Mr. Doug Moore reports

EVERTZ TECHNOLOGIES REPORTS RECORD QUARTERLY REVENUE OF $131 MILLION IN THE SECOND QUARTER ENDED OCTOBER 31, 2023

Evertz Technologies Ltd. has released its results for the second quarter ended Oct. 31, 2023.

Second quarter 2024 highlights:

• Record quarterly revenue of $130.7-million, an increase of 15 per cent or $17.5-million from the prior-year quarter;
• International quarterly revenue of $56.7-million, up $31.8-million or 128 per cent from the prior-year quarter;
• Earnings from operations of $32.2-million for the quarter, an increase of 13 per cent from the prior-year quarter;
• Net earnings of $22.3-million for the quarter, an increase of 11 per cent from the prior-year quarter;
• Fully diluted earnings per share of 29 cents for the quarter;
• Regular quarterly dividend increased to 19.5 cents per share.

Revenue

For the quarter ended Oct. 31, 2023, revenues were $130.7-million, an increase of $17.5-million compared with revenues of $113.2-million for the quarter ended Oct. 31, 2022. For the quarter, revenues in the United States/Canada region were $74-million a decrease of 16 per cent compared with $88.3-million in the same quarter last year. The international region had revenues of $56.7-million, an increase of $31.8-million or 128 per cent compared with $24.9-million in the same quarter last year.

Gross margin

For the quarter ended Oct. 31, 2023, gross margin was $78-million, an increase of $10.5-million compared with $67.5-million in the same quarter last year. Gross margin percentage was approximately 59.7 per cent as compared with 59.6 per cent in the quarter ended Oct. 31, 2022.

Earnings

For the quarter ended Oct. 31, 2023, net earnings were $22.3-million, an increase of 11 per cent compared with $20-million in the corresponding period last year.

For the quarter ended Oct. 31, 2023, earnings per share on a fully diluted basis were 29 cents as compared with 26 cents in the corresponding period last year.

Operating expenses

For the quarter ended Oct. 31, 2023, selling and administrative expenses were $17.5-million as compared with $14.7-million for the quarter ended Oct. 31, 2022.

For the quarter ended Oct. 31, 2023, gross research and development expenses were $32.2-million as compared with $28.7-million for the quarter ended Oct. 31, 2022.

Liquidity and capital resources

The company's working capital as at Oct. 31, 2023, was $191.3-million as compared with $171.4-million on April 30, 2023.

Cash and cash equivalent was $55.9-million as at Oct. 31, 2023, as compared with $12.5-million on April 30, 2023.

Cash generated from operations was $20.3-million for the quarter ended Oct. 31, 2023, as compared with $7.7-million cash generated for the quarter ended Oct. 31, 2022. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $30.9-million from operations for the quarter ended Oct. 31, 2023, compared with $27.5-million for the same period last year.

For the quarter, the company generated $4.1-million from investing activities.

For the quarter ended, the company used cash in financing activities of $17-million which was principally a result of the payment of dividends of $14.5-million.

Shipments and backlog

At the end of November, 2023, purchase order backlog was in excess of $324-million and shipments during the month of November, 2023, were $48-million.

Dividend declared

The Evertz board of directors declared a regular quarterly dividend on Dec. 6, 2023, of 19.5 cents per share.

The dividend is payable to shareholders of record on Dec. 15, 2023, and will be paid on or about Dec. 21, 2023.

Conference call

The company will hold a conference call with financial analysts to discuss the results on Dec. 6, 2023, at 5 p.m. EDT. Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialling 416-764-8646 or toll-free (North America) 1-888-396-8049.

For those unable to listen to the live call, a rebroadcast will also be available until Jan. 6, 2024. The rebroadcast can be accessed at 416-764-8692 or toll-free 1 877-674-7070, passcode 982737 followed by the pound key.

About Evertz Technologies Ltd.

Evertz Technologies designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multichannel digital, and high- and ultrahigh-definition television (HDTV and UHD) and next-generation high-bandwidth, low-latency Internet protocol network environments and by telecommunications and new-media companies. The company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the cloud.

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