10th May 2016
For Immediate Release
Wellington Drive announces 40% increase in 1st quarter revenue and an EBITDA profit
First Quarter 2016 Highlights:
• Strong revenue growth with revenue increasing by 40% to NZD$9.2m (or in US Dollar terms 26% to USD$6.2m)
• Continued growth in our EC motor business with volumes increasing 24% year over year
• Several thousand SCS Connect controller units shipped to a global beverage customer under the multi-year
agreement that was noted in the Company’s annual report
• New ECR2 motor continues to win new customers
• Continued supply chain cost reduction improving gross margin to 22.8%
• EBIT1 loss for Q1 of $381k impacted by non-cash amortisation charges and foreign currency revaluations of the
Mandatory Convertible Preference Shares (MCPS)
• An adjusted EBITDA3 profit of $92k. This unaudited result for Q1 2016 was an improvement on the $231k loss on
this basis for the same period last year
First Quarter 2016 Financial Summary:
Trading result:
NZD 000’s Q1 2016Q1 2015% ChangeRevenue9,2056,555+40%Gross Profit2,0961,467+43%Gross Margin%22.8%22.4% EBIT1(381)(165) Depreciation, amortisation and impairment2401119 EBITDA320(46) Currency revaluation of MCPS372(185) Adjusted EBITDA3$92($231)
Regional Revenue Growth:
Revenue USD 000’s Q1 2016Q1 2015% ChangeLatin America3,7323,309+13%USA & Canada424211+101%EMEA1,405916+53%APAC602470+28%Total$6,163$4,906+26%
Note 1 - EBIT is Earnings before Interest and Taxation
Note 2 - Depreciation and amortisation charges increased this year as the Company commenced amortising capitalised
development costs for the new ECR2 motor and the SCS Connect controller from 1 January 2016, that being the date
development of the products was completed and the products became available for sale.
Note 3 - EBITDA is Earnings before Interest, Taxation, Depreciation, Amortisation and Impairment. Wellington has always
reported the EBITDA result because this is the profit performance measure that avoids the distortions caused by
differences in amortisation and impairment policies. In the 2016 year we have isolated the effects on EBITDA of the
revaluation of MCPS for NZD/USD exchange rate movements which is “non cash” and does not arise from the company’s
business activities.
The business is gaining clear momentum, especially with SCS adoption. Further details and a first half and full year
outlook will be provided at Wellington’s Annual Shareholders Meeting on 31st May 2016.
ENDS