TAL: AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015

OREANDA-NEWS. AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015.

In the first quarter (1 January- 31 March) of the 2015 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried nearly 1.8 million passengers which is 5.9% less compared to the same period last year.  The Group’s unaudited revenue for the first quarter of 2015 increased by EUR 1.9 million or 1.0% year on year to the total of EUR 190.2 million, EBITDA increased by EUR 15.0 million or 335.0% to the total of EUR 19.5 million, compared to the same period last year. The Group made various changes to the operations during the past year and these affected the first quarter with decreased passenger volumes but increased revenue and profitability. The reduction of operating costs from the measures taken has the highest effect to the first quarter profitability, which is also the low season.

In the first quarter the Estonia-Finland route showed positive developments with revenue increasing by 2.7% driven by a 21.3% growth in cargo units. The increase to the cargo volume was partly from Sea Wind switching from the Finland-Sweden routes to the Estonia-Finland route. The Estonia-Sweden route, where capacity is lower than last year, experienced a 9.9% decrease in passengers and a 10.4% decrease in cargo volumes. The Latvia-Sweden route showed a decline with passenger’s numbers decreasing by 41.2%, cargo units transported decreased by 59.6%, passenger vehicles transported decreased by 33.0% and the sales decreased by 39.4%. The decline in passenger and cargo volumes on the Latvia-Sweden route is due to Isabelle operating as the only vessel on the route since the beginning of August 2014. Throughout the first quarter price pressure from competitors remained visible on all routes. The passenger volumes have been affected by the drop of Russian passengers since the second quarter last year and has continued to this date.

In the first quarter altogether 6 vessels were chartered out. Due to the increased number of chartered vessels the revenue from charters increased by EUR 7.3 million or 85.9% to the total of EUR 15.7 million. Two of the vessels Silja Festival and Regina Baltic are to be sold in the second quarter of the 2015 financial year.

The upgrades of the public areas and improvements to restaurant and shop concept throughout the fleet combined with the operational changes have resulted in a 3.5% increase in on-board revenue per passenger. Due to the changes in operations the segment result improved on all segments and was EUR 14.9 million higher than in the same period last year.

In the first quarter of the 2015 financial year the Group’s gross profit amounted to EUR 26.1 million and EBITDA to EUR 19.5 million being respectively EUR 14.3 million and EUR 15.0 million more compared to the same period last year. The increase in the Group’s results is mainly attributed to the decreased costs related to operations.

The unaudited net loss for the first quarter of the 2015 financial year was EUR 13.3 million or EUR 0.02 per share compared to the net loss of EUR 23.4 million or EUR 0.03 per share in the same period last year.

Cash flow from operations increased by EUR 19.2 million when compared to the same period last year. The total liquidity, cash and unused credit facilities at the end of the first quarter were EUR 68.8 million providing a strong position for sustainable operations. At the end of the first quarter 2015 the Group had EUR 66.3 million in cash and equivalents and the total of unused credit lines were at EUR 2.5 million.

 

Q1 KEY FIGURES			2015 Jan-Mar	2014 Jan-Mar	Change
Revenue		EUR million	190.2	188.2	1.0%
Gross profit		EUR million	26.1	11.8	121.5%
Gross margin (%)			13.7%	6.3%
EBITDA		EUR million	19.5	4.5	335.0%
EBITDA margin (%)			10.2%	2.4%
Net profit for the period		EUR million	-13.3	-23.4	42.9%
Net profit margin (%)			-7.0%	-12.4%
Depreciation and amortization		EUR million	20.4	19.7	3.4%
Investments		EUR million	3.6	14.1	74.4%
Weighted average number of ordinary shares outstanding			669 882 040	669 882 040
Earnings per share		EUR	-0.02	-0.03	42.9%
Number of passengers			1 793 414	1 905 555	-5.9%
Number of cargo units			75 172	76 791	-2.1%
Average number of employees			6 642	6 867	-3.3%
			31.03.2015	31.12.2014
Total assets		EUR million	1 674.5	1 685.6	-0.7%
Interest-bearing liabilities		EUR million	742.9	743.4	-0.1%
Net debt		EUR million	676.6	678.1	-0.2%
Total equity		EUR million	764.9	778.3	-1.7%
Equity ratio (%)			46.2%	45.7%
Net debt to EBITDA			4.1	4.5
Number of ordinary shares outstanding1			669 882 040	669 882 040	0%
Shareholders’ equity per share		EUR	1.14	1.16	-1.7%

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 euros)				01.01.2015-	01.01.2014-
				31.03.2015	31.03.2014
Revenue				190,153	188,206
Cost of sales				-164,049	-176,419
Gross profit				26,104	11,787
Marketing expenses				-15,235	-15,798
Administrative expenses				-11,715	-11,389
Other income				123	213
Other expenses				-191	-48
Result from operating activities				-914	-15,235
Finance income				5,676	3,316
Finance costs				-16,608	-11,445
Profit/-loss before income tax				-11,846	-23,364
Income tax				-1,500	-10
Net profit/-loss for the period				-13,346	-23,374
Other comprehensive income/-expense
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations				-82	59
Other comprehensive income/-expense for the period				-82	59
Total comprehensive income/-expense for the period				-13,428	-23,315
Earnings per share (in EUR per share)
	- basic			-0.020	-0.035
	- diluted			-0.020	-0.035

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS		31.03.2015	31.12.2014
Current assets
Cash and cash equivalents		66,276	65,311
Trade and other receivables		38,333	38,210
Prepayments		12,497	5,448
Inventories		28,787	31,315
Total current assets		145,893	140,284
Non-current assets
Investments in equity-accounted investees		286	286
Other financial assets		331	252
Deferred income tax assets		21,338	21,338
Investment property		300	300
Property, plant and equipment		1,452,130	1,467,964
Intangible assets		54,247	55,174
Total non-current assets		1,528,632	1,545,314
TOTAL ASSETS		1,674,525	1,685,598
LIABILITIES AND EQUITY
Current liabilities
Interest bearing loans and borrowings		159,899	149,850
Trade and other payables		89,187	91,236
Income tax liability		2,800	1,300
Deferred income		34,723	29,408
Derivatives		39,959	41,982
Total current liabilities		326,568	313,776
Non-current liabilities
Interest bearing loans and borrowings		583,019	593,532
Total non-current liabilities		583,019	593,532
TOTAL LIABILITIES		909,587	907,308
EQUITY
Equity attributable to equity holders of the parent
Share capital		404,290	404,290
Share premium		639	639
Reserves		70,123	70,129
Retained earnings		289,886	303,232
Total equity attributable to equity holders of the parent		764,938	778,290
TOTAL EQUITY		764,938	778,290
TOTAL LIABILITIES AND EQUITY		1,674,525	1,685,598

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

(unaudited, in thousands of euros)		01.01.2015 -	01.01.2014-
		31.03.2015	31.03.2014
Cash flows from operating activities
Net profit/-loss for the period		-13,346	-23,374
Adjustments		33,028	28,461
Changes in receivables and prepayments related to operating activities		-4,811	-8,512
Changes in inventories		2,528	3,302
Changes in liabilities related to operating activities		336	-1,391
Income tax paid		-33	-15
		17,702	-1,529
Cash flow used in investing activities
Purchase of property, plant and equipment and intangible assets		-3,612	-14,121
Proceeds from disposals of property, plant and equipment		12	97
Interest received		22	4
		-3,578	-14,020
Cash flow used in financing activities
Repayment of loans		-15,024	-15,024
Change in overdraft		10,049	30,003
Payment of finance lease liabilities		-20	-70
Interest paid		-6,745	-7,783
Payments for settlement of derivatives		-1,419	-1,021
		-13,159	6,105
TOTAL NET CASH FLOW		965	-9,444
Cash and cash equivalents:
- at the beginning of period		65,311	72,012
- increase (+) / decrease (-)		965	-9,444
- at the end of period		66,276	62,568