Evertz Technologies Reports Record Quarterly Revenue of $137 Million in The Third Quarter Ended January 31, 2025

Attention Business/Financial Editors:

Burlington, Ontario–(Newsfile Corp. – March 5, 2025) – Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network (“SDVN”) technology, today reported its results for the third quarter ended January 31, 2025.

Third Quarter 2025 Highlights

Record Quarterly revenue of $136.9 million, an increase of 9% or $11.7 million sequentiallyReoccurring software, services and other software revenue of $55.7 million in the quarter, up 6% from the prior yearEarnings from operations of $28.1 million for the quarter, an increase of 8% from the prior yearNet earnings of $21.1 million for the quarterFully diluted earnings per share of $0.27 for the quarter

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)

Q3 ‘ 25   Q3 ‘ 24 Revenue
$ 136,916  $135,278Gross margin 79,098  79,733Earnings from operations 28,108  26,398Net earnings 21,076  19,024Fully-diluted earnings per share$ 0.27  $0.24Fully-diluted shares76,860,180  76,878,395

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)

Q3 ‘ 25   YE’ 24 Cash and cash equivalents$ 96,280  $ 86,325 Working capital 207,943   201,437 Total assets 472,210   484,722 Shareholders’ equity 269,606  263,267

Revenue
For the quarter ended January 31, 2025, revenues were $136.9 million compared to revenues of $135.3 million for the quarter ended January 31, 2024. For the quarter, revenues in the United States/Canada region were $99.1 million compared to $80.5 million in the same quarter last year. The International region had revenues of $37.8 million compared to $54.8 million in the same quarter last year.

Gross Margin
For the quarter ended January 31, 2025, gross margin was $79.1 million as compared to $79.7 million in the same quarter last year. Gross margin percentage was approximately 57.8% as compared to 58.9% in the quarter ended January 31, 2024.

Earnings
For the quarter ended January 31, 2025, net earnings were $21.1 million as compared to $19.0 million in the corresponding period last year.

For the quarter ended January 31, 2025, earnings per share on a fully-diluted basis were $0.27 as compared to $0.24 in the corresponding period last year.

Operating Expenses
For the quarter ended January 31, 2025, selling and administrative expenses were $19.2 million as compared to $18.3 million for the quarter ended January 31, 2024.

For the quarter ended January 31, 2025, gross research and development expenses were $36.6 million as compared to $34.0 million for the quarter ended January 31, 2024.

Liquidity and Capital Resources
The Company’s working capital as at January 31, 2025 was $207.9 million as compared to $201.4 million on April 30, 2024.

Cash and cash equivalent $96.3 million as at January 31, 2025 as compared to $86.3 million in cash on April 30, 2024.

Cash generated from operations was $53.0 million for the quarter ended January 31, 2025 as compared to $30.2 million cash generated for the quarter ended January 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $27.2 million from operations for the quarter ended January 31, 2025 compared to $25.0 million for the same period last year.

For the quarter, the Company used $1.2 million for investing activities.

For the quarter ended, the Company used cash in financing activities of $17.0 million which was principally a result of the payment of dividends of $15.2 million.

Shipments and Backlog
At the end of February 2025, purchase order backlog was in excess of $269 million and shipments during the month of February 2025 were $39 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 5, 2025 of $0.20 per share.

The dividend is payable to shareholders of record on March 13, 2025 and will be paid on or about March 20, 2025.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

 Three month period ended Nine month period ended January 31, January 31, 2025 2024 20252024Revenue $ 136,916  $ 135,278  $ 373,818 $ 391,846 Cost of goods sold  57,818   55,545   154,198 162,058 Gross margin  79,098   79,733   219,620 229,788    Expenses    Selling and administrative  19,198   18,262   55,174 52,160 General  1,318   1,056   3,901 3,388 Research and development  36,584   33,967   110,237 98,124 Investment tax credits  (3,529)  (3,987)  (10,879) (10,594) Share based compensation  1,314   1,197   3,756 3,876 Foreign exchange (gain) loss  (3,895)  2,840   (4,677) 1,979   50,990   53,335   157,512 148,933 Earnings before undernoted  28,108   26,398   62,108 80,855    Finance costs  531   547   2,073 1,084 Finance income   (421)  (457)  (1,104) (1,042)Net loss on investments through profit and loss  –   –   – (2,704)Other (expenses) income  (62)  (526)  249 (404)Earnings before income taxes  28,156   25,962   63,326 77,789 Provision for (recovery of) income taxes    Current  7,505   6,045   18,381 20,481 Deferred  (425)  893   (1,779) 141   7,080   6,938   16,602 20,622 Net earnings for the period$  21,076  $ 19,024  $ 46,724 $ 57,167 Net earnings attributable to non-controlling interest  161   302   336 760 Net earnings attributable to shareholders  20,915   18,722   46,388 56,407 Net earnings for the period $ 21,076  $ 19,024  $ 46,724 $ 57,167    Earnings per share   Basic $ 0.28  $ 0.25  $ 0.61 $ 0.74 Diluted $ 0.27  $ 0.24  $ 0.60 $0.73

Consolidated Balance Sheet DataAs At
January 31, 2025As At
April 30, 2024Cash and Cash Equivalents$ 96,280 $ 86,325 Inventory$ 195,556 $ 206,154 Working capital$ 207,943 $ 201,437 Total assets$ 472,210 $ 484,722 Shareholders’ equity$ 269,606 $263,267 Number of common shares outstanding:  Basic 75,941,007 76,164,322 Fully-diluted 81,043,732 81,614,447 Weighted average number of shares outstanding:  Basic 76,045,953 76,088,691 Fully-diluted 77,019,898 77,044,858

Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz’s objectives, estimates and expectations. Such forward-looking statements use words such as “may”, “will”, “expect”, “believe”, “anticipate”, “plan”, “intend”, “project”, “continue” and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company’s actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call
The Company will hold a conference call with financial analysts to discuss the results on March 5, 2025 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or Toll-Free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until Sunday, April 14, 2025. The rebroadcast can be accessed at 289-819-1325 or Toll-Free 1-888-660-6264. The pass code for the rebroadcast is 56369.

About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television (“HDTV” and “UHD”) and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company’s products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the “Cloud.”

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