DGAP-News: Phoenix Solar Aktiengesellschaft / Key word(s): Quarter Results Phoenix Solar AG announces Q1/2016 results 04.05.2016 / 08:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Phoenix Solar AG announces Q1/2016 results - Group revenues double versus pre-year period, EBIT slightly improved, strong cash inflow - Free order backlog was at EUR189 million - Forecast for 2016 confirmed - Sale of a non-core asset initiated Sulzemoos, May 4th, 2016 / Phoenix Solar AG (ISIN DE000A0BVU93), an international photovoltaic system integrator listed on the Prime Standard of the Frankfurt Stock Exchange, released its announcement today on the first quarter of the 2016 financial year. In the first three months of 2016, Phoenix Solar AG generated EUR 9.9 million of consolidated revenues, (Q1/2015: EUR 4.9 million). After concluding several large-scale projects at the start of the quarter newly acquired projects are just entering their ramp-up phase, with accelerated revenue growth to be realized beginning in the second quarter. The Power Plants segment delivered revenues of EUR 8.8 million (Q1/2015: EUR 2.5 million). For the quarter, the Power Plants segment accounted for 88.9 percent (Q1/2015: 50.7 percent) of revenues and the Components & Systems segment contributed 11.1 percent (Q1/2015: 49.3 percent) having achieved revenues of EUR 1.1 million in the first quarter of 2016 (Q1/2015: EUR 2.4 million). The gross profit margin reached 6.8 percent (Q1/2015: 18.0 percent). In the previous year's quarter, the utilization of a warranty provision and the reversal of contingencies reduced the cost of materials, thereby generating an extraordinarily high level of gross profit. In the first quarter of 2016, by contrast, the cost of materials was burdened additionally by subsequent one-off project costs. Group EBIT at EUR -2.5 million in the first quarter of 2016 was slightly improved as compared with the first three months of 2015 (Q1/2015: EUR -2.6 million). The EBIT margin (EBIT as a percentage of revenue) came in at -24.9 percent (Q1/2015: -52.5 percent). Accordingly, the consolidated net loss attributable to parent company shareholders amounted to EUR -3.7 million (Q1/2015: EUR -3.4 million). Calculated on an average number of 7,372,700 outstanding shares, EPS (earnings per share) stood at EUR -0.50 EUR (Q1/2015: -0,46 EUR). Order book position at the end of first quarter 2015 As of March 31st, 2015 Phoenix Solar showed a consolidated free order backlog (firm orders received but not yet invoiced) of EUR 189.4 million (March 31st, 2015: EUR 131.2 million). As already announced, the free order book position as of March 31, 2016 includes one order, however, for which the construction permit has long been outstanding. Nevertheless, a major part of the forecast Group revenue for the full 2016 year has thus already been contractually secured. Total orders on hand (including invoiced orders) increased significantly to EUR 258.4 million as of March 31st, 2016 (March 31st, 2015: EUR 142.3 million). Cash Flow EUR 2.9 million cash inflow from operating activities was significantly improved as compared to the first quarter 2015 when a cash outflow of EUR 2.4 million occurred. This is attributed in particular to a reduction in current receivables of EUR 5.0 million to EUR 11.4 million (December 31st, 2015: EUR 16.4. million) and an increase in financial liabilities of EUR 2.0 million to EUR 23.3. million (December 31st, 2015: EUR 21.3 million). Together with EUR 2.3 million of cash flow from financing activities, cash and cash equivalents increased by EUR 5.1 million, from EUR 4.9 million to EUR 10.0 million. Shareholders' Equity Primarily as a result of the consolidated net loss consolidated equity has fallen further. It stood at EUR -11.3 million as of March 31, 2016 (December 31, 2015: EUR -7.6 million). As total assets of EUR 54.1 million were only slightly higher than as of December 31, 2015 (EUR 53.4 million), the consolidated equity ratio fell to -21.0 percent (December 31, 2015: -14.1 percent). The Group does not constitute a legally independent entity in itself, however. 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 4.4 million as of December 31st, 2015, equivalent to a 8.8 percent equity ratio (December 31st, 2015: EUR 6.6 million, equivalent to a 12.3 percent equity ratio). Other On April 26, 2016, Phoenix Solar concluded an agreement with Danish investment firm Obton Solenergi Ninna, specializing in photovoltaic power plant investments in Germany and France. Accordingly, Obton is to acquire all shares in the project company Bâtisolaire 3 SAS in France. This agreement is still subject to various conditions that are expected to be met by the end of the second quarter of 2016. As Phoenix Solar is not active as an independent power producer, the power plant is regarded as a non-core asset. The proceeds are to be used mainly to repay debt. Outlook Also against the backdrop of the continued high level of market growth the Executive Board confirms the 2016 forecast. We continue to anticipate revenue in a range between EUR 180 million and EUR 210 million for the 2016 financial year, and EBIT between EUR 2 million and around EUR 4 million. Tim P. Ryan, Chief Executive Officer of Phoenix Solar AG, stated: "Customers consistently appreciate Phoenix Solar's high integrity, high quality approach as our main competitive edge continues to be our ability to design and deliver high quality commercial solar PV plants on-time and on-budget. We continue to strengthen our base business and build professional capabilities in our three core markets, the US, Middle East and Asia/Pacific, while managing costs carefully at the same time. This makes us confident that we will reliably meet our revenue and earnings forecasts for the 2016 financial year and continue on our path of sustainable and profitable growth." First Quarter 2016 Announcement The newly conceived, compact announcement on the first three months of 2016 will be published today, May 4th, 2016, electronically and can be downloaded from the our website, www.phoenixsolar-group.com, under the Investor Relations, Financial Reports heading. About Phoenix Solar AG Phoenix Solar AG, that has its headquarters in Sulzemoos near Munich, is an international photovoltaic system integrator. The Group develops, plans, builds and operates large-scale photovoltaic plants and on a smaller scale is a specialist wholesaler for turnkey power plants, solar modules and accessories. As an EPC contractor specializing in building solar power plants, Phoenix Solar lays special emphasis on on-budget and on-time construction and delivery of solar power plants optimized to deliver superior return. With subsidiaries on three continents, the company has sold solar modules with an output of significantly more than 1.3 gigawatt since its founding. The stocks of Phoenix Solar AG (ISIN DE000A0BVU93) are listed on the official market (Prime Standard) of the Frankfurt Stock Exchange. www.phoenixsolar-group.com. Contact: Phoenix Solar AG Dr. Joachim Fleing Investor Relations Representative Tel.: +49 (0)8135 938-315 Fax: +49 (0)8135 938-399 [email protected] www.phoenixsolar-group.com --------------------------------------------------------------------------- 04.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Phoenix Solar Aktiengesellschaft Hirschbergstraße 4 85254 Sulzemoos Germany Phone: +49 (0)8135-938-000 Fax: +49 (0)8135-938-099 E-mail: [email protected] Internet: www.phoenixsolar-group.de ISIN: DE000A0BVU93 WKN: A0BVU9 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich (m:access), Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 460525 04.05.2016