Mr. Doug Moore reports

EVERTZ TECHNOLOGIES REPORTS RECORD QUARTERLY REVENUE OF $135.3 MILLION IN THE THIRD QUARTER ENDED JANUARY 31, 2024

Evertz Technologies Ltd. has released its results for the third quarter ended Jan. 31, 2024.

Third quarter 2024 highlights:

• Record quarterly revenue of $135.3-million, an increase of 22 per cent, or $24.4-million, from the prior year;
• International quarterly revenue of $54.8-million, an increase of 38 per cent from the prior year;
• United States/Canada quarterly revenue of $80.5-million, an increase of 13 per cent from the prior year;
• Earnings from operations before foreign exchange of $29.2-million for the quarter, an increase of 48 per cent from the prior year;
• Net earnings of $19-million for the quarter;
• Fully diluted earnings per share of 24 cents for the quarter.

Revenue

For the quarter ended Jan. 31, 2024, revenues were $135.3-million compared with revenues of $110.9-million for the quarter ended Jan. 31, 2023. For the quarter, revenues in the United States/Canada region were $80.5-million, compared with $71.2-million in the same quarter last year. The international region had revenues of $54.8-million compared with $39.6-million in the same quarter last year.

Gross margin

For the quarter ended Jan. 31, 2024, gross margin was $79.7-million, as compared with $65.6-million in the same quarter last year. Gross margin percentage was approximately 58.9 per cent as compared with 59.2 per cent in the quarter ended Jan. 31, 2023.

Earnings

For the quarter ended Jan. 31, 2024, net earnings were $19-million, as compared with $12.1-million in the corresponding period last year.

For the quarter ended Jan. 31, 2024, earnings per share on a fully diluted basis were 24 cents, as compared with 16 cents in the corresponding period last year.

Operating expenses

For the quarter ended Jan. 31, 2024, selling and administrative expenses were $18.3-million, as compared with $16.3-million for the quarter ended Jan. 31, 2023.

For the quarter ended Jan. 31, 2024, gross research and development expenses were $34-million, as compared with $30.2-million for the quarter ended Jan. 31, 2023.

Liquidity and capital resources

The company's working capital as at Jan. 31, 2024, was $199.6-million, as compared with $171.4-million on April 30, 2023.

Cash and cash equivalents were $69.7-million as at Jan. 31, 2024, as compared with $12.5-million in cash on April 30, 2023.

Cash generated from operations was $30.2-million for the quarter ended Jan. 31, 2024, as compared with $16.2-million cash generated for the quarter ended Jan. 31, 2023. Before taking into account taxes and the changes in non-cash working capital and current taxes, the company generated $25-million from operations for the quarter ended Jan. 31, 2024, compared with $19.6-million for the same period last year.

For the quarter ended Jan. 31, 2024, the company used $600,000 for investing activities.

For the quarter ended Jan. 31, 2024, the company used cash in financing activities of $16.1-million, which was principally a result of the payment of dividends of $14.8-million.

Shipments and backlog

At the end of February, 2024, purchase order backlog was in excess of $292-million and shipments during the month of February, 2024, were $40-million.

Dividend declared

Evertz's board of directors declared a regular quarterly dividend on March 14, 2024, of 19.5 cents per share.

The dividend is payable to shareholders of record on March 21, 2024, and will be paid on or about March 29, 2024.

Conference call

The company will hold a conference call with financial analysts to discuss the results on March 14, 2024, 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 Sunday, April 14, 2024. The rebroadcast can be accessed at 416-764-8692 or toll-free 1-877-674-7070. The passcode for the rebroadcast is 032158.

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-definition and ultrahigh-definition television (HD and UHD) and next-generation high-bandwidth, low-latency IP (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 premises and in the cloud.

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