DGAP-News

Phoenix Solar AG announces Q1/2017 results - Seite 2

The resulting earnings before interest and taxes (EBIT) were therefore EUR -4.0 million for the quarter, down by EUR 1.5 million vs. the pre-year period (Q1/2016: EUR -2.5 million). The corresponding EBIT margin was below expectations at -28.7 percent (Q1/2016: -24.9 percent).

Finally, the consolidated net loss attributable to parent company shareholders amounted to EUR -5.1 million (Q1/2016: EUR -3.7 million). Calculated on an average number of 7,372,700 outstanding shares, EPS (earnings per share) stood at EUR -0.69 EUR (Q1/2016: EUR -0.50).

Order book position at the end of first quarter 2017

As of March 31st, 2017, Phoenix Solar showed a consolidated free order backlog (firm orders received but not yet invoiced) of EUR 60.6 million (March 31st, 2016: EUR 142.1 million, December 31st, 2016: EUR 55.8 million). Total orders on hand (including invoiced orders) increased to EUR 209.6 million as of March 31st, 2017 (March 31st, 2016: EUR 186.4 million). Current efforts to upgrade our global sales force and process are addressing this situation systematically and are expected to result in further strong growth for the full year 2017.

Cash Flow

EUR 4.3 million cash inflow from operating activities was significantly improved as compared to the first quarter 2016 when a cash inflow of EUR 2.9 million occurred. This is attributed in particular to a reduction in current receivables of EUR 8.9 million to EUR 10.8 million (December 31st, 2016: EUR 19.7 million). Non-current financial liabilities were repaid in the amount of EUR 4.9 million, thereby also reducing net debt (bank borrowings less liquid assets) by EUR 3.0 million. Net debt now amounts to EUR 22.9 million (December 31st, 2016: EUR 25.9 million).

Cash and cash equivalents decreased by EUR 1.9 million, from EUR 9.4 million on December 31st, 2016 to EUR 7.5 million on March 31st, 2017.

Shareholders' Equity

Primarily as a result of the Q1/2017 consolidated net loss, consolidated Group equity has fallen further. It stood at EUR -18.6 million as of March 31, 2017 (December 31st, 2016: EUR -12.1 million). As total assets of EUR 38.6 million were lower than at December 31st, 2016 (EUR 46.5 million), the consolidated equity ratio fell to -48.1 percent (December 31st, 2016: -26.0 percent). However, it is essential to note that the Group does not constitute a legally independent entity in itself. Ultimately, only the equity of Phoenix Solar AG as the parent company of the Phoenix Solar Group is of legal relevance. This equity position amounted to EUR 3.9 million as of March 31st, 2017, equivalent to a 8.0 percent equity ratio (December 31st, 2016: EUR 5.7 million, equivalent to a 8.6 percent equity ratio). Over the coming months, the Executive Board will undertake suitable measures to strengthen the equity of the parent company.