- Comprehensive plan to recapitalise the company including amendment of terms of outstanding convertible bond, share capital increase and extension of existing bank credits.
- Planned adjustment of terms of outstanding convertible bond, amongst others by removing the bondholder put option exercisable in September 2018.
- Strengthening of balance sheet and liquidity through planned capital increase of about CHF 160 million.
- Banking consortium agrees in principle to extend the loan secured by mortgage certificates on the building in Thun of CHF 30 million and the guarantee limit of now CHF 60 million by 3 years each.
- Incoming orders of CHF 358.5 million for the first nine months 2016, +15% compared to the respective reporting period 2015.
- Net sales increase of +97% to CHF 336.1 million and positive EBITDA of CHF 13.9 million reached for the first nine months 2016.
Already announced structural programme to increase profitability will reduce, at unchanged level of net sales, the total annual operating costs by about CHF 50 million. This results in a breakeven level at EBITDA with net sales volume of about CHF 300 million as of 2018
Contract of about Euro 67 million signed for large photovoltaic project in Turkey for the production of heterojunction solar modules
Outlook: Meyer Burger expects net sales of CHF 420-450 million and EBITDA of about CHF 10-20 million for fiscal year 2016
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) was able to continue the favourable trend in incoming orders and the strong sales growth from the first half of 2016 also in the third quarter. According to preliminary unaudited results for the first nine months of 2016, the company achieved an increase in incoming orders of +15% to CHF 358.5 million (9M 2015: CHF 310.7 million) and net sales growth of +97% to CHF 336.1 million (9M 2015: CHF 170.3 million). The result at EBITDA level is expected to be CHF +13.9 million for the period ending 30 September 2016 (9M 2015: CHF -67.2 million) and the net result CHF -40.3 million (9M 2015: CHF -138.8 million). At balance sheet date 30 September 2016, cash and cash equivalents were CHF 88.1 million, equity CHF 135.5 million and the equity ratio 24.7%. The structural programme announced on 29 September 2016 is being implemented efficiently and will reduce, at unchanged level of net sales, the company’s total annual operating cost base by about CHF 50 million. A major portion of the planned cost reductions will become effective at the beginning of 2017, with the remaining part being effective as of the second half of 2017. Therefore, the break-even level at EBITDA shall be reduced to a net sales volume of about CHF 300 million as of 2018. In addition, the company’s cost structure will become more flexible, and higher production volumes will continue to be managed through the use of temporary staff.
Comprehensive programme to strengthen the capital structure
The recapitalisation programme announced today consists of three pillars and is aimed at strengthening the company’s capital structure and providing a solid financial base for future profitability and growth of the Meyer Burger Group. Furthermore, it provides a path for a sustainable deleveraging until the potential redemption of the convertible bond in 2020.
