Tallinn, 2012-08-15 16:27 CEST (GLOBE NEWSWIRE) -- Q2 results of the 2012 financial year
Steady growth despite the adverse weather, unstable economic environment and volatile fuel prices can be used to describe the second quarter (1 April – 30 June) operations of AS Tallink Grupp and its subsidiaries (the Group). The Group carried total of 2.4 million passengers in the second quarter of 2012 which is nearly 2% more than in the same period of the last year. Market share improved overall. The Group’s unaudited consolidated revenue for the second quarter of the 2012 financial year increased by EUR 6.8 million or 3% year on year to EUR 244.8 million.
In result of the increase in revenues and changes in the operations, including the earlier closure of the Finland Germany route, the Group’s earnings improved. Also the earnings from the continuing operations increased. Total unaudited Gross profit for the second quarter amounted to EUR 57.3 million, up by 13.6% and EBITDA amounted to EUR 46.2 million up by 9.6% when compared to the same period in last year. In the second quarter of 2012 the Group’s unaudited net profit was EUR 20 million compared to EUR 13.6 million last year. The total cumulative net profit for the six months of the 2012 financial year amounts to EUR 1 million compared to net loss of EUR 3.5 million a year ago.
Considering the overall economic situation and competition the Group’s second quarter results were generally pleasing, but did not fully meet the management expectations as the dynamics in the passenger metrics were different. While the revenue per passenger from shops and restaurant sales is showing a healthy 3.6% or 2 EUR growth per passenger at the same time revenue from ticket sales declined by 1.2 EUR or 4.4% when compared to the second quarter of the previous year. The unusually bad weather in spring and early summer affected the passengers’ booking behaviour hence resulting in increased promotional activities to attract people to travel.
The fuel prices in the second quarter were volatile. When measured in euros and compared to the same quarter of the last year the average quarterly price for ship fuel was approximately 13% higher. In result the Group’s fuel cost in the continuing operations increased by EUR 3.9 million. Due to the closure of Finland-Germany operations the total fuel cost for the Group in the second quarter was EUR 3.4 million smaller.
Cash flow from operations amounted to EUR 51.1 million in the second quarter of 2012. EUR 34.3 million was used to repay the bank debt resulting the 3.6% decrease in interest bearing liabilities during the second quarter. The net debt in the end of the second quarter was EUR 850.5 million and the net debt ratio to last 12-months EBITDA was 5.1. At the end of June the Group had EUR 51.8 million in cash and equivalents and the total of unused credit lines stood at EUR 66 million. The total liquidity, cash and unused credit facilities at the end of the second quarter was EUR 117.8 million providing strong position for the sustainable operations.
| Q2 KEY FIGURES |
2012 April-June |
2011 April-June |
change | ||
| Continuing operations | |||||
| Revenue from continuing operations | EUR million | 244.8 | 229.0 | 6.9% | |
| Gross profit from continuing operations | EUR million | 57.3 | 54.3 | 5.5% | |
| Net profit from continuing operations | EUR million | 20.0 | 18.1 | 10.4% | |
| Group total including the discontinued operations | |||||
| Revenue | EUR million | 244.8 | 238.0 | 2.9% | |
| Gross profit | EUR million | 57.3 | 50.4 | 13.6% | |
| Gross margin (%) | 23.4% | 21.2% | |||
| EBITDA | EUR million | 46.2 | 42.2 | 9.6% | |
| EBITDA margin (%) | 18.9% | 17.7% | |||
| Net profit for the period | EUR million | 20.0 | 13.6 | 46.8% | |
| Net profit margin (%) | 8.2% | 5.7% | |||
| Depreciation and amortization | EUR million | 17.7 | 17.8 | -0.7% | |
| Investments | EUR million | 3.7 | 4.5 | -18.7% | |
| Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
| Earnings per share | EUR | 0.03 | 0.02 | 46.8% | |
| Number of passengers | 2 376 516 | 2 336 462 | 1.7% | ||
| Number of cargo units | 72 014 | 75 972 | -5.2% | ||
| Average number of employees | 6 938 | 7 022 | -1.2% | ||
| 30.06.2012 | 31.03.2012 | ||||
| Total assets | EUR million | 1 760.7 | 1 764.9 | -0.2% | |
| Interest-bearing liabilities | EUR million | 902.3 | 935.9 | -3.6% | |
| Net debt | EUR million | 850.5 | 886.6 | -4.1% | |
| Total equity | EUR million | 706.1 | 686.2 | 2.9% | |
| Equity ratio (%) | 40.1% | 38.9% | |||
| Net debt to EBITDA | 5.1 | 5.5 | |||
| Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
| Shareholders’ equity per share | EUR | 1.05 | 1.02 | 2.9% | |
EBITDA: Earnings before net financial items, share of profit of equity accounted investees, taxes, depreciation and amortization;
Earnings per share: net profit / weighted average number of shares outstanding;
Equity ratio: total equity / total assets;
Shareholder’s equity per share: shareholder’s equity / number of shares outstanding;
Gross margin: gross profit / net sales;
EBITDA margin: EBITDA / net sales;
Net profit margin: net profit / net sales;
Net debt: Interest bearing liabilities less cash and cash equivalents;
Net debt to EBITDA: Net debt / 12-months trailing EBITDA.
1 Share numbers exclude own shares.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| (unaudited, in thousands of EUR) | 01.04.2012- | 01.04.2011- | 01.01.2012- | 01.01.2011- | |
| 30.06.2012 | 30.06.2011 | 30.06.2012 | 30.06.2011 | ||
| Continuing operations | |||||
| Revenue (Note 3) | 244,817 | 229,006 | 438,611 | 412,153 | |
| Cost of sales | -187,563 | -174,726 | -362,543 | -337,001 | |
| Gross profit | 57,254 | 54,280 | 76,068 | 75,152 | |
| Marketing expenses | -16,861 | -15,183 | -32,633 | -30,054 | |
| Administrative expenses | -12,165 | -10,385 | -22,894 | -20,247 | |
| Other income | 350 | 194 | 506 | 538 | |
| Other expenses | -12 | -5 | -32 | -15 | |
| Results from operating activities | 28,566 | 28,901 | 21,015 | 25,374 | |
| Finance income (Note 4) | 1,080 | 790 | 1,152 | 2,647 | |
| Finance costs (Note 4) | -9,656 | -11,579 | -21,128 | -23,954 | |
| Profit/-loss before income tax | 19,990 | 18,112 | 1,039 | 4,067 | |
| Income tax | 0 | 0 | 0 | 0 | |
| Net profit/-loss from continuing operations | 19,990 | 18,112 | 1,039 | 4,067 | |
| Profit/-loss from discontinued operation (Note 3) | 0 | -4,492 | 0 | -7,594 | |
| Net profit/-loss for the period | 19,990 | 13,620 | 1,039 | -3,527 | |
| Other comprehensive income/-expense | |||||
| Exchange differences on translating foreign operations | -62 | 157 | -5 | 123 | |
| Other comprehensive income/-expense for the period | -62 | 157 | -5 | 123 | |
| Total comprehensive income/-expense for the period | 19,928 | 13,777 | 1,034 | -3,404 | |
| Profit/-loss attributable to: | |||||
| Equity holders of the parent (Note 5) | 19,990 | 13,620 | 1,039 | -3,527 | |
| Total comprehensive income/-expense attributable to: | |||||
| Equity holders of the parent | 19,928 | 13,777 | 1,034 | -3,404 | |
| Earnings per share (in EUR per share) | |||||
| - basic (Note 5) | 0.03 | 0.02 | 0.00 | -0.01 | |
| - diluted (Note 5) | 0.03 | 0.02 | 0.00 | -0.01 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
| ASSETS | 30.06.2012 | 31.12.2011 | |
| Current assets | |||
| Cash and cash equivalents | 51,828 | 75,421 | |
| Trade and other receivables | 42,114 | 35,152 | |
| Prepayments | 13,920 | 7,087 | |
| Inventories | 28,059 | 25,198 | |
| Total current assets | 135,921 | 142,858 | |
| Non-current assets | |||
| Investments in associates | 226 | 226 | |
| Other financial assets | 2,024 | 2,551 | |
| Deferred income tax assets | 9,452 | 9,452 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment (Note 7) | 1,553,829 | 1,583,002 | |
| Intangible assets (Note 8) | 58,936 | 61,153 | |
| Total non-current assets | 1,624,767 | 1,656,684 | |
| TOTAL ASSETS | 1,760,688 | 1,799,542 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 167,328 | 145,261 | |
| Trade and other payables | 96,006 | 86,793 | |
| Deferred income | 33,392 | 25,226 | |
| Derivatives (Note 6) | 22,668 | 22,668 | |
| Total current liabilities | 319,394 | 279,948 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 735,012 | 814,305 | |
| Other liabilities | 157 | 198 | |
| Total non-current liabilities | 735,169 | 814,503 | |
| TOTAL LIABILITIES | 1,054,563 | 1,094,451 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 404,290 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 72,366 | 70,497 | |
| Retained earnings | 228,830 | 229,665 | |
| Total equity attributable to equity holders of the parent | 706,125 | 705,091 | |
| TOTAL EQUITY | 706,125 | 705,091 | |
| TOTAL LIABILITIES AND EQUITY | 1,760,688 | 1,799,542 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) | 01.01.2012 - | 01.01.2011- | |
| 30.06.2012 | 30.06.2011 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | 1,039 | -3,527 | |
| Adjustments | 56,034 | 57,407 | |
| Changes in assets related to operating activities | -16,122 | -24,512 | |
| Changes in liabilities related to operating activities | 18,659 | 23,801 | |
| Income tax paid | -10 | -22 | |
| 59,600 | 53,147 | ||
| Cash flow used for investing activities | |||
| Purchase of property, plant and equipment and intangible assets (Notes 7, 8) | -3,687 | -4,533 | |
| Proceeds from disposals of property, plant and equipment | 36 | 59 | |
| Payments from settlement of derivatives | -2,019 | -2,542 | |
| Interest received | 133 | 23 | |
| -5,537 | -6,993 | ||
| Cash flow from (+)/ used for (-) financing activities | |||
| Redemption of loans (Note 9) | -58,638 | -12,850 | |
| Repayment of finance lease liabilities (Note 9) | -42 | -41 | |
| Interest paid | -18,976 | -18,822 | |
| -77,656 | -31,713 | ||
| TOTAL NET CASH FLOW | -23,593 | 14,441 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 75,421 | 44,946 | |
| - increase (+) / decrease (-) | -23,593 | 14,441 | |
| Cash and cash equivalents at end of period | 51,828 | 59,387 | |
Janek Stalmeister
Member of the Management Board, CFO
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
