|
The results and operations of AS Tallink Grupp in the first quarter of 2006/2007 financial year were mainly influenced from the investments that were made in the previous financial year. The main focus has been on the integration of Silja and Tallink, the related changes in the organisation and initiating actions for positive synergies.
Mr. Enn Pant, CEO of AS Tallink Grupp said: “Being a significantly bigger company Tallink continues the growth in the results. The company reached 190 million euros in sales and 33 million euros EBITDA which is three times more than a year ago. It is terrific that during the first three months of this financial year the actions on the integration process of Tallink and Silja have been made and that the effect is also reflected in the first quarter results. Although there is still lot to do in our operations and integration process to pursue further positive development we are pleased with the performance so far.”
The significant increase on sales by 200%, EBITDA by 206% and net profit by 83% are mainly result of the recent large expansion of operations and also the improvement on our old core routes. In addition the efficiency of the operations increased.
In the light of continuous integration process of Tallink and Silja, respective cost savings and synergies the further positive impact to the results can be achieved in the coming periods.
1st QUARTER KEY FIGURES
|
I Q 2006 |
|
I Q 2005 |
|
change |
|
EEK |
|
EUR |
EEK |
|
EUR |
% |
|
|
|
|
|
|
| Net Sales (million) |
2,976.9 |
190.3 |
992.1 |
63.4 |
200.1 |
| EBITDA (million) |
519.2 |
33.2 |
169.5 |
10.8 |
206.4 |
| EBITDA margin (%) |
17.4 |
|
17.1 |
|
|
| Net profit for the period (million) |
114.6 |
7.3 |
62.6 |
4.0 |
83.0 |
| Net profit margin (%) |
3.8 |
|
6.3 |
|
|
|
|
|
|
|
|
| Depreciation (million) |
253.2 |
16.2 |
68.8 |
4.4 |
268.0 |
| Investments (million) |
247.6 |
15.8 |
237.8 |
15.2 |
4.1 |
|
|
|
|
|
|
| Weighted average number of ordinary shares outstanding during 1st quarter |
168,454,260 |
110,000,000 |
53.1 |
| Earnings per share |
0.68 |
0.043 |
0.57 |
0.036 |
19.5 |
|
|
|
|
|
|
| Number of Passengers |
1,616,869 |
738,664 |
118.9 |
| Cargo units |
92,914 |
37,990 |
144.6 |
| Average number of employees |
6,020 |
2,668 |
125.6 |
|
30.11.2006 |
|
31.08.2006 |
|
change |
|
EEK |
|
EUR |
EEK |
|
EUR |
% |
|
|
|
|
|
|
| Total assets (million) |
25,230.0 |
1,612.5 |
25,931.6 |
1,657.3 |
-2.7 |
| Total liabilities (million) |
16,052.5 |
1,025.9 |
16,856.3 |
1,077.3 |
-4.8 |
| Interest-bearing liabilities (million) |
14,478.7 |
925.4 |
14,955.6 |
955.8 |
-3.2 |
| Total equity (million) |
9,177.5 |
586.6 |
9,075.3 |
580.0 |
1.1 |
| Equity ratio (%) |
36.4 |
|
35.0 |
|
|
|
|
|
|
|
|
| Number of ordinary shares outstanding |
168,454,260 |
168,454,260 |
0.0 |
| Shareholders equity per share |
54.48 |
3.48 |
53.87 |
3.44 |
1.1 |
Net profit margin – Net profit / Net sales;
EBITDA – Earnings before net financial items, share of profit of associates, taxes, depreciation and amortization, income from negative goodwill;
EBITDA margin – EBITDA / 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.
SALES AND EARNINGS
Net sales of AS Tallink Grupp and its subsidiaries amounted to 2,976.9 million EEK (190.3 million EUR) in the first quarter of 2006/2007 financial year (September 01, 2006 – November 30, 2006) compared to 992.1 million EEK (63.4 million EUR) with the first quarter of 2005/2006 financial year (September 01, 2005 – November 30, 2005). The 1,987.8 million EEK (126.9 million EUR) or 200.1% increase in sales in the first quarter resulted largely from the investments made during the previous financial year, but also from the increased number of passengers and increased revenues per passenger on Estonia-Finland and Estonia-Sweden routes.
The Group’s earnings had a positive impact from the new investments, increased ticket and cargo sales and improved efficiency. The Group’s EBITDA increased by 206.4% to 519.2 million EEK (33.2 million EUR) and the net profit increased by 83.0% to 114.6 million EEK (7.3 million EUR). Basic earnings per share and diluted earnings per share were 0.68 EEK (0.043 EUR) in the first quarter of 2006/2007 financial year, an increase of 19.5% compared to 0.57 EEK (0.036 EUR) in the corresponding period in 2005/2006 financial year.
During the first quarter the Group’s earnings were negatively affected by several non-recurring integration costs in the total amount of 56.6 million EEK (3.6 million EUR) which are related mainly to the redundancies at our Finnish organisation. It is estimated that the these redundancies will lead to approximately 98 million EEK (6.3 million EUR) yearly savings on overhead costs. In the coming reporting periods further additional integration related one-off expenses which should bring additional cost savings in the future will be reported as the integration process continues.
In addition to the positive impact to the operating efficiency from successful introduction of Galaxy and the related changes in the fleet the cost efficiency has been recognized also in the operations of Finland-Sweden route. The savings and optimisation on operative costs such as catering services and procurement on Finland-Sweden route are the initial results of the integration process of Silja and Tallink. The factors mentioned have helped to improve the Group’s overall performance and EBITDA margin.
CONSOLIDATED CONDENSED INCOME STATEMENT
| (unaudited, in thousands of EEK) |
|
|
|
|
| ASSETS |
30.11.2006 |
31.08.2006 |
|
|
|
| Current assets |
|
|
| Cash and cash equivalents |
1,065,229 |
1,407,608 |
| Receivables |
670,702 |
843,456 |
| Prepayments |
66,044 |
235,890 |
| Derivatives |
409 |
11,633 |
| Tax assets |
13,524 |
17,644 |
| Inventories |
239,362 |
237,228 |
| Total current assets |
2,055,270 |
2,753,459 |
|
|
|
| Non-current assets |
|
|
| Investments in associates |
9,044 |
9,044 |
| Other financial assets and prepayments |
8,289 |
8,240 |
| Pension assets |
45,234 |
45,234 |
| Property, plant and equipment |
21,849,822 |
21,857,153 |
| Intangible assets |
1,262,345 |
1,258,432 |
| Total non-current assets |
23,174,734 |
23,178,103 |
|
|
|
| TOTAL ASSETS |
23,178,103 |
25,931,562 |
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
1,668,700 |
1,228,098 |
| Payables |
1,239,628 |
1,593,026 |
| Deferred income |
163,585 |
146,042 |
| Derivatives |
22,391 |
24,159 |
| Tax liabilities |
122,898 |
112,061 |
| Total current liabilities |
3,217,202 |
3,103,386 |
|
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
12,810,027 |
13,727,497 |
| Deferred income tax liability |
0 |
69 |
| Pension liability |
25,238 |
25,332 |
| Total non-current liabilities |
12,835,265 |
13,752,898 |
| TOTAL LIABILITIES |
16,052,467 |
16,856,284 |
|
|
|
| EQUITY |
|
|
| Minority interests |
0 |
1,189 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
1,684,543 |
1,415,000 |
| Share premium |
3,218,578 |
2,012,394 |
| Unregistered share capital with share premium |
0 |
1,475,727 |
| Reserves |
1,147,561 |
1,158,714 |
| Retained earnings |
3,126,855 |
3,012,254 |
| Total equity attributable to equity holders of the parent |
9,177,537 |
9,074,089 |
| TOTAL EQUITY |
9,177,537 |
9,075,278 |
|
|
|
| TOTAL LIABILITIES AND EQUITY |
25,230,004 |
25,931,562 |
CONSOLIDATED CONDENSED BALANCE SHEET
| (unaudited, in thousands of EUR) |
|
|
|
|
| ASSETS |
30.11.2006 |
31.08.2006 |
|
|
|
| Current assets |
|
|
| Cash and cash equivalents |
68,081 |
89,963 |
| Receivables |
42,866 |
53,906 |
| Prepayments |
4,221 |
15,076 |
| Derivatives |
26 |
743 |
| Tax assets |
864 |
1,128 |
| Inventories |
15,298 |
15,162 |
| Total current assets |
131,356 |
175,978 |
|
|
|
| Non-current assets |
|
|
| Investments in associates |
578 |
578 |
| Other financial assets and prepayments |
530 |
527 |
| Pension assets |
2,891 |
2,891 |
| Property, plant and equipment |
1,396,458 |
1,396,927 |
| Intangible assets |
80,678 |
80,428 |
| Total non-current assets |
1,481,135 |
1,481,351 |
|
|
|
| TOTAL ASSETS |
1,612,491 |
1,657,329 |
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
106,649 |
78,490 |
| Payables |
79,227 |
101,813 |
| Deferred income |
10,455 |
9,334 |
| Derivatives |
1,431 |
1,544 |
| Tax liabilities |
7,855 |
7,162 |
| Total current liabilities |
205,617 |
198,343 |
|
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
818,710 |
877,347 |
| Deferred income tax liability |
0 |
4 |
| Pension liability |
1,613 |
1,619 |
| Total non-current liabilities |
820,323 |
878,970 |
| TOTAL LIABILITIES |
1,025,940 |
1,077,313 |
|
|
|
| EQUITY |
|
|
| Minority interests |
0 |
76 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
107,662 |
90,435 |
| Share premium |
205,704 |
128,615 |
| Unregistered share capital with share premium |
0 |
94,316 |
| Reserves |
73,343 |
74,056 |
| Retained earnings |
199,842 |
192,518 |
| Total equity attributable to equity holders of the parent |
586,551 |
579,940 |
| TOTAL EQUITY |
586,551 |
580,016 |
|
|
|
| TOTAL LIABILITIES AND EQUITY |
1,612,491 |
1,657,329 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
| (unaudited, in thousands of EEK) |
|
01.09.2006- |
|
01.09.2005- |
|
30.11.2006 |
30.11.2005 |
|
|
|
| Cash flows from operating activities |
|
|
| Net profit for the period |
114,601 |
62,620 |
| Adjustments |
404,612 |
105,823 |
| Changes in assets related to operating activities |
347,793 |
-10,846 |
| Changes in inventories |
-2,134 |
-3,180 |
| Changes in liabilities related to operating activities |
-360,048 |
25,541 |
| Income tax repaid |
-226 |
-127 |
|
504,598 |
179,831 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-247,589 |
-237,788 |
| Proceeds from disposals of property, plant, equipment |
979 |
17 |
| Acquisition of minority interests |
-500 |
0 |
| Interest received |
18,818 |
1,093 |
|
-228,292 |
-236,678 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Transaction costs of issue of shares |
-6,520 |
0 |
| Redemption of loans and bonds |
-471,367 |
-220,019 |
| Change in overdraft |
0 |
182,597 |
| Repayment of finance lease liability |
-10,098 |
-243 |
| Interest paid |
-130,700 |
-52,371 |
|
-618,685 |
-90,036 |
|
|
|
| TOTAL NET CASH FLOW |
-342,379 |
-146,883 |
|
|
|
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
1,407,608 |
326,786 |
| - increase (+) / decrease (-) |
-342,379 |
-146,883 |
| Cash and cash equivalents at end of period |
1,065,229 |
179,903 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
| (unaudited, in thousands of EUR) |
|
01.09.2006- |
|
01.09.2005- |
|
30.11.2006 |
30.11.2005 |
|
|
|
| Cash flows from operating activities |
|
|
| Net profit for the period |
7,324 |
4,002 |
| Adjustments |
25,859 |
6,763 |
| Changes in assets related to operating activities |
22,228 |
-693 |
| Changes in inventories |
-136 |
-203 |
| Changes in liabilities related to operating activities |
-23,011 |
1,632 |
| Income tax repaid |
-14 |
-8 |
|
32,250 |
11,493 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-15,824 |
-15,197 |
| Proceeds from disposals of property, plant, equipment |
62 |
1 |
| Acquisition of minority interests |
-32 |
0 |
| Interest received |
1,203 |
70 |
|
-14,591 |
-15,126 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Transaction costs of issue of shares |
-417 |
0 |
| Redemption of loans and bonds |
-30,126 |
-14,062 |
| Change in overdraft |
0 |
11,670 |
| Repayment of finance lease liability |
-645 |
-15 |
| Interest paid |
-8,353 |
-3,347 |
|
-39,541 |
-5,754 |
|
|
|
| TOTAL NET CASH FLOW |
-21,882 |
-9,387 |
|
|
|
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
89,963 |
20,885 |
| - increase (+) / decrease (-) |
-21,882 |
-9,387 |
| Cash and cash equivalents at end of period |
68,081 |
11,498 |
The Q2, Q3 and Q4 unaudited results of the current financial year willm be published respectively on weeks 17, 30 and 44 of 2007 calendar year.
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800
Email: janek.stalmeister@tallink.ee |