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EXFO Reports Fourth Quarter and Fiscal 2019 Results

Oct 09, 2019
 

Fiscal 2019

  • Sales increased 6.4% to US$286.9 million 
  • Bookings improved 11.2% to US$297.8 million 
  • IFRS net loss reduced by 79.8% to US$2.5 million 
  • Adjusted EBITDA surged 48.8% to US$25.6 million

 

Q4 2019

  • Sales reached US$70.2 million, up 1.4% year-over-year 
  • Bookings attained US$70.9 million, up 12.3% year-over-year 
  • IFRS net loss totaled US$0.2 million 
  • Adjusted EBITDA amounted to US$6.2 million


QUEBEC CITY, Oct. 9, 2019 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF), the communications industry's test, monitoring and analytics experts, announced today financial results for the fourth quarter and fiscal year ended August 31, 2019.

"I am pleased EXFO significantly improved its profitability in fiscal 2019 and surpassed its annual target with adjusted EBITDA of US$25.6 million, while achieving solid growth in sales, bookings and cash flows from operations," said Philippe Morin, EXFO's Chief Executive Officer. "We also fully integrated our transformative acquisition of Astellia to create disruptive solutions that will support our growth objectives."

"Based on sound operational discipline, we completed our restructuring plan, bolstered efficiency and maintained our proven innovation capabilities. Overall, I am confident we have assembled the key building blocks to generate long-term growth supported by a highly differentiated offering for fiber, 5G mobility and network virtualization."

Fiscal 2019 Highlights

  • Sales growth. Total sales increased 6.4% to US$286.9 million in fiscal 2019. Service Assurance, Systems and Services (SASS) sales improved 16.2% largely due to a full-year contribution from the Astellia acquisition and multi-million-dollar contract win for EXFO's network topology and automation solution. Test and Measurement (T&M) sales were up 3.7% year-over-year. Annual sales in Europe, Middle East and Africa (EMEA), Americas, and Asia-Pacific regions increased 9.5%, 6.3% and 1.6%, respectively, in 2019. EXFO's largest customer accounted for 6.9% of sales in 2019, while the company's top-three customers represented 18.1%.
  • Bookings growth. Total bookings increased $11.2% year-over-year to US$297.8 million in 2019 for a book-to-bill ratio of 1.04. SASS bookings grew 21.0% due in part to four monitoring orders related to 5G deployments, while T&M bookings improved 8.4% year‑over-year.
  • Profitability. IFRS net loss was reduced by 79.8% to US$2.5 million in fiscal 2019 from US$12.3 million in 2018. Adjusted EBITDA, which surpassed the company's annual profitability target, surged 48.8% to US$25.6 million in 2019 from US$17.2 million in 2018. Cash flows from operations improved 20.0% to US$17.2 million in 2019 from US$14.4 million in 2018.
  • Innovation. EXFO released several game-changing solutions in fiscal 2019 to accelerate its customers' network transformations. The company introduced the industry's first optical fiber multimeter, creating a new testing category that greatly simplifies, accelerates and automates the task of frontline technicians while maximizing quality of fiber links. EXFO expanded its 400G test leadership with a new module featuring an Open Transceiver System that enables compatibility between current and future high-speed transceivers with EXFO's field and lab test platforms. EXFO released an automated fiber inspection tool for testing polarity, continuity and connector cleanliness on multifiber cables.


Business Outlook
EXFO forecasts sales between US$70 million and US$75 million for the first quarter of fiscal 2020.

IFRS net loss is expected to range between US$0.01 and US$0.05 per share in the first quarter of 2020. IFRS net loss includes US$0.04 per share in after-tax amortization of intangible assets and stock-based compensation costs.

This guidance, which is a forward-looking statement, was established by management based on existing backlog as of the date of this news release, seasonality, expected bookings for the quarter, as well as exchange rates as of the day of this news release.

For fiscal 2020, EXFO is targeting adjusted EBITDA of US$33 million based on the newly adopted International Financial Reporting Standard 16 for leases (IFRS 16). Note the positive impact of IFRS 16 on adjusted EBITDA for 2020 is projected to be approximately US$4 million.

This adjusted EBITDA target is a forward-looking statement. In addition, as it excludes items that pertain to future events that are not currently estimable with a reasonable degree of accuracy, such as foreign exchange gain or loss and income taxes, no corresponding IFRS measure has been provided.

 
                                                                                                                                                                                                                                                                                                                                                                                        
 

Selected Financial Information

             
 

(In thousands of US dollars)

             
               
   

Q4 2019

   

Q4 2018

   

FY 2019

   

FY 2018

               
 

T&M sales

 

$

 

50,162

   

$

 

47,489

   

$

 

204,693

   

$

 

197,423

 

SASS sales

 

20,202

   

21,649

   

82,788

   

71,248

 

Foreign exchange gains (losses) on forward exchange contracts

 

(189)

   

78

   

(591)

   

875

 

Total sales

 

$

 

70,175

   

$

 

69,216

   

$

 

286,890

   

$

 

269,546

               
 

T&M bookings

 

$

 

50,378

   

$

 

41,485

   

$

 

210,055

   

$

 

193,836

 

SASS bookings

 

20,723

   

21,575

   

88,341

   

72,982

 

Foreign exchange gains (losses) on forward exchange contracts

 

(189)

   

78

   

(591)

   

875

 

Total bookings

 

$

 

70,911

   

$

 

63,138

   

$

 

297,805

   

$

 

267,693

 

Book-to-bill ratio (bookings/sales)

 

1.01

   

0.91

   

1.04

   

0.99

               
 

Gross margin before depreciation and amortization*

 

$

 

39,915

   

$

 

41,790

   

$

 

168,213

   

$

 

164,542

   

56.9%

   

60.4%

   

58.6%

   

61.0%

               
 

Other selected information:

             
 

IFRS net loss attributable to the parent interest1

 

$

 

(227)

   

$

 

(3,951)

   

$

 

(2,480)

   

$

 

(11,902)

 

Amortization of intangible assets

 

$

 

1,870

   

$

 

1,942

   

$

 

9,012

   

$

 

10,327

 

Stock-based compensation costs

 

$

 

477

   

$

 

468

   

$

 

1,831

   

$

 

1,748

 

Restructuring charges

 

$

 

   

$

 

4,559

   

$

 

3,305

   

$

 

4,559

 

Change in fair value of cash contingent consideration

 

$

 

   

$

 

46

   

$

 

   

$

 

(670)

 

Acquisition-related deferred revenue fair value adjustment

 

$

 

   

$

 

873

   

$

 

1,435

   

$

 

2,095

 

Gain on disposal of capital assets

 

$

 

   

$

 

   

$

 

(1,732)

   

$

 

 

Deferred income tax recovery

 

$

 

   

$

 

   

$

 

(2,383)

   

$

 

 

Foreign exchange (gain) loss

 

$

 

894

   

$

 

77

   

$

 

949

   

$

 

(1,309)

 

Income tax effect of the above items

 

$

 

(281)

   

$

 

(1,329)

   

$

 

(1,396)

   

$

 

(2,033)

 

Adjusted EBITDA*

 

$

 

6,213

   

$

 

6,098

   

$

 

25,585

   

$

 

17,198

 
        
 
 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders.

 

 

Quarterly and Annual Overview
Sales in the fourth quarter of fiscal 2019 reached US$70.2 million compared to US$69.2 million in the fourth quarter of 2018. Annual sales improved 6.4% to US$286.9 million in fiscal 2019 from US$269.5 million in 2018.

Bookings totaled US$70.9 million for a book-to-bill ratio of 1.01 in the fourth quarter of fiscal 2019 compared to US$63.1 million in the fourth quarter of 2018. Overall for fiscal 2019, bookings increased 11.2% to US$297.8 million for a book-to-bill ratio of 1.04 from US$267.7 million in 2018.

Gross margin before depreciation and amortization* attained 56.9% of sales in the fourth quarter of fiscal 2019 compared 60.4% in the fourth quarter of 2018. In fiscal 2019, gross margin before depreciation and amortization reached 58.6% of sales compared to 61.0% in 2018.

Selling and administrative expenses totaled US$23.0 million, or 32.8% of sales, in the fourth quarter of fiscal 2019 compared to US$24.7 million, or 35.7% of sales, in the fourth quarter of 2018. In fiscal 2019, selling and administrative expenses amounted to US$98.6 million, or 34.4% of sales, compared to US$98.8 million, or 36.7% of sales, in 2018.

Net R&D expenses amounted to US$11.1 million, or 15.9% of sales, in the fourth quarter of fiscal 2019 compared to US$16.7 million, or 24.1% of sales, in the fourth quarter of 2018. In fiscal 2019, net R&D expenses totaled US$50.6 million, or 17.6% of sales, compared to US$57.2 million, or 21.2% of sales, in 2018.

In the fourth quarter of fiscal 2019, IFRS net loss amounted to US$0.2 million, or US$0.00 per share, compared to US$4.0 million, or US$0.07 per share, in the fourth quarter of 2018. Net loss in the fourth quarter of 2019 included net expenses totaling US$3.0 million: US$1.6 million in after-tax amortization of intangible assets, US$0.5 million in stock-based compensation costs and a foreign exchange loss of US$0.9 million.

In fiscal 2019, IFRS net loss attributable to the parent interest totaled US$2.5 million, or US$0.04 per share, compared to US$11.9 million, or US$0.22 per share, in 2018. Net loss attributable to the parent interest in 2019 included net expenses totaling US$15.1 million: US$7.8 million in after-tax amortization of intangible assets, US$1.8 million in stock-based compensation costs, US$3.2 million in after-tax restructuring charges, US$1.4 million for the deferred revenue fair-value adjustment related to the Astellia acquisition, and a foreign exchange loss of US$0.9 million. Net loss attributable to the parent interest also included US$1.7 million for a gain on the disposal of capital assets and US$2.4 million for a deferred income tax recovery.

Adjusted EBITDA* amounted to US$6.2 million, or 8.9% of sales, in the fourth quarter of fiscal 2019 compared US$6.1 million, or 8.8% of sales, in the fourth quarter of 2018. In fiscal 2019, adjusted EBITDA totaled US$25.6 million, or 8.9% of sales, compared to US$17.2 million, or 6.4% of sales, in 2018.

Conference Call and Webcast
EXFO will host a conference call today at 5 p.m. (Eastern time) to review fourth quarter and year-end financial results for fiscal 2019. To listen to the conference call and participate in the question period via telephone, dial 1-323-794-2093. Please take note the following conference ID number will be required: 6921858. EXFO's Executive Chairman Germain Lamonde, CEO Philippe Morin, and Pierre Plamondon, CPA, Vice-President of Finance and Chief Financial Officer, will participate in the call. An audio replay of the conference call will be available two hours after the event until 8:00 p.m. on October 16, 2019. The replay number is 1-719-457-0820 and the conference ID number is 6921858. The audio Webcast and replay of the conference call will also be available on EXFO's Website at www.EXFO.com, under the Investors section.

About EXFO
EXFO (NASDAQ: EXFO) (TSX: EXF) develops smarter test, monitoring and analytics solutions for fixed and mobile network operators, webscale companies and equipment manufacturers in the global communications industry. Our customers count on us to deliver superior network performance, service reliability and subscriber insights. They count on our unique blend of equipment, software and services to accelerate digital transformations related to fiber, 4G/LTE and 5G deployments. They count on our expertise with automation, real-time troubleshooting and big data analytics, which are critical to their business performance. We've spent over 30 years earning this trust, and today 1,900 EXFO employees in over 25 countries work side by side with our customers in the lab, field, data center and beyond.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, and we intend that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are statements other than historical information or statements of current condition. Words such as may, expect, believe, plan, anticipate, intend, could, estimate, continue, or similar expressions or the negative of such expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events and circumstances are considered forward-looking statements. They are not guarantee of future performance and involve risks and uncertainties. Actual results may differ materially from those in forward-looking statements due to various factors including, but not limited to, macroeconomic uncertainty, including trade wars; our ability to successfully integrate businesses that we acquire; capital spending and network deployment levels in the telecommunications industry (including our ability to quickly adapt cost structures to anticipated levels of business and our ability to manage inventory levels with market demand); future economic, competitive, financial and market conditions; consolidation in the global telecommunications test, service assurance and analytics solutions markets and increased competition among vendors; capacity to adapt our future product offering to future technological changes; limited visibility with regard to the timing and nature of customer orders; delay in revenue recognition due to longer sales cycles for complex systems involving customers' acceptance; fluctuating exchange rates; concentration of sales; timely release and market acceptance of our new products and other upcoming products; our ability to successfully expand international operations and to conduct business internationally; and the retention of key technical and management personnel. Assumptions relating to the foregoing involve judgments and risks, all of which are difficult or impossible to predict and many of which are beyond our control. Other risk factors that may affect our future performance and operations are detailed in our Annual Report, on Form 20-F, and our other filings with the U.S. Securities and Exchange Commission and the Canadian securities commissions. We believe that the expectations reflected in the forward-looking statements are reasonable based on information currently available to us, but we cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this document. Unless required by law or applicable regulations, we undertake no obligation to revise or update any of them to reflect events or circumstances that occur after the date of this document.

*Non-IFRS Measures
EXFO provides non-IFRS measures (gross margin before depreciation and amortization and adjusted EBITDA) as supplemental information regarding its operational performance. Gross margin before depreciation and amortization represents sales, less cost of sales, excluding depreciation and amortization. Adjusted EBITDA represents net earnings (loss) attributable to the parent interest before interest and other expense, income taxes, depreciation and amortization, stock-based compensation costs, restructuring charges, acquisition-related deferred revenue fair value adjustment, change in fair value of cash contingent consideration, and foreign exchange gain or loss.

These non-IFRS measures eliminate the effect on IFRS results of non-cash statement of earnings elements, restructuring charges, as well as elements subject to significant volatility such as foreign exchange gain or loss. EXFO uses these measures for evaluating historical and prospective financial performance, as well as performance relative to competitors. These non-IFRS measures are also used by financial analysts that evaluate and compare the company's performance against that of competitors and industry players in the sector.

Finally, these measures help EXFO plan and forecast future periods as well as make operational and strategic decisions. EXFO believes that providing this information to investors, in addition to the IFRS measures, allows them to see the company's results through the eyes of management, and to better understand historical and future financial performance. More importantly, it enables the comparison of EXFO's performance on a relatively similar basis against that of other public and private companies in the industry worldwide.

The presentation of this additional information is not prepared in accordance with IFRS. Therefore, the information may not necessarily be comparable to that of other companies and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.

The following table summarizes the reconciliation of adjusted EBITDA to IFRS net loss attributable to the parent interest, in thousands of US dollars:

 

 
                                                                                                                                                                                                                  
 

Adjusted EBITDA

             
               
   

Q4 2019

   

Q4 2018

   

FY 2019

   

FY 2018

               
 

IFRS net loss attributable to the parent interest

 

$

 

(227)

   

$

 

(3,951)

   

$

 

(2,480)

   

$

 

(11,902)

               
 

Add (deduct):

             
               
 

Depreciation of property, plant and equipment

 

1,282

   

1,472

   

5,469

   

5,444

 

Amortization of intangible assets

 

1,870

   

1,942

   

9,012

   

10,327

 

Interest and other expenses

 

1,157

   

508

   

718

   

1,378

 

Income taxes

 

760

   

254

   

5,346

   

5,678

 

Stock-based compensation costs

 

477

   

468

   

1,831

   

1,748

 

Restructuring charges

 

   

4,409

   

3,305

   

4,409

 

Change in fair value of cash contingent consideration

 

   

46

   

   

(670)

 

Acquisition-related deferred revenue fair value adjustment

 

   

873

   

1,435

   

2,095

 

Foreign exchange (gain) loss

 

894

   

77

   

949

   

(1,309)

 

Adjusted EBITDA for the period

 

$

 

6,213

   

$

 

6,098

   

$

 

25,585

   

$

 

17,198

               
 

Adjusted EBITDA in percentage of sales

 

8.9%

   

8.8%

   

8.9%

   

6.4%

 

 

 
                                                                                                                                                                                                                                                                                                                                         
 

EXFO Inc.

 

Condensed Unaudited Interim Consolidated Balance Sheets

       
 

(in thousands of US dollars)

       
   

As at August 31,

   

2019

   

2018

 

Assets

     
       
 

Current assets

     
 

Cash

 

$

 

16,518

   

$

 

12,758

 

Short-term investments

 

2,918

   

2,282

 

Accounts receivable

     
 

Trade

 

51,517

   

47,273

 

Other

 

3,396

   

4,137

 

Income taxes and tax credits recoverable

 

3,159

   

4,790

 

Inventories

 

38,017

   

38,589

 

Prepaid expenses

 

6,510

   

5,291

 

Other assets

 

3,083

   

2,279

   

125,118

   

117,399

       
 

Tax credits recoverable

 

46,704

   

47,677

 

Property, plant and equipment

 

39,364

   

44,310

 

Intangible assets

 

21,654

   

29,866

 

Goodwill

 

38,648

   

39,892

 

Deferred income tax assets

 

4,821

   

4,714

 

Other assets

 

1,293

   

686

   

$

 

277,602

   

$

 

284,544

 

Liabilities

     
       
 

Current liabilities

     
 

Bank loan

 

$

 

5,000

   

$

 

10,692

 

Accounts payable and accrued liabilities

 

50,790

   

47,898

 

Provisions

 

1,065

   

2,954

 

Income taxes payable

 

704

   

873

 

Deferred revenue

 

24,422

   

16,556

 

Other liabilities

 

1,606

   

3,197

 

Current portion of long-term debt

 

2,449

   

2,921

   

86,036

   

85,091

       
 

Provisions

 

2,737

   

2,347

 

Deferred revenue

 

9,056

   

6,947

 

Long-term debt

 

3,293

   

5,907

 

Deferred income tax liabilities

 

3,598

   

5,910

 

Other liabilities

 

318

   

421

   

105,038

   

106,623

       
 

Shareholders' equity

     
 

Share capital

 

92,706

   

91,937

 

Contributed surplus

 

19,196

   

18,428

 

Retained earnings

 

112,173

   

114,906

 

Accumulated other comprehensive loss

 

(51,511)

   

(47,350)

   

172,564

   

177,921

       
   

$

 

277,602

   

$

 

284,544

 

 

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 

EXFO Inc.

 

Condensed Unaudited Interim Consolidated Statements of Earnings

               
 

(in thousands of US dollars, except share and per share data)

               
               
   

Three months

ended

August 31, 2019

   

Twelve months

ended

August 31, 2019

   

Three months

ended

August 31, 2018

   

Twelve months

ended

August 31, 2018

               
 

Sales

 

$

 

70,175

   

$

 

286,890

   

$

 

69,216

   

$

 

269,546

               
 

Cost of sales (1,2)

 

30,260

   

118,677

   

27,426

   

105,004

 

Selling and administrative (2)

 

23,036

   

98,646

   

24,728

   

98,794

 

Net research and development (2)

 

11,143

   

50,553

   

16,714

   

57,154

 

Depreciation of property, plant and equipment

 

1,282

   

5,469

   

1,472

   

5,444

 

Amortization of intangible assets

 

1,870

   

9,012

   

1,942

   

10,327

 

Change in fair value of cash contingent consideration

 

   

   

46

   

(670)

 

Interest and other expense

 

1,157

   

718

   

508

   

1,378

 

Foreign exchange (gain) loss

 

894

   

949

   

77

   

(1,309)

 

Share in net loss of an associate

 

   

   

   

2,080

 

Gain on deemed disposal of the investment in an associate

 

   

   

   

(2,080)

 

Earnings (loss) before income taxes

 

533

   

2,866

   

(3,697)

   

(6,576)

               
 

Income taxes

 

760

   

5,346

   

254

   

5,678

               
 

Net loss for the period

 

$

 

(227)

   

$

 

(2,480)

   

$

 

(3,951)

   

$

 

(12,254)

               
 

Net loss for the period attributable to non-controlling interest

 

$

 

   

$

 

   

$

 

   

$

 

(352)

               
 

Net loss for the period attributable to parent interest

 

$

 

(227)

   

$

 

(2,480)

   

$

 

(3,951)

   

$

 

(11,902)

               
 

Basic and diluted net loss attributable to parent interest per share

 

$

 

(0.00)

   

$

 

(0.04)

   

$

 

(0.07)

   

$

 

(0.22)

               
 

Basic and diluted weighted average number of shares outstanding (000's)

 

55,379

   

55,325

   

55,112

   

54,998

               
               
 

(1) The cost of sales is exclusive of depreciation and amortization, shown separately.

 

(2) Restructuring charges included in:

               
 

Cost of sales

 

$

 

   

$

 

304

   

$

 

517

   

$

 

517

 

Selling and administrative

 

   

495

   

673

   

673

 

Net research and development

 

   

2,506

   

3,219

   

3,219

 

Interest and other expense

 

   

   

150

   

150

 

Income taxes

 

   

(63)

   

(1,150)

   

(1,150)

   

$

 

   

$

 

3,242

   

$

 

3,409

   

$

 

3,409

 

 

 
                                                                                                                                                                                                       
 

EXFO Inc.

 

Condensed Unaudited Interim Consolidated Statements of Comprehensive Income (Loss)

               
 

(in thousands of US dollars)

               
   

Three months

ended

August 31, 2019

   

Twelve months

ended

August 31, 2019

   

Three months

ended

August 31, 2018

   

Twelve months

ended

August 31, 2018

               
 

Net loss for the period

 

$

 

(227)

   

$

 

(2,480)

   

$

 

(3,951)

   

$

 

(12,254)

 

Other comprehensive income (loss), net of income taxes

             
 

Items that may be reclassified subsequently to net earnings

             
 

Foreign currency translation adjustment

 

1,983

   

(4,177)

   

(1,458)

   

(6,491)

 

Unrealized gains/losses on forward exchange contracts

 

442

   

(795)

   

(505)

   

(1,476)

 

Reclassification of realized gains/losses on forward exchange contracts in net earnings

 

534

   

744

   

(132)

   

(972)

 

Deferred income tax effect of gains/losses on forward exchange contracts

 

(289)

   

67

   

136

   

554

 

Other comprehensive income (loss)

 

2,670

   

(4,161)

   

(1,959)

   

(8,385)

               
 

Comprehensive income (loss) for the period

 

2,443

   

(6,641)

   

(5,910)

   

(20,639)

               
 

Comprehensive loss for the period attributable to non-controlling interest

 

   

   

   

(352)

               
 

Comprehensive income (loss) for the period attributable to parent interest

 

$

 

2,443

   

$

 

(6,641)

   

$

 

(5,910)

   

$

 

(20,287)

 

 

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 

EXFO Inc.

 

Condensed Unaudited Interim Consolidated Statements of Changes in Shareholders' Equity

   
 

(in thousands of US dollars)

   
   

Year ended August 31, 2018

   

Share
capital

   

Contributed
surplus

   

Retained
earnings

   

Accumulated
other
comprehensive
loss

   

Non-
controlling
interest

   

Total
shareholders'
equity

                       
 

Balance as at September 1, 2017

 

$

 

90,411

   

$

 

18,184

   

$

 

127,160

   

$

 

(38,965)

   

$

 

   

$

 

196,790

 

Reclassification of stock-based compensation costs

 

1,526

   

(1,526)

   

   

   

   

 

Stock-based compensation costs

 

   

1,770

   

   

   

   

1,770

 

Business combination

 

   

   

   

   

(3,662)

   

(3,662)

 

Acquisition of non-controlling interest on acquisition of subsidiary

 

   

   

(352)

   

   

4,014

   

3,662

 

Net loss for the year

 

   

   

(11,902)

   

   

(352)

   

(12,254)

 

Other comprehensive loss

                     
 

Foreign currency translation adjustment

 

   

   

   

(6,491)

   

   

(6,491)

 

Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $554

 

   

   

   

(1,894)

   

   

(1,894)

 

Total comprehensive loss for the year

                     

(20,639)

 

Balance as at August 31, 2018

 

$

 

91,937

   

$

 

18,428

   

$

 

114,906

   

$

 

(47,350)

   

$

 

   

$

 

177,921

                       
                       
   

Year ended August 31, 2019

       

Share
capital

   

Contributed
surplus

   

Retained
earnings

   

Accumulated
other
comprehensive
loss

   

Total
shareholders'
equity

                       
 

Balance as at August 31, 2018

     

$

 

91,937

   

$

 

18,428

   

$

 

114,906

   

$

 

(47,350)

   

$

 

177,921

 

Adoption of IFRS 9

     

   

   

(253)

   

   

(253)

 

Adjusted balance as at September 1, 2018

     

91,937

   

18,428

   

114,653

   

(47,350)

   

177,668

 

Reclassification of stock-based compensation costs

     

1,106

   

(1,106)

   

   

   

 

Redemption of share capital

     

(337)

   

25

   

   

   

(312)

 

Stock-based compensation costs

     

   

1,849

   

   

   

1,849

 

Net loss for the year

     

   

   

(2,480)

   

   

(2,480)

 

Other comprehensive income (loss)

                     
 

Foreign currency translation adjustment

     

   

   

   

(4,177)

   

(4,177)

 

Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $67

     

   

   

   

16

   

16

 

Total comprehensive loss for the year

                     

(6,641)

 

Balance as at August 31, 2019

     

$

 

92,706

   

$

 

19,196

   

$

 

112,173

   

$

 

(51,511)

   

$

 

172,564

 

 

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 

EXFO Inc.

 

Condensed Unaudited Interim Consolidated Statements of Cash Flows

               
 

(in thousands of US dollars)

               
   

Three months

ended

August 31, 2019

   

Twelve months

ended

August 31, 2019

   

Three months

ended

August 31, 2018

   

Twelve months

ended

August 31, 2018

               
 

Cash flows from operating activities

             
 

Net loss for the period

 

$

 

(227)

   

$

 

(2,480)

   

$

 

(3,951)

   

$

 

(12,254)

 

Add (deduct) items not affecting cash

             
 

Stock-based compensation costs

 

477

   

1,831

   

468

   

1,748

 

Depreciation and amortization

 

3,152

   

14,481

   

3,414

   

15,771

 

Gain on disposal of capital assets

 

   

(1,732)

   

   

 

Write-off of capital assets

 

1,125

   

1,386

   

267

   

592

 

Change in fair value of cash contingent consideration

 

   

   

46

   

(670)

 

Deferred revenue

 

(1,142)

   

10,477

   

316

   

1,998

 

Deferred income taxes

 

192

   

(2,103)

   

(1,165)

   

1,368

 

Share in net loss of an associate

 

   

   

   

2,080

 

Gain on deemed disposal of the investment in an associate

 

   

   

   

(2,080)

 

Changes in foreign exchange gain/loss

 

264

   

(46)

   

58

   

(181)

   

3,841

   

21,814

   

(547)

   

8,372

 

Changes in non-cash operating items

             
 

Accounts receivable

 

2,252

   

(4,786)

   

(418)

   

7,275

 

Income taxes and tax credits

 

(93)

   

1,536

   

2,873

   

86

 

Inventories

 

534

   

(134)

   

(1,008)

   

(1,020)

 

Prepaid expenses

 

(927)

   

(1,307)

   

(148)

   

57

 

Other assets

 

(456)

   

(1,459)

   

(542)

   

(1,311)

 

Accounts payable, accrued liabilities and provisions

 

1,171

   

3,184

   

1,028

   

1,033

 

Other liabilities

 

(79)

   

(1,606)

   

(223)

   

(122)

   

6,243

   

17,242

   

1,015

   

14,370

 

Cash flows from investing activities

             
 

Additions to short-term investments

 

(1,301)

   

(1,879)

   

(1,068)

   

(1,550)

 

Proceeds from disposal and maturity of short-term investments

 

   

1,168

   

   

234

 

Purchases of capital assets

 

(1,180)

   

(7,498)

   

(2,772)

   

(10,452)

 

Proceeds from disposal of capital assets

 

   

3,318

   

   

 

Investment in an associate

 

   

   

   

(12,530)

 

Business combinations, net of cash acquired

 

   

   

(480)

   

(19,600)

   

(2,481)

   

(4,891)

   

(4,320)

   

(43,898)

 

Cash flows from financing activities

             
 

Bank loan

 

(143)

   

(5,195)

   

(189)

   

11,061

 

Repayment of long-term debt

 

(652)

   

(2,817)

   

(661)

   

(1,688)

 

Redemption of share capital

 

(207)

   

(312)

   

   

 

Other liabilities

 

   

   

(1,449)

   

(1,449)

 

Acquisition of non-controlling interest

 

   

   

   

(3,657)

   

(1,002)

   

(8,324)

   

(2,299)

   

4,267

 

Effect of foreign exchange rate changes on cash 

 

135

   

(267)

   

(127)

   

(416)

               
 

Change in cash 

 

2,895

   

3,760

   

(5,731)

   

(25,677)

 

Cash – Beginning of the period

 

13,623

   

12,758

   

18,489

   

38,435

               
 

Cash – End of the period

 

$

 

16,518

   

$

 

16,518

   

$

 

12,758

   

$

 

12,758

 

 

EXFO-F

 

 

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/exfo-reports-fourth-quarter-and-fiscal-2019-results-300934983.html

SOURCE EXFO Inc.

Vance Oliver, Director, Investor Relations, (418) 683-0913, Ext. 23733, vance.oliver@exfo.com