Tax
In the quarter we had a normalised income tax charge of €2.6 million, representing an effective tax rate of 11.7%. Due to an €80 million one-off tax gain as a result of a settlement of prior year tax issues with the Dutch tax authority, the total tax result was a gain of €77 million (Q4 2011: gain of €4.6 million). The normalised tax rate in Q4 2011, excluding a €5.9 million one-off tax gain as well as the tax effect of the restructuring charges was 20.7%.
Cash flows
The cash inflow from operations for the quarter was €98 million compared with €138 million in the same quarter last year. The year on year reduction is mainly because the cash inflow from reduced working capital was lower in the quarter than in the corresponding quarter of last year.
The cash flow used in investing activities during the quarter was €15 million, an increase of €3.3 million compared to €11 million in Q4 2011.
Cash flows used in financing activities amounted to €48 million mainly reflecting the net effect of repayments made during the quarter net of the proceeds from our new term loan.
Debt financing
On 31 December 2012 we made the final repayment on the outstanding amount of the loan we entered into in 2008 and we drew down on the new €250 million term loan.
This new term loan is part of the forward-start facility arrangement we signed in April 2011. It additionally includes a €150 million revolving credit facility, which remained unutilised on 31 December 2012. Netted with the transaction costs, the carrying amount of this €250 million loan at year end was €247 million.
Our net debt position on 31 December 2012 was €86 million, down from €194 million at the end of 2011. Our leverage ratio was reduced from 0.9 at the end of 2011 to 0.5 at the end of 2012.
Balance sheet
As at 31 December 2012, accounts receivable plus other receivables were €268 million compared with €236 million at 31 December 2011. The increase is mainly attributed to the income tax receivable balance partly offset by a decrease in the trade receivables balance. The inventory level was reduced to €44 million from €66 million at the end of last year and €59 million at the end of previous quarter. Cash and cash equivalents at the end of the quarter were €164 million compared to €194 million at the end of the prior year.
Current liabilities were €475 million compared to €845 million in the same quarter last year. The year on year decrease is mainly due to the full repayment of our previous borrowings partly offset by the current portion of our new term loan.
At the end of the quarter we had shareholders’ equity of €838 million up from €742 million at the beginning of the quarter.
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Consolidated income statements
| (in € thousands) | Q4 ‘12 | Q4 ‘11 | FY ‘12 | FY ‘11 | ||||
| Revenue | 289,010 | 357,401 | 1,057,134 | 1,273,217 | ||||
| Cost of sales | 134,678 | 191,426 | 502,398 | 633,545 | ||||
| Gross result | 154,332 | 165,975 | 554,736 | 639,672 | ||||
| Research and development expenses | 45,257 | 46,745 | 166,315 | 172,822 | ||||
| Amortisation of technology & databases | 21,777 | 27,007 | 84,011 | 84,619 | ||||
| Impairment charge | 0 | 0 | 0 | 511,936 | ||||
| Marketing expenses | 14,238 | 20,507 | 57,305 | 78,062 | ||||
| Selling, general and administrative expenses | 46,698 | 60,511 | 169,716 | 208,917 | ||||
| Stock compensation expense | 1,723 | 789 | 7,140 | 7,985 | ||||
| Total operating expenses | 129,693 | 155,559 | 484,487 | 1,064,341 | ||||
| Operating result | 24,639 | 10,416 | 70,249 | -424,669 | ||||
| Interest result | -2,374 | -3,826 | -12,084 | -21,862 | ||||
| Other finance result | -290 | 714 | 1,642 | 6,093 | ||||
| Result associates | 137 | -94 | 726 | -432 | ||||
| Result before tax | 22,112 | 7,210 | 60,533 | -440,870 | ||||
| Income tax | 77,403 | 4,583 | 68,660 | 1,919 | ||||
| Net result | 99,515 | 11,793 | 129,193 | -438,951 | ||||
| Non-controlling interests | 403 | -94 | 469 | -1,107 | ||||
| Net result attributed to the group | 99,112 | 11,887 | 128,724 | -437,844 | ||||
| Basic number of shares (in thousands) | 221,895 | 221,895 | 221,895 | 221,874 | ||||
| Diluted number of shares (in thousands) | 222,316 | 221,939 | 222,024 | 221,874¹ | ||||
| EPS, € basic | 0.45 | 0.05 | 0.58 | -1.97 | ||||
| EPS, € diluted | 0.45 | 0.05 | 0.58 | -1.97 |
