Tallinn, 2014-05-15 08:50 CEST (GLOBE NEWSWIRE) -- Q1 results of the 2014 financial year
In the first quarter (1 January- 31 March) of the 2014 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried 1.9 million passengers which is 0.5% more compared to the same period last year. In the first quarter, which is also low season, several of the Group’s vessels went through scheduled maintenance works. As a one-time effect the results were affected by the cruise ferry Silja Serenade going through extensive upgrade works. Volatility to the first quarter was added by the fact that the Easter holiday, which is a very popular travel period fell this time in to the second quarter of the 2014 financial year. Throughout the first quarter an increased amount of marketing campaigns were conducted, including the extension of gift vouchers expiration periods.
The cruise ferry Silja Serenade was out of operations in January and February for a total of 40 days undergoing an extensive upgrade of the public areas. In February the refreshed vessel Silja Serenade was launched on the Stockholm-Helsinki route. The vessel has a 50% expanded shopping area and includes upgrades to stores, the buffet and features a new restaurant. Several of the public areas received a facelift including the refurbishment of cabins and a refreshed SPA & Sauna area. The maintenance & upgrade works resulted temporary in fewer voyages and hence lower passenger and cargo volumes on Sweden-Finland routes.
In the first quarter the Estonia-Finland route continued to show positive developments with revenue increasing nearly 5.2% driven by 4.5% growth in passenger volume and 34.2% growth in cargo units. Due to the extended upgrade works the Finland-Sweden routes experienced a 6.1% decline in passenger volumes. Despite the decline in the passenger numbers the Group managed to increase the passenger market share on the Finland-Sweden route in the first quarter compared to the same period last year. The passenger volume in the first quarter for the Group in total remained on the last year’s level.
The Group’s consolidated revenue in the first quarter was EUR 188.2 million, being 1.2% or EUR 2.4 million less than a year ago. The average revenue per passenger decreased by 4.4%. In the first quarter of the 2014 financial year the Group’s gross profit amounted to EUR 11.8 million and EBITDA to EUR 4.5 million being respectively EUR 4.5 million and EUR 2.6 million less compared to the same period last year. The decline in the Group’s results is related to maintenance and upgrade works on Silja Serenade and the Easter falling into the second quarter. In the first quarter there were 31% more service days where ships were out of the operation when compared to the same period in the last year.
The unaudited net loss for the first quarter of the 2014 financial year was EUR 23.4 million or EUR 0.03 per share compared to the net loss of EUR 17.5 million or EUR 0.03 per share in the same period last year.
The total liquidity, cash and unused credit facilities at the end of the first quarter were EUR 64.1 million providing a strong position for sustainable operations. At the end of the first quarter 2014 the Group had EUR 62.6 million in cash and equivalents and the total of unused credit lines were at EUR 1.5 million.
| Q1 KEY FIGURES | 2014 Jan-Mar | 2013 Jan-Mar | Change | ||
| Revenue | EUR million | 188.2 | 190.6 | -1.2% | |
| Gross profit | EUR million | 11.8 | 16.2 | -27.4% | |
| Gross margin (%) | 6.3% | 8.5% | |||
| EBITDA | EUR million | 4.5 | 7.0 | -36.4% | |
| EBITDA margin (%) | 2.4% | 3.7% | |||
| Net profit for the period | EUR million | -23.4 | -17.5 | -33.4% | |
| Net profit margin (%) | -12.4% | -9.2% | |||
| Depreciation and amortization | EUR million | 19.7 | 17.8 | 10.4% | |
| Investments | EUR million | 14.1 | 3.4 | 319.8% | |
| Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
| Earnings per share | EUR | -0.03 | -0.03 | -33.4% | |
| Number of passengers | 1 905 555 | 1 895 353 | 0.5% | ||
| Number of cargo units | 76 791 | 67 003 | 14.6% | ||
| Average number of employees | 6 867 | 6 756 | 1.6% | ||
| 31.03.2014 | 31.12.2013 | ||||
| Total assets | EUR million | 1 711.8 | 1 722.1 | -0.6% | |
| Interest-bearing liabilities | EUR million | 811.5 | 794.3 | 2.2% | |
| Net debt | EUR million | 748.9 | 722.3 | 3.7% | |
| Total equity | EUR million | 747.8 | 771.1 | -3.0% | |
| Equity ratio (%) | 43.7% | 44.8% | |||
| Net debt to EBITDA | 4.9 | 4.6 | |||
| Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
| Shareholders’ equity per share | EUR | 1.12 | 1.15 | -3.0% | |
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) | 01.01.2014- | 01.01.2013- | |
| 31.03.2014 | 31.03.2013 | ||
| Revenue | 188,206 | 190,583 | |
| Cost of sales | -176,419 | -174,339 | |
| Gross profit | 11,787 | 16,244 | |
| Marketing expenses | -15,798 | -16,133 | |
| Administrative expenses | -11,389 | -11,240 | |
| Other income | 213 | 326 | |
| Other expenses | -48 | -12 | |
| Result from operating activities | -15,235 | -10,815 | |
| Finance income | 3,316 | 2,604 | |
| Finance costs | -11,445 | -9,306 | |
| Profit/-loss before income tax | -23,364 | -17,517 | |
| Income tax | -10 | -8 | |
| Net profit/-loss for the period | -23,374 | -17,525 | |
| Other comprehensive income/-expense | |||
| Items that may be reclassified to profit or loss | |||
| Exchange differences on translating foreign operations | 59 | 9 | |
| Other comprehensive income/-expense for the period | 59 | 9 | |
| Total comprehensive income/-expense for the period | -23,315 | -17,516 | |
| Earnings per share (in EUR per share) | |||
| - basic | -0.035 | -0.026 | |
| - diluted | -0.035 | -0.026 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
| ASSETS | 31.03.2014 | 31.12.2013 | |
| Current assets | |||
| Cash and cash equivalents | 62,568 | 72,012 | |
| Trade and other receivables | 41,960 | 40,544 | |
| Prepayments | 10,432 | 3,185 | |
| Derivatives | 172 | 679 | |
| Inventories | 30,155 | 33,457 | |
| Total current assets | 145,287 | 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 | 1,491,547 | 1,495,895 | |
| Intangible assets | 56,751 | 57,925 | |
| Total non-current assets | 1,566,525 | 1,572,180 | |
| TOTAL ASSETS | 1,711,812 | 1,722,057 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings | 136,103 | 106,014 | |
| Trade and other payables | 89,499 | 97,387 | |
| Deferred income | 35,343 | 28,315 | |
| Derivatives | 27,589 | 30,888 | |
| Total current liabilities | 288,534 | 262,604 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings | 675,390 | 688,327 | |
| Other liabilities | 63 | 63 | |
| Total non-current liabilities | 675,453 | 688,390 | |
| TOTAL LIABILITIES | 963,987 | 950,994 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 404,290 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 70,247 | 70,111 | |
| Retained earnings | 272,649 | 296,023 | |
| Total equity attributable to equity holders of the parent | 747,825 | 771,063 | |
| TOTAL EQUITY | 747,825 | 771,063 | |
| TOTAL LIABILITIES AND EQUITY | 1,711,812 | 1,722,057 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) | 01.01.2014 - | 01.01.2013- | |
| 31.03.2014 | 31.03.2013 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | -23,374 | -17,525 | |
| Adjustments | 28,461 | 25,439 | |
| Changes in receivables and prepayments related to operating activities | -8,512 | -8,034 | |
| Changes in inventories | 3,302 | 2,348 | |
| Changes in liabilities related to operating activities | -1,391 | 3,749 | |
| Income tax paid | -15 | -22 | |
| -1,529 | 5,955 | ||
| Cash flow used for investing activities | |||
| Purchase of property, plant and equipment and intangible assets | -14,121 | -3,364 | |
| Proceeds from disposals of property, plant and equipment | 97 | 31 | |
| Interest received | 4 | 13 | |
| -14,020 | -3,320 | ||
| Cash flow from (+)/ used for (-) financing activities | |||
| Redemption of loans | -15,024 | -19,166 | |
| Change in overdraft | 30,003 | 42,736 | |
| Repayment of finance lease liabilities | -70 | -2 | |
| Interest paid | -7,783 | -6,890 | |
| Payments for settlement of derivatives | -1,021 | -1,123 | |
| Payment of transaction costs related to loans | 0 | -383 | |
| 6,105 | 15,172 | ||
| TOTAL NET CASH FLOW | -9,444 | 17,807 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 72,012 | 65,600 | |
| - increase (+) / decrease (-) | -9,444 | 17,807 | |
| Cash and cash equivalents at the end of period | 62,568 | 83,407 | |
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
