|
AS Tallink Grupp and its subsidiaries (The Group) results and development in the first quarter (01.09.2009-30.11.2009) met the management expectations.
The Group's passenger volume development was positive by 1.2% compared to the first quarter of the previous financial year. While cargo volumes for the first quarter still show a decrease by 10.5% on year on year comparison the latest months have already brought slight increase in cargo volumes on some routes.
The unaudited revenues in the first quarter of the 2009/2010 financial year were EUR 181 million (EEK 2 837 million) which is 6.4% decrease compared to the first quarter of the previous financial year. The revenue decrease was mainly influenced from the drop in cargo volumes and lower spending per passenger compared to the first quarter of 2008/2009 financial year.
The overall situation in the passenger spending pattern has however improved on quarter to quarter basis during the past two quarters which is giving a positive signal for the future outlook. The Group is actively managing the selection of products, special offers and pricing also onboard the vessels in order to follow the customers' changed spending behaviour and to meet their expectations.
The Group's EBITDA in the first quarter of 2009/2010 financial year was EUR 27 million (EEK 422 million), 10.7% lower than year ago which resulted mainly from the lower revenues. After the increased depreciation and lower interest expenses the unaudited net loss for the first quarter of 2009/2010 financial year improved by EUR 0.8 million (EEK 12 million) and amounted to EUR 1.2 million (EEK 18.6 million).
As an effect of the cost reduction activities the Group's administrative and general expenses continued to decrease in the first quarter, being 16.7% or EUR 1.9 million (EEK 29.4 million) lower compared to the first quarter of the previous financial year.
The Management continues to focus on the cost efficiency and on the improvement of the Group results. The sales or charters of older and non performing vessels have high priority. In October 2009 one of the older vessels' Tallink Autoexpress 2 was sold. There are currently several negotiations open to either charter or sell some of the older and non performing vessels.
| Q1 KEY FIGURES |
01.09.2009-30.11.2009 |
01.09.2008-30.11.2008 |
Change % |
| |
EEK |
EUR |
EEK |
EUR |
|
| Net sales (million) |
2 837 |
181,3 |
3 031 |
193,7 |
-6,4% |
| Gross profit (million) |
511 |
32,7 |
604 |
38,6 |
-15,4% |
| Gross margin |
18,0% |
19,9% |
|
| EBITDA (million) |
422 |
27,0 |
473 |
30,2 |
-10,7% |
| EBITDA margin |
14,9% |
15,6% |
|
| Net profit/-loss (million) |
-19 |
-1,2 |
-31 |
-1,9 |
39,3% |
| Net profit margin |
-0,7% |
-1,0% |
|
| Depreciation & amort. (million) |
281 |
18,0 |
257 |
16,5 |
9,2% |
| Investments (million) |
5 |
0,4 |
168 |
10,7 |
-96,7% |
| |
|
|
|
| Weighted average number of ordinary shares outstanding during Q1* |
669 882 040 |
669 882 040 |
0% |
| Earnings per share |
-0,03 |
-0,00 |
-0,05 |
0,00 |
40% |
| |
|
|
|
| Number of passengers |
1 808 235 |
1 786 205 |
1,2% |
| Cargo units |
68 334 |
76 313 |
-10,5% |
| Average number of employees |
6 621 |
6 826 |
-3% |
| |
|
|
|
| |
30.11.2009 |
31.08.2009 |
|
| Total assets (million) |
29 862 |
1 909 |
30 468 |
1 947 |
-2,0% |
| Total liabilities (million) |
19 818 |
1 267 |
20 412 |
1 304 |
-2,9% |
| Interest-bearing liabilities (million) |
17 919 |
1 145 |
18 483 |
1 181 |
-3,1% |
| Total equity (million) |
10 044 |
642 |
10 056 |
642 |
-0,1% |
| Equity ratio |
33,6% |
33,0% |
|
| |
| Number of ordinary shares outstanding* |
669 882 040 |
669 882 040 |
0% |
| Shareholders' equity per share |
15 |
0,96 |
15 |
0,96 |
0% |
Net profit margin - net profit / net sales;
EBITDA - Earnings before net financial items, taxes, depreciation and amortization;
EBITDA margin - EBITDA / net sales;
Gross margin - gross profit / net sales;
Net profit margin - net profit / net sales;
Equity ratio - total equity / total assets;
Earnings per share - net profit / weighted average number of shares outstanding;
Shareholder's equity per share - shareholder's equity / number of shares outstanding.
* Share numbers exclude own shares.
The Group's fleet renewal program has been completed and thus the Group's investments are now relatively small going ahead. This helps to concentrate on the core operations. As there are no capital commitments then more free cash can be used to reduce the Group's net debt.
During the first quarter the Group's cash flow from operations was EUR 31.6 million (EEK 495 million), which is EUR 11.5 million (EEK 180 million) increase compared to the first quarter of the previous financial year. The increase in the operating cash flow results from the improved working capital dynamics.
Taking into account the reduction in investments, sale of one vessel and lower interest payments the total net cash flow for the first quarter increased by EUR 28.9 million (EEK 452 million) compared to the first quarter of the 2008/2009 financial year. In the end of the first quarter the Group's cash and cash equivalents amounted to EUR 41 million (EEK 642 million).
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of EEK) |
|
01.09.2009-30.11.2009 |
01.09.2008-30.11.2008 |
|
|
|
| Revenue |
2,836,833 |
3,031,349 |
| Cost of sales |
-2,325,945 |
-2,427,351 |
| Gross profit |
510,888 |
603,998 |
|
|
|
| Marketing expenses |
-227,586 |
-215,656 |
| Administrative expenses |
-146,246 |
-175,594 |
| Other income |
7,072 |
3,156 |
| Other expenses |
-2,785 |
-271 |
| Results from operating activities |
141,343 |
215,633 |
| Financial income |
12,729 |
87,511 |
| Financial expenses |
-172,690 |
-333,807 |
| Loss from normal operation before income tax |
-18,618 |
-30,663 |
| Income tax |
0 |
0 |
| Net loss for the period |
-18,618 |
-30,663 |
| Other comprehensive income/-expense |
|
|
| Exchange differences on translating foreign operations |
-11,452 |
-6,411 |
| Cash flow hedges |
17,993 |
-84,226 |
| Other comprehensive income/-expense for the period |
6,541 |
-90,637 |
| Total comprehensive income/-expense for the period |
-12,077 |
-121,300 |
| |
|
|
| Loss attributable to: |
|
|
| Equity holders of the parent |
-18,618 |
-30,663 |
| Total comprehensive income/-expense attributable to: |
|
|
| Equity holders of the parent |
-12,077 |
-121,300 |
| |
|
|
| Earnings per share (in EEK per share) |
|
|
| - basic |
-0.03 |
-0.05 |
| - diluted |
-0.03 |
-0.05 |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of EUR) |
|
01.09.2009-30.11.2009 |
01.09.2008-30.11.2008 |
|
|
|
| Revenue |
181,307 |
193,739 |
| Cost of sales |
-148,655 |
-155,136 |
| Gross profit |
32,652 |
38,603 |
|
|
|
| Marketing expenses |
-14,545 |
-13,783 |
| Administrative expenses |
-9,347 |
-11,223 |
| Other income |
452 |
201 |
| Other expenses |
-178 |
-17 |
| Results from operating activities |
9,034 |
13,781 |
| Financial income |
813 |
5,593 |
| Financial expenses |
-11,037 |
-21,334 |
| Loss from normal operation before income tax |
-1,190 |
-1,960 |
| Income tax |
0 |
0 |
| Net loss for the period |
-1,190 |
-1,960 |
| Other comprehensive income/-expense |
|
|
| Exchange differences on translating foreign operations |
-731 |
-409 |
| Cash flow hedges |
1,150 |
-5,383 |
| Other comprehensive income/-expense for the period |
419 |
-5,792 |
| Total comprehensive income/-expense for the period |
-771 |
-7,752 |
| |
|
|
| Loss attributable to: |
|
|
| Equity holders of the parent |
-1,190 |
-1,960 |
| Total comprehensive income/-expense attributable to: |
|
|
| Equity holders of the parent |
-771 |
-7,752 |
| |
|
|
| Earnings per share (in EUR per share) |
|
|
| - basic |
0.00 |
0.00 |
| - diluted |
0.00 |
0.00 |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EEK) |
|
|
|
| ASSETS |
30.11.2009 |
31.08.2009 |
| Current assets |
|
|
| Cash and cash equivalents |
642,186 |
782,043 |
| Receivables |
711,947 |
797,762 |
| Prepayments |
157,581 |
179,892 |
| Derivatives |
19,011 |
6,493 |
| Inventories |
292,269 |
297,527 |
| Total current assets |
1,822,994 |
2,063,717 |
| Non-current assets |
|
|
| Investments in associates |
9,180 |
0 |
| Other financial assets and prepayments |
7,664 |
7,664 |
| Deferred income tax assets |
207,453 |
207,455 |
| Investment property |
4,694 |
4,694 |
| Property, plant and equipment |
26,695,009 |
27,049,393 |
| Intangible assets |
1,115,143 |
1,134,738 |
| Total non-current assets |
28,039,143 |
28,403,944 |
| TOTAL ASSETS |
29,862,137 |
30,467,661 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Interest bearing loans and borrowings |
1,641,126 |
1,655,760 |
| Payables |
1,316,311 |
1,415,762 |
| Deferred income |
410,250 |
331,323 |
| Derivatives |
171,111 |
179,842 |
| Total current liabilities |
3,538,798 |
3,582,687 |
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
16,278,179 |
16,827,627 |
| Other liabilities |
1,220 |
1,330 |
| Total non-current liabilities |
16,279,399 |
16,828,957 |
| TOTAL LIABILITIES |
19,818,197 |
20,411,644 |
| EQUITY |
|
|
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
6,738,170 |
6,738,170 |
| Share premium |
9,999 |
9,999 |
| Reserves |
1,130,950 |
1,124,409 |
| Retained earnings |
2,164,821 |
2,183,439 |
| Total equity attributable to equity holders of the parent |
10,043,940 |
10,056,017 |
| TOTAL EQUITY |
10,043,940 |
20,411,644 |
| TOTAL LIABILITIES AND EQUITY |
29,862,137 |
30,467,661 |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR) |
|
|
|
| ASSETS |
30.11.2009 |
31.08.2009 |
| Current assets |
|
|
| Cash and cash equivalents |
41,043 |
49,982 |
| Receivables |
45,502 |
50,986 |
| Prepayments |
10,071 |
11,497 |
| Derivatives |
1,215 |
415 |
| Inventories |
18,679 |
19,015 |
| Total current assets |
116,510 |
131,895 |
| Non-current assets |
|
|
| Investments in associates |
587 |
0 |
| Other financial assets and prepayments |
490 |
490 |
| Deferred income tax assets |
13,259 |
13,259 |
| Investment property |
300 |
300 |
| Property, plant and equipment |
1,706,122 |
1,728,771 |
| Intangible assets |
71,271 |
72,523 |
| Total non-current assets |
1,792,029 |
1,815,343 |
|
TOTAL ASSETS |
1,908,539 |
1,947,238 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Interest bearing loans and borrowings |
104,887 |
105,822 |
| Payables |
84,128 |
90,484 |
| Deferred income |
26,220 |
21,175 |
| Derivatives |
10,936 |
11,494 |
| Total current liabilities |
226,171 |
228,975 |
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
1,040,365 |
1,075,482 |
| Other liabilities |
78 |
85 |
| Total non-current liabilities |
1,040,443 |
1,075,567 |
| TOTAL LIABILITIES |
1,266,614 |
1,304,542 |
| EQUITY |
|
|
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
430,648 |
430,648 |
| Share premium |
639 |
639 |
| Reserves |
72,281 |
71,862 |
| Retained earnings |
138,357 |
139,547 |
| Total equity attributable to equity holders of the parent |
641,925 |
642,696 |
| TOTAL EQUITY |
641,925 |
642,696 |
| TOTAL LIABILITIES AND EQUITY |
1,908,539 |
1,947,238 |
|
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of EEK) |
|
01.09.2009-30.11.2009 |
01.09.2008-30.11.2008 |
| |
|
|
| Cash flows from operating activities |
|
|
| Net loss for the period |
-18,618 |
-30,663 |
| Adjustments |
392,982 |
507,786 |
| Changes in assets related to operating activities |
114,741 |
174,408 |
| Changes in liabilities related to operating activities |
5,706 |
-337,265 |
| Income tax paid |
-70 |
-52 |
| |
494,741 |
314,214 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-5,490 |
-168,304 |
| Proceeds from disposals of property, plant, equipment |
99,721 |
8,318 |
| Acquisition of associate |
-9,180 |
0 |
| Proceeds/-payments from settlement of derivatives |
-14,955 |
12,999 |
| Interest received |
2,289 |
2,718 |
| |
72,385 |
-144,269 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Redemption of loans |
-573,688 |
-467,526 |
| Change in overdraft |
5,136 |
-19,440 |
| Repayment of finance lease liabilities |
-2,005 |
-2,091 |
| Interest paid |
-136,426 |
-272,834 |
| |
-706,983 |
-761,891 |
| TOTAL NET CASH FLOW |
-139,857 |
-591,946 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
782,043 |
1,043,785 |
| - increase (+) / decrease (-) |
-139,857 |
-591,946 |
| - Cash and cash equivalents at end of period |
642,186 |
451,839 |
|
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of EUR) |
|
01.09.2009-30.11.2009 |
01.09.2008-30.11.2008 |
| |
|
|
| Cash flows from operating activities |
|
|
| Net loss for the period |
-1,190 |
-1,960 |
| Adjustments |
25,116 |
32,453 |
| Changes in assets related to operating activities |
7,333 |
11,147 |
| Changes in liabilities related to operating activities |
365 |
-21,555 |
| Income tax paid |
-4 |
-3 |
| |
31,620 |
20,082 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-351 |
-10,756 |
| Proceeds from disposals of property, plant, equipment |
6,373 |
532 |
| Acquisition of associate |
-587 |
0 |
| Proceeds/-payments from settlement of derivatives |
-955 |
831 |
| Interest received |
146 |
173 |
| |
4,626 |
-9,220 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Redemption of loans |
-36,665 |
-29,880 |
| Change in overdraft |
328 |
-1,242 |
| Repayment of finance lease liabilities |
-129 |
-134 |
| Interest paid |
-8,719 |
-17,438 |
| |
-45,185 |
-48,694 |
| TOTAL NET CASH FLOW |
-8,939 |
-37,832 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
49,982 |
66,710 |
| - increase (+) / decrease (-) |
-8,939 |
-37,832 |
| - Cash and cash equivalents at end of period |
41,043 |
28,878 |
Janek Stalmeister
CFO
AS Tallink Grupp
Tel. +372 6409 800
e-mail: janek.stalmeister@tallink.ee |