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Latecoere : Inside Information / News release on accounts, results

03/16/2022 | 03:20pm EDT

Latécoère Reports FY 2021 Results

FY 2021 adjusted data

  • FY 2021 revenues stand at €379.8 million (-8% vs FY2020)
  • FY 2021 recurring EBITDA improved at €-31.2 million (+13% vs FY 2020) despite drop in sales
  • Recurring EBITDA in H2 2021 shows a strong improvement compared to H1 2021 (€-8.2 million vs €-23.1 million)
  • Major steps were taken to ensure that Latécoère will emerge as a stronger player from the future market recovery:
    • Group's balance sheet strengthened: Capital increase of €222.4 million completed and €130 million of French State backed loans ("PGE") obtained
    • Top management team strengthened - with Thierry Mootz as Group CEO and Philippe Salats as Group CFO
    • Organization streamlined in terms of cost base and industrial footprint
    • Bolt on acquisitions completed with TAC in Belgium, Shimtech composites and Bombardier wiring and interconnection systems both in Mexico

FY 2022 outlook

  • Double digit growth of revenues
  • Strong improvement in recurring EBITDA expected in FY 2022 driven by full impact of cost savings, increased build rates and M&A

Toulouse, March 16, 2022 - Latécoère, a tier 1 partner to major international aircraft manufacturers, today announced that its Board of Directors under the Chairmanship of Pierre Gadonneix, at their meeting on March 15, 2022, adopted and authorised the publication of Latécoère's financial statements for the twelve-month period ended December 31, 2021.

Thierry Mootz, Group Chief Executive Officer, stated: "Latécoère's performance continues to improve according to plan. In 2021 the Group has actively participated in the market consolidation. Growth will continue in 2022 driven by M&A strategy and increased build rates. Thanks to the improvement of our competitiveness, the Group is well positioned to serve the aerospace industry with innovative solutions for a sustainable world".

Adjusted results 2021

Preamble

In order to better monitor and compare its operating and financial performance, the Group has decided to disclose adjusted financial statements alongside the consolidated financial statements. The explanation of the restatements is presented in the appendix to this press release.

All figures are expressed in adjusted figures, unless otherwise stated.

(Adjusted data - € thousand)

H1

H2

2020

H1

H2

2021

Revenue

231,9

181,3

413,2

181,1

198,7

379,8

Reported growth

-37,6%

-46,9%

-42,1%

-21,9%

9,6%

-8,1%

Organic growth

-36,8%

-44,8%

-40,7%

-31,7%

-14,6%

-24,1%

Recurring EBITDA *

(14,0)

(21,2)

(35,2)

(23,0)

(8,2)

(31,2)

Recurring EBITDA margin on revenue

-6,0%

-11,7%

-8,5%

-12,7%

-4,1%

-8,2%

Recurring operating income

(30,8)

(36,3)

(67,1)

(39,3)

(21,6)

(61,0)

Recurring EBIT margin on revenue

-13,3%

-20,0%

-16,2%

-21,7%

-10,9%

-16,1%

Non recurring items

(34,6)

(63,7)

(98,3)

(2,8)

(7,2)

(9,9)

Impairment depreciation

(28,2)

(11,9)

(40,1)

Other non recurring items

(6,4)

(51,8)

(58,2)

(2,8)

(7,2)

(9,9)

Operating income

(65,4)

(100,0)

(165,4)

(42,1)

(28,8)

(70,9)

Net Cost of debt

(1,6)

(2,3)

(3,9)

(1,4)

(21,5)

(23,0)

Other financial income/(expense)

(10,7)

(4,7)

(15,4)

(8,4)

(7,9)

(16,3)

Financial result

(12,3)

(7,0)

(19,2)

(9,8)

(29,4)

(39,3)

Income tax

(12,1)

(2,0)

(14,1)

(1,7)

(0,5)

(2,2)

Net result

(89,8)

(108,9)

(198,7)

(53,6)

(58,8)

(112,4)

Operating free cash flows

(5,2)

(17,3)

(22,5)

(16,7)

(55,0)

(71,7)

* Recurring EBITDA = Recurring operating income + Depreciation and amortization of tangible and intangible assets and impairment losses

  • Adjusted recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.

The Group's revenue reached €379.8 million for the full year 2021 compared to €413.2 million in 2020, representing a decrease of -8.1%.2021 was impacted throughout the year by the Covid-19crisis, whereas 2020 was affected from the second quarter only. This was compounded by the sharp drop in deliveries for the Boeing 787 (-75%compared to 2020) following the temporary halt of Boeing's assembly line. Revenue for the second half of 2021 grew 9.6% compared to the first half of the year, despite the situation with Boeing 787 (-48%).

2

Excluding the impact of Boeing 787 deliveries, 2021 organic revenue is down -10.5%year-on-year. On the same basis, the organic growth for the second half of 2021 is +4.6% compared to the second half of 2020, and +6.6% compared to the first half of 2021.

Recurring EBITDA for 2021 increased by €+4.0 million to reach €-31.2million driven by continued operational improvements implemented since 2020 which more than offset the sales decrease.

Second half year Recurring EBITDA for 2021 reached €-8.2 million, a strong improvement vs second half of 2020 (€+13 million) as well as vs first half of 2021 (€+14.8 million). H2 2021 improvement is driven by the adaptation of the cost base, and by external growth.

In this context, FY 2021 recurring operating income amounted to €-61.0 million compared to €-67.1million in the same period of 2020.

FY 2021 non-recurringitems of €-9.9million mostly derived from acquisitions' costs of €-7.9 million.

Financial result totalled to €-39.3 million in 2021 compared to €-19.2million in 2020.

FY 2021 financial result includes net cost of debt for €-23.0 million which is primarily due to the full recording of the interest expense of the SCP shareholder loan (as it is fully repaid) for an amount of €-

16.4 million and other financial income and expenses for €-16.3 million which include unwinding of hedging portfolio for an amount of €-14,6 million.

Group net income amounted to €-112.4 million compared to €-198.7million in 2020.

Free cash flow from operations for 2021 of €-71.7 million was driven by cash flow from operating activities before income tax paid of €-22.1million and by a negative cash from investments of €-49.6million including the acquisition price of TAC and Shimtech for €-32.9million.

Net debt was €65.1 million declining by €-82.5 million as a result of free cash flow from operations of €-71.7 million, cash from capital increase (detailed hereafter) of €-222.4 million linked to recapitalisation realized in August 2021, cost of debt paid for €-18.8 million, hedging portfolio unwinding of €-14.6 million, IFRS 16 lease of €-25.5 million and Income tax paid of €-4.7 million.

At the end of December 2021, cash and cash equivalent stood at €277.6 million.

3

Recapitalisation and strengthening of the Group's liquidity

A capital increase of €222.4 million was completed on August 2021 and the Group obtained an additional €130 million in French State backed loans (PGE). Part of the proceeds from this recapitalisation were used to repay the shareholder loan for an amount of €52.5 million and to finance the acquisition of Technical Airborne Components. The balance of the proceeds from the capital increase will be used to achieve external growth operations (M&A) and the PGE proceeds will be used to finance the general operational financing needs of the Group, in the short and medium term.

Currency hedging

In November 2021, management decided to implement a new edging policy aiming at reducing the exposure to foreign exchange risk. This new policy will qualify under hedge accounting as per the IFRS. As a consequence, the portfolio of hedge derivatives was unwound which generated a financial loss of €-14.6 million. The new portfolio of hedge instruments in place consists of primarily €/$ collars covering the net currency exposure for 2022 and 2023. The weighted average upper limit of these collars is of 1.15 for 2022 and of 1.18 for 2023.

Streamlining of the cost structure

Following previous announcements made, Latécoère has continued to further adjust its cost base and industrial footprint to ensure its long-term sustainability.

External growth

Three bolt-on acquisitions were completed in 2021:

  • Bombardier's electrical wiring and interconnection systems business in Querétaro (Mexico) as of February 1, 2021
  • Technical Airborne Components (TAC) as of May 1, 2021
  • Shimtech de Mexico (SDM) as of October 1, 2021

Furthermore, in December 2021, the Group has entered into a definitive agreement to acquire a Spanish company called Malaga Aerospace, Defense & Electronics Systems (MADES) that will strengthen its interconnection systems business and defense capabilities. The acquisition is planned to be closed during Q2 2022.

4

Aerostructures

FY 2021 revenue in the Aerostructures division declined 23.2% from €228.4 million in 2020 to €175.5 million. Excluding B787 related deliveries, the reported growth would have been of 10%.

Revenue for the second half of 2021 was down -11.7% at €92.7 million, compared to €105.0 million in the second half of 2020. Excluding B787 related deliveries, reported sales growth would have been of around 30%.

Excluding the impact of the decline in deliveries relating to Boeing 787, the second-half of 2021 organic growth was +5.8% compared to the second half of 2020 and +12.1% compared to the first half of 2021.

2021 recurring EBITDA in the division slightly increased by €+0.9 million to reach €-16.2 million driven by continued operational improvements in a context of a low level of production.

The second half of 2021 EBITDA increased significantly by €+7.8 million to reach €-2,7 million compared to second half of 2020 driven by costs reduction. External growth realized in 2021 also contributed to the improved EBITDA, especially in the second half year of 2021.

Aerostructures

H1

H2

2020

H1

H2

2021

(Adjusted data - € thousand)

Consolidated revenue

123,5

105,0

228,4

82,8

92,7

175,5

Organic growth

-41,7%

-44,5%

-43,1%

-36,5%

-27,9%

-32,5%

Inter-segment revenue

11,1

11,5

22,6

10,2

9,3

19,5

Revenue

134,6

116,4

251,0

93,1

101,9

195,0

Recurring EBITDA *

(6,6)

(10,5)

(17,1)

(13,5)

(2,7)

(16,2)

Recurring EBITDA margin on revenue

-4,9%

-9,1%

-6,8%

-14,5%

-2,7%

-8,3%

Recurring operating income

(15,1)

(19,5)

(34,6)

(21,0)

(12,2)

(33,2)

Recurring EBIT margin on revenue

-11,2%

-16,8%

-13,8%

-22,6%

-12,0%

-17,0%

  • Recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.

Interconnection Systems

FY 2021 revenue of Interconnection systems increased by 10.5%, from €184.8 million in 2020 to €204.3 million. The division's second half revenue of €106.0 million represented an increase of +38.9% compared to €76.4 million in the second half of 2020. Revenue growth is mainly driven by external growth, namely the consolidation of Bombardier wiring business.

2021 recurring EBITDA for the Interconnection Systems increased by €+3.2 million to reach €-14.9 million.

Recurring EBITDA in H2 2021 increased by €5.1 million to reach €-5.5 million driven by the production level recovery.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Latécoère SA published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 20:18:57 UTC.


© Publicnow 2022
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Sales 2022 455 M 480 M 480 M
Net income 2022 -26,4 M -27,8 M -27,8 M
Net Debt 2022 58,6 M 61,9 M 61,9 M
P/E ratio 2022 -7,78x
Yield 2022 -
Capitalization 202 M 213 M 213 M
EV / Sales 2022 0,57x
EV / Sales 2023 0,51x
Nbr of Employees 4 764
Free-Float 89,0%
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Last Close Price 0,38 €
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Thierry Mootz Chief Executive Officer
Philippe Salats Group Chief Financial Officer
Pierre Gadonneix Chairman
Serge Berenger Director-Research & Technology
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