Tallinn, 2011-04-11 15:05 CEST (GLOBE NEWSWIRE) -- First half-year results of the 2010/2011 financial year
In the second quarter (01.12.2010-28.02.2011) the Group (AS Tallink Grupp and its subsidiaries’) continued to show positive developments in the operations. The Group’s sales campaigns and various offers were well received by the customers throughout the quarter. The passenger number increased to nearly 2 million in the second quarter of the 2010/2011 financial year which is 23% higher when compared to the second quarter of the previous financial year. Cargo volumes were 19% higher in same comparison. As an effect of the strong volume growth and steady revenue per passenger on a year on year comparison the Group’s unaudited consolidated revenue was EUR 188.8 million which is 19% or EUR 30.8 million higher than in the second quarter of the last financial year.
While the cost inflation is visible in all areas the costs overall did not exceed the Group’s revenue growth and the Group was able to increase earnings. The most impacting cost item in the second quarter was the fuel cost with a 23% or EUR 5.8 million increase from the same time in the last year. As the Group continued to keep the focus on the sales and marketing activities the marketing expenses continued to increase according to expectations. The Group’s EBITDA in the second quarter of the 2010/2011 financial year was EUR 18.1 million which is EUR 7.7 million or a 74% increase in the year on year comparison. EBITDA margin improved from 7% to 10%. In the second quarter, which is the low season, the Group’s unaudited consolidated net loss was 9.4 million compared to the net loss of 16.3 million year ago.
All the Group’s main operations and segments showed a positive development. Volume and revenue growth was highest on Estonia–Sweden and Latvia-Sweden routes. Similarly to the last year the Group’s weakest route Finland-Germany was not operated in the low season(January and February). The vessels were in maintenance during that time. The Group will operate Finland-Germany route in the summer high season until mid August 2011 when the vessels M/S Superfast VII and M/S Superfast VIII will be chartered to Stena Line Ltd for at least three years.
In the Annual General Meeting held in February 2011 the Group’s financial year was changed. The new financial year will be the calendar year, from 1st of January to 31st of December. Due to the change the current 2010/2011 financial year which started on 1st of September 2010 will be 16 months long, ending in 31 December 2011. The Group will provide comparable operational and financial information to make the transition smooth.
The management has introduced a new point in the Group’s strategy - to reach a optimal debt level which would allow sustainable dividends in the future. While the other strategic points of the Group are profitability targeted the new path will contribute more to the shareholders’ value and return. In the management opinion the comfortable level of the Group’s net debt to EBITDA should be 5 times or less and the equity ratio to total assets around 40%.
The Group’s second quarter result meets the management expectations. In the management opinion the Group’s development in the 2010/2011 financial year has performed well and the Group is on the track to improve the results in the current financial year.
| KEY FIGURES | Q2 2010/2011 | Q2 2009/2010 | change | |
| Revenue | EUR million | 188.8 | 158.0 | 19% |
| Gross profit | EUR million | 24.0 | 14.5 | 65% |
| Gross margin | 13% | 9% | ||
| EBITDA | EUR million | 18.1 | 10.4 | 74% |
| EBITDA margin | 10% | 7% | ||
| Net profit / -loss | EUR million | -9.4 | -16.3 | 42% |
| Net profit margin | -5% | -10% | ||
| Depreciation & amortisation | EUR million | 17.8 | 18.1 | -1% |
| Investments | EUR million | 0.6 | 3.9 | -83% |
| Weighted average number of shares outstanding* | 669 882 040 | 669 882 040 | 0% | |
| Earnings per share | EUR | -0.01 | -0.02 | 42% |
| Number of passengers | 1 999 313 | 1 623 522 | 23% | |
| Number of cargo units | 64 407 | 54 151 | 19% | |
| Average number of employees | 6570 | 6520 | ||
| 28.02.2011 | 30.11.2010 | |||
| Total assets | EUR million | 1 822 | 1 835 | -0.8% |
| Total liabilities | EUR million | 1 163 | 1 167 | -0.4% |
| Interest bearing liabilities | EUR million | 1 033 | 1 033 | 0.0% |
| Total equity | EUR million | 659 | 668 | -1.4% |
| Equity ratio | 36% | 36% | ||
| Number of shares outstanding* | 669 882 040 | 669 882 040 | 0% | |
| Shareholders’ equity per share | EUR | 1.0 | 1.0 | |
EBITDA – Earnings before net financial items, taxes, depreciation and amortization;
EBITDA margin – EBITDA / net sales;
Gross margin – gross profit / net sales;
Net profit margin – net profit / 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.
* Share numbers exclude own shares.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| (unaudited, in thousands of EUR) |
01.12.2010- 28.02.2011 |
01.12.2009- 28.02.2010 |
01.09.2010- 28.02.2011 |
01.09.2009- 28.02.2010 |
|
| Revenue | 188,778 | 157,986 | 391,823 | 339,293 | |
| Cost of sales | -164,767 | -143,445 | -332,276 | -292,100 | |
| Gross profit | 24,011 | 14,541 | 59,547 | 47,193 | |
| Marketing expenses | -13,752 | -12,422 | -29,873 | -26,967 | |
| Administrative expenses | -10,161 | -9,984 | -20,397 | -19,331 | |
| Other income | 253 | 75 | 319 | 527 | |
| Other expenses | -10 | 140 | -17 | -38 | |
| Results from operating activities | 341 | -7,650 | 9,579 | 1,384 | |
| Finance income | 2,200 | 6,358 | 8,343 | 7,171 | |
| Finance costs | -11,885 | -14,983 | -26,138 | -26,020 | |
| Share of loss of associates | -57 | 0 | -57 | 0 | |
| Profit/-loss before income tax | -9,401 | -16,275 | -8,273 | -17,465 | |
| Income tax | 0 | 0 | 0 | 0 | |
| Net profit/-loss for the period | -9,401 | -16,275 | -8,273 | -17,465 | |
| Other comprehensive income/-expense | |||||
| Exchange differences on translating foreign operations | -143 | 1,463 | -180 | 732 | |
| Changes in fair value of cash flow hedges | -151 | -31 | -705 | 1,119 | |
| Other comprehensive income/-expense for the period | -294 | 1,432 | -885 | 1,851 | |
| Total comprehensive income/-expense for the period | -9,695 | -14,843 | -9,158 | -15,614 | |
| Profit/-loss attributable to: | |||||
| Equity holders of the parent | -9,401 | -16,275 | -8,273 | -17,465 | |
| Total comprehensive income/-expense attributable to: | |||||
| Equity holders of the parent | -9,695 | -14,843 | -9,158 | -15,614 | |
| Earnings per share (in EUR per share) | |||||
| - basic | -0.01 | -0.02 | -0.01 | -0.03 | |
| - diluted | -0.01 | -0.02 | -0.01 | -0.03 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
| ASSETS | 28.02.2011 | 31.08.2010 | |
| Current assets | |||
| Cash and cash equivalents | 40,181 | 57,488 | |
| Trade and other receivables | 38,496 | 42,040 | |
| Prepayments | 13,201 | 9,752 | |
| Derivatives | 0 | 705 | |
| Inventories | 20,208 | 20,035 | |
| Total current assets | 112,086 | 130,020 | |
| Non-current assets | |||
| Investments in associates | 157 | 214 | |
| Other financial assets | 317 | 317 | |
| Deferred income tax assets | 10,664 | 10,664 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment | 1,633,598 | 1,663,100 | |
| Intangible assets | 64,485 | 66,700 | |
| Total non-current assets | 1,709,521 | 1,741,295 | |
| TOTAL ASSETS | 1,821,607 | 1,871,315 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings | 80,943 | 63,627 | |
| Trade and other payables | 90,147 | 94,054 | |
| Deferred income | 25,411 | 23,965 | |
| Derivatives | 13,928 | 17,634 | |
| Total current liabilities | 210,429 | 199,280 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings | 952,548 | 1,004,244 | |
| Other liabilities | 71 | 74 | |
| Total non-current liabilities | 952,619 | 1,004,318 | |
| TOTAL LIABILITIES | 1,163,048 | 1,203,598 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 430,648 | 430,648 | |
| Share premium | 639 | 639 | |
| Reserves | 72,815 | 72,607 | |
| Retained earnings | 154,457 | 163,823 | |
| Total equity attributable to equity holders of the parent | 658,559 | 667,717 | |
| TOTAL EQUITY | 658,559 | 667,717 | |
| TOTAL LIABILITIES AND EQUITY | 1,821,607 | 1,871,315 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) | 01.09.2010- | 01.09.2009- | |
| 28.02.2011 | 28.02.2010 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | -8,273 | -17,465 | |
| Adjustments | 54,296 | 61,436 | |
| Changes in assets related to operating activities | -195 | 6,725 | |
| Changes in liabilities related to operating activities | -2,188 | -5,314 | |
| Income tax paid | -20 | -49 | |
| 43,620 | 45,333 | ||
| Cash flow used for investing activities | |||
| Purchase of property, plant and equipment and intangible assets | -4,246 | -4,259 | |
| Proceeds from disposals of property, plant and equipment | 34 | 6,374 | |
| Issue of shares by associates | 0 | -587 | |
| Payments from settlement of derivatives | -2,474 | -1,952 | |
| Interest received | 46 | 159 | |
| -6,640 | -265 | ||
| Cash flow from (+)/ used for (-) financing activities | |||
| Redemption of loans | -35,805 | -36,665 | |
| Change in overdraft | 0 | -1,375 | |
| Repayment of finance lease liabilities | -43 | -157 | |
| Interest paid | -18,439 | -22,556 | |
| -54,287 | -60,753 | ||
| TOTAL NET CASH FLOW | -17,307 | -15,685 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 57,488 | 49,982 | |
| - increase (+) / decrease (-) | -17,307 | -15,685 | |
| Cash and cash equivalents at end of period | 40,181 | 34,297 | |
Janek Stalmeister
Member of the Management Board, CFO
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
