Tallinn, 2014-11-13 08:50 CET (GLOBE NEWSWIRE) -- Q3 results of the 2014 financial year
In the third quarter (1 July - 30 September) of the 2014 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried nearly 2.6 million passengers which is 5.8% less compared to the same period last year. The number of cargo units transported increased by 1.0% and the number of passenger vehicles transported decreased by 3.7% for the same period as last year.
The Group’s consolidated revenue in the third quarter was EUR 262.7 million, being 5.7% or EUR 15.7 million less than a year ago. In the third quarter of the 2014 financial year the Group’s gross profit amounted to EUR 69.6 million and EBITDA to EUR 64.0 million being respectively EUR 10.2 million and EUR 8.6 million less compared to the same period last year.
The unstable macro-economic situation in Europe has had a negative impact to the Group’s operations. The decline in the passenger volume from the Russian market continuous to be visible, decreasing by 25% in the third quarter, compared to the same period last year.
The Group has been working for a smoother transition facing the sulphur regulations and one of the goals has been to reduce fuel consumption by optimising our current operations, therefore several re-routings were made: the cruise ferry Silja Europa was chartered out, the cruise ferry Baltic Queen changed to the Tallinn-Helsinki route and the cruise ferry Romantika changed to Tallinn-Stockholm route, leaving the Riga-Stockholm route with the cruise ferry Isabelle as the only vessel. Majority of the decline of the third quarter results was a direct one-off effect related to the re-routing of the vessels, chartering out Silja Europa and the Silja Symphony docking. These changes in the operations are a good reference of the flexibility of our business and ensure that we are better prepared for the upcoming year.
In the third quarter the Estonia-Finland route showed a slight decline with passenger’s numbers decreasing by 3.3%, cargo units transported increased by 11.5% and the sales numbers remained on the last year’s level. The results were affected by a competitor bringing more capacity to the Tallinn-Helsinki route. The Finland-Sweden route showed a decline with passenger’s numbers decreasing by 5.5%, cargo units transported decreased by 11.0%, the sales numbers decreased by 7.4%. The results were affected by Silja Symphony being out of operations in September. The Latvia-Sweden route showed a decline with passenger’s numbers decreasing by 23.3%, cargo units transported decreased by 42.5%, the sales numbers decreased by 24.5%. The results were affected by Romantika changing to Tallinn-Stockholm route, leaving Isabelle as the only operating vessel on the route.
In the third quarter the charter revenue increased by 58.9% or EUR 5.2 million, this is a result of more vessels being in charter and is expected to have a positive effect to the profitability in the forthcoming quarters. The total number of vessels currently chartered out is six, while last year at the same time four vessels were chartered out.
While pricing the cargo services for next year the upcoming rise in the fuel price related to the switch to the low sulphur fuel has been taken into account. Pricing of the passenger service will depend on market demand, competition and seasonality.
The unaudited net profit for the third quarter of the 2014 financial year was EUR 36.2 million or EUR 0.05 per share compared to the net profit of EUR 44.0 million or EUR 0.07 per share in the same period last year.
The total liquidity, cash and unused credit facilities at the end of the third quarter were EUR 66.7 million providing a strong position for sustainable operations. At the end of the third quarter 2014 the Group had EUR 66.1 million in cash and equivalents and the total of unused credit lines were at EUR 0.5 million.
Q3 KEY FIGURES |
2014 July-Sep |
2013 July-Sep |
Change | ||
Revenue | EUR million | 262.7 | 278.4 | -5.7% | |
Gross profit | EUR million | 69.6 | 79.8 | -12.8% | |
Gross margin (%) | 26.5% | 28.7% | |||
EBITDA | EUR million | 64.0 | 72.5 | -11.8% | |
EBITDA margin (%) | 24.4% | 26.1% | |||
Net profit for the period | EUR million | 36.2 | 44.0 | -17.9% | |
Net profit margin (%) | 13.8% | 15.8% | |||
Depreciation and amortization | EUR million | 19.3 | 18.5 | 4.8% | |
Investments | EUR million | 10.6 | 2.5 | 328.4% | |
Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
Earnings per share | EUR | 0.05 | 0.07 | -17.9% | |
Number of passengers | 2 561 257 | 2 718 778 | -5.8% | ||
Number of cargo units | 76 830 | 76 043 | 1.0% | ||
Average number of employees | 7 181 | 7 185 | -0.1% | ||
30.09.2014 | 30.06.2014 | ||||
Total assets | EUR million | 1 688.4 | 1 712.0 | -1.4% | |
Interest-bearing liabilities | EUR million | 770.9 | 782.0 | -1.4% | |
Net debt | EUR million | 704.8 | 711.8 | -1.0% | |
Total equity | EUR million | 770.1 | 733.9 | 4.9% | |
Equity ratio (%) | 45.6% | 42.9% | |||
Net debt to EBITDA | 5.1 | 4.8 | |||
Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
Shareholders’ equity per share | EUR | 1.15 | 1.01 | 4.9% |
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 euros) | 01.07.2014- | 01.07.2013- | 01.01.2014- | 01.01.2013- | |
30.09.2014 | 30.09.2013 | 30.09.2014 | 30.09.2013 | ||
Revenue | 262,656 | 278,391 | 697,325 | 718,001 | |
Cost of sales | -193,085 | -198,574 | -565,007 | -564,968 | |
Gross profit | 69,571 | 79,817 | 132,318 | 153,033 | |
Marketing expenses | -15,084 | -15,926 | -46,883 | -49,642 | |
Administrative expenses | -10,296 | -10,068 | -35,573 | -32,469 | |
Other income | 462 | 277 | 987 | 1,085 | |
Other expenses | -18 | -12 | -358 | -141 | |
Result from operating activities | 44,635 | 54,088 | 50,491 | 71,866 | |
Finance income | 3,270 | 4,577 | 7,137 | 15,790 | |
Finance costs | -11,747 | -14,642 | -33,384 | -42,965 | |
Profit/-loss before income tax | 36,158 | 44,023 | 24,244 | 44,691 | |
Income tax | -8 | 16 | -5,367 | -8,903 | |
Net profit/-loss for the period | 36,150 | 44,039 | 18,877 | 35,788 | |
Other comprehensive income/-expense | |||||
Items that may be reclassified to profit or loss | |||||
Exchange differences on translating foreign operations | 36 | 3 | 44 | 80 | |
Other comprehensive income/-expense for the period | 36 | 3 | 44 | 80 | |
Total comprehensive income/-expense for the period | 36,186 | 44,042 | 18,921 | 35,868 | |
Earnings per share (in EUR per share) | |||||
- basic | 0.05 | 0.07 | 0.03 | 0.05 | |
- diluted | 0.05 | 0.07 | 0.03 | 0.05 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
ASSETS | 30.09.2014 | 31.12.2013 | |
Current assets | |||
Cash and cash equivalents | 66,105 | 72,012 | |
Trade and other receivables | 42,712 | 40,544 | |
Prepayments | 7,214 | 3,185 | |
Derivatives | 0 | 679 | |
Inventories | 28,380 | 33,457 | |
Total current assets | 144,411 | 149,877 | |
Non-current assets | |||
Investments in equity-accounted investees | 262 | 262 | |
Other financial assets | 253 | 385 | |
Deferred income tax assets | 17,413 | 17,413 | |
Investment property | 300 | 300 | |
Property, plant and equipment | 1,470,224 | 1,495,895 | |
Intangible assets | 55,545 | 57,925 | |
Total non-current assets | 1,543,997 | 1,572,180 | |
TOTAL ASSETS | 1,688,408 | 1,722,057 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Interest bearing loans and borrowings | 136,933 | 106,014 | |
Trade and other payables | 86,170 | 97,387 | |
Deferred income | 35,879 | 28,315 | |
Derivatives | 25,297 | 30,888 | |
Total current liabilities | 284,279 | 262,604 | |
Non-current liabilities | |||
Interest bearing loans and borrowings | 633,949 | 688,327 | |
Other liabilities | 61 | 63 | |
Total non-current liabilities | 634,010 | 688,390 | |
TOTAL LIABILITIES | 918,289 | 950,994 | |
EQUITY | |||
Equity attributable to equity holders of the parent | |||
Share capital | 404,290 | 404,290 | |
Share premium | 639 | 639 | |
Reserves | 72,557 | 70,111 | |
Retained earnings | 292,633 | 296,023 | |
Total equity attributable to equity holders of the parent | 770,119 | 771,063 | |
TOTAL EQUITY | 770,119 | 771,063 | |
TOTAL LIABILITIES AND EQUITY | 1,688,408 | 1,722,057 |
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of euros) | 01.01.2014 - | 01.01.2013- | |
30.09.2014 | 30.09.2013 | ||
Cash flows from operating activities | |||
Net profit/-loss for the period | 18,877 | 35,788 | |
Adjustments | 92,806 | 95,069 | |
Changes in receivables and prepayments related to operating activities | -6,165 | -14,128 | |
Changes in inventories | 5,077 | 776 | |
Changes in liabilities related to operating activities | -3,973 | 2,720 | |
Income tax paid/repaid | 108 | -200 | |
106,730 | 120,025 | ||
Cash flow used for investing activities | |||
Purchase of property, plant and equipment and intangible assets | -30,919 | -38,332 | |
Proceeds from disposals of property, plant and equipment | 180 | 270 | |
Interest received | 78 | 17 | |
-30,661 | -38,045 | ||
Cash flow from (+)/ used for (-) financing activities | |||
Proceeds from loans | 0 | 24,000 | |
Redemption of loans | -59,946 | -168,230 | |
Change in overdraft | 31,069 | 0 | |
Proceeds from bonds | 0 | 115,487 | |
Repayment of finance lease liabilities | -54 | -4 | |
Interest paid | -24,574 | -22,472 | |
Payments for settlement of derivatives | -3,033 | -3,374 | |
Payment of transaction costs related to loans | 0 | -567 | |
Dividends paid | -20,096 | -33,494 | |
Income tax on dividends paid | -5,342 | -8,903 | |
-81,976 | -97,557 | ||
TOTAL NET CASH FLOW | -5,907 | -15,577 | |
Cash and cash equivalents: | |||
- at the beginning of period | 72,012 | 65,600 | |
- increase (+) / decrease (-) | -5,907 | -15,577 | |
Cash and cash equivalents at the end of period | 66,105 | 50,023 |
Harri Hanschmidt
Head of the Finance Department
AS Tallink Grupp
Sadama 5/7. 10111 Tallinn
Tel +372 640 8981
E-mail harri.hanschmidt@tallink.ee