CORRECTION: Corrected last year net loss in the key figures table.
Follows the corrected release:
In the third quarter (01.03.2010-31.05.2010) of the financial year 2009/2010 AS
Tallink Grupp and its subsidiaries' (The Group) unaudited revenue reached the
record breaking level of EUR 202 million (EEK 3 167 million). Compared to the
third quarter of the previous financial year the revenue grew more than EUR 26
million (EEK 415 million) or 15%. The Group's earnings before interest, taxes,
depreciation and amortisation (EBITDA) were EUR 30 million (EEK 469 million)
which is nearly EUR 16 million higher than in the third quarter of the previous
financial year. The third quarter results meet the management expectations and
add comfort that the Group's focus areas and related actions have been right.
This noticeable improvement in Q3 was influenced by strong passenger volumes
and continued recovery in the passenger revenues as more effort has been put to
capacity and revenue management and product offering. In the third quarter the
passenger numbers increased by 18% year on year to 2.16 million passengers -
setting a new all time record for the third quarter. The seasonality of the
current financial year was more in favour of the third quarter whereby in
comparison to last year several positive factors, partly holidays and product
campaigns took place in the third quarter instead of the second.
Due to continuing emphasis on the cost control, the Group's EBITDA margin has
improved both in the third quarter and also on a cumulative basis for the
current financial year. In the third quarter the Group's result improved as a
result of the strong growth of the revenue, despite the price driven increase
in fuel costs by EUR 8 million (EEK 125 million). In the third quarter the
general administration costs decreased by 13% year on year, making it the 10th
consecutive quarter with cost improvement.
By introducing several new vessels during the previous years the Group has gone
through significant product improvement. Now the focus has moved to the more
detailed level of product development which is an equally important aspect. The
Group continues to put high efforts on the value of the customer satisfaction
and in parallel to the personnel development through more extensive specialized
education and enhanced motivation schemes. Satisfied customers, quality product
offering and motivated personnel are the key factors for the Group to improve
the operations and results. In a short to mid term outlook the Group's
activities involve amongst other the enhancement of the online reservation
system and the loyal customer program.
The Management continues to focus on the cost efficiency and on the improvement
of the Group results. The sale or charter of older and non performing vessels
is a high priority. There are currently several negotiations open to either
charter or sell some of the older and non performing vessels.
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| Q3 KEY FIGURES | Q3 2009/2010 | Q3 2008/2009 | Change % |
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| | EEK | EUR | EEK | EUR | |
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| Net sales (million) | 3 167 | 202.4 | 2 752 | 175.9 | 15% |
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| Gross profit (million) | 576 | 36.8 | 362 | 23.2 | 59% |
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| Gross margin | 18% | | 13% | | |
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| EBITDA (million) | 469 | 30.0 | 223 | 14.3 | 110% |
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| EBITDA margin | 15% | | 8% | | |
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| Net profit/-loss (million) | -47 | -3.0 | -270 | -17.2 | 82% |
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| Net profit margin | -1% | | -10% | | |
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--------------------------------------------------------------------------------
| Depreciation & amort. | 279 | 17.9 | 266 | 17.0 | 5% |
| (million) | | | | | |
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| Investments (million) | 21 | 1.3 | 2 298 | 146.8 | -99% |
--------------------------------------------------------------------------------
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| Weighted average number of | 669 882 040 | 669 882 040 | 0% |
| ordinary shares outstanding | | | |
| during Q3* | | | |
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| Earnings per share | -0.07 | -0.00 | -0.40 | -0.03 | 82% |
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| | | | |
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| Number of passengers | 2 156 448 | 1 829 367 | 18% |
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| Cargo units | 68 991 | 60 477 | 14% |
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| Average number of employees | 6 501 | 6 805 | -5% |
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| | 31.05.2010 | 28.02.2010 | |
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| | EEK | EUR | EEK | EUR | |
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| Total assets (million) | 29 475 | 1 884 | 29 545 | 1 888 | -0.2% |
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| Total liabilities (million) | 19 716 | 1 260 | 19 733 | 1 261 | -0.1% |
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| Interest-bearing | 17 544 | 1 121 | 17 770 | 1 136 | -1.3% |
| liabilities (million) | | | | | |
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| Total equity (million) | 9 759 | 624 | 9 812 | 627 | -0.5% |
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| Equity ratio | 33% | | 33% | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of ordinary shares | 669 882 040 | 669 882 040 | 0% |
| outstanding* | | | |
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| Shareholders' equity per | 14.6 | 0.94 | 14.6 | 0.94 | -0.5% |
| share | | | | | |
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Net profit margin - net profit / net sales;
EBITDA - Earnings before net financial items, taxes, depreciation and
amortization;
EBITDA margin - EBITDA / net sales;
Gross margin - gross profit / net sales;
Net profit margin - net profit / net sales;
Equity ratio - total equity / total assets;
Earnings per share - net profit / weighted average number of shares outstanding;
Shareholder's equity per share - shareholder's equity / number of shares
outstanding.
* Share numbers exclude own shares.
The Group's net financial expenses in the third quarter were EUR 15 million
(EEK 237 million) being approximately on the same level compared to the third
quarter of the previous financial year.
The Group's unaudited net loss for the third quarter of the 2009/2010 financial
year was EUR 3 million (EEK 47 million). In the third quarter of the previous
financial year the net loss was EUR 17 million (EEK 270 million). Accumulated
net loss for the nine months of current, 2009/2010 financial year is EUR 21
million (EEK 321 million) which is a EUR 19 million (EEK 303 million)
improvement compared to the nine months of the 2008/2009 financial year.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of 01.03.2010- 01.03.2009- 01.09.2009- 01.09.2008-
EEK) 31.05.2010 31.05.2009 31.05.2010 31.05.2009
Revenue 3,167,117 2,752,006 8,475,897 8,402,366
Cost of sales -2,591,143 -2,389,378 -7,161,508 -7,080,942
Gross profit 575,974 362,628 1,314,389 1,321,424
Marketing expenses -205,608 -220,619 -627,542 -623,253
Administrative expenses -159,102 -183,610 -461,573 -552,614
Other income 4,126 382 12,364 4,127
Other expenses -25,913 -1,459 -26,503 -4,586
Results from operating 189,477 -42,678 211,135 145,098
activities
Financial income -28,435 21,829 83,770 119,601
Financial expenses -208,288 -249,784 -615,416 -889,305
Share of profit of associates 0 782 0 782
Loss from normal operation -47,246 -269,851 -320,511 -623,824
before income tax
Income tax 0 18 0 0
Net loss for the period -47,246 -269,833 -320,511 -623,824
Other comprehensive income/-
expense
Exchange differences on -3,742 -5,409 7,706 -4,030
translating foreign
operations
Cash flow hedges -1,627 98,386 15,881 -12,157
Other comprehensive income/- -5,369 92,977 23,587 -16,187
expense for the period
Total comprehensive income/- -52,615 -176,856 -296,924 -640,011
expense for the period
Loss attributable to:
Equity holders of the -47,246 -269,833 -320,511 -623,824
parent
Total comprehensive income/-
expense attributable to:
Equity holders of the -52,615 -176,856 -296,924 -640,011
parent
Earnings per share (in EEK
per share)
- basic -0.07 -0.40 -0.48 -0.93
- diluted -0.07 -0.40 -0.48 -0.93
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of 01.03.2010- 01.03.2009- 01.09.2009- 01.09.2008-
EUR) 31.05.2010 31.05.2009 31.05.2010 31.05.2009
Revenue 202,416 175,885 541,709 537,009
Cost of sales -165,604 -152,709 -457,704 -452,555
Gross profit 36,812 23,176 84,005 84,454
Marketing expenses -13,140 -14,100 -40,107 -39,833
Administrative expenses -10,169 -11,734 -29,500 -35,318
Other income 263 23 790 263
Other expenses -1,656 -93 -1,694 -293
Results from operating 12,110 -2,728 13,494 9,273
activities
Financial income -1,817 1,395 5,354 7,644
Financial expenses -13,312 -15,964 -39,332 -56,837
Share of profit of associates 0 50 0 50
Loss from normal operation -3,019 -17,247 -20,484 -39,870
before income tax
Income tax 0 1 0 0
Net loss for the period -3,019 -17,246 -20,484 -39,870
Other comprehensive income/-
expense
Exchange differences on -239 -346 493 -257
translating foreign
operations
Cash flow hedges -104 6,288 1,015 -777
Other comprehensive income/- -343 5,942 1,508 -1,034
expense for the period
Total comprehensive income/- -3,362 -11,304 -18,976 -40,904
expense for the period
Loss attributable to:
Equity holders of the -3,019 -17,246 -20,484 -39,870
parent
Total comprehensive income/-
expense attributable to:
Equity holders of the -3,362 -11,304 -18,976 -40,904
parent
Earnings per share (in EUR
per share)
- basic -0.00 -0.03 -0.03 -0.06
- diluted -0.00 -0.03 -0.03 -0.06
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EEK)
ASSETS 31.05.2010 31.08.2009
Current assets
Cash and cash equivalents 669,346 782,043
Receivables 690,223 797,762
Prepayments 230,500 179,892
Derivatives 15,459 6,493
Inventories 309,722 297,527
Total current assets 1,915,250 2,063,717
Non-current assets
Investments in associates 9,180 0
Other financial assets and prepayments 7,006 7,664
Deferred income tax assets 207,453 207,455
Investment property 4,694 4,694
Property, plant and equipment 26,269,315 27,049,393
Intangible assets 1,062,069 1,134,738
Total non-current assets 27,559,717 28,403,944
TOTAL ASSETS 29,474,967 30,467,661
LIABILITIES AND EQUITY
Current liabilities
Interest bearing loans and borrowings 1,377,020 1,655,760
Payables 1,447,509 1,415,762
Deferred income 479,101 331,323
Derivatives 243,961 179,842
Total current liabilities 3,547,591 3,582,687
Non-current liabilities
Interest bearing loans and borrowings 16,167,110 16,827,627
Other liabilities 1,173 1,330
Total non-current liabilities 16,168,283 16,828,957
TOTAL LIABILITIES 19,715,874 20,411,644
EQUITY
Equity attributable to equity holders of the parent
Share capital 6,738,170 6,738,170
Share premium 9,999 9,999
Reserves 1,147,996 1,124,409
Retained earnings 1,862,928 2,183,439
Total equity attributable to equity holders of the 9,759,093 10,056,017
parent
TOTAL EQUITY 9,759,093 10,056,017
TOTAL LIABILITIES AND EQUITY 29,474,967 30,467,661
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
ASSETS 31.05.2010 31.08.2009
Current assets
Cash and cash equivalents 42,779 49,982
Receivables 44,113 50,986
Prepayments 14,732 11,497
Derivatives 988 415
Inventories 19,795 19,015
Total current assets 122,407 131,895
Non-current assets
Investments in associates 587 0
Other financial assets and prepayments 448 490
Deferred income tax assets 13,259 13,259
Investment property 300 300
Property, plant and equipment 1,678,915 1,728,771
Intangible assets 67,879 72,523
Total non-current assets 1,761,388 1,815,343
TOTAL ASSETS 1,883,795 1,947,238
LIABILITIES AND EQUITY
Current liabilities
Interest bearing loans and borrowings 88,008 105,822
Payables 92,513 90,484
Deferred income 30,620 21,175
Derivatives 15,592 11,494
Total current liabilities 226,733 228,975
Non-current liabilities
Interest bearing loans and borrowings 1,033,267 1,075,482
Other liabilities 75 85
Total non-current liabilities 1,033,342 1,075,567
TOTAL LIABILITIES 1,260,075 1,304,542
EQUITY
Equity attributable to equity holders of the parent
Share capital 430,648 430,648
Share premium 639 639
Reserves 73,370 71,862
Retained earnings 119,063 139,547
Total equity attributable to equity holders of the 623,720 642,696
parent
TOTAL EQUITY 623,720 642,696
TOTAL LIABILITIES AND EQUITY 1,883,795 1,947,238
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of EEK) 01.09.2009- 01.09.2008-
31.05.2010 31.05.2009
Cash flows from operating activities
Net loss for the period -320,511 -623,824
Adjustments 1,441,179 1,508,012
Changes in assets related to operating activities 44,950 327,928
Changes in liabilities related to operating 106,581 37,136
activities
Income tax paid -927 6
1,271,272 1,249,258
Cash flow used for investing activities
Purchase of property, plant, equipment and -87,229 -2,521,923
intangible assets
Proceeds from disposals of property, plant, 101,174 17,693
equipment
Acquisition of associate -9,180 -6,120
Proceeds from disposals of associates 0 782
Proceeds/-payments from settlement of derivatives -50,095 -37,388
Interest received 2,557 5,519
-42,773 -2,541,437
Cash flow from (+)/ used for (-) financing
activities
Proceeds from loans 0 2,427,150
Redemption of loans -573,688 -1,315,471
Change in overdraft -246,676 330,076
Repayment of finance lease liabilities -4,389 -6,763
Interest paid -516,443 -733,439
-1,341,196 701,553
TOTAL NET CASH FLOW -112,697 -590,626
Cash and cash equivalents:
- at the beginning of period 782,043 1,043,785
- increase (+) / decrease (-) -112,697 -590,626
Cash and cash equivalents at end of period 669,346 453,159
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of EUR) 01.09.2009- 01.09.2008-
31.05.2010 31.05.2009
Cash flows from operating activities
Net loss for the period -20,484 -39,870
Adjustments 92,108 96,380
Changes in assets related to operating activities 2,873 20,959
Changes in liabilities related to operating 6,811 2,373
activities
Income tax paid -59 0
81,249 79,842
Cash flow used for investing activities
Purchase of property, plant, equipment and -5,575 -161,181
intangible assets
Proceeds from disposals of property, plant, 6,466 1,131
equipment
Acquisition of associate -587 -391
Proceeds from disposals of associates 0 50
Proceeds/-payments from settlement of derivatives -3,201 -2,390
Interest received 163 353
-2,734 -162,428
Cash flow from (+)/ used for (-) financing
activities
Proceeds from loans 0 155,123
Redemption of loans -36,665 -84,074
Change in overdraft -15,765 21,096
Repayment of finance lease liabilities -281 -432
Interest paid -33,007 -46,875
-85,718 44,838
TOTAL NET CASH FLOW -7,203 -37,748
Cash and cash equivalents:
- at the beginning of period 49,982 66,710
- increase (+) / decrease (-) -7,203 -37,748
Cash and cash equivalents at end of period 42,779 28,962
Janek Stalmeister
Member of the Management Board, CFO
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
Harri Hanschmidt
Head of Investor Relations
AS Tallink Grupp
Sadama 5/7, 10111 Tallinn
Tel +372 640 8981
Skype harri.hanschmidt
E-mail harri.hanschmidt@tallink.ee
