ARCADIS Reports Strong Performance and Good Prospects.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):--Net income for the first half increases 43%, net income from operations 24% --Organic gross revenue growth in the first half is 6% --Activities grow across all market segments --Profit improvement through growth and strong margin improvement --Expected increase of net income from operations for full year 2005: 20 to 25% ARCADIS (Nasdaq: ARCAF; Euronext: ARCAD), the international consulting and engineering company, today reported that it continued its solid results into the second quarter of 2005. For the second quarter of 2005, gross revenues rose 4% to 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. 233 million, while net income increased 62% to EUR 9.0 million. Excluding non-recurring effects, net income from operations rose 31%. In the first half of 2005 gross revenues increased 6%, all of which came from organic growth. Net income rose 43%, while net income from operations (excluding non-recurring effects) rose 24%. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. development is mainly the result of margin improvement. Organic growth and acquisitions also contributed positively to the development of results. The Company completed three acquisitions in the second quarter of 2005. With the acquisition of SWK SWK Social Work SWK Sarawak (State in Malaysia) SWK Stadtwerke Krefeld AG (Germany) SWK Star Wars Kid SWK Sealed With Kisses (gross revenue EUR 5.9 million, 50 employees) in mid-May n. 1. the middle part of May. Noun 1. mid-May - the middle part of May period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , ARCADIS strengthened its position in the Belgian Belgian having some relationship to Belgium. Belgian barge dog see schipperke. Belgian black pied cattle black, Belgian dairy cattle. Belgian blue dual-purpose cattle; blue, white or blue roan. infrastructure market. In mid-June n. 1. the middle part of June. Noun 1. mid-June - the middle part of June period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , the acquisition of AYH AYH abbr. American Youth Hostels AYH n abbr (= American Youth Hostels) → Jugendherbergsverband, DJHV m (gross revenue EUR 36 million, 340 employees) was completed in the United Kingdom. AYH specializes in project management, cost control and consulting for real estate projects. At the end of the quarter, the Company acquired Greystone Environmental Consultants (gross revenue EUR 12 million, 130 employees), an important step in the permitting and planning sector of the U.S. environmental market. In addition, several divestments were completed. In mid-June, the 50% interest in Grupo EP (gross revenue 135 million, 1,700 employees) was sold, while shortly after the close of the quarter, two smaller companies were sold, both active in the donor-financed market (gross revenue EUR 11 million, 240 employees combined). These divestments resulted in a book profit of EUR 2.1 million in the quarter. In a reaction to the results, 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: "The development of results shows that ARCADIS is well on track. Organic growth was at a good level across almost every segment. The results reflect the benefits of measures that were taken earlier, which combined with the efforts of our staff, resulted in a solid margin improvement. The acquisitions and divestments serve to strengthen our home market positions, while we increase our focus on activities with growth potential and higher margins."
Key figures
----------------------------------------------------------------------
Amounts x EUR 1 million, unless
otherwise stated Second quarter First half
2005 2004 (DELTA) 2005 2004 (DELTA)
----------------------------------------------------------------------
Gross revenue 233 223 4% 457 431 6%
EBITA 15.0 9.2 64% 25.4 17.2 48%
Net income 9.0 5.5 62% 14.5 10.1 43%
Net income per share (in EUR) 1) 0.44 0.28 60% 0.71 0.50 42%
Net income from operations 2) 7.4 5.6 31% 13.3 10.7 24%
Net income f. operations per share
(in EUR) 1,2) 0.36 0.28 29% 0.65 0.53 23%
----------------------------------------------------------------------
1) In 2005 based on 20.3 million shares outstanding (in 2004: 20.1
million)
2) Excluding amortization, pension adjustments and non-recurring
items.
Analysis Beginning from 2005, the Company's results are reported under IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System (International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ). The comparable figures for 2004 have been adjusted on this basis (see attachment See attach a file. ). The table with main figures also includes net income from operations. This is net income as defined by IFRS, excluding amortization identifiable intangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , adjustments related to pension plans and non-recurring items. These consist of book profits on subsidiaries sold (in 2004 and 2005) and 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). costs (in 2004). Second quarter Gross revenues grew 4%. Organic growth was also 4%. The proceeds from the sale of subsidiaries had a positive effect on gross revenues of 1%. This was offset by a negative currency effect of 1%. Growth resulting from acquisitions and divestments on balance was almost zero. The somewhat lower organic growth compared to the first quarter of 2005 was caused by a decline in gross revenues in the Netherlands. This was mainly the result of less third-party work, which was at a high level in the second quarter of 2004. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. in the Netherlands improved considerably compared to last year, which confirms the previously announced slight recovery in the Dutch market. In almost all markets, organic growth was continued at a good level. The U.S. market is particularly favorable, while the strong recovery in the Brazilian market also continued. EBITA EBITA Earnings Before Interest Taxes Amortization rose 64%. On a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. basis (excluding non-recurring effects in 2004 and 2005) the increase amounted to 34%. On balance, acquisitions and divestments contributed 14%, while there was no currency effect. The organic increase in EBITA was 20%. 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. restructuring completed last year is yielding results. 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. and 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. also provided a solid contribution to the improvement of results. At 31%, net income from operations rose a little less than recurring EBITA. This was primarily caused by a lower contribution from non-consolidated energy projects in Brazil. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile a new contract has been signed for one of these projects, which is expected to contribute to profits starting in the fourth quarter of 2005. First half The increase in gross revenue was 6%, and was entirely the result of organic growth. Acquisitions and divestments on balance contributed 1%, which was offset by a negative currency effect of 1%. Developments already visible in the first quarter continued into the second quarter. EBITA grew 48%, or 26% on a recurring basis. The contribution from acquisitions and divestments was 10%. Organically EBITA increased 16%, mainly as a result of margin improvement. The margin (recurring EBITA as % of net revenue) rose to 7.0% in the first half of 2005 compared to 5.9% in the same period last year. Developments per market segment The figures mentioned below relate to gross revenue developments and, unless otherwise noted, discuss the comparison between the first half of 2005 and the same period last year. --Infrastructure Gross revenue growth amounted to 10%, of which 7% was from acquisitions. Organic activity growth was 3%, and was particularly strong in Brazil, the United States and France. In Brazil, improved economic conditions resulted in increased investments by both government and private sector. The favorable U.S. housing market led to significant investment in the land development market. In France, the expansion of the network of roads and railroads rail·road n. 1. A road composed of parallel steel rails supported by ties and providing a track for locomotive-drawn trains or other wheeled vehicles. 2. was the main growth driver. In Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , the market remained difficult, while in the Netherlands a light recovery was noted, resulting in an increased backlog. --Environment Organic growth in the environmental market continued at a good level with a 9% increase. The main contribution came from the United States, where activities grew 11%, particularly as a result of GRiP(R) projects. In the second quarter, ARCADIS was selected by the U.S. Army Environmental Center for a framework contract under the GRiP(R) program with a contract ceiling of US$ 320 million. 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). , gross revenue
grew, particularly in Germany, 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. , France and Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, . Activities in
Brazil also increased.--Facilities Gross revenue in this segment grew 4%. During the quarter, the Company sold its detailed engineering activities in the United States, consistent with its focus on higher margin activities. This caused a gross revenue decline of 5%. Organic growth was 10%. Activities in facility management and project management in the Netherlands and Germany were the main contributors to this increase. Outlook In many countries there is a need to improve infrastructure as a prerequisite pre·req·ui·site adj. Required or necessary as a prior condition: Competence is prerequisite to promotion. n. for economic growth. Increasingly, governments resort to public private cooperation to increase the speed of infrastructure investment. In the Netherlands, the market for railway improvement is growing. Together with two partners, ARCADIS has established the joint venture Asset Rail to also become involved in contracting for the management and maintenance of railroads. The infrastructure market in Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. is growing rapidly, stimulated stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. by money from European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. funds. In France, ARCADIS can benefit from the expansion of high speed railway lines. It is expected that the market in Brazil will continue to grow. In the U.S., the agreement concerning federal funding for transportation is expected to have a positive market impact, while 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. GRiP(R) contracts are a solid basis for further expansion in the U.S. environmental market. In Europe there is also significant interest in this contracting method for dealing with contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. areas. In the facilities segment, the acquisition of AYH lays the basis for further growth in management services. The selection by DSM 1. DSM - Data Structure Manager. An object-oriented language by J.E. Rumbaugh and M.E. Loomis of GE, similar to C++. It is used in implementation of CAD/CAE software. DSM is written in DSM and C and produces C as output. of ARCADIS AQUMEN for the delivery of facility management services, demonstrates the Company's solid position in this growing market. CEO Noy concludes: "The outlook for 2005 continues to be positive. ARCADIS is very well positioned in markets that offer on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" opportunities. Our policy is aimed at realising growth through synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. . Good possibilities present themselves where it comes to providing 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, and in areas like soil remediation, railroads, bridges, tunnels The following are lists of tunnels:
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 we expect an increase of net income from operations for full year 2005 of 20 to 25%." ARCADIS is an international company that provides project management, consultancy and engineering services to enhance mobility, sustainability and quality of life. Infrastructure - Environment - Buildings. ARCADIS develops, designs, implements, maintains and operates projects. For companies and governments. With 9,000 employees and EUR 900 million in gross revenue. Present multi-nationally with a close-knit close-knit adj. Held tightly together, as by social or cultural ties: a close-knit family. Adj. 1. local network. Expertise and experience of international significance. Focused on providing 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:
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 are 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 Second quarter Second quarter First half First half
per share amounts 2005 2004 year 2005 year 2004
---------------------------------------------------
Gross revenue 233.4 223.4 456.5 430.7
Materials,
services of third
parties 63.8 61.7 124.9 113.2
-------------- -------------- ---------- ----------
Net revenue 169.6 161.7 331.6 317.5
Operational cost 150.5 148.6 298.4 292.3
Depreciation 4.1 3.9 7.8 8.0
-------------- -------------- ---------- ----------
EBITA 15.0 9.2 25.4 17.2
Amortization
identifiable
intangible fixed
assets 0.5 0.1 0.8 0.1
-------------- -------------- ---------- ----------
Operating income 14.5 9.1 24.6 17.1
Financing
income/expenses
net (0.8) (0.8) (1.5) (1.8)
-------------- -------------- ---------- ----------
Income before
taxes 13.7 8.3 23.1 15.3
Taxes (4.3) (2.9) (7.8) (5.7)
-------------- -------------- ---------- ----------
Income after taxes 9.4 5.4 15.3 9.6
Income from non-
consolidated
companies 0.0 0.6 0.0 1.2
-------------- -------------- ---------- ----------
Group income after
taxes 9.4 6.0 15.3 10.8
Minority interest (0.4) (0.5) (0.8) (0.7)
-------------- -------------- ---------- ----------
Net income 9.0 5.5 14.5 10.1
-------------- -------------- ---------- ----------
Amortization
identifiable
intangible fixed
assets 0.5 0.1 0.8 0.1
Pensions net - (0.2) - (0.3)
Non-recurring
effects (2.1) 0.2 (2.1) 0.8
-------------- -------------- ---------- ----------
Net income from
operations 7.4 5.6 13.3 10.7
Net income per
share Basic 0.44 0.28 0.71 0.50
Net income per
share Diluted 0.43 0.27 0.70 0.50
Net income from
operations per
share Basic 0.36 0.28 0.65 0.53
Net income from
operations per
share Diluted 0.35 0.28 0.64 0.53
Number of shares
outstanding (in
thousands) 20,296 20,093 20,296 20,093
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 Second quarter Second quarter First half First half
per share amounts 2005 2004 year 2005 year 2004
---------------------------------------------------
Gross revenue 294.4 269.1 586.9 528.1
Materials,
services of third
parties 80.5 74.3 160.6 138.7
-------------- ------------------------- ----------
Net revenue 213.9 194.8 426.3 389.4
Operational cost 189.8 179.0 383.6 358.5
Depreciation 5.2 4.7 10.1 9.8
-------------- ------------------------- ----------
EBITA 18.9 11.1 32.6 21.1
Amortization
identifiable
intangible fixed
assets 0.5 0.1 1.0 0.1
-------------- -------------- ---------- ----------
Operating income 18.4 11.0 31.6 21.0
Financing
income/expenses
net (1.1) (1.0) (2.0) (2.2)
-------------- -------------- ---------- ----------
Income before
taxes 17.3 10.0 29.6 18.8
Taxes (5.5) (3.5) (10.0) (7.1)
-------------- -------------- ---------- ----------
Income after taxes 11.8 6.5 19.6 11.7
Income from non-
consolidated
companies 0.1 0.8 0.0 1.5
-------------- -------------- ---------- ----------
Group income after
taxes 11.9 7.3 19.6 13.2
Minority interest (0.5) (0.6) (1.0) (0.8)
-------------- -------------- ---------- ----------
Net income 11.4 6.7 18.6 12.4
Amortization
identifiable
intangible fixed
assets 0.5 0.1 1.0 0.1
Pensions net - (0.2) - (0.4)
Non-recurring
effects (2.6) 0.2 (2.6) 1.0
-------------- -------------- ---------- ----------
Net income from
operations 9.3 6.8 17.0 13.1
Net income per
share Basic 0.56 0.33 0.92 0.62
Net income per
share Diluted 0.54 0.33 0.89 0.61
Net income from
operations per
share Basic 0.46 0.34 0.84 0.65
Net income from
operations per
share Diluted 0.45 0.33 0.82 0.64
Number of shares
outstanding (in
thousands) 20,296 20,093 20,296 20,093
Dollar exchange
rate Q1 EUR 1= $1.31 $1.25
Dollar exchange
rate Q2 EUR 1= $1.26 $1.20
Dollar exchange
rate Q3 EUR 1= $1.22
Dollar exchange
rate Q4 EUR 1= $1.30
Net income per share is based on the weighted average number of
outstanding shares.
ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN EUR
----------------------------------------------------------------------
Amounts in millions June 30, December 31,
ASSETS 2005 2004
--------------------------
Non-current assets a) 136.2 112.7
Current assets 337.0 320.0
--------------------------
TOTAL 473.2 432.7
==========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 269.7 244.4
Long term debt 14.0 13.0
Provisions 32.0 29.9
Total equity 157.5 145.4
--------------------------
TOTAL 473.2 432.7
==========================
a) Including capitalized goodwill 70.0 48.1
CHANGES IN SHAREHOLDERS' EQUITY IN EUR
June 30, 2005 June 30, 2004
Shareholders' equity at January 1 136.4 125.0
Changes:
Net income current period 14.5 10.1
Expenses granted options 0.1 0.1
Options exercized 1.1 0.8
Dividend payment (9.8) (9.6)
Purchase own stock (2.7) -
Exchange rate differences 8.0 1.7
Other changes 0.0 -
---------------------------
Shareholders' equity at balance sheet date 147.7 128.1
===========================
ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN US$
----------------------------------------------------------------------
Amounts in millions June 30, December 31,
ASSETS 2005 2004
---------------------------
Non-current assets a) 164.7 153.5
Current assets 407.5 435.9
---------------------------
TOTAL 572.2 589.4
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 326.2 332.8
Long term debt 17.0 17.7
Provisions 38.6 40.7
Total equity 190.4 198.2
---------------------------
TOTAL 572.2 589.4
===========================
a) Including capitalized goodwill 84.7 65.5
Calculated with US dollar rate of EUR 1.00
= US$: 1.21 1.36
CHANGES IN SHAREHOLDERS' EQUITY IN US$
June 30, 2005 June 30, 2004
Shareholders' equity at January 1 185.8 157.9
Changes:
Net income current period 18.6 12.4
Expenses granted options 0.1 0.1
Options exercized 1.3 1.0
Dividend payment (11.9) (11.7)
Purchase own stock (3.2) -
Exchange rate differences (12.1) (4.0)
Other changes - -
---------------------------
Shareholders' equity at balance sheet date 178.6 155.7
===========================
ARCADIS NV
CONDENSED CONSOLIDATED CASH FLOW STATEMENT in EUR
----------------------------------------------------------------------
Amounts in millions First half year 2005 First half year 2004
Net income 14.5 10.1
Depreciation and amortization 8.6 8.1
-------------------- --------------------
Gross cash flow 23.1 18.2
Net working capital (25.7) (19.9)
Other changes 1.1 0.2
-------------------- --------------------
Total operational cash flow (1.5) (1.5)
Investments/divestments (net)
in:
(In)tangible fixed assets (6.9) (5.4)
Acquisitions/divestments (0.6) 2.6
Financial assets (0.7) (0.7)
-------------------- --------------------
Total investing activities (8.2) (3.5)
Total financing activities (13.4) (0.8)
-------------------- --------------------
Change in cash and
equivalents (23.1) (5.8)
Cash at January 1 48.2 31.3
-------------------- --------------------
Cash at balance sheet date 25.1 25.5
ARCADIS NV
----------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT in US$
----------------------------------------------------------------------
Amounts in millions First half year 2005 First half year 2004
Net income 18.6 12.4
Depreciation and amortization 11.1 9.9
-------------------- --------------------
Gross cash flow 29.7 22.3
Net working capital (31.0) (24.1)
Other changes 1.2 0.1
-------------------- --------------------
Total operational cash flow (0.1) (1.7)
Investments/divestments (net)
in:
(In)tangible fixed assets (8.4) (6.5)
Acquisitions/divestments (0.7) 3.2
Financial assets (0.8) (0.8)
-------------------- --------------------
Total investing activities (9.9) (4.2)
Total financing activities (18.0) (1.2)
-------------------- --------------------
Change in cash and
equivalents (28.0) (7.0)
Cash at January 1 65.7 39.5
Conversion difference January
1 amount (7.4) (1.5)
-------------------- --------------------
Cash at balance sheet date 30.3 31.0
Explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan Notes This interim financial report was compiled in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 34. Valuation principles and determination of results Starting in 2005, ARCADIS applies the International Financial Reporting Standards (IFRS) as the basis for its financial reporting. For the valuation principles and the changes therein resulting from the introduction of IFRS, please refer to the 2004 Annual Report and the interim financial report for the first quarter of 2005. The effects on the published figures per quarter for 2004 are noted below. This interim financial information has been prepared in accordance with those IFRS standards that are issued and expected to be effective or available for early adoption as of 31 December December: see month. 2005, our first annual reporting date at which IFRS standards will be applied. However, the IFRS standards that will be effective (or available for early adoption) as of 31 December 2005 are still subject to change and to additional interpretations and therefore cannot be determined with certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. at the time of preparing this interim financial information. Accordingly, there is a possibility that changes to the accounting policies adopted in preparing the interim financial information are necessary when we prepare our first IFRS financial statements as of 31 December 2005 in concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t. with standards approved by the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community . Consequences of the introduction of IFRS on the comparing figures for 2004 Based on the above, the results per quarter for 2004 have been adjusted as follows.
Amounts in thousands of
euros Q1-2004 Q2-2004 H1-2004 Q3-2004 Q4-2004 2004
----------------------------------------------------------------------
Published net income (NL
GAAP) 4,003 4,913 8,916 4,039 7,184 20,139
Consequences IFRS
Amortization goodwill 490 541 1.031 529 622 2,182
Pensions 270 271 541 270 271 1,082
Cost of options issued (94) (95) (189) (98) (78) (365)
Other changes (13) (14) (27) (14) (14) (55)
Corporate taxes (71) (71) (142) (70) (77) (289)
Chance in tax percentage (519) (519)
Total consequences 582 632 1.214 617 205 2,036
----------------------------------------------------------------------
Net income (IFRS) 4,585 5,545 10,130 4,656 7,389 22,175
Amortization intangible
fixed assets 33 31 64 32 282 378
Pensions (270) (271) (541) (270) (271)(1,082)
Corporate tax 103 104 207 103 623 933
Non-recurring effects
net 588 236 824 603 (61) 1,366
----------------------------------------------------------------------
Net income from
operations (IFRS)(a) 5,039 5,645 10,684 5,124 7,962 23,770
----------------------------------------------------------------------
a) Compared to the net income from operations under IFRS as published
in the first quarter, the adjustment for option cost was taken out
and a correction was made for non-recurring items.
The consequences for shareholder's equity are as follows
Amounts in thousands of euros Per 6/30/2004
----------------------------------------------------------------------
Published shareholder's equity (NL GAAP) 138,361
Consequences IFRS
Net income 1,214
Cost of options issued 124
Work in progress net (1,320)
Provision pensions net (9,802)
Provision jubilee payments net (655)
General provision doubtful debtors 203
----------------------------------------------------------------------
Total consequences (10,236)
Shareholder's equity (IFRS) 128,125
----------------------------------------------------------------------
Dividend The number of outstanding shares as per 12/31/2004 was 20.3 million shares. As a result of the repurchasing of shares and re-issuance related to the exercise of operations, the number of shares outstanding per the balance sheet date declined to 20.2 million. On 5/25/2005 a dividend of EUR 0.48 per share was paid on all common and outstanding shares. The total dividend paid out was EUR 9.8 million. Divestments In the first six months of 2005 a number of company subsidiaries or activities were divested; this included the detailed engineering activities in the facilities segment in the United States (per April 1), our 50% share in the 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. engineering company Grupo EP (deconsolidated per June June: see month. 13) and the Italian/Swiss consulting companies Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a Renard Ren´ard n. 1. A fox; - so called in fables or familiar tales, and in poetry. and Sauti (deconsolidated per June 30). On balance the net book profit from these divestments amounted to EUR 2.1 million. Acquisitions In the first half three acquisitions were completed: --SWK in Belgium, 100% acquired per mid May and 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 that moment. --AYH in England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , 100% acquired per mid June, consolidated in the balance sheet per 6/30/2005. --Greystone Environmental Consultants in the United States, 100% acquired per end of June, consolidated in the balance sheet per 6/30/2005. Balance sheet New acquisitions and divestments on balance produced a decline of balance sheet total of EUR 9 million. Currency effects led to an increase of balance sheet total by EUR 18 million. The balance sheet line item identifiable intangible fixed assets rose by EUR 3.9 million as a result of new acquisitions. This concerns the expected profit in the backlog of the acquired firms, at the moment of acquisition. Financial instruments Similar to the reporting year 2004, no financial instruments were used in 2004 to hedge currency translation differences or interest rate risks. Contingent liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. Compared to the year end 2004 situation, no substantive Substantive may refer to: In grammar:
Developments after the balance sheet date No events with a significant impact on the Company's financial position occurred after the balance sheet date. Segment information A change has been implemented in the geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge segmentation. The United States are now presented separately. The South American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of activities have been added to the segment Other Countries. The comparing figures for 2004 have been adjusted accordingly. The geographical segmentation is:
Amounts in millions of euros Gross revenue Net revenue
2005 2004 2005 2004
Netherlands 139.2 149.2 107.1 115.6
United States 140.7 127.5 101.5 91.5
Other countries Europe 131.5 118.1 100.1 90.1
Other countries 45.1 35.9 22.9 20.3
Total 456.5 430.7 331.6 317.5
Review report Introduction We have reviewed the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. (consolidated) condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. balance sheet of ARCADIS N.V. ("the Company") as of June 30, 2005, and the related (consolidated) condensed statements of income, changes in equity and cash flows for the six month period then ended (the interim financial information). We have not reviewed the quarterly figures for the period 1 April 2005 to 30 June 2005 as included in the half-year figures. The (consolidated) interim financial information is the responsibility of the Company's management. Our responsibility is to issue a report on this interim financial information based on our review. Scope We conducted our review in accordance with standards for review engagements generally accepted in the Netherlands. A review is limited primarily to inquiries of company personnel and analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Opinion Based on our review, nothing has come to our attention that causes us to believe that the accompanying (consolidated) interim financial information is not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'. Note Without qualifying our review conclusion, we draw attention to the Notes to the (consolidated) interim financial information which explain the Company's transition to International Financial Reporting Standards ("IFRSs"). This (consolidated) interim financial information has been prepared in accordance with those IFRSs that are issued and expected to be effective or available for early adoption as of December 31, 2005, the Company's first annual reporting date at which IFRSs will be applied. However, the IFRSs that will be effective (or available for early adoption) as of December 31, 2005 are still subject to change and to additional interpretations and therefore cannot be determined with certainty at the time of preparing this interim financial information. Accordingly, there is a possibility that the Company's management may determine that changes to the accounting policies adopted in preparing the (consolidated) interim financial information are necessary when it prepares its first IFRS financial statements as of December 31, 2005. Utrecht Utrecht, city, Netherlands Utrecht, city (1994 pop. 234,106), capital of Utrecht prov., central Netherlands, on a branch of the Lower Rhine (Neder Rijn) River. It is a transportation, financial, and industrial center. , August 9, 2005 KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Accountants N.V. |
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