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AS Tallink Grupp Financial Results 14.07.2006
9-months results of the 2005/2006 financial year
Nine months of the 2005/2006 financial year have passed by Tallink
increasing the sales to 195 million EUR (3.1 billion EEK) and
earning 8.4 million EUR (131 million EEK) of net profit during the
first nine months. The third quarter sales increased by 22%.
The latest developments have changed the company’s size, operations
and also the perspective for future growth. The investments during
the 9 months amounted to 480 million EUR (7.5 billion EEK). It is
positive that the launching of new routes and changes in the fleet
operations were sucessfully completed to face the high season in IV
quarter. In light of the current operations and trends the result
for the whole financial year will illustrate better the impact and
positive effect of the latest investments and developments.
By today all relevant competition authorities have granted their
approval for the acquisition of Silja. After the completion of
Silja acquisition, which is expected to take place next week, the
assets of the consolidated company will increase to approximately
1.5 billion EUR (23.5 billion EEK). Even though the main
investments of the 2005/2006 financial year, Superfast and Silja,
would contribute few months only the sales for the full financial
year of 2005/06 can be expected to the range of 400 million EUR.
Silja’s annual revenue base of 380 million EUR (6 billion EEK) and
expected annual EBITDA of 60 million EUR (939 million EEK) in the
coming periods have significant effect to the consolidated results
of the Group.
Mr. Andres Hunt, Member of the Board of AS Tallink Grupp said: „The
third quarter strategical deals of Superfast ferries together with
Germany operations and the Silja acquisition are important
milestones in the company’s development. These will make Tallink
totally different size company where the earlier Tallink’s core
business will be a part only. Resulting from these developments the
revenues are expected to triple in the coming years and the ground
for significant increase in earnings has been created.”
Given the company’s fast growth, the recent vessel acquisitions and
the Silja deal, the Management of AS Tallink Grupp believes that it
will be beneficial for the company to increase its share capital.
The proposed equity injection will be used to assist the
implementation of the recent projects, to support the company’s
future growth, to ensure a strong liquidity position, and to
strengthen the company’s overall financial position.
In this context, the Management will call an Extraordinary General
Meeting of shareholders to propose an equity increase in the
company through a rights issue for a minimum of EUR 60 million (939
million EEK)and maximum of EUR 100 million (1.56 billion EEK). The
Management has been in discussions with the largest shareholders of
Tallink regarding a proposed rights issue and the shareholders
including Infortar, Amber Trust II and Citigroup Venture Capital
International, have expressed their strong interest to take up EUR
60 million of the rights issue. The intention is to complete the
issue by the end of August 2006.
Approximately 40 million EUR from the proceeds of the rights issue
will be used to repay Junior tranche of the Superfast loan.
Major changes which were happening during the III quarter have
affected the results on the cost side with the respective one off
items while the revenues and earnings contributed only for less
than two months in the reporting period.
AS Tallink Grupp unaudited consolidated net sales in the 9 months
of the 2005/2006 financial year amounted to 3,049.3 million EEK
(194.9 million EUR) compared to 2,839.2 million EEK (181.5 million
EUR) in the period September 1, 2004 – May 31, 2005. The 9 month
net sales increased by 7.4%. Net sales in the third quarter
increased 22.2% and amounted to 1,263.3 million EEK (80.7 million
EUR) compared to 1,033.8 million EEK (66.1 million EUR) in the same
period in fiscal year 2004/2005. The sales increase was impacted by
the start of operations of Galaxy, start of Riga-Stockholm route,
start of Germany route, increase in cargo volumes and higher ticket
revenues.
The net profit for the 9 months was 131.7 million EEK (8.4 million
EUR) compared to 185.8 million EEK (11.9 million EUR) in the
corresponding period of the last financial year. The decrease in
net profit is mainly caused by the increased marketing and
administration costs related to the start up of the new lines,
changes in vessels’ operations and other developments during the
third quarter but as well by the higher fuel prices. While the
large one off items depressed the March – May earnings the
Management is very enthusiastic about the future earnings potential
provided by the new business lines launched during the III quarter.
Tallink views the costs as an sound investment for the future.
AS Tallink Grupp six months unaudited consolidated results of
2005/2006 financial year characterized by ratios and calculation
methods are as follows:
2005/2006 9 months 2004/2005 9 months
Net profit margin 4.3% 6.5%
EBITDA margin 15.9% 18.0%
Equity/assets ratio 31.9% 38,3%
Net profit margin: Net profit/net sales
EBITDA margin: EBITDA/net sales
Equity/assets ratio: Total equity/total assets
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousand EEK)
01.03.2006- 01.03.2005- 01.09.2005- 01.09.2004-
31.05.2006 31.05.2005 31.05.2006 31.05.2005
Net sales 1,263,287 1,033,827 3,049,310 2,839,240
Cost of sales -985,019 -740,984 -2,425,511 -2,201,577
Gross profit 278,268 292,843 623,799 637,663
Marketing expenses -104,496 -80,500 -264,929 -244,404
Administrative and -41,145 -34,792 -109,481 -86,485
general expenses
Other operating 6,090 197 7,074 1,724
income
Other operating -100 -144 -643 -440
expenses
Operating profit 138,617 177,604 255,820 308,058
Net financial expense -62,352 -40,068 -123,750 -122,301
(-) / income
Income from 0 645 0 1,068
associates
Profit from normal 76,265 138,181 132,070 186,825
operation before
income tax
Income tax 213 -1,485 -375 -987
Net profit for the 76,478 136,696 131,695 185,838
period
Attributable to:
Equity holders of 76,192 136,411 130,790 185,605
the parent
Minority interests 286 285 905 233
Earnings per share
(in EEK per share)
- basic 1.03 1.69
- diluted 1.03 1.69
(unaudited, in 01.03.2006- 01.03.2005- 01.09.2005- 01.09.2004-
thousand EUR) 31.05.2006 31.05.2005 31.05.2006 31.05.2005
Net sales 80,738 66,074 194,886 181,461
Cost of sales -62,954 -47,358 -155,018 -140,707
Gross profit 17,784 18,716 39,868 40,754
Marketing expenses -6,678 -5,145 -16,932 -15,620
Administrative and -2,630 -2,224 -6,997 -5,528
general expenses
Other operating 389 12 452 110
income
Other operating -6 -9 -41 -28
expenses
Operating profit 8,859 11,350 16,350 19,688
Net financial expense -3,985 -2,560 -7,909 -7,816
(-) / income
Income from 0 41 0 68
associates
Profit from normal 4,874 8,831 8,441 11,940
operation before
income tax
Income tax 14 -95 -24 -63
Net profit for the 4,888 8,736 8,417 11,877
period
Attributable to:
Equity holders of 4,869 8,718 8,359 11,862
the parent
Minority interests 19 18 58 15
Earnings per share
(in EUR per share)
- basic 0.07 0.11
- diluted 0.07 0.11
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousand EEK)
ASSETS 31.05.2006 31.08.2005
Current assets
Cash and cash equivalents 1,224,039 326,786
Receivables and prepaid expenses 370,390 202,540
Inventories 137,883 84,900
Total current assets 1,732,312 614,226
Non-current assets
Financial assets 72 72
Property, plant and equipment 13,267,623 6,136,720
Intangible assets 182,498 176,153
Total non-current assets 13,450,193 6,312,945
TOTAL ASSETS 15,182,505 6,927,171
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 1,087,491 690,473
liabilities
Payables and prepaid income 715,302 434,683
Total current liabilities 1,802,793 1,125,156
Non-current liabilities
Interest bearing loans and borrowings 8,537,766 3,145,864
Deferred income tax 332 329
Total non-current liabilities 8,538,098 3,146,193
TOTAL LIABILITIES 10,340,891 4,271,349
EQUITY
Minority interests 1,029 274
Equity attributable to equity holders
of the parent
Issued capital 1,365,000 1,100,000
Share premium 1,788,793 0
Unrealised exchange differences 39 0
Revaluation reserve 415 0
Reserves 27,500 27,500
Retained earnings 1,658,838 1,528,048
Total equity attributable to equity 4,840,585 2,655,548
holders of the parent
TOTAL EQUITY 4,841,614 2,655,822
TOTAL LIABILITIES AND EQUITY 15,182,505 6,927,171
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousand EUR)
ASSETS 31.05.2006 31.08.2005
Current assets
Cash and cash equivalents 78,230 20,885
Receivables and prepaid expenses 23,672 12,945
Inventories 8,812 5,426
Total current assets 110,714 39,256
Non-current assets
Financial assets 5 5
Property, plant and equipment 847,956 392,208
Intangible assets 11,664 11,258
Total non-current assets 859,625 403,471
TOTAL ASSETS 970,339 442,727
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 69,503 44,129
liabilities
Payables and prepaid income 45,716 27,781
Total current liabilities 115,219 71,910
Non-current liabilities
Interest bearing loans and borrowings 545,663 201,057
Deferred income tax 21 21
Total non-current liabilities 545,684 201,078
TOTAL LIABILITIES 660,903 272,988
EQUITY
Minority interests 66 18
Equity attributable to equity holders
of the parent
Issued capital 87,239 70,303
Share premium 114,325 0
Unrealised exchange differences 2 0
Revaluation reserve 27 0
Reserves 1,758 1,758
Retained earnings 106,019 97,660
Total equity attributable to equity 309,370 169,721
holders of the parent
TOTAL EQUITY 309,436 169,739
TOTAL LIABILITIES AND EQUITY 970,339 442,727
AS Tallink Grupp unaudited financial results for financial year
will be published on week 42nd of 2006 year.
Janek Stalmeister
Financial Director
AS Tallink Grupp
+372 6409 800 |