Tallinn, 2014-02-27 15:35 CET (GLOBE NEWSWIRE) -- 12 months unaudited results of the 2013 financial year
AS Tallink Grupp and its subsidiaries (the Group) carried a total of 9.11 million passengers in the 2013 financial year which is 1.6% less than the year before. The Group’s unaudited consolidated revenue remained on the previous year’s level with EUR 942.0 million. Gross profit was EUR 190.2 million, EBITDA EUR 156.2 million. Unaudited net profit amounted to EUR 43.3 million or EUR 0.06 per share, which is a 23.1% decrease compared to the previous year.
In the fourth quarter (1 October - 31 December) of the 2013 financial year the Group carried 2.1 million passengers, 1% more compared to the same period last year. The Group’s consolidated revenue amounted to EUR 224.0 million, EUR 1.2 million more compared to the same period last year. The Group’s EBITDA amounted to EUR 29.8 million, 7.1% less compared to the same period last year. The unaudited net profit for the fourth quarter increased by 31.8% to EUR 7.5 million.
The 2013 financial year ticket and cargo sales showed a 3.4% and 2.7% increase respectively. Due to the decline in the passenger numbers on the Finland-Sweden routes caused by increased competition and structural changes the shop and restaurant sales experienced a 2.0% decline. Although there was a slight decrease in shop and restaurant sales, spending per passenger stayed on last year’s level. As a result of upgrading the fleet growth continued on the Riga-Stockholm route in the 2013 financial year, showing an 8.4% increase in revenue and the result for the financial year was positive for the first time since the route was opened in 2006.
During the 2013 financial year the Group’s operations were affected by an overall weak macroeconomic environment in the region. The Nordic countries which are the Group’s main markets continue to experience noticeable slowdown in their economies and there is an impact to the Group’s passengers’ spending behaviour. Net profit was also affected by a tax expense of EUR 3.8 million.
The lower fuel price levels throughout the year had a positive effect on the 2013 results, the Group’s overall fuel cost was circa 10% or EUR 14 million lower compared to the same period last year. Meanwhile there was raise in the ships operating costs and port fees.
The Group was successful in generating a higher cash flow from operating activities both in the fourth quarter and for the twelve months 48.4 million and 168.4 million respectively compared to the same period last year. The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 104 million providing a strong position for sustainable operations. At the end of the fourth quarter 2013 the Group had EUR 72 million in cash and equivalents and the total of unused credit lines were at EUR 32 million.
The Group successfully continued the deleveraging strategy and the net debt decreased by EUR 52 million to a total of EUR 722 million in the 2013 financial year.
The 2013 financial year result did not meet the management’s expectations. Due to adverse macroeconomic developments in the region and the increased competition on Finland-Sweden routes the results for this year did not reach the previous year’s level. With an aim to increase revenue generation improvements in product development are being made, emphasis is on retail sales and upgrades to the public areas on selected vessels. Cost reductions in some areas are processed in order to adapt with the changed economic environment. The management expects an improvement in the results for the 2014 financial year.
In management’s opinion, the Group’s financial position allows the Group to pay dividends. Management will propose to the shareholders’ general meeting a dividend distribution of EUR 0.03 per share, i.e. EUR 20,096,461 in aggregate.
| Q4 KEY FIGURES | 2013 Oct-Dec | 2012 Oct-Dec | Change | ||
| Revenue | EUR million | 224.0 | 222.8 | 0.5% | |
| Gross profit | EUR million | 37.1 | 40.0 | -7.1% | |
| Gross margin (%) | 16.6% | 17.9% | |||
| EBITDA | EUR million | 29.8 | 32.1 | -7.1% | |
| EBITDA margin (%) | 13.3% | 14.4% | |||
| Net profit for the period | EUR million | 7.5 | 5.7 | 31.8% | |
| Net profit margin (%) | 3.36% | 2.56% | |||
| Depreciation and amortization | EUR million | 18.6 | 17.9 | 4.0% | |
| Investments | EUR million | 5.0 | 0.6 | 800.0% | |
| Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
| Earnings per share | EUR | 0.01 | 0.01 | 31.8% | |
| Number of passengers | 2 148 204 | 2 133 163 | 0.7% | ||
| Number of cargo units | 78 771 | 70 457 | 6.2% | ||
| Average number of employees | 6 898 | 6 799 | 1.5% | ||
| 31.12.2013 | 30.09.2013 | ||||
| Total assets | EUR million | 1 722.1 | 1 723.1 | -0.1% | |
| Interest-bearing liabilities | EUR million | 794.3 | 808.1 | -1.7% | |
| Net debt | EUR million | 722.3 | 758.1 | -4.7% | |
| Total equity | EUR million | 771.1 | 763.4 | 1.0% | |
| Equity ratio (%) | 44.8% | 44.3% | |||
| Net debt to EBITDA | 4.6 | 4.8 | |||
| Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
| Shareholders’ equity per share | EUR | 1.15 | 1.14 | 1.0% | |
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) | 01.10.2013- | 01.10.2012- | 01.01.2013- | 01.01.2012- | |
| 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 | ||
| Revenue | 223,982 | 222,816 | 941,983 | 943,868 | |
| Cost of sales | -186,859 | -182,836 | -751,827 | -742,669 | |
| Gross profit | 37,123 | 39,980 | 190,156 | 201,199 | |
| Marketing expenses | -13,650 | -17,183 | -63,292 | -65,407 | |
| Administrative expenses | -12,679 | -10,626 | -45,148 | -44,081 | |
| Other income | 1,035 | 2,806 | 2,120 | 3,659 | |
| Other expenses | -664 | -802 | -805 | -1,654 | |
| Results from operating activities | 11,165 | 14,175 | 83,031 | 93,716 | |
| Finance income | 5,757 | 2,735 | 21,547 | 5,269 | |
| Finance costs | -14,538 | -13,991 | -57,503 | -46,249 | |
| Profit from the sale of a subsidiary | 0 | 0 | 0 | 783 | |
| Share of profit/-loss from equity accounted investees | 17 | 19 | 17 | 19 | |
| Profit/-loss before income tax | 2,401 | 2,938 | 47,092 | 53,538 | |
| Income tax | 5,117 | 2,764 | -3,786 | 2,764 | |
| Net profit/-loss for the period | 7,518 | 5,702 | 43,306 | 56,302 | |
| Other comprehensive income/-expense | |||||
| Exchange differences on translating foreign operations | 34 | -442 | 114 | -563 | |
| Other comprehensive income/-expense for the period | 34 | -442 | 114 | -563 | |
| Total comprehensive income/-expense for the period | 7,552 | 5,260 | 43,420 | 55,739 | |
| Profit/-loss attributable to: | |||||
| Equity holders of the parent | 7,518 | 5,702 | 43,306 | 56,302 | |
| Total comprehensive income/-expense attributable to: | |||||
| Equity holders of the parent | 7,552 | 5,260 | 43,420 | 55,739 | |
| Earnings per share (in EUR per share) | |||||
| - basic | 0.01 | 0.01 | 0.06 | 0.08 | |
| - diluted | 0.01 | 0.01 | 0.06 | 0.08 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
| ASSETS | 31.12.2013 | 31.12.2012 | |
| Current assets | |||
| Cash and cash equivalents | 72,012 | 65,600 | |
| Trade and other receivables | 40,608 | 42,555 | |
| Prepayments | 3,121 | 5,151 | |
| Derivatives | 679 | 0 | |
| Inventories | 33,457 | 29,426 | |
| Total current assets | 149,877 | 142,732 | |
| Non-current assets | |||
| Investments in equity-accounted investees | 262 | 245 | |
| Other financial assets | 385 | 296 | |
| Deferred income tax assets | 17,413 | 12,264 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment | 1,495,895 | 1,526,995 | |
| Intangible assets | 57,925 | 58,999 | |
| Total non-current assets | 1,572,180 | 1,599,099 | |
| TOTAL ASSETS | 1,722,057 | 1,741,831 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings | 106,014 | 103,685 | |
| Trade and other payables | 97,387 | 92,988 | |
| Deferred income | 28,315 | 25,458 | |
| Derivatives | 30,888 | 22,102 | |
| Total current liabilities | 262,604 | 244,233 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings | 688,327 | 736,699 | |
| Other liabilities | 63 | 69 | |
| Total non-current liabilities | 688,390 | 736,768 | |
| TOTAL LIABILITIES | 950,994 | 981,001 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 404,290 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 70,262 | 69,091 | |
| Retained earnings | 295,872 | 286,810 | |
| Total equity attributable to equity holders of the parent | 771,063 | 760,830 | |
| TOTAL EQUITY | 771,063 | 760,830 | |
| TOTAL LIABILITIES AND EQUITY | 1,722,057 | 1,741,831 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) | 01.01.2013 - | 01.01.2012- | |
| 31.12.2013 | 31.12.2012 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | 43,306 | 56,302 | |
| Adjustments | 118,619 | 109,768 | |
| Changes in assets related to operating activities | 198 | -9,796 | |
| Changes in liabilities related to operating activities | 6,649 | 6,782 | |
| Income tax paid | -378 | -40 | |
| 168,394 | 163,016 | ||
| Cash flow used for investing activities | |||
| Purchase of property, plant and equipment and intangible assets | -43,291 | -9,449 | |
| Proceeds from disposals of property, plant and equipment | 1,318 | 50 | |
| Proceeds from subsidiaries | 0 | 1,992 | |
| Payments for settlement of derivatives | -4,451 | -3,976 | |
| Acquisition of other investments | 0 | -34 | |
| Interest received | 114 | 297 | |
| -46,310 | -11,120 | ||
| Cash flow from (+)/ used for (-) financing activities | |||
| Proceeds from loans | 24,000 | 440,000 | |
| Redemption of loans | -198,126 | -557,848 | |
| Change in overdraft | 18,456 | 0 | |
| Proceeds from bonds | 115,487 | 0 | |
| Repayment of finance lease liabilities | -96 | -56 | |
| Interest paid | -32,439 | -36,434 | |
| Payment of transaction costs related to loans | -557 | -7,379 | |
| Dividends paid | -33,494 | 0 | |
| Income tax on dividends paid | -8,903 | 0 | |
| -115,672 | -161,717 | ||
| TOTAL NET CASH FLOW | 6,412 | -9,821 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 65,600 | 75,421 | |
| - increase (+) / decrease (-) | 6,412 | -9,821 | |
| Cash and cash equivalents at the end of period | 72,012 | 65,600 | |
Harri Hanschmidt Head of the Financial Department AS Tallink Grupp Sadama 5/7. 10111 Tallinn Tel +372 640 8981 E-mail harri.hanschmidt@tallink.ee
