Revenue increased by 23% to $344.4 million in the fourth quarter of 2018 from $280.7 million in the fourth quarter of 2017
EBITDA(2) was $62.8 million in the fourth quarter of 2018, a 90% increase over the same period in 2017
Full year 2018 EBITDA was the highest in AMG's history, increasing by 73% to $217.1 million, from $125.5 million in the prior year
EPS, on a fully diluted basis, increased by 104% to $0.92 in the fourth quarter of 2018 from $0.45 in the fourth quarter of 2017
Full year 2018 EPS, the highest in AMG's history, increased by 65% to $2.97 per fully diluted share from $1.80 per share in 2017
Return on capital employed increased to 35.4% in 2018, as compared to 21.2% in 2017
Operating cash flow was $97.4 million in 2018, a 24% increase over 2017, enabling AMG to end the year in a net cash position
Total 2018 dividend proposed of €0.50 per ordinary share, including the interim dividend of €0.20, paid on August 14, 2018, an increase of 79% over the prior year's total dividend of €0.28
Amsterdam, 28 February 2019 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported fourth quarter 2018 revenue of $344.4 million, a 23% increase from $280.7 million in the fourth quarter of 2017. EBITDA for the fourth quarter of 2018 was $62.8 million, a 90% increase from $33.0 million in the fourth quarter of 2017. On a full year basis, EBITDA increased by 73% to $217.1 million, from $125.5 million in the prior year.
Net income attributable to shareholders increased to $29.0 million in the fourth quarter of 2018 from $14.3 million in the fourth quarter of 2017. EPS, on a fully diluted basis, increased by 104% to $0.92 in the fourth quarter of 2018 from $0.45 in the fourth quarter of 2017. On a full year basis, net income attributable to shareholders increased by 66% to $94.6 million in 2018 from $57.0 million in 2017. EPS, on a fully diluted basis, increased by 65% to $2.97 in 2018 from $1.80 in 2017.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "Very strong financial results in the fourth quarter of 2018 resulted in the highest EBITDA and earnings per share in the Company's history.
"AMG Critical Materials generated EBITDA of $55.7 million during the fourth quarter of 2018, an increase of 107% from $26.9 million in the fourth quarter of 2017, due to a combination of higher vanadium prices, as well as improved product mix and strong sales volumes across much of the Critical Materials portfolio.
"AMG Engineering signed $315.9 million in new orders during 2018, representing a 1.22x book to bill ratio. Order backlog was $241.4 million as of December 31, 2018, a 17% increase from $207.0 million as of December 31, 2017. AMG Engineering achieved EBITDA of $7.1 million during the fourth quarter of 2018, an increase of $1.0 million compared to the fourth quarter of 2017, driven by higher profitability generated from the delivery of casting furnaces and increased after-sales services during the quarter.
"In the fourth quarter of 2018, AMG generated cash from operating activities of $50.7 million, an increase of $17.4 million, or 52%, over the same period in 2017. On a full year basis, AMG generated cash from operating activities of $97.4 million in 2018, an increase of $18.9 million, or 24%, compared to the same period in 2017."
Key Figures In 000's US dollar
Q4 '18 Q4 '17 Change FY '18 FY '17 Change
Revenue $344,448 $280,699 23% $1,310,288 $1,059,651 24%
Gross profit 86,341 56,507 53% 315,175 214,627 47%
Gross margin 25.1% 20.1% 24.1% 20.3%
Operating profit 42,461 18,391 131% 163,261 79,752 105%
Operating margin 12.3% 6.6% 12.5% 7.5%
Net income attributable to shareholders 28,980 14,331 102% 94,616 56,965 66%
EPS - Fully diluted 0.92 0.45 104% 2.97 1.80 65%
EBIT (1) 54,327 24,629 121% 184,099 94.598 95%
EBITDA (2) 62,788 33,027 90% 217,133 125,497 73%
EBITDA margin 18.2% 11.8% 16.6% 11.8%
Cash from operating activities 50,675 33,272 52% 97,422 78,525 24%
EBIT is defined as earnings before interest and income taxes. EBIT excludes restructuring and equity-settled share-based payments and includes foreign currency gains or losses.
EBITDA is defined as EBIT adjusted for depreciation and amortization.
Final Dividend Proposed
AMG intends to declare a dividend of €0.50 per ordinary share over the financial year 2018. The interim dividend of €0.20, paid on August 14, 2018, will be deducted from the amount to be distributed to shareholders. The proposed final dividend per ordinary share therefore amounts to €0.30.
A proposal to resolve upon the final dividend distribution will be included on the agenda for the Annual General Meeting to be held on May 1, 2019.
As regards outlook, our last long-term guidance at the AGM in May 2018 was that we would reach $200 million of EBITDA, or more, by 2020 or earlier. Obviously, we reached our target earlier - and with record numbers all around. For 2019, our target is to exceed the $200 million mark again.
The updated long-term guidance will be published at the AGM on May 1, 2019.
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Amsterdam, 28 February 2019 (Regulated Information) --- The Supervisory Board of AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") resolved during its meeting on 27 February 2019 to propose to the General Meeting of Shareholders to make the following changes to its composition.
At the Annual General Meeting ("AGM") in May 2019, Mr. Jack Messman will have served twelve years on the Supervisory Board of AMG when his current term ends. Mr. Messman has indicated that he wishes to retire from the Supervisory Board in May 2019, given other priorities and the term limits for Supervisory Directors under the Dutch Corporate Governance Code. The Supervisory Board is deeply grateful for the long service and dedication to AMG by Mr. Messman.
Before becoming Chairman in 2018, Mr. Messman was Vice Chairman since 2007 and a long-serving member and Chair of AMG's Remuneration Committee and before that of the Audit & Risk Management Committee, and has been a major contributor to the excellent quality of AMG's current leadership team by implementing and overseeing AMG's competitive executive compensation system.
Professor Steve Hanke will have served six years on the Supervisory Board in May 2019 when his current term ends. AMG is very pleased to announce that Professor Hanke, currently Chair of the Audit & Risk Management Committee, will make himself available for re-appointment for a term of four years. The Supervisory Board will nominate Professor Hanke for re-appointment by the General Meeting Shareholders on May 1 of this year as independent member of the Supervisory Board for a term of four years.
Given the retirement of Mr. Messman as member and Chairman of the Supervisory Board after the Annual Meeting in May 2019, AMG is pleased to announce that the Supervisory Board plans to appoint Professor Steve Hanke as Chairman of the Supervisory Board as of May 1, 2019 after the Annual Meeting.
Given the vacancy created by the retirement of Mr. Messman, the Supervisory Board is pleased to announce that it will nominate Ms. Dagmar Bottenbruch as an independent Supervisory Board member for appointment by the General Meeting of Shareholders on May 1, 2019. Ms. Bottenbruch has German and US citizenship and brings highly relevant experience in the field of financial services as well as public and private equity and venture capital investments. She was Managing Director of Rabobank International in Germany and has worked at Credit Suisse in London and Frankfurt as Director Investment Banking. She currently serves on the Supervisory Board of CFA Society Germany and of Vaamo Finanz AG, Frankfurt. The full curriculum vitae of the nominee is available for inspection at the offices of the Company and will be published on the Company's website.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This press release contains regulated information as defined in the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
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