AS Tallink Grupp Stock Exchange Release 25.01.2007
Q1 results of the 2006/2007 financial year
The results and operations of AS Tallink Grupp in the first quarter of
2006/2007 financial year were mainly influenced from the investments
that were made in the previous financial year. The main focus has been
on the integration of Silja and Tallink, the related changes in the
organisation and initiating actions for positive synergies.
Mr. Enn Pant, CEO of AS Tallink Grupp said: “Being a significantly
bigger company Tallink continues the growth in the results. The company
reached 190 million euros in sales and 33 million euros EBITDA which is
three times more than a year ago. It is terrific that during the first
three months of this financial year the actions on the integration
process of Tallink and Silja have been made and that the effect is also
reflected in the first quarter results. Although there is still lot to
do in our operations and integration process to pursue further positive
development we are pleased with the performance so far.”
The significant increase on sales by 200%, EBITDA by 206% and net profit
by 83% are mainly result of the recent large expansion of operations and
also the improvement on our old core routes. In addition the efficiency
of the operations increased.
In the light of continuous integration process of Tallink and Silja,
respective cost savings and synergies the further positive impact to the
results can be achieved in the coming periods.
1st QUARTER KEY FIGURES
01.09.2006 - 01.09.2005 - change %
30.11.2006 30.11.2005
EEK EUR EEK EUR
Net sales (million) 2,976.9 190.3 992.1 63.4 200.1
EBITDA (million) 519.2 33.2 169.5 10.8 206.4
EBITDA margin (%) 17.4 17.1
Net profit for the period 114.6 7.3 62.6 4.0 83.0
(million)
Net profit margin (%) 3.8 6.3
Depreciation (million) 253.2 16.2 68.8 4.4 268.0
Investments (million) 247.6 15.8 237.8 15.2 4.1
Weighted average number of 168,454,260 110,000,000 53.1
ordinary shares outstanding
during 1st quarter
Earnings per share 0.68 0.043 0.57 0.036 19.5
Number of passengers 1,616,869 738,664 118.9
Cargo units 92,914 37,990 144.6
Average number of employees 6,020 2,668 125.6
30.11.2006 31.08.2006 change %
EEK EUR EEK EUR
Total assets (million) 25,230.0 1,612.5 25,931.6 1,657.3 -2.7
Total liabilities (million) 16,052.5 1,025.9 16,856.3 1,077.3 -4.8
Interest-bearing liabilities 14,478.7 925.4 14,955.6 955.8 -3.2
(million)
Total equity (million) 9,177.5 586.6 9,075.3 580.0 1.1
Equity ratio (%) 36.4 35.0
Number of ordinary shares 168,454,260 168,454,260 0.0
outstanding
Shareholders equity per 54.48 3.48 53.87 3.44 1.1
share
Net profit margin – Net profit / Net sales;
EBITDA – Earnings before net financial items, share of profit of
associates, taxes, depreciation and amortization, income from negative
goodwill;
EBITDA margin – EBITDA / 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.
SALES AND EARNINGS
Net sales of AS Tallink Grupp and its subsidiaries amounted to 2,976.9
million EEK (190.3 million EUR) in the first quarter of 2006/2007
financial year (September 01, 2006 – November 30, 2006) compared to
992.1 million EEK (63.4 million EUR) with the first quarter of 2005/2006
financial year (September 01, 2005 – November 30, 2005). The 1,987.8
million EEK (126.9 million EUR) or 200.1% increase in sales in the first
quarter resulted largely from the investments made during the previous
financial year, but also from the increased number of passengers and
increased revenues per passenger on Estonia-Finland and Estonia-Sweden
routes.
The Group’s earnings had a positive impact from the new investments,
increased ticket and cargo sales and improved efficiency. The Group’s
EBITDA increased by 206.4% to 519.2 million EEK (33.2 million EUR) and
the net profit increased by 83.0% to 114.6 million EEK (7.3 million
EUR). Basic earnings per share and diluted earnings per share were 0.68
EEK (0.043 EUR) in the first quarter of 2006/2007 financial year, an
increase of 19.5% compared to 0.57 EEK (0.036 EUR) in the corresponding
period in 2005/2006 financial year.
During the first quarter the Group’s earnings were negatively affected
by several non-recurring integration costs in the total amount of 56.6
million EEK (3.6 million EUR) which are related mainly to the
redundancies at our Finnish organisation. It is estimated that the these
redundancies will lead to approximately 98 million EEK (6.3 million EUR)
yearly savings on overhead costs. In the coming reporting periods
further additional integration related one-off expenses which should
bring additional cost savings in the future will be reported as the
integration process continues.
In addition to the positive impact to the operating efficiency from
successful introduction of Galaxy and the related changes in the fleet
the cost efficiency has been recognized also in the operations of
Finland-Sweden route. The savings and optimisation on operative costs
such as catering services and procurement on Finland-Sweden route are
the initial results of the integration process of Silja and Tallink. The
factors mentioned have helped to improve the Group’s overall performance
and EBITDA margin.
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EEK) 01.09.2006- 01.09.2005 -
30.11.2006 30.11.2005
Net sales 2,976,863 992,054
Cost of sales -2,252,864 -749,587
Gross profit 723,999 242,467
Marketing expenses -235,941 -103,493
Administrative and general -229,556 -38,213
expenses
Other operating items 7,427 -114
Income from negative goodwill 689 0
Financial income 24,636 869
Financial expenses -176,708 -38,009
Profit from normal operation 114,546 63,507
before income tax
Income tax 55 -887
Net profit for the period 114,601 62,620
Attributable to:
Equity holders of the parent 114,601 62,199
Minority interests 0 421
Earnings per share (in EEK per
share)
- basic 0.68 0.57
- diluted 0.68 0.57
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EUR) 01.09.2006- 01.09.2005-
30.11.2006 30.11.2005
Net sales 190,256 63,404
Cost of sales -143,984 -47,907
Gross profit 46,272 15,497
Marketing expenses -15,079 -6,614
Administrative and general -14,671 -2,442
expenses
Other operating items 474 -8
Income from negative goodwill 44 0
Financial income 1,575 55
Financial expenses -11,294 -2,429
Profit from normal operation 7,321 4,059
before income tax
Income tax 3 -57
Net profit for the period 7,324 4,002
Attributable to:
Equity holders of the parent 7,324 3,975
Minority interests 0 27
Earnings per share (in EUR per
share)
- basic 0.043 0.036
- diluted 0.043 0.036
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)
ASSETS 30.11.2006 31.08.2006
Current assets
Cash and cash equivalents 1,065,229 1,407,608
Receivables 670,702 843,456
Prepayments 66,044 235,890
Derivatives 409 11,633
Tax assets 13,524 17,644
Inventories 239,362 237,228
Total current assets 2,055,270 2,753,459
Non-current assets
Investments in associates 9,044 9,044
Other financial assets and 8,289 8,240
prepayments
Pension assets 45,234 45,234
Property, plant and equipment 21,849,822 21,857,153
Intangible assets 1,262,345 1,258,432
Total non-current assets 23,174,734 23,178,103
TOTAL ASSETS 25,230,004 25,931,562
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 1,668,700 1,228,098
liabilities
Payables 1,239,628 1,593,026
Deferred income 163,585 146,042
Derivatives 22,391 24,159
Tax liabilities 122,898 112,061
Total current liabilities 3,217,202 3,103,386
Non-current liabilities
Interest bearing loans and borrowings 12,810,027 13,727,497
Deferred income tax liability 0 69
Pension liability 25,238 25,332
Total non-current liabilities 12,835,265 13,752,898
TOTAL LIABILITIES 16,052,467 16,856,284
EQUITY
Minority interests 0 1,189
Equity attributable to equity holders
of the parent
Share capital 1,684,543 1,415,000
Share premium 3,218,578 2,012,394
Unregistered share capital with share 0 1,475,727
premium
Reserves 1,147,561 1,158,714
Retained earnings 3,126,855 3,012,254
Total equity attributable to equity 9,177,537 9,074,089
holders of the parent
TOTAL EQUITY 9,177,537 9,075,278
TOTAL LIABILITIES AND EQUITY 25,230,004 25,931,562
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EUR)
ASSETS 30.11.2006 31.08.2006
Current assets
Cash and cash equivalents 68,081 89,963
Receivables 42,866 53,906
Prepayments 4,221 15,076
Derivatives 26 743
Tax assets 864 1,128
Inventories 15,298 15,162
Total current assets 131,356 175,978
Non-current assets
Investments in associates 578 578
Other financial assets and 530 527
prepayments
Pension assets 2,891 2,891
Property, plant and equipment 1,396,458 1,396,927
Intangible assets 80,678 80,428
Total non-current assets 1,481,135 1,481,351
TOTAL ASSETS 1,612,491 1,657,329
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 106,649 78,490
liabilities
Payables 79,227 101,813
Deferred income 10,455 9,334
Derivatives 1,431 1,544
Tax liabilities 7,855 7,162
Total current liabilities 205,617 198,343
Non-current liabilities
Interest bearing loans and borrowings 818,710 877,347
Deferred income tax 0 4
Pension liability 1,613 1,619
Total non-current liabilities 820,323 878,970
TOTAL LIABILITIES 1,025,940 1,077,313
EQUITY
Minority interests 0 76
Equity attributable to equity holders
of the parent
Share capital 107,662 90,435
Share premium 205,704 128,615
Unregistered share capital with share 0 94,316
premium
Reserves 73,343 74,056
Retained earnings 199,842 192,518
Total equity attributable to equity 586,551 579,940
holders of the parent
TOTAL EQUITY 586,551 580,016
TOTAL LIABILITIES AND EQUITY 1,612,491 1,657,329
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EEK) 01.09.2006 - 01.09.2005 -
30.11.2006 30.11.2005
Cash flows from operating activities
Net profit for the period 114,601 62,620
Adjustments 404,612 105,823
Changes in assets related to 347,793 -10,846
operating activities
Changes in inventories -2,134 -3,180
Changes in liabilities related to -360,048 25,541
operating activities
Income tax repaid -226 -127
504,598 179,831
Cash flow used for investing
activities
Purchase of property, plant, -247,589 -237,788
equipment and intangible assets
Proceeds from disposals of property, 979 17
plant, equipment
Acquisition of minority interests -500 0
Interest received 18,818 1,093
-228,292 -236,678
Cash flow from (+)/ used for (-)
financing activities
Transaction costs of issue of shares -6,520 0
Redemption of loans and bonds -471,367 -220,019
Change in overdraft 0 182,597
Repayment of finance lease -10,098 -243
liabilities
Interest paid -130,700 -52,371
-618,685 -90,036
TOTAL NET CASH FLOW -342,379 -146,883
Cash and cash equivalents:
- at the beginning of period 1,407,608 326,786
- increase (+) / decrease (-) -342,379 -146,883
Cash and cash equivalents at end of 1,065,229 179,903
period
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EUR) 01.09.2006 - 01.09.2005 -
30.11.2006 30.11.2005
Cash flows from operating activities
Net profit for the period 7,324 4,002
Adjustments 25,859 6,763
Changes in assets related to 22,228 -693
operating activities
Changes in inventories -136 -203
Changes in liabilities related to -23,011 1,632
operating activities
Income tax repaid -14 -8
32,250 11,493
Cash flow used for investing
activities
Purchase of property, plant, -15,824 -15,197
equipment and intangible assets
Proceeds from disposals of property, 62 1
plant, equipment
Acquisition of minority interests -32 0
Interest received 1,203 70
-14,591 -15,126
Cash flow from (+)/ used for (-)
financing activities
Transaction costs of issue of shares -417 0
Redemption of loans and bonds -30,126 -14,062
Change in overdraft 0 11,670
Repayment of finance lease -645 -15
liabilities
Interest paid -8,353 -3,347
-39,541 -5,754
TOTAL NET CASH FLOW -21,882 -9,387
Cash and cash equivalents:
- at the beginning of period 89,963 20,885
- increase (+) / decrease (-) -21,882 -9,387
Cash and cash equivalents at end of 68,081 11,498
period
The Q2, Q3 and Q4 unaudited results of the current financial year will
be published respectively on weeks 17, 30 and 44 of 2007 calendar year.
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800
Email: janek.stalmeister@tallink.ee