Q2 results of the 2014 financial yearTallinn, 2014-08-14 08:50 CEST --
Q2 results of the 2014 financial year
In the second quarter (1 April - 30 June) of the 2014 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried nearly 2.4 million passengers which is 0.5% more compared to the same period last year. The number of cargo units transported decreased by 1.0% and the number of passenger vehicles transported increased by 0.7% for the same period as last year.
The Group’s consolidated revenue in the second quarter was EUR 246.5 million, being 1.0% or EUR 2.6 million less than a year ago. In the second quarter of the 2014 financial year the Group’s gross profit amounted to EUR 51.0 million and EBITDA to EUR 41.1 million being respectively EUR 6.0 million and EUR 5.7 million less compared to the same period last year. The decline in the Group’s results is related to maintenance and upgrade works on the vessels Star, Galaxy and Baltic Princess. In the second quarter there were less trips due to ships being out of the operation when compared to the same period in the last year.
In the second quarter the Estonia-Finland route showed a slight decline with passengers numbers decreasing by 2.7%, cargo units transported increased by 6.6%, the sales numbers remained on the last year’s level. The operations were affected by the shuttle vessel Star being out of operation for 68 trips in April, undergoing car deck ramp repairs, the ship was only partially replaced during that time. In the same time the competitors on the route have increased the number of departures.
In the second quarter the segment result for the Finland-Sweden segment was EUR 4.9 million lower than last year. The decline came from the Turku-Stockholm route, where revenue decreased due to the vessels Galaxy and Baltic Princess being out of operations for scheduled maintenance works and passengers’ spending showing weaknesses in an overall weak macroeconomic development. Meanwhile the recently upgraded cruise ferry Silja Serenade on the Helsinki-Stockholm route has delivered positive developments. Higher customer satisfaction and on-board spending levels are confirming that the investment was successful and has a positive effect to the business in the longer run.
The amortization cost for the 2014 financial year is higher due to the new vessel Isabelle and the group has also changed the useful life estimation of some vessels. In the second quarter the amortization cost was EUR 1.8 million higher when compared to the same period in the last year.
The unaudited net profit for the second quarter of the 2014 financial year was EUR 6.1 million or EUR 0.01 per share compared to the net profit of EUR 9.3 million or EUR 0.01 per share in the same period last year.
In June 2014 the shareholders annual general meeting decided to pay a dividend of 0.03 euros per share. The total dividend amount of EUR 20.1 million was paid out in the beginning of July 2014 (third quarter).
The unstable macro-economic situation in Europe has had a negative impact to the Groups operations. In the first six months of the financial year a noticeable drop in passenger numbers from the Russian market has been observed.
Working together with ship fuel suppliers the Group is preparing for a smooth transition from 1.0% sulphur marine fuel to low sulphur marine fuel in order to meet the new 2015 sulphur emissions regulation.
The total liquidity, cash and unused credit facilities at the end of the first quarter were EUR 75.2 million providing a strong position for sustainable operations. At the end of the second quarter 2014 the Group had EUR 70.2 million in cash and equivalents and the total of unused credit lines were at EUR 5.0 million.
|
Q2 KEY FIGURES |
|
2014
Apr-Jun |
2013
Apr-Jun |
Change |
|
Revenue |
EUR million |
246.5 |
249.0 |
-1.0% |
|
Gross profit |
EUR million |
51.0 |
57.0 |
-10.6% |
|
Gross margin (%) |
|
20.7% |
22.9% |
|
|
EBITDA |
EUR million |
41.1 |
46.8 |
-12.3% |
|
EBITDA margin (%) |
|
16.7% |
18.8% |
|
|
Net profit for the period |
EUR million |
6.1 |
9.3 |
-34.2% |
|
Net profit margin (%) |
|
2.5% |
3.7% |
|
|
|
|
|
|
|
|
Depreciation and amortization |
EUR million |
20.0 |
18.2 |
9.6% |
|
Investments |
EUR million |
20.4 |
35.9 |
-43.3% |
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding |
669 882 040 |
669 882 040 |
|
|
Earnings per share |
EUR |
0.01 |
0.01 |
-34.2% |
|
|
|
|
|
|
|
Number of passengers |
|
2 363 510 |
2 352 487 |
0.5% |
|
Number of cargo units |
|
79 055 |
79 843 |
-1.0% |
|
Average number of employees |
|
7 124 |
7 029 |
1.6% |
|
|
|
|
|
|
|
|
|
30.06.2014 |
31.03.2014 |
|
|
Total assets |
EUR million |
1 712.0 |
1 711.8 |
0.0% |
|
Interest-bearing liabilities |
EUR million |
782.0 |
811.5 |
-3.6% |
|
Net debt |
EUR million |
711.8 |
748.9 |
-5.0% |
|
Total equity |
EUR million |
733.9 |
747.8 |
-1.9% |
|
|
|
|
|
|
|
Equity ratio (%) |
|
42.9% |
43.7% |
|
|
Net debt to EBITDA |
|
4.8 |
4.9 |
|
|
|
|
|
|
|
|
Number of ordinary shares outstanding1 |
|
669 882 040 |
669 882 040 |
0% |
|
Shareholders’ equity per share |
EUR |
1.10 |
1.12 |
-1.9% |
|
|
|
|
|
|
|
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) |
01.04.2014- |
01.04.2013- |
01.01.2014- |
01.01.2013- |
|
|
30.06.2014 |
30.06.2013 |
30.06.2014 |
30.06.2013 |
|
|
|
|
|
|
|
Revenue (Note 3) |
246,463 |
249,027 |
434,669 |
439,610 |
|
Cost of sales |
-195,503 |
-192,055 |
-371,922 |
-366,394 |
|
Gross profit |
50,960 |
56,972 |
62,747 |
73,216 |
|
|
|
|
|
|
|
|
Marketing expenses |
-16,001 |
-17,583 |
-31,799 |
-33,716 |
|
Administrative expenses |
-13,888 |
-11,161 |
-25,277 |
-22,401 |
|
Other income |
312 |
482 |
525 |
808 |
|
Other expenses |
-292 |
-117 |
-340 |
-129 |
|
Result from operating activities |
21,091 |
28,593 |
5,856 |
17,778 |
|
|
|
|
|
|
|
Finance income (Note 4) |
551 |
8,609 |
3,867 |
11,213 |
|
Finance costs (Note 4) |
-10,192 |
-19,017 |
-21,637 |
-28,323 |
|
|
|
|
|
|
|
|
Profit/-loss before income tax |
11,450 |
18,185 |
-11,914 |
668 |
|
|
|
|
|
|
|
|
Income tax |
-5,349 |
-8,911 |
-5,359 |
-8,919 |
|
|
|
|
|
|
|
|
Net profit/-loss for the period |
6,101 |
9,274 |
-17,273 |
-8,251 |
|
|
|
|
|
|
|
Other comprehensive income/-expense |
|
|
|
|
|
Items that may be reclassified to profit or loss |
|
|
|
|
|
Exchange differences on translating foreign operations |
-51 |
68 |
8 |
77 |
|
Other comprehensive income/-expense for the period |
-51 |
68 |
8 |
77 |
|
Total comprehensive income/-expense for the period |
6,050 |
9,342 |
-17,265 |
-8,174 |
|
|
|
|
|
|
|
Earnings per share (in EUR per share) |
|
|
|
|
|
|
- basic (Note 5) |
0.01 |
0.01 |
-0.03 |
-0.01 |
|
|
- diluted (Note 5) |
0.01 |
0.01 |
-0.03 |
-0.01 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
|
ASSETS |
30.06.2014 |
31.12.2013 |
|
|
|
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
70,214 |
72,012 |
|
Trade and other receivables |
46,544 |
40,544 |
|
Prepayments |
10,171 |
3,185 |
|
Derivatives |
0 |
679 |
|
Inventories |
32,189 |
33,457 |
|
Total current assets |
159,118 |
149,877 |
|
|
|
|
|
|
Non-current assets |
|
|
|
Investments in equity-accounted investees |
262 |
262 |
|
Other financial assets |
252 |
385 |
|
Deferred income tax assets |
17,413 |
17,413 |
|
Investment property |
300 |
300 |
|
Property, plant and equipment (Note 7) |
1,478,535 |
1,495,895 |
|
Intangible assets (Note 8) |
56,095 |
57,925 |
|
Total non-current assets |
1,552,857 |
1,572,180 |
|
|
|
|
|
|
TOTAL ASSETS |
1,711,975 |
1,722,057 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Interest bearing loans and borrowings (Note 9) |
132,445 |
106,014 |
|
Trade and other payables |
104,680 |
97,387 |
|
Dividends payable (Note 12, 14) |
20,096 |
0 |
|
Deferred income |
41,646 |
28,315 |
|
Derivatives (Note 6) |
29,600 |
30,888 |
|
Total current liabilities |
328,467 |
262,604 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
Interest bearing loans and borrowings (Note 9) |
649,591 |
688,327 |
|
Other liabilities |
61 |
63 |
|
Total non-current liabilities |
649,652 |
688,390 |
|
TOTAL LIABILITIES |
978,119 |
950,994 |
|
|
|
|
|
|
EQUITY |
|
|
|
Equity attributable to equity holders of the parent |
|
|
|
Share capital |
404,290 |
404,290 |
|
Share premium |
639 |
639 |
|
Reserves |
72,444 |
70,111 |
|
Retained earnings |
256,483 |
296,023 |
|
Total equity attributable to equity holders of the parent |
733,856 |
771,063 |
|
TOTAL EQUITY |
733,856 |
771,063 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
1,711,975 |
1,722,057 |
CONSOLIDATED CASH FLOW STATEMENT
|
(unaudited, in thousands of euros) |
01.01.2014 - |
01.01.2013- |
|
|
|
30.06.2014 |
30.06.2013 |
|
Cash flows from operating activities |
|
|
|
Net profit/-loss for the period |
-17,273 |
-8,251 |
|
Adjustments |
64,136 |
66,397 |
|
Changes in receivables and prepayments related to operating activities |
-12,844 |
-15,320 |
|
Changes in inventories |
1,268 |
-561 |
|
Changes in liabilities related to operating activities |
15,615 |
18,778 |
|
Income tax paid |
-4 |
-203 |
|
|
50,898 |
60,840 |
|
Cash flow used for investing activities |
|
|
|
Purchase of property, plant and equipment and intangible assets (Notes 7, 8, 9) |
-20,351 |
-35,865 |
|
Proceeds from disposals of property, plant and equipment |
114 |
265 |
|
Interest received |
9 |
16 |
|
|
-20,228 |
-35,584 |
|
Cash flow from (+)/ used for (-) financing activities |
|
|
|
Proceeds from loans |
0 |
24,000 |
|
Redemption of loans (Note 9) |
-39,920 |
-148,205 |
|
Change in overdraft (Note 9) |
26,589 |
4,812 |
|
Proceeds from bonds |
0 |
115,487 |
|
Repayment of finance lease liabilities (Note 9) |
-97 |
-3 |
|
Interest paid |
-17,040 |
-16,006 |
|
Payments for settlement of derivatives |
-2,000 |
-2,247 |
|
Payment of transaction costs related to loans |
0 |
-565 |
|
|
-32,468 |
-22,727 |
|
|
|
|
|
|
TOTAL NET CASH FLOW |
-1,798 |
2,529 |
|
|
|
|
|
|
Cash and cash equivalents: |
|
|
|
- at the beginning of period |
72,012 |
65,600 |
|
- increase (+) / decrease (-) |
-1,798 |
2,529 |
|
Cash and cash equivalents at the end of period |
70,214 |
68,129 |
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
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