Evertz Technologies (ET) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 sales reached CAD 514.6 million, up 13% year-over-year, surpassing half a billion dollars for the first time, with record revenue and strong operational performance.

• Net earnings increased 10% to CAD 71 million, with fully diluted EPS of CAD 0.91, compared to CAD 0.84 last year.

• International revenues surged 50% to CAD 176.6 million, reflecting robust global demand.

• Recurring software, services, and other software accounted for 37% of total revenue, totaling CAD 188.9 million.

• Fourth quarter revenue was CAD 122.8 million, with net earnings of CAD 13.9 million and EPS of CAD 0.18.

Financial highlights

• Gross margin for the year was 58.8%, with Q4 gross margin at 59.2%, up from 58.9% in Q3.

• Year-end cash position was CAD 86.3 million, up from CAD 6.6 million in 2023.

• Working capital at year-end was CAD 201.7 million, up CAD 30.2 million year-over-year.

• Cash from operations for the year was CAD 144.7 million; after adjustments, CAD 95.4 million.

• Dividend of CAD 0.195 per share declared, payable July 10, 2024.

Outlook and guidance

• Purchase order backlog exceeded CAD 295 million at May-end, with May shipments of CAD 32 million.

• Management attributes quarterly revenue softness to project timing, not macroeconomic weakness.

• Order backlog remains robust, supporting future revenue visibility.

• Temporary elevated R&D costs expected to trail off after Q1 of the next fiscal year.