Q2 results of the 2013 financial year
In the second quarter (1 March - 30 June) of the 2013 financial year AS Tallink Grupp and its subsidiaries’ (the Group) showed continuous revenue growth. Ticket sales and passenger spending from restaurant and shop sales continued to show an increase as well. The Group’s unaudited consolidated revenue for the second quarter of the 2013 financial year increased by EUR 4.2 million or 1.7% compared to the same period last year to EUR 249.0 million.
The Group carried a total of 2.4 million passengers in the second quarter which is 1.0% less compared to the same period last year. The number of cargo units transported amounted to 79.8 thousand, which is 10.9% more than in the same period last year. The number of passengers increased on the Estonia-Finland route by 3.1% but decreased between the Finland-Sweden route by 8.3%, where the competition situation has changed and the Group has decreased its capacity.
In the second quarter of the 2013 financial year the Group’s gross profit amounted to EUR 57.0 million being EUR 0.3 million less than in the previous year. EBITDA amounted to EUR 46.8 million, which is EUR 0.6 million more compared to the same period last year.
In the second quarter M/S Isabelle was purchased and successfully launched on the Riga-Stockholm route, contributing partly to the 5.8% higher revenue from the route. In relation the Group entered into a loan agreement with AS Swedbank to finance the purchase of the cruise ferry M/S Isabelle. The amount of the new loan is EUR 24 million and the maturity is 5 years.
In June 2013 the Group successfully completed the private placement of a NOK 900 million (EUR 118 million) senior unsecured bond issue. The proceeds of the bond issue were used for the refinancing and strengthening of the Group’s financial position, increasing financial flexibility. Accordingly EUR 100 million old loans were pre-paid.
One important strategic milestone in the Group’s lifecycle was reached in May 2013 when the shareholders annual general meeting decided to pay a dividend of 0.05 euros per share. The total dividend amount of EUR 33.5 million was paid out in the beginning of July 2013 (third quarter).
The profit before tax for the second quarter was EUR 18.2 million (EUR 0.03 per share) compared to the EUR 20.0 million a year ago. The decrease in the pre-tax profit was mainly affected by higher financial costs due to the movement in the fair value of derivative instruments and the write off of transaction costs of the prematurely paid loan. Both being non-cash impact. The unaudited net profit for the second quarter was EUR 9.3 million or EUR 0.01 per share compared to the net profit of EUR 20.0 million or EUR 0.03 per share in the same period last year. The main reason to the high decrease on the net profit level is related to the EUR 8.9 million dividend tax expense.
Cash flow from operations increased EUR 3.8 million or 7.4% when compared to the same period of the last year. At the end of the second quarter 2013 the Group had EUR 68.1 million in cash and equivalents and the total of unused credit lines were at EUR 45.19 million. The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 113.3 million providing a strong position for sustainable operations.
The Group’s net debt continued to decrease, amounting to EUR 767 million in the end of the second quarter.
| Q2 KEY FIGURES |
2013 Apr-Jun |
2012 Apr-Jun |
Change | ||
| Revenue | EUR million | 249.0 | 244.8 | 1.7% | |
| Gross profit | EUR million | 57.0 | 57.2 | -0.5% | |
| Gross margin (%) | 22.9% | 23.4% | |||
| EBITDA | EUR million | 46.8 | 46.2 | 1.3% | |
| EBITDA margin (%) | 18.8% | 18.9% | |||
| Net profit for the period | EUR million | 9.3 | 20.0 | -53.6% | |
| Net profit margin (%) | 3.7% | 8.2% | |||
| Depreciation and amortization | EUR million | 18.2 | 17.7 | 3.3% | |
| Investments | EUR million | 32.5 | 3.7 | 870.7% | |
| Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
| Earnings per share | EUR | 0.01 | 0.03 | -53.6% | |
| Number of passengers | 2 352 487 | 2 376 516 | -1.0% | ||
| Number of cargo units | 79 843 | 72 014 | 10.9% | ||
| Average number of employees | 7 029 | 6 938 | 1.3% | ||
| 30.06.2013 | 31.03.2013 | ||||
| Total assets | EUR million | 1 760.2 | 1 750.1 | 0.6% | |
| Interest-bearing liabilities | EUR million | 835.4 | 864.3 | -3.3% | |
| Net debt | EUR million | 767.3 | 780.9 | -1.7% | |
| Total equity | EUR million | 719.3 | 743.4 | -3.2% | |
| Equity ratio (%) | 40.9% | 42.5% | |||
| Net debt to EBITDA | 4.7 | 4.8 | |||
| Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
| Shareholders’ equity per share | EUR | 1.07 | 1.11 | -3.2% | |
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 EUR) | 01.04.2013- | 01.04.2012- | 01.01.2013- | 01.01.2012- | |
| 30.06.2013 | 30.06.2012 | 30.06.2013 | 30.06.2012 | ||
| Revenue | 249,027 | 244,817 | 439,610 | 438,611 | |
| Cost of sales | -192,055 | -187,563 | -366,394 | -362,543 | |
| Gross profit | 56,972 | 57,254 | 73,216 | 76,068 | |
| Marketing expenses | -17,583 | -16,861 | -33,716 | -32,633 | |
| Administrative expenses | -11,161 | -12,165 | -22,401 | -22,894 | |
| Other income | 482 | 350 | 808 | 506 | |
| Other expenses | -117 | -12 | -129 | -32 | |
| Results from operating activities | 28,593 | 28,566 | 17,778 | 21,015 | |
| Finance income | 8,609 | 1,080 | 11,213 | 1,152 | |
| Finance costs | -19,017 | -9,656 | -28,323 | -21,128 | |
| Profit/-loss before income tax | 18,185 | 19,990 | 668 | 1,039 | |
| Income tax | -8,911 | 0 | -8,919 | 0 | |
| Net profit/-loss for the period | 9,274 | 19,990 | -8,251 | 1,039 | |
| Other comprehensive income/-expense | |||||
| Exchange differences on translating foreign operations | 68 | -62 | 77 | -5 | |
| Other comprehensive income/-expense for the period | 68 | -62 | 77 | -5 | |
| Total comprehensive income/-expense for the period | 9,342 | 19,928 | -8,174 | 1,034 | |
| Profit/-loss attributable to: | |||||
| Equity holders of the parent | 9,274 | 19,990 | -8,251 | 1,039 | |
| Total comprehensive income/-expense attributable to: | |||||
| Equity holders of the parent | 9,342 | 19,928 | -8,174 | 1,034 | |
| Earnings per share (in EUR per share) | |||||
| - basic | 0.01 | 0.03 | -0.01 | 0.00 | |
| - diluted | 0.01 | 0.03 | -0.01 | 0.00 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
| ASSETS | 30.06.2013 | 31.12.2012 | |
| Current assets | |||
| Cash and cash equivalents | 68,129 | 65,600 | |
| Trade and other receivables | 48,366 | 42,555 | |
| Prepayments | 14,868 | 5,151 | |
| Derivatives | 990 | 0 | |
| Inventories | 29,987 | 29,426 | |
| Total current assets | 162,340 | 142,732 | |
| Non-current assets | |||
| Investments in equity-accounted investees | 245 | 245 | |
| Other financial assets | 291 | 296 | |
| Deferred income tax assets | 12,264 | 12,264 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment | 1,526,962 | 1,526,995 | |
| Intangible assets | 57,829 | 58,999 | |
| Total non-current assets | 1,597,891 | 1,599,099 | |
| TOTAL ASSETS | 1,760,231 | 1,741,831 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings | 92,134 | 103,685 | |
| Trade and other payables | 111,222 | 92,988 | |
| Dividends payable | 33,494 | 0 | |
| Deferred income | 34,071 | 25,458 | |
| Derivatives | 26,624 | 22,102 | |
| Total current liabilities | 297,545 | 244,233 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings | 743,299 | 736,699 | |
| Other liabilities | 67 | 69 | |
| Total non-current liabilities | 743,366 | 736,768 | |
| TOTAL LIABILITIES | 1,040,911 | 981,001 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 404,290 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 72,141 | 69,091 | |
| Retained earnings | 242,250 | 286,810 | |
| Total equity attributable to equity holders of the parent | 719,320 | 760,830 | |
| TOTAL EQUITY | 719,320 | 760,830 | |
| TOTAL LIABILITIES AND EQUITY | 1,760,231 | 1,741,831 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) | 01.01.2013 - | 01.01.2012- | |
| 30.06.2013 | 30.06.2012 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | -8,251 | 1,039 | |
| Adjustments | 66,397 | 56,034 | |
| Changes in assets related to operating activities | -15,881 | -16,122 | |
| Changes in liabilities related to operating activities | 18,778 | 18,659 | |
| Income tax paid | -203 | -10 | |
| 60,840 | 59,600 | ||
| Cash flow used for investing activities | |||
| Purchase of property, plant and equipment and intangible assets | -35,865 | -3,687 | |
| Proceeds from disposals of property, plant and equipment | 265 | 36 | |
| Payments for settlement of derivatives | -2,247 | -2,019 | |
| Interest received | 16 | 133 | |
| -37,831 | -5,537 | ||
| Cash flow from (+)/ used for (-) financing activities | |||
| Proceeds from loans | 24,000 | 0 | |
| Change in overdraft | 4,812 | 0 | |
| Redemption of loans | -148,205 | -58,638 | |
| Proceeds from bonds | 115,487 | 0 | |
| Repayment of finance lease liabilities | -3 | -42 | |
| Interest paid | -16,006 | -18,976 | |
| Payment of transaction costs related to loans | -565 | 0 | |
| -20,480 | -77,656 | ||
| TOTAL NET CASH FLOW | 2,529 | -23,593 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 65,600 | 75,421 | |
| - increase (+) / decrease (-) | 2,529 | -23,593 | |
| Cash and cash equivalents at the end of period | 68,129 | 51,828 | |