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Somero Enterprises, Inc.- Final Results

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("Somero" or "the Company")

Final Results

Strong H2 performance, increasing 2020 investment to drive long-term growth

Somero Enterprises, Inc. reports its annual results for the twelve months ended 31 December 2019.

Financial Highlights

  • Robust financial performance for the year made possible by flexible operating cost model
  • Adjusted EBITDA margin of 32% (2018: 33%)
  • Adjusted net income of US$ 21.1m (2018: US$ 21.4m)
  • Strong H2 recovery led by the US as weather conditions improved
  • Global H2 2019 sales were US$ 50.3m (H1 2019: US$ 39.0m)
  • Healthy operating cash flows of US$ 18.9m in 2019 resulting in US$ 23.8m year-end net cash
  • Substantial return of cash to shareholders:
  • Paid US$ 17.4m in dividends to shareholders in 2019 (2018: US$ 12.3m)




% Change









Adjusted EBITDA(1,2)




Adjusted EBITDA margin(1,2)




Profits before tax




Adjusted net income(1,3)




Diluted adjusted net income per share(1,3)




Cash flow from operating activities




Net cash(4)




Ordinary dividend per share




Supplemental dividend per share




Operational Highlights

  • Demand across markets and product lines remained healthy
  • Better than anticipated H2 recovery in the US as weather conditions improved
  • Good growth in North America, China, Latin America and India
  • New products contributed meaningfully to growth
  • Sales of the SkyScreed® (the world's first Laser Screed machine to allow screeding on structural high rise applications) and the Somero Line Dragon® product line (formerly the SP-16 Line Pulling & Placing System) (following its acquisition in January 2019) combined to contribute US$ 2.2m in incremental 2019 sales
  • 3-D Profiler System® and Other revenues contributed US$ 0.9m of incremental sales in 2019 compared to 2018 

Post-Period Highlights

  • Share buyback program of an aggregate value of up to US$ 1.0m authorized by the Board in order to offset dilution from on-going equity award programs, to be completed in 2020


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 loss, other 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, President and CEO of Somero, said: 

"2019 was a highly profitable year for Somero and I am pleased with the results we have been able to achieve despite the headwinds we have faced. Notwithstanding record levels of rainfall during the first half of 2019 in the US, a US-China tariff dispute and macro-economic uncertainly in Europe, we delivered nearly US$ 29.0m in EBITDA with strong margins and healthy cash flows while also taking a substantial step forward in our product development journey with the launch of our SkyScreed® 25.  The SkyScreed® 25 is the world's first Laser Screed machine to allow screeding on structural high-rise applications. 

Our management team moved quickly to tackle each challenge we faced during the year, with the end result being another year of strong profits and a return of over US$ 17.0m in dividends to our shareholders.  Our performance in 2019 is a great illustration of the strength of our management team, the flexibility of our operating model, and our commitment to driving long-term growth. 

We enter 2020 in a strong financial position, allowing us to make investments to capture growth in new and existing markets with a growing product offering, with particular increased investment in the SkyScreed to support its future growth.  We are excited by the opportunities that lie ahead, and I am confident in our ability to execute our strategy, delivering strong results and dividends for our shareholders."