 6.7 6.3 (1) 7% 10.6 (2) 9.9 (1,2) 8%
Net income from
operations
per share
(in EUR)3 0.33 0.31 7% 0.52 0.49 8%
----------------------------------------------------------------------
1) Excluding an extraordinary gain of EUR 2 million resulting from
the sale of a non-consolidated company.
2) In these figures for 2002 and 2001 respectively an amount of
EUR 0,04 million was included for amortization of goodwill.
3) Calculated on the basis of 20.3 million shares outstanding in
both 2001 and 2002.
Analysis In the second quarter the autonomous growth of gross revenues of 4% was negatively impacted by exchange rate declines (-3%) and deconsolidations (-1%) as a result of which revenues were level with those of last year. In the first six months, gross revenue increased by 3%. Taking into account exchange rate declines as well as deconsolidations, autonomous growth was 5%. Growth was predominantly realized in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , while in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). the activities in Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and
Spain showed healthy growth rates Growth RatesThe compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . The Company's Dutch activities also contributed to growth, but to a lesser extent as a result of the lower level of real estate valuation activities. 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. , there was a slight decline in gross revenue compared to the same period last year. Growth in the infrastructure and environmental activities was not sufficient to compensate for the declines in the buildings and telecom markets. In addition, some smaller specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. activities were sold in the U.S. The book gain on this sale offset the negative exchange rate effects on operating income. Commenting on the results, ARCADIS' Chairman Harrie Noy said: "Although market circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 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 have become tougher and the economic recovery is slow to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , ARCADIS has achieved satisfactory results in the first half of 2002. This demonstrates that our strategy, aimed at optimally applying our knowledge and client contacts, combined with margin improvement, is bearing fruit. I am happy that the heightened attention to acquisitions which was introduced this year, is also leading to results. The expansion of the activities in France fits well in our policy to have home market positions in major European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets." Market Developments The figures listed below are based on gross revenue calculations and refer to developments in the first six months of 2002, compared to the same period last year. -- Master agreement with the municipality of Deventer in the Netherlands for the development of a first mile network in specific neighborhoods. -- Development of a geographical information system for the Spanish capital of Madrid for the management of public works. In the first half of 2002, 39% of revenues was generated in North and South America (2001: 40%), while the 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. contributed 37% (2001: 38%), other European countries 19% (2001: 18%) and the rest of the world 5% (2001: 4%). Projects In the second quarter of 2002, ARCADIS won the following assignments, among others: Infrastructure: -- Master agreement with the municipality of Deventer in the Netherlands for the development of a first mile network in specific neighborhoods. -- Development of a geographical information system for the Spanish capital of Madrid for the management of public works. Buildings: -- Master agreement with the municipality of Deventer in the Netherlands for the development of a first mile network in specific neighborhoods. -- Development of a geographical information system for the Spanish capital of Madrid for the management of public works. Environment: -- Master agreement with the municipality of Deventer in the Netherlands for the development of a first mile network in specific neighborhoods. -- Development of a geographical information system for the Spanish capital of Madrid for the management of public works. Communications: -- Master agreement with the municipality of Deventer in the Netherlands for the development of a first mile network in specific neighborhoods. -- Development of a geographical information system for the Spanish capital of Madrid for the management of public works. Outlook In the infrastructure market, demand is expected to remain solid, as a result of the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. nature of contracts in this segment. The excellent position ARCADIS has in the environmental market in the U.S. offers opportunity for further growth, particularly through expansion of the GRIP(TM) program. The outlook for the buildings market in the United States improved as a result of large project wins which will improve utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rates in the second half of 2002. Improvement in the telecom market is not expected before 2004. Within the communications segment, however, demand for geographical information systems Geographical Information System - Geographic Information System is increasing. At this point the abolishment a·bol·ish tr.v. a·bol·ished, a·bol·ish·ing, a·bol·ish·es 1. To do away with; annul. 2. To destroy completely. of real estate taxation for private residences as proposed by the new Dutch government is expected to have a limited effect. Chairman Noy concluded: "The revised strategy, which was introduced two years ago, continues to function as a cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to for our actions to further profit improvements. The continued insecurities surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the economy, as well as the earlier declines in the segments of buildings and communications, will have a negative effect on autonomous growth in the second half of 2002. The translation effect from the decline of the U.S. Dollar and Brazilian Real on our net income from operations in euros is expected to be compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for by the contribution from recent acquisitions, which will be consolidated starting in the third quarter of 2002. Depending on economic developments and barring unforeseen circumstances, we expect net income from operations for full year 2002 to grow by 5 to 10%." ARCADIS is a leading, global, knowledge-driven service provider, active in the fields of infrastructure, buildings, environment and communications. 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 8,500 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. For more information contact: Joost A peer-to-peer TV (P2P TV) system for streaming video over the Internet, developed by Skype and Kazaa founders Niklas Zennstrom and Janus Friis. Pronounced "juiced," with its name having no particular meaning in Scandinavian countries (like Haagen Dazs), Joost introduced beta clients for Slooten, +31-26-3778604, e-mail: j.slooten@arcadis.nl -- tables follow -
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN EUR
Amounts x 1 million, except per share amounts)
Amounts in accordance with NL-GAAP
Second Second Six Six
quarter quarter months months
2002 2001 2002 2001
Gross revenue 201.6 201.3 394.7 381.9
Materials, services of
third parties 60.0 53.1 111.1 96.2
----------------------------------------
Net revenue 141.6 148.2 283.6 285.7
Operational cost 125.2 133.0 255.7 260.0
Depreciation 3.8 3.9 7.6 7.7
----------------------------------------
Operating income 12.6 11.3 20.3 18.0
Financing income/expenses
net (0.4) (0.8) (0.9) (1.5)
---------------------------------------
Income before taxes 12.2 10.5 19.4 16.5
Taxes (4.6) (4.0) (7.4) (6.2)
---------------------------------------
Income after taxes 7.6 6.5 12.0 10.3
Income from non-consolidated
companies 0.1 0.1 0.0 0.2
---------------------------------------
Group income after taxes 7.7 6.6 12.0 10.5
Amortization goodwill (0.1) (0.0) (0.1) (0.0)
Minority interest (0.9) (0.3) (1.3) (0.6)
---------------------------------------
Net income from operations 6.7 6.3 10.6 9.9
Extraordinary items after taxes - 2.0 - 2.0
---------------------------------------
Net income 6.7 8.3 10.6 11.9
Net income from operations
excluding amortization
goodwill 6.8 6.3 10.7 9.9
Net income per share 1) 0.33 0.41 0.52 0.59
Net income from operations per
share 0.33 0.31 0.52 0.49
Number of shares outstanding
(in thousands) 20,291 20,280 20,291 20,280
1) Net income per share is based on the weighted average number
of outstanding shares.
*) Adjusted for comparison reasons.
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN US$
Amounts x 1 million, except per share amounts
Amounts in accordance with NL-GAAP
Second Second Six Six
quarter quarter months months
2002 2001 2002 2001
Gross revenue 185.0 175.8 354.3 342.4
Materials, services of third
parties 55.1 46.4 99.9 86.1
-----------------------------------------
Net revenue 129.9 129.4 254.4 256.3
Operational cost 114.9 116.1 229.3 233.3
Depreciation 3.5 3.4 6.8 6.9
-----------------------------------------
Operating income 11.5 9.9 18.3 16.1
Financing income/expenses net (0.4) (0.6) (0.8) (1.3)
-----------------------------------------
Income before taxes 11.1 9.3 17.5 14.8
Taxes (4.2) (3.5) (6.7) (5.5)
-----------------------------------------
Income after taxes 6.9 5.8 10.8 9.3
Income from non-consolidated
companies 0.1 0.1 0.0 0.2
-----------------------------------------
Group income after taxes 7.0 5.9 10.8 9.5
Amortization goodwill (0.0) (0.0) (0.0) (0.0)
Minority interest (0.8) (0.3) (1.2) (0.6)
-----------------------------------------
Net income from operations 6.2 5.6 9.6 8.9
Extraordinary items after
taxes - 1.7 - 1.7
-----------------------------------------
Net income 6.2 7.3 9.6 10.6
Net income from operations
excluding amortization
goodwill 6.2 5.6 9.6 8.9
Net income per share 1) 0.30 0.36 0.47 0.52
Net income from operations
per share 0.30 0.28 0.47 0.44
Number of shares outstanding
(in thousands) 20,291 20,280 20,291 20,280
Dollar exchange rate
1st quarter EUR 1= $0.88 $0.92
Dollar exchange rate
2nd quarter EUR 1= $0.92 $0.87
Dollar exchange rate
3rd quarter EUR 1= $ $0.89
Dollar exchange rate
4th quarter EUR 1= $ $0.90
1) Net income per share is based on the weighted average number
of outstanding shares.
ARCADIS NV
CONSOLIDATED BALANCE SHEET IN EUR
Amounts x 1 million
Amounts in accordance with NL-GAAP
June 30, December 31,
ASSETS 2002 2001
----------------------------------
Fixed assets 51.4 51.8
Current assets 248.2 258.2
----------------------------------
TOTAL 299.6 310.0
==================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 128.2 144.0
Long term debt 24.7 22.0
Provisions 16.0 13.1
Total equity 130.7 130.9
---------------------------------
TOTAL 299.6 310.0
=================================
CHANGES IN SHAREHOLDERS' EQUITY IN EUR
Amounts x 1 million
Amounts in accordance with NL-GAAP
Shareholders' equity at
January 1, 2002 124.8
Changes:
Net income current year 10.6
Stock purchase plans 0.1
Purchase own stock (3.2)
Exchange rate differences (7.6)
------------------
Shareholders' equity at
June 30, 2002 124.7
==================
ARCADIS NV
CONSOLIDATED BALANCE SHEET IN US$
Amounts x 1 million
Amounts in accordance with NL-GAAP
June 30, December 31,
2002 2001
ASSETS -------------------------------------
Fixed assets 51.3 45.6
Current assets 247.5 227.6
-------------------------------------
TOTAL 298.8 273.2
=====================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities 127.9 126.9
Long term debt 24.6 19.4
Provisions 16.0 11.5
Total equity 130.3 115.4
-------------------------------------
TOTAL 298.8 273.2
=====================================
Calculated with US Dollar rate
of EUR 1.00 = US$: 1.00 0.88
CHANGES IN SHAREHOLDERS' EQUITY IN US$
Amounts x 1 million
Amounts in accordance with NL-GAAP
Shareholders' equity at
January 1, 2002 110.0
Changes:
Net income current year 9.6
Stock purchase plans 0.1
Purchase own stock (3.2)
Exchange rate differences 7.9
------------------
Shareholders' equity at
June 30, 2002 124.4
==================
ARCADIS NV
CONSOLIDATED CASH FLOW STATEMENT in EUR
Amounts x 1 million
Amounts in accordance with NL-GAAP
First half First half
2002 2001
Net income 10.6 11.9
Depreciation 7.6 7.7
---------------------------------
Gross cash flow 18.2 19.6
Net working capital (34.8) (20.4)
Other changes 5.3 4.1
---------------------------------
Total operational cash flow (11.3) 3.3
Investments (net) in:
(In)tangible fixed assets (6.4) (8.0)
Purchase own shares (3.2) -
Acquisitions/divestments (3.7) (2.1)
Total financing activities (2.8) 4.3
--------------------------------
Change in cash and equivalents (27.4) (2.6)
ARCADIS NV
CONSOLIDATED CASH FLOW STATEMENT in US$
Amounts x 1 million
Amounts in accordance with NL-GAAP
First half First half
2002 2001
Net income 9.6 10.9
Depreciation 6.9 6.9
-------------------------------
Gross cash flow 16.5 17.8
Net working capital (34.7) (17.3)
Other changes 5.0 3.5
------------------------------
Total operational cash flow (13.2) 4.0
Investments (net) in:
(In)tangible fixed assets (6.4) (6.8)
Purchase own shares (3.2) -
Acquisitions/divestments (3.6) (1.8)
Total financing activities (0.9) 2.4
------------------------------
Change in cash and equivalents (27.3) (2.2)
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion