Stabilised operations and significantly improved financial performance during the second quarter
April - June
- Revenue growth for B737/B767 aircraft fleet offset by decreasing ATP fleet utilisation. Underlying revenue growth amounted to 1.0 % year-on-year.
- EBITDA decreased to MSEK 36.2 (50.1) corresponding to a margin of 11.3 % (14.8).
- Earnings per share of SEK -0.56 (0.15).
- Per the terms and conditions of the corporate bond loan the interest rate increased by 50 basis points to an interest rate of 7.0 %, as from June 21.
- One B737-400 aircraft was acquired.
January - June
- Revenue growth for B737/B767 aircraft fleet offset by decreasing ATP fleet utilisation. Underlying revenue growth amounted to 1.4 % year-on-year.
- EBITDA decreased to MSEK 40.3 (88.0) corresponding to a margin of 6.3 % (13.1).
- Earnings per share of SEK -1.90 (-0.31).
- The bond loan issued in 2015 (WEST002) was listed on NASDAQ, Stockholm in January 2016.
- The shareholders of the company changed the composition of the Board of Directors. A new CEO was also appointed.
- One of the Group's CRJ200PF was involved in a tragic accident.
- Two B737-400 aircraft were acquired.
Key performance indicators for the Group
| All figures in MSEK unless stated otherwise | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jan - Dec |
| 2016 | 2015 | 2016 | 2015 | 2015 | |
| Financial metrics* | |||||
| Revenue | 319.3 | 337.6 | 643.2 | 669.6 | 1,409.9 |
| Revenue growth | -5.4% | 15.1% | -3.9% | 11.9% | 13.3% |
| Underlying revenue growth | 1.0% | 7.4% | 1.4% | 6.7% | 8.6% |
| EBITDA | 36.2 | 50.1 | 40.3 | 88.0 | 177.9 |
| EBITDA margin (%) | 11.3% | 14.8% | 6.3% | 13.1% | 12.6% |
| Net income | -15.2 | 3.9 | -51.2 | -8.4 | -49.6 |
| Cash flow from operating activities | 130.0 | 88.1 | 116.1 | 117.6 | 216.7 |
| Earnings per share before dilution (SEK) | -0.56 | 0.15 | -1.90 | -0.31 | -1.84 |
| Net interest bearing debt / EBITDA** | 5.2 | - | 5.2 | - | 3.6 |
| Interest coverage ratio** | 2.3 | - | 2.3 | - | 2.9 |
| Equity / Asset ratio | 9.9% | 19.8% | 9.9% | 19.8% | 13.3% |
| Total assets | 1,363.9 | 1,144.1 | 1,363.9 | 1,144.1 | 1,412.1 |
| Operating metrics* | |||||
| Fleet dispatch regularity | 99.4% | 99.2% | 98.8% | 99.1% | 99.1% |
| Performed flights | 5,699 | 6,386 | 11,717 | 12,978 | 26,790 |
| Aircraft in service (incl. wet leases) | 42 | 45 | 42 | 45 | 48 |
| Average employees | 478 | 506 | 488 | 503 | 508 |
CEO's comments
Following a challenging first quarter, in which we had the tragic accident of one of our CRJ200PF, wind down of our Swedish Mail operation and a number of costly operational challenges, I am pleased to see a stabilisation of our business in the second quarter. Operational and financial results have improved significantly from 1st quarter to 2nd quarter. Our 2016 focus of "Back to Basics" is showing results and will continue to do so through the remainder of the year. Over this quarter, financial results have improved month by month, thanks to proactive cost control. Customers have seen an improvement in our delivery of services, and employees are supporting the changes and challenges ahead. While primary focus is to regain profitability and stability with our present business, we are also actively seeking growth opportunities for 2017 and beyond - says Mr. Fredrik Groth, CEO & President
The full report can be downloaded at http://www.westatlantic.eu/
For further information, please contact:
CEO, Fredrik Groth, +46 (0) 10-452 97 09
CFO, Magnus Dahlberg, +46 (0) 10-452 95 49
About West Atlantic
The West Atlantic Group is one of the market leading providers of dedicated air freight services to European NMO's and air freight capacity to Global Integrators and Freight Forwarders. The Group has a well-established geographic network and operates an aircraft fleet of 48 customised aircraft, whereof a majority is wholly owned. West Atlantic was founded in 1962 and is headquartered in Gothenburg, Sweden. Operations are performed all over Europe and per December 31 2015 West Atlantic had 511 employees. For 2015 West Atlantic reported revenues of MSEK 1,410 and EBITDA of MSEK 178.
West Atlantic AB (publ) discloses the information contained in this interim report pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instrument Trading Act.
