Somero Enterprises, Inc.
(“Somero” or “the Company”)
Final Results
Healthy North American market drives strong finish to 2021
Somero Enterprises, Inc. reports its annual results for the twelve months ended 31 December 2021.
Financial Highlights
- 2021 sales grew a remarkable 51% from 2020 to US$ 133.3m (2020: US$ 88.6m), a record for the Company
- Sales growth translated efficiently to profit and cash flow
- Adjusted EBITDA grew 83% from 2020 to US$ 47.8m (2020: US$ 26.1m)
- Operating cash flow grew 21% from 2020 to US$ 36.9m (2020: US$ 30.6m)
- Year-end net cash of US$ 42.1m (2020: US$ 35.4m) is the highest level in Somero's history
- Disciplined return of cash to shareholders
- Paid US$ 22.4m in dividends to shareholders in 2021 (2020: US$ 13.9m)
- Substantially completed US$ 1.0m share buy-back program authorized in February 2021
|
|
FY21 |
FY20 |
% Change |
|
|
(US$) |
(US$) |
|
|
Revenue |
133.3m |
88.6m |
51% |
|
Adjusted EBITDA(1,2) |
47.8m |
26.1m |
83% |
|
Adjusted EBITDA margin(1,2) |
36% |
29% |
700bps |
|
Profits before tax |
44.6m |
24.6m |
81% |
|
Adjusted net income(1,3) |
34.8m |
18.9m |
84% |
|
Diluted adjusted net income per share(1,3) |
0.61 |
0.33 |
85% |
|
Cash flow from operations |
36.9m |
30.6m |
21% |
|
Net cash(4) |
42.1m |
35.4m |
19% |
|
Ordinary dividend per share |
0.3102 |
0.1681 |
85% |
|
Supplemental dividend per share |
0.1970 |
0.1810 |
9% |
Operational Highlights
- Investing for long-term growth
- Accelerated plans to expand the Houghton, Michigan Operations and Support Offices adding 35% more operational capacity with targeted completion in mid-year 2022
- The Australian direct sales and support team established in late 2020 drove an annual sales increase to US$ 6.1m (2020: US$ 1.1m)
- The Company added over 40 employees in 2021 with focus on global sales, global customer support, and domestic operational roles
- Executing the long-term product strategy to expand the addressable market
- The two newest products, the Somero Broom+CureTM and the SkyStripTM, combined to contribute US$ 2.3m in 2021 revenues, a US$ 1.0m increase over 2020
- Launched the SkyStripTM a plywood stripping solution that targets the high-rise market segment in June 2021
- Completed development of the S-PS50, a large boomed-screed used to level concrete in tilt-up panel casting applications, ahead of an expected Q1 2022 launch
- Completed development of the S-28EZ, the next generation large boomed-screed to replace the S-22EZ, ahead of an expected Q1 2022 launch
Post-Period Highlights
- Declared a 22.02 US cents per share final 2021 ordinary dividend and a 19.70 US cents per share supplemental dividend, totaling a combined US$ 23.4m, payable on May 6, 2022 to shareholders on the register at April 8, 2022
- Authorized a new share buyback program of an aggregate value of up to US$ 2m to offset dilution from on-going equity award programs, expected to be completed by the end of 2022
Notes:
1. The Company uses non-US GAAP financial measures to provide supplemental information regarding the Company's operating performance. See further information regarding non-GAAP measures below.
2. Adjusted EBITDA as used herein is a calculation of the Company's net income plus tax provision, interest expense, interest income, foreign exchange gain (loss) other income (expense), depreciation, amortization, stock-based compensation and non-cash lease expense.
3. Adjusted net income as used herein is a calculation of net income plus amortization of intangibles and excluding the tax impact of stock option and RSU settlements and other special items.
4. Net cash is defined as cash and cash equivalents less borrowings under bank obligations exclusive of deferred financing costs.
Jack Cooney, CEO of Somero, said:
“2021 was an unprecedented year. We delivered extraordinary growth in revenues, EBITDA and operating cash flow, increasing 51%, 83% and 21%, respectively, compared to 2020, with all reaching record levels. Underpinning these remarkable results was our ability to reliably meet customer equipment delivery requirements so that our customers could continue work on their projects. This was critical to achieving the growth we experienced and is an accomplishment that set us apart from many other companies. Our team faced many challenges in 2021, not the least of which were supply chain delays and the COVID impact on the labor force, yet through the resilience of our employees, we overcame each obstacle and we met our customers' needs.
While adjusting to meet the demands placed on the business in 2021 required significant effort, we did not lose focus on executing our long-term growth strategy. We continued to expand our addressable market with new product introductions and invested to expand our operational capacity to support future growth from existing and new products. In H2 2021, we started a US$ 9.5m project to add 35% more operating capacity to our Houghton, Michigan Operations and Support Offices, adequate to support a business with US$ 175m in revenues, that we expect to complete in H2 2022.
We closed the period with the strongest cash position and balance sheet in company history. This liquidity positions us well to make investments, including adding key resources, that will drive growth in the years to come from new and existing products across our key markets and to provide a healthy return of cash to shareholders through dividends. Although 2021 was an exceptional year, we know there is no room for complacency as we move through the new financial year. With the strength of our financial position and the proven capability of our talented employees, we are confident in our ability to take full advantage of the opportunities ahead, to execute our long-term strategy and to deliver strong results and returns for our shareholders. Following what has been an exceptional year, we expect to deliver modest growth in revenue and consequently profitability in FY 2022, on top of what has been an exceptional year.”