12 months unaudited results of the 2013 financial year

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| Source: Tallink Grupp
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Tallinn, 2014-02-27 15:35 CET (GLOBE NEWSWIRE) -- 12 months unaudited results of the 2013 financial year

AS Tallink Grupp and its subsidiaries (the Group) carried a total of 9.11 million passengers in the 2013 financial year which is 1.6% less than the year before. The Group’s unaudited consolidated revenue remained on the previous year’s level with EUR 942.0 million. Gross profit was EUR 190.2 million, EBITDA EUR 156.2 million. Unaudited net profit amounted to EUR 43.3 million or EUR 0.06 per share, which is a 23.1% decrease compared to the previous year.

In the fourth quarter (1 October - 31 December) of the 2013 financial year the Group carried 2.1 million passengers, 1% more compared to the same period last year. The Group’s consolidated revenue amounted to EUR 224.0 million, EUR 1.2 million more compared to the same period last year. The Group’s EBITDA amounted to EUR 29.8 million, 7.1% less compared to the same period last year. The unaudited net profit for the fourth quarter increased by 31.8% to EUR 7.5 million.

The 2013 financial year ticket and cargo sales showed a 3.4% and 2.7% increase respectively. Due to the decline in the passenger numbers on the Finland-Sweden routes caused by increased competition and structural changes the shop and restaurant sales experienced a 2.0% decline. Although there was a slight decrease in shop and restaurant sales, spending per passenger stayed on last year’s level. As a result of upgrading the fleet growth continued on the Riga-Stockholm route in the 2013 financial year, showing an 8.4% increase in revenue and the result for the financial year was positive for the first time since the route was opened in 2006.

During the 2013 financial year the Group’s operations were affected by an overall weak macroeconomic environment in the region. The Nordic countries which are the Group’s main markets continue to experience noticeable slowdown in their economies and there is an impact to the Group’s passengers’ spending behaviour. Net profit was also affected by a tax expense of EUR 3.8 million.

The lower fuel price levels throughout the year had a positive effect on the 2013 results, the Group’s overall fuel cost was circa 10% or EUR 14 million lower compared to the same period last year. Meanwhile there was raise in the ships operating costs and port fees.

The Group was successful in generating a higher cash flow from operating activities both in the fourth quarter and for the twelve months 48.4 million and 168.4 million respectively compared to the same period last year. The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 104 million providing a strong position for sustainable operations. At the end of the fourth quarter 2013 the Group had EUR 72 million in cash and equivalents and the total of unused credit lines were at EUR 32 million.

The Group successfully continued the deleveraging strategy and the net debt decreased by EUR 52 million to a total of EUR 722 million in the 2013 financial year.

The 2013 financial year result did not meet the management’s expectations. Due to adverse macroeconomic developments in the region and the increased competition on Finland-Sweden routes the results for this year did not reach the previous year’s level. With an aim to increase revenue generation improvements in product development are being made, emphasis is on retail sales and upgrades to the public areas on selected vessels. Cost reductions in some areas are processed in order to adapt with the changed economic environment. The management expects an improvement in the results for the 2014 financial year.

In management’s opinion, the Group’s financial position allows the Group to pay dividends. Management will propose to the shareholders’ general meeting a dividend distribution of EUR 0.03 per share, i.e. EUR 20,096,461 in aggregate.

 

Q4 KEY FIGURES   2013
Oct-Dec
2012
Oct-Dec
Change
Revenue EUR million 224.0 222.8 0.5%
Gross profit EUR million 37.1 40.0 -7.1%
Gross margin (%)   16.6% 17.9%  
EBITDA EUR million 29.8 32.1 -7.1%
EBITDA margin (%)   13.3% 14.4%  
Net profit for the period EUR million 7.5 5.7 31.8%
Net profit margin (%)   3.36% 2.56%  
         
Depreciation and amortization EUR million 18.6 17.9 4.0%
Investments EUR million 5.0 0.6 800.0%
         
Weighted average number of ordinary shares outstanding 669 882 040 669 882 040  
Earnings per share EUR 0.01 0.01 31.8%
         
Number of passengers   2 148 204 2 133 163 0.7%
Number of cargo units   78 771 70 457 6.2%
Average number of employees   6 898 6 799 1.5%
         
    31.12.2013 30.09.2013  
Total assets EUR million 1 722.1 1 723.1 -0.1%
Interest-bearing liabilities EUR million 794.3 808.1 -1.7%
Net debt EUR million 722.3 758.1 -4.7%
Total equity EUR million 771.1 763.4 1.0%
         
Equity ratio (%)   44.8% 44.3%  
Net debt to EBITDA   4.6 4.8  
         
Number of ordinary shares outstanding1   669 882 040 669 882 040 0%
Shareholders’ equity per share EUR 1.15 1.14 1.0%
           

EBITDA:  Earnings before net financial items, 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) 01.10.2013- 01.10.2012- 01.01.2013- 01.01.2012-
  31.12.2013 31.12.2012 31.12.2013 31.12.2012
         
Revenue 223,982 222,816 941,983 943,868
Cost of sales -186,859 -182,836 -751,827 -742,669
Gross profit 37,123 39,980 190,156 201,199
           
Marketing expenses -13,650 -17,183 -63,292 -65,407
Administrative expenses -12,679 -10,626 -45,148 -44,081
Other income 1,035 2,806 2,120 3,659
Other expenses -664 -802 -805 -1,654
Results from operating activities 11,165 14,175 83,031 93,716
         
Finance income 5,757 2,735 21,547 5,269
Finance costs -14,538 -13,991 -57,503 -46,249
Profit from the sale of a subsidiary 0 0 0 783
Share of profit/-loss from equity accounted investees 17 19 17 19
           
Profit/-loss before income tax 2,401 2,938 47,092 53,538
           
Income tax 5,117 2,764 -3,786 2,764
           
Net profit/-loss for the period 7,518 5,702 43,306 56,302
         
Other comprehensive income/-expense        
Exchange differences on translating foreign operations 34 -442 114 -563
Other comprehensive income/-expense for the period 34 -442 114 -563
Total comprehensive income/-expense for the period 7,552 5,260 43,420 55,739
         
Profit/-loss attributable to:        
  Equity holders of the parent 7,518 5,702 43,306 56,302
           
Total comprehensive income/-expense attributable to:        
 
  Equity holders of the parent 7,552 5,260 43,420 55,739
         
Earnings per share (in EUR per share)        
  - basic 0.01 0.01 0.06 0.08
  - diluted 0.01 0.01 0.06 0.08

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS 31.12.2013 31.12.2012
       
Current assets    
Cash and cash equivalents 72,012 65,600
Trade and other receivables 40,608 42,555
Prepayments 3,121 5,151
Derivatives 679 0
Inventories 33,457 29,426
Total current assets 149,877 142,732
       
Non-current assets    
Investments in equity-accounted investees 262 245
Other financial assets 385 296
Deferred income tax assets 17,413 12,264
Investment property 300 300
Property, plant and equipment 1,495,895 1,526,995
Intangible assets 57,925 58,999
Total non-current assets 1,572,180 1,599,099
       
TOTAL ASSETS 1,722,057 1,741,831
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings 106,014 103,685
Trade and other payables 97,387 92,988
Deferred income 28,315 25,458
Derivatives 30,888 22,102
Total current liabilities 262,604 244,233
       
Non-current liabilities    
Interest bearing loans and borrowings 688,327 736,699
Other liabilities 63 69
Total non-current liabilities 688,390 736,768
TOTAL LIABILITIES 950,994 981,001
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 70,262 69,091
Retained earnings 295,872 286,810
Total equity attributable to equity holders of the parent 771,063 760,830
TOTAL EQUITY 771,063 760,830
       
TOTAL LIABILITIES AND EQUITY 1,722,057 1,741,831

 



CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2013 - 01.01.2012-
    31.12.2013 31.12.2012
Cash flows from operating activities    
Net profit/-loss for the period 43,306 56,302
Adjustments 118,619 109,768
Changes in assets related to operating activities 198 -9,796
Changes in liabilities related to operating activities 6,649 6,782
Income tax paid -378 -40
  168,394 163,016
Cash flow used for investing activities    
Purchase of property, plant and equipment and intangible assets -43,291 -9,449
Proceeds from disposals of property, plant and equipment 1,318 50
Proceeds from subsidiaries 0 1,992
Payments for settlement of derivatives -4,451 -3,976
Acquisition of other investments 0 -34
Interest received 114 297
  -46,310 -11,120
Cash flow from (+)/ used for (-) financing activities    
Proceeds from loans 24,000 440,000
Redemption of loans -198,126 -557,848
Change in overdraft 18,456 0
Proceeds from bonds 115,487 0
Repayment of finance lease liabilities -96 -56
Interest paid -32,439 -36,434
Payment of transaction costs related to loans -557 -7,379
Dividends paid -33,494 0
Income tax on dividends paid -8,903 0
  -115,672 -161,717
       
TOTAL NET CASH FLOW 6,412 -9,821
       
Cash and cash equivalents:    
- at the beginning of period 65,600 75,421
- increase (+) / decrease (-) 6,412 -9,821
Cash and cash equivalents at the end of period 72,012 65,600

 

         Harri Hanschmidt
         Head of the Financial Department
         
         AS Tallink Grupp
         Sadama 5/7. 10111 Tallinn
         Tel +372 640 8981
         E-mail harri.hanschmidt@tallink.ee