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SODASTREAM REPORTS FOURTH QUARTER RESULTS

Date: 
26 February, 2014
Abstract: 

AIRPORT CITY, Israel – February 26, 2014 – SodaStream International Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and twelve month periods ended December 31, 2013.

AIRPORT CITY, Israel – February 26, 2014 – SodaStream International Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and twelve month periods ended December 31, 2013.

 For the fourth quarter ended December 31, 2013:

  • Revenue increased 26.4% to $168.1 million from $132.9 million in the fourth quarter 201
  • EBITDA decreased 45.2% to $5.9 million from $10.7 million, and Adjusted EBITDA decreased 31.4% to $8.7 million from $12.6 million in the fourth quarter 2012
  • Net income was $0.7 million compared to $7.5 million in the fourth quarter 2012, and Adjusted net income was $3.5 million compared to $9.4 million in the fourth quarter 2012
  • Diluted earnings per share were $0.03, compared to $0.36 in the fourth quarter 2012 and Adjusted diluted earnings per share were $0.16 compared to $0.45 in the fourth quarter 2012
  •  

For the year ended December 31, 2013:

  • Revenue increased 29.0% to $562.7 million from $436.3 million in  2012
  • EBITDA increased 13.4% to $62.2 million from $54.9 million, and Adjusted EBITDA increased 19.9% to $73.2 million from $61.1 million in 2012
  • Net income decreased 4.2% to $42.0  million compared to $43.9 million in 2012, and Adjusted net income increased  6.0% to $53.0 million compared to $50.0 million in 2012
  • Diluted earnings per share were $1.96, compared to $2.09 in 2012 and Adjusted diluted earnings per share were $2.48 compared to $2.39 in 2012

 

 

“While the fourth quarter proved to be more challenging than we expected there were several highlights, along with important lessons from the past year that give us confidence about the future,” said Daniel Birnbaum, Chief Executive Officer of SodaStream. “Our ability to grow revenue 29% to $563 million in 2013, including selling a record 4.4 million soda makers and increasing gas refill unit sales 30% to a record 21.5 million, underscores the high level of consumer interest and activity in home carbonation.  Our plan is to capitalize on our first mover advantage and leadership position by accelerating investments in brand building and demand creation in 2014 to capture a greater share of the global carbonated beverage market.  Importantly, we have moved quickly to implement measures and controls in order to restore gross margins to historical levels and prevent the issues that impacted fourth quarter profitability from recurring.  I’m confident we are on the right path towards achieving our primary goal of increasing household penetration.”

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2013 Financial Review

 

 

 

 

 

 

 

 

 

 

 

Geographical Revenue Breakdown

 

 

 

 

 

 

 

 

Revenue

Three Months Ended

 

 

 

 

 

December 31, 2012

 

December 31, 2013

 

 Increase (decrease)

 

 Increase (decrease)

 

In Millions USD

 

%

The Americas

$

62.8

 

$

72.7

 

$

9.9

 

16%

Western Europe

 

51.9

 

 

71.6

 

 

19.7

 

38%

Asia-Pacific

 

11.6

 

 

14.8

 

 

3.2

 

28%

Central & Eastern Europe, Middle East, Africa

 

6.6

 

 

9.0

 

 

2.4

 

36%

Total

$

132.9

 

$

168.1

 

$

35.2

 

26%



 

Product Segment Revenue Breakdown

 

 

 

 

 

 

 

 

Revenue

Three Months Ended

 

 

 

 

 

December 31, 2012

 

December 31, 2013

 

 Increase

 Increase

 

In millions USD

 

%

Soda Maker Starter Kits

$

66.1

 

$

77.8

 

$

11.7

 

18%

Consumables

 

64.8

 

 

87.8

 

 

23.0

 

35%

Other

 

2.0

 

 

2.5

 

 

0.5

 

26%

Total

$

132.9

 

$

168.1

 

$

35.2

 

26%

 

Product Segment Unit Breakdown

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

December 31, 2012

 

December 31, 2013

 

 Increase

 

 Increase

 

In thousands

 

%

Soda Maker Starter Kits

1,111

 

1,542

 

431

 

39%

CO2 Refills

4,308

 

5,375

 

1,067

 

25%

Flavors

7,362

 

9,751

 

2,389

 

32%

 

Gross margin for the fourth quarter 2013 was 42.4% compared to 53.0% for the same period in 2012. The decline was primarily attributable to lower average sell-in prices due largely to year end discounting and promotions, higher costs as the result of moving product between markets and channels combined with an increase in bundled promotional packs, a shift in product mix versus plan including lower CO2 refills and unfavorable changes in foreign currency exchange rates.

 

Sales and marketing expenses for the fourth quarter 2013 totaled $56.2 million, or 33.5% of revenue, compared to $52.8 million, or 39.7% of revenue for the comparable period in the prior year. The  620 basis point change in sales and marketing expenses as a percent of revenue was mainly attributable to a cost reduction in advertising and promotion expense as a percent of revenue to 16.8% from 22.7% in the fourth quarter 2012.

 

General and administrative expenses for the fourth quarter 2013 were $12.5 million, or 7.4% of revenue, compared to $10.2 million, or 7.6% of revenue in the comparable period of last year. The increase was mainly due to higher share-based compensation expense of $2.8 million in the quarter, compared to $1.9 million in the fourth quarter 2012, additional expenses related to our newly acquired Italian distributer as well as additional infrastructure to support growth,  partially offset by a reduction in all other general and administrative expenses.

 

Operating income decreased 66.7% to $2.6 million, or 1.6% of revenue, compared to $7.9 million, or 5.9% of revenue in the fourth quarter 2012.

 

Tax expense was $0.3 million compared to tax expense of $0.1 million in the fourth quarter 2012. The increase in the tax expense was primarily due to geographic mix.

 

Balance Sheet Review

 

  • Cash and cash equivalents and bank deposits at December 31, 2013 were $40.9 million compared to $62.1 million at December 31, 2012. The decrease is primarily attributable to the investment in our new production facility, an increase in working capital and the purchase of our Italian distributor’s business.
  • The Company had $15.5 million of bank debt at December 31, 2013 mainly for financing the investment in its new production facility, compared to no bank debt at December 31, 2012.
  • Working capital at December 31, 2013 increased 63.3% to $155.4 million compared to $95.1 million at December 31, 2012. Inventories at December 31, 2013 increased 24.9% to $140.7 million compared to $112.7 million at December 31, 2012, mainly due to the overall growth of our business.

 

 

 

 

 

 

Guidance

 

  • The Company expects full year 2014 revenue to increase approximately 15% over 2013 revenue of $562.7 million.
  • The Company expects full year 2014 EBITDA to increase approximately 11% over 2013 EBITDA of $62.2 million. Excluding changes in foreign currency exchange rates compared to 2013, the Company expects 2014 EBITDA to increase approximately 25% over 2013.
  • The Company expects full year 2014 net income to increase approximately 3% over 2013 net income of $42.0 million.

 

 

Conference Call and Management Commentary

 

Detailed CFO commentary and a supplemental slide presentation have been filed as part of today’s 6-K and will be posted on the Company’s website, http://sodastream.investorroom.com.

 

The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (U.S. time) today (Wednesday, February 26, 2014) to review the Company’s financial results. The conference call will be broadcast over the Internet as a “live” listen only Webcast. To listen, please go to: http://sodastream.investorroom.com.  Listeners are urged to login approximately 20 minutes before the conference call is scheduled to begin in order to register, as well as download and install any necessary audio software.  An archive of the Webcast will be available for 30 days after the call.

 

About SodaStream International

 

SodaStream manufactures beverage carbonation systems which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 60,000 retail stores in 45 countries around the world.  For more information on SodaStream, please visit the Company's website: www.sodastream.com.

 

To download SodaStream's investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit http://itunes.apple.com/us/app/soda-ir/id524423001?mt=8 for your iPhone/iPad, or https://play.google.com/store/apps/details?id=com.theirapp.soda for your Android mobile device.

 

Non-IFRS Financial Measures

 

This press release contains certain non-IFRS measures, including Adjusted net income, Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization (“Adjusted EBITDA”), and Adjusted diluted earnings per share (“Adjusted diluted EPS”).

 

Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the share-based compensation expense. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the share-based compensation expense. Adjusted diluted EPS represents earnings per share calculated in accordance with IFRS as adjusted for the impact of the share-based compensation expense.

 

The Company believes that the Adjusted net income, Adjusted EBITDA and Adjusted diluted EPS, which exclude share-based compensation expense, should be considered in evaluating the Company’s operations. Adjusted net income and Adjusted diluted EPS exclude share-based compensation because it is a non-cash expense that does not reflect the performance of the Company’s underlying business and operations.  Adjusted EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expenses, net), tax positions (such as the impact on periods or companies of changes in effective tax rates) and the age and book depreciation and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively).

 

These measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for the IFRS results. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.

 

Forward Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management's current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to expand into our target markets, including the United States; our ability to continue to develop or maintain our presence in retail networks; our ability to develop and implement production and operating infrastructure to effectively support our growth; the success of our marketing campaigns and media spending in terms of increased sales or increased product and brand name awareness; our ability to maintain our customer base in markets where we have an established presence; the risks associated with our reliance on exclusive arrangements for the distribution of our beverage carbonation systems and consumables in each of the markets in which we use third-party distributors; our ability to compete effectively with other companies which currently offer, or may offer in the future, competing products; potential product liability claims if any component of our beverage carbonation systems is misused; our ability to protect our intellectual property rights; our being found to have a dominant position in certain markets which may place limits on our ability to operate; risks associated with our being a multinational corporation, including fluctuations in currency exchange rates; our potential exposure to greater than anticipated tax liabilities; our products being subject to extensive governmental regulation in the markets in which we operate; adverse conditions in the global economy which could negatively impact our customers' demand for our products; and other factors detailed in documents we file from time to time with the United States Securities and Exchange Commission.  Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

Company Contact:

Yonah Lloyd

Chief Corporate Development and Communications Officer

SodaStream International Ltd.

Phone: +972-3-976-2462

yonahl@sodastream.com

 

Investor Contacts (US):

Brendon Frey

ICR

Phone: + 1 203-682-8200

brendon.frey@icrinc.com

 

Consolidated Statements of Operations

 

 

 

 

 

 

In thousands (other than per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended

 

For the three months ended

 

December 31,

 

December 31,

 

2012

 

2013

 

2012

 

2013

 

(Audited)

 

(Unaudited)

 

(Unaudited)

Revenue

$

436,316

 

$

562,723

 

$

132,947

 

$

168,110

Cost of revenue

 

200,491

 

 

277,153

 

 

62,439

 

 

96,781

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

235,825

 

 

285,570

 

 

70,508

 

 

71,329

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

153,009

 

 

186,289

 

 

52,833

 

 

56,242

General and administrative

 

37,767

 

 

50,353

 

 

10,160

 

 

12,467

Other income, net

 

(484)

 

 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

190,292

 

 

236,642

 

 

62,643

 

 

68,709

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

45,533

 

 

48,928

 

 

7,865

 

 

2,620

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

169

 

 

551

 

 

129

 

 

256

Other financial expense, net

 

767

 

 

1,695

 

 

125

 

 

1,359

 

 

 

 

 

 

 

 

 

 

 

 

Total financial expense, net

 

936

 

 

2,246

 

 

254

 

 

1,615

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

44,597

 

 

46,682

 

 

7,611

 

 

1,005

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

737

 

 

4,655

 

 

78

 

 

324

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

$

43,860

 

$

42,027

 

$

7,533

 

$

681

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

Basic

$

2.16

 

$

2.02

 

$

0.37

 

$

0.03

Diluted

$

2.09

 

$

1.96

 

$

0.36

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average  number of shares

 

 

 

 

 

 

 

 

 

 

 

Basic

 

20,344

 

 

20,791

 

 

20,530

 

 

20,892

Diluted

 

20,968

 

 

21,428

 

 

21,047

 

 

21,474

 

 

Consolidated Balance Sheets as of

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

2012

 

2013

 

(Audited)

 

(Unaudited)

 

(In thousands)

Assets

 

 

 

 

 

Cash and cash equivalents

$

62,068

 

$

40,885

Inventories

 

112,679

 

 

140,709

Trade receivables

 

86,650

 

 

123,936

Other receivables

 

28,889

 

 

22,208

Derivative financial instruments

 

803

 

 

538

Total current assets

 

291,089

 

 

328,276

 

 

 

 

 

 

Property, plant and equipment

 

76,906

 

 

107,132

Intangible assets

 

41,978

 

 

48,104

Deferred tax assets

 

2,133

 

 

1,089

Other receivables

 

271

 

 

398

Total non-current assets

 

121,288

 

 

156,723

 

 

 

 

 

 

Total assets

 

412,377

 

 

484,999

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Loans and borrowings

 

 

 

15,452

Derivative financial instruments

 

261

 

 

103

Trade payables

 

86,431

 

 

90,749

Income tax payable

 

8,866

 

 

9,869

Provisions

 

1,304

 

 

1,614

Other current liabilities

 

37,022

 

 

29,674

Total current liabilities

 

133,884

 

 

147,461

 

 

 

 

 

 

Employee benefits

 

1,939

 

 

2,221

Provisions

 

537

 

 

714

Deferred tax liabilities

 

1,527

 

 

2,997

Total non-current liabilities

 

4,003

 

 

5,932

 

 

 

 

 

 

Total liabilities

 

137,887

 

 

153,393

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Share capital

 

3,330

 

 

3,378

Share premium

 

178,338

 

 

  193,649

Translation reserve

 

3,628

 

 

  3,394

Retained earnings

 

89,194

 

 

131,185

Total shareholders’ equity

 

274,490

 

 

331,606

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

412,377

 

$

484,999

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended

 

For the three months ended

 

December 31,

 

December 31,

 

2012

 

2013

 

2012

 

2013

 

(audited)

 

(Unaudited)

 

(Unaudited)

 

 

(In thousands)

Cash flows from operating  activities

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

$

43,860

 

$

42,027

 

$

7,533

 

$

681

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

1,602

 

 

2,253

 

 

495

 

 

484

Change in fair value of  derivative financial instruments

 

504

 

 

(310)

 

 

 

 

(43)

Depreciation of property, plant  and equipment

 

8,522

 

 

12,740

 

 

2,493

 

 

4,135

Gain on sales of property, plant and equipment

 

(766)

 

 

 

 

(766)

 

 

Share based payment

 

6,189

 

 

11,019

 

 

1,896

 

 

2,781

Interest expense, net

 

169

 

 

551

 

 

129

 

 

256

Income tax expense

 

737

 

 

4,655

 

 

78

 

 

324

 

 

60,817

 

 

72,935

 

 

11,858

 

 

8,618

Increase in inventories

 

(26,844)

 

 

(20,217)

 

 

(2,935)

 

 

17,374

Increase in trade and other receivables

 

(49,431)

 

 

(42,778)

 

 

(11,447)

 

 

(6,986)

Increase in trade payables

 

39,957

 

 

3,259

 

 

16,369

 

 

12,024

Increase in employee benefits

 

91

 

 

111

 

 

119

 

 

87

Increase (decrease) in provisions and other current liabilities

 

14,891

 

 

(9,226)

 

 

9,067

 

 

(9,804)

 

 

39,481

 

 

4,084

 

 

23,031

 

 

21,313

Interest paid

 

(454)

 

 

(485)

 

 

(120)

 

 

(196)

Income tax received

 

2,191

 

 

3,769

 

 

458

 

 

Income tax paid

 

(4,041)

 

 

(2,960)

 

 

(994)

 

 

(673)

Net cash from operating activities

 

37,177

 

 

4,408

 

 

22,375

 

 

20,444

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing  activities

 

 

 

 

 

 

 

 

 

 

 

Interest received

 

1,303

 

 

91

 

 

122

 

 

(23)

Investment in bank deposits

 

(20,000)

 

 

(10,000)

 

 

 

 

Proceeds from bank deposits

 

58,919

 

 

10,000

 

 

20,000

 

 

10,000

Proceeds from derivative financial  instruments, net

 

(724)

 

 

417

 

 

(731)

 

 

367

Acquisition of subsidiary, net of cash acquired

 

(10,954)

 

 

(1,179)

 

 

 

 

Acquisition of property, plant  and equipment

 

(34,080)

 

 

(39,799)

 

 

(10,321)

 

 

(13,503)

Acquisition of intangible assets

 

(3,692)

 

 

(4,844)

 

 

(1,567)

 

 

(1,301)

Net cash from (used in) investing  activities

 

(9,228)

 

 

(45,314)

 

 

7,503

 

 

(4,460)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing  activities

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of employee share options

 

2,890

 

 

4,184

 

 

1,272

 

 

173

Change in short-term debt

 

(3,873)

 

 

15,452

 

 

 

 

(4,561)

Net cash from (used in) financing activities

 

(983)

 

 

19,636

 

 

1,272

 

 

(4,388)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

26,966

 

 

(21,270)

 

 

31,150

 

 

11,596

Cash and cash equivalents at the beginning of the period

 

34,769

 

 

62,068

 

 

30,676

 

 

29,211

Effect of exchange rates  fluctuations on cash and cash equivalents

 

333

 

 

87

 

 

242

 

 

78

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents  at the end of the period

$

62,068

 

$

40,885

 

$

62,068

 

$

40,885

 

 

Information about revenue in reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Americas

 

Western Europe

Asia-Pacific

Central & Eastern Europe, Middle East, Africa

 

Total

 

(In thousands)

Twelve months ended:

 

 

 

 

 

 

 

 

 

December 31, 2012 (Audited)

$

 157,705

 

 204,332

 42,367

 31,912

 

$

 436,316

December 31, 2013 (Unaudited)

$

 218,169

 

 268,500

 43,554

 32,500

 

$

 562,723

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

December 31, 2012 (Unaudited)

$

 62,762

 

 51,996

 11,591

 6,598

 

$

 132,947

December 31, 2013 (Unaudited)

$

 72,666

 

 71,649

 14,816

 8,979

 

$

 168,110

 

 

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31,

 

2012

 

2013

 

Reported

 

Share based

 

 

 

Reported

 

Share based

 

 

 

(Unadjusted)

 

payment

 

Adjusted

 

(Unadjusted)

 

payment

 

Adjusted

 

(Unaudited)

 

In thousands (other than per share amounts)

Revenue

$

436,316

 

$

 

$

436,316

 

$

562,723

 

$

 

$

562,723

Cost of revenue

 

200,491

 

 

 

 

200,491

 

 

277,153

 

 

 

 

277,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

235,825

 

 

 

 

235,825

 

 

285,570

 

 

 

 

285,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

153,009

 

 

 

 

153,009

 

 

186,289

 

 

 

 

186,289

General and administrative

 

37,767

 

 

(6,189)

 

 

31,578

 

 

50,353

 

 

(11,019)

 

 

39,334

Other income, net

 

(484)

 

 

 

 

(484)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

190,292

 

 

(6,189)

 

 

184,103

 

 

236,642

 

 

(11,019)

 

 

225,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

45,533

 

 

6,189

 

 

51,722

 

 

48,928

 

 

11,019

 

 

59,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

169

 

 

 

 

169

 

 

551

 

 

 

 

551

Other financial expense, net

 

767

 

 

 

 

767

 

 

1,695

 

 

 

 

1,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial expense, net

 

936

 

 

 

 

936

 

 

2,246

 

 

 

 

2,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

44,597

 

 

6,189

 

 

50,786

 

 

46,682

 

 

11,019

 

 

57,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

737

 

 

 

 

737

 

 

4,655

 

 

 

 

4,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

$

43,860

 

$

6,189

 

$

50,049

 

$

42,027

 

$

11,019

 

$

53,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

2.16

 

 

 

 

$

2.46

 

$

2.02

 

 

 

 

$

2.55

Diluted

$

2.09

 

 

 

 

$

2.39

 

$

1.96

 

 

 

 

$

2.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average  number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

20,344

 

 

 

 

 

20,344

 

 

20,791

 

 

 

 

 

20,791

Diluted

 

20,968

 

 

 

 

 

20,968

 

 

21,428

 

 

 

 

 

21,428

 

 

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

2012

 

2013

 

Reported

 

Share based

 

 

 

Reported

 

Share based

 

 

 

(Unadjusted)

 

payment

 

Adjusted

 

(Unadjusted)

 

payment

 

Adjusted

 

(Unaudited)

 

In thousands (other than per share amounts)

Revenue

$

132,947

 

$

 

$

132,947

 

$

168,110

 

$

 

$

168,110

Cost of revenue

 

62,439

 

 

 

 

62,439

 

 

96,781

 

 

 

 

96,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

70,508

 

 

 

 

70,508

 

 

71,329

 

 

 

 

71,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

52,833

 

 

 

 

52,833

 

 

56,242

 

 

 

 

56,242

General and administrative

 

10,160

 

 

(1,896)

 

 

8,264

 

 

12,467

 

 

(2,781)

 

 

9,686

Other income, net

 

(350)

 

 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

62,643

 

 

(1,896)

 

 

60,747

 

 

68,709

 

 

(2,781)

 

 

65,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

7,865

 

 

1,896

 

 

9,761

 

 

2,620

 

 

2,781

 

 

5,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

129

 

 

 

 

129

 

 

256

 

 

 

 

256

Other financial expense (income), net

 

125

 

 

 

 

125

 

 

1,359

 

 

 

 

1,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial expense (income), net

 

254

 

 

 

 

254

 

 

1,615

 

 

 

 

1,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

7,611

 

 

1,896

 

 

9,507

 

 

1,005

 

 

2,781

 

 

3,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (tax benefit)

 

78

 

 

 

 

78

 

 

324

 

 

 

 

324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

$

7,533

 

$

1,896

 

$

9,429

 

$

681

 

$

2,781

 

$

3,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.37

 

 

 

 

$

0.46

 

$

0.03

 

 

 

 

$

0.17

Diluted

$

0.36

 

 

 

 

$

0.45

 

$

0.03

 

 

 

 

$

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average  number of shares

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

20,530

 

 

 

 

 

20,530

 

 

20,892

 

 

 

 

 

20,892

Diluted

 

21,047

 

 

 

 

 

21,047

 

 

21,474

 

 

 

 

 

21,474

 

 

EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended

 

Three months ended

 

December 31,

 

December 31,

 

2012

 

2013

 

2012

 

2013

 

(Unaudited)

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

Net income

$

43,860

 

$

42,027

 

$

7,533

 

$

681

Interest expense, net

 

169

 

 

551

 

 

129

 

 

256

Income tax expense (tax benefit)

 

737

 

 

4,655

 

 

78

 

 

324

Depreciation and amortization

 

10,124

 

 

14,993

 

 

2,988

 

 

4,619

EBITDA

 

54,890

 

 

62,226

 

 

10,728

 

 

5,880

 

 

 

 

 

 

 

 

 

 

 

 

Share based payment

 

6,189

 

 

11,019

 

 

1,896

 

 

2,781

Adjusted EBITDA

$

61,079

 

$

73,245

 

$

12,624

 

$

8,661

 

 

The following tables present the Company’s revenue, by product type for the periods presented, as well as such revenue by product type as a percentage of total revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended

 

Three months ended

 

December 31,

 

December 31,

 

2012

 

2013

 

2012

 

2013

 

(Audited)

 

(Unaudited)

 

(Unaudited)

 

Revenue

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Soda maker starter kits (including exchange cylinders)

$

185,875

 

$

233,146

 

$

66,075

 

$

77,796

Consumables

 

241,922

 

 

317,798

 

 

64,893

 

 

87,829

Other

 

8,519

 

 

11,779

 

 

1,979

 

 

2,485

Total

$

436,316

 

$

562,723

 

$

132,947

 

$

168,110

 

 

 

 

 

 

 

 

 

 

Twelve months ended

 

Three months ended

 

December 31,

 

December 31,

 

2012

 

2013

 

2012

 

2013

 

(Audited)

 

(Unaudited)

 

(Unaudited)

 

As a percentage of revenue

 

 

 

 

 

 

 

 

Soda maker starter kits (including exchange cylinders)

42.6%

 

41.4%

 

49.7%

 

46.3%

Consumables

55.4%

 

56.5%

 

48.8%

 

52.2%

Other

2.0%

 

2.1%

 

1.5%

 

1.5%

Total

100.0%

 

100.0%

 

100.0%

 

100.0%