Somero Enterprises, Inc. Announces Revenue Results for the Six-Month Period Ended 31 December 2019; Revised Financial Guidance for the Year 2019 and Provides Financial Guidance for 2020; Provides Dividend Guidance for the Year 2019
January 22, 2020 at 02:00 am EST
Share
Somero Enterprises, Inc. reported that with strong, profitable trading in the fourth quarter which was ahead of the Board's previous expectations, revenues for the six-month period ended 31 December 2019 significantly increased from first half of 2019 as weather conditions improved in the US.
The Board now expects 2019 annual revenues will be modestly ahead of the top end of the guidance provided on 11 July 2019 of $87 million with a consequential improvement in adjusted EBITDA of a similar absolute quantum, as the majority of the additional revenue flows through to profits (compared to the top end of the range of guidance provided on 11 July 2019 of adjusted EBITDA of $28 million).
The Board recognizes that while market conditions and activity levels remain generally positive in non-US regions, there are factors impacting each market that slightly temper underlying growth expectations for 2020. With this combined view, the Board expects 2020 will be a profitable year with healthy cash generation, revenues comparable to 2019 and EBITDA broadly in line with 2019 and in line with current market expectations due to the aforementioned planned increase in investment for future growth.
The Board intends to maintain the Company's dividend policy of a regular dividend payment equal to 50% of adjusted net income for the calendar year 2019 and a supplemental dividend equal to 50% of excess net cash over the year-end target of $15.0 million.
Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring and placing equipment, related parts and accessories, and training services around the world. Its products are machinery used in the process of horizontal concrete placement. Its product categories include Lightweight Screeds, Ride-on Laser Concrete Screeds, Boom Screeds, Skyline Stationary Laser Screeds, Materials Placement, and Software Packages. Its Lightweight Screeds include Mini Screed C and CopperHead XD 3.0. Its Ride-on Laser Concrete Screeds consist of S-485 Laser Screed and S-940 Laser Screed. Its Boom Screeds include S-28EZ Laser Screed, S-PS50 Laser Screed, and others. Its Skyline Stationary Laser Screeds consist of SkyScreed 36 (SkyStrip). Its Materials Placement includes Broom + Cure Machine, Somero LineDragon, and STS-11M Topping Spreader. Its software packaging includes 3-D Concrete Profiler System, SiteShape System, and Somero Floor Levelness System.
Somero Enterprises, Inc. Announces Revenue Results for the Six-Month Period Ended 31 December 2019; Revised Financial Guidance for the Year 2019 and Provides Financial Guidance for 2020; Provides Dividend Guidance for the Year 2019