Wellington Drive releases its 2017 financial statements

® is a registered Trade Mark of Wellington Drive Technologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9014
21 Arrenway Drive,Rosedale, Auckland0632, New Zealand
PO Box 302-533, North Harbour, North ShoreCity0751, New Zealand
Telephone: +64 99 477 0415, Fax: + 64 9 479 5540
Email:info@wdtl.comWebsite:www.wdtl.comPage1of3
1
st
March2018
For Immediate Release
Wellington Drive Technologies announces audited resultsand
confirms 2018 guidance.
Businesshighlights
NZDunlessotherwise
stated
20172016Improvement
Revenue$43.3m$35.3m+22.8%
IOTDataservicesUS$0.713mUS$0.244m+192.2%
Grossprofit$10.3m$8.5m+22.3%
Grossmargin%23.9%24.0%-0.1%
EBITDA
1
$0.538m$0.204m+163.7%
Lossfortheyear$1.98m$2.478m+20.1%
Operatingcashflows$1.257m-$0.048m+$1.305m
Wellington’srevenuegrowthyearoveryearwas22.8%.Thisisconsistentwiththe
compoundannualgrowthrateforrevenue(CAGR)of22%forthelastthreeyears.The
Companycontinuedtodelivernewproductgrowth;ECR2motorvolumecomparedtolast
yeargrew282%andSCSConnectvolumesgrew308%.
InvoicingofdataservicesrelatedtoWellington’sSCSsmartcontrollersamountedto
US$0.713min2017andUS$0.244min2016ofwhichUS$0.7mhasbeendeferredonthe
balancesheetat31December2017toberecognisedoverfutureperiods.
DigitalservicesrevenuesrelatedtotheCompany’sInternetofThings(IoT)SCSproducts
continuestogrowandiscoretofuturegrowthprospects.Thecompany’sexpansionofits
digitalserviceswasstrengthenedbyincreasedadoptionoftheSCSConnectdatasolution,the
expandingpartnershipwithiProximityandcommencementoftrialsbyseveralcustomers
testingiProximity’sproximitymarketingsoftware.
Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA
1)
wasaprofitof$0.5m
(2016$0.2m).Theresultwasaffectedbyaweakerthanexpectedthirdquarter,lateinthe
yeardemanddeferrals,asalesmixthatorientedtowardslowergrossmarginproductsaswell

® is a registered Trade Mark of Wellington Drive Technologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9014
Page2of3
asadeliberatedecisiontoincreasecertainoperatingcostsinsupportofourrapidly
developingIoTbusiness.
Thelossfortheyearwas$1.98maftercharging$0.603mofnon-recurringfinancecostsin
respectofpreferencesharessettledinMay2017.
Operatingcashflowfortheyearwaspositiveat$1.3m.Thecashgenerativenatureofthe
SCSdatarevenuestream,wheremulti-yearcontractsarepaidforinadvance,continuedto
supportimprovingcashflows.
DuringtheyeartheCompanyborrowed$0.6mfromMetaCapitalLimitedand$0.5mfrom
SmartsharesLimitedunderthe$2mrevolvingfacilitythatexpiresinMarch2019.Thecash
balanceat31December2017was$1.6m.
2018guidance
InJanuarytheCompanyissuedguidancethatH12018revenueisforecasttobearound10%
abovethesameperiodin2017withEBITDA
1
wellabovethe$1mrecordedin2017.That
remainsourexpectation,howeverwearestillexperiencinguncertaintyinsiliconcomponent
supplywhichisdrivingalternativesourcingstrategiesandproductredesigntoalleviateand
ensurewedeliverforcustomers.
AlsoinJanuaryWellingtonissuedguidanceforfullyear2018EBITDA
1
ofbetween$2mto
$4mandsetatargettoachieveanetprofit.Duetothestrengthweareseeinginfirsthalf
orderflowandgrowingconfidenceinuptakeofourSCSandECR2productweare
reaffirmingthisguidance.AchievingthesetargetsmeansWellingtonshouldgenerate
positiveoperatingcashflowinFY2018tomeetitsworkingcapitalneedsandtoenablethe
repaymentoftheMetaCapitalLimitedloaninH1.
On28FebruarytheCompanyannouncedthesigningofanagreementtoacquireiProximity.
TheimpactonearningsfromiProximityisexpectedtobeminimalforthe2018year;
howevertherelationshipisalreadybenefitingWellington’sIoTrevenues.
CEOGregAllencommented,“Wewereincrediblypleasedwithourannualgrowthrate,with
ourprimaryfocusbeingnewproductrevenuemomentumandwinningcustomershare.
Profitwasbelowexpectationsduemainlytoaweakerthanexpectedthirdquarterand
customersdeferringdemandinto2018,howeverwearenowseeingtheresultsofthat
demanddeferralinorderbookingsforthefirsthalfof2018.Therewereanumberofnew
businesswinsintheyear,forbothECmotorsandSCSConnectthatwilldelivernewrevenue
in2018.OurstrategytogrowtheECmotorbusinessinthesupermarketsectorandtoexpand
outIoTbusinessthroughaddingmoredigitalsolutions,suchasiProximitymarketing
systems,isreallygatheringpace.”
AboutWellingtonDriveTechnologies
WellingtonDriveTechnologiesisaleadingglobalproviderofenergyefficientelectronic
motors,airflowssolutionsandcloud-connectedrefrigerationcontrolsolutionsforthe
commercialrefrigerationmarkets.Itservessomeoftheworld’sleadingfoodandbeverage
brandsandrefrigeratormanufacturerswithadvancedproductsandsolutionsthatimprove
theirproductsales,reducetheircostsandreducesenergyconsumption.Wellingtonis

® is a registered Trade Mark of Wellington Drive Technologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9014
Page3of3
headquarteredinAuckland,NewZealand,andislistedontheNewZealandstockexchange
underthetickersymbolNZ:WDT
Notes:
Note1-EBITDAisEarningsbeforeInterest,Taxation,Depreciation,AmortisationandImpairment.Wellington
hasalwaysreportedtheEBITDAresultbecausethisistheprofitperformancemeasurethatavoidsthe
distortionscausedbydifferencesinamortisationandimpairmentpolicies.
___________________________________________________________________________
Contact:
Greg AllenHoward Milliner
Chief Executive OfficerChief Financial Officer
Phone +1-778-238-6494+64-9-477-4500