OREANDA-NEWS. May 18, 2012. In the first quarter (1 January – 31 March) of the 2012 financial year AS Tallink Grupp and its subsidiaries (the Group) carried total of 1.84 million passengers, slightly more than in the same period of the last year. The Group’s unaudited revenue for the first quarter of 2012 increased by EUR 10.6 million or nearly 6% year on year to the total of EUR 193.8 million. The sales in most of the Group’s services increased whereas over half of the total revenue increase was achieved through improved passenger related sales. The total of ticket sales, restaurants, bars and shop sales increased by EUR 2.6 per passenger year on year reflecting the emphasis on the active sales onboard the vessels as well as continuous work on the dynamic pricing.

The Group’s revenue development in the first quarter of the 2012 financial year was in line with the Management expectations incorporating different sales tactics and activities in the beginning of the year compared to the previous year. However the record high fuel prices have increased the Group’s fuel costs eliminating the impact of the total revenue improvement. The unaudited gross profit for the first quarter of 2012 was EUR 18.8 million which is EUR 1.1 million or 6% higher than last year. Influenced by higher expenses related to increased activities in sales, marketing and support functions the Group’s EBITDA in the first quarter of the 2012 financial year was EUR 10.2 million, one million euros less than year ago.

Derived from the 32% higher average fuel price for the first quarter, compared with the same period of the last year, the Group’s fuel costs increased by EUR 4.6 million. Part of the fuel price increase was mitigated by optimisation of the timetables and operating schedules which help to reduce the fuel consumption. As the fuel prices in the second quarter are remaining at high levels, currently approximately 20% higher than year ago, the management is planning to further increase the fuel surcharges in the ticket pricing.

The unaudited net loss for the first quarter of 2012 financial year was EUR 18.95 million (0.03 EUR per share) compared to the net loss of EUR 17.1 million (0.03 EUR per share) year ago which then also included EUR 1.8 million income from the interest rates derivatives.

As an effect of the improved working capital development the cash flow from operating activities in the first quarter increased by EUR 3.9 million or 84% compared to the same period of the last year. In 2012 the Group has returned to its original loan repayment schedules with the repayments also in the low season. In the first quarter of 2012 the Group repaid EUR 24.4 million of its interest bearing debt. In the end of the first quarter the Group had EUR 49.3 million in cash and equivalents which is EUR 10 million more than in the same time of the previous year. In March the Group increased its overdraft credit lines by approximately EUR 20 million bringing the total unused credit lines to EUR 66 million. The total liquidity, cash and unused credit facilities at the end of the first quarter was EUR 115 million providing strong position for the sustainable operations.

Q1 KEY FIGURES

 

2012
Jan-Mar

2011
Jan-Mar

change

Continuing operations

 

 

 

 

Revenue from continuing operations

EUR million

193.8

183.1

5.8%

Gross profit from continuing operations

EUR million

18.8

20.8

-9.9%

Net profit from continuing operations

EUR million

-18.95

-14.0

-34.9%

Group total including the discontinued operations

 

 

 

Revenue

EUR million

193.8

183.1

5.8%

Gross profit

EUR million

18.8

17.8

6.1%

Gross margin (%)

 

9.7%

9.7%

 

EBITDA

EUR million

10.2

11.2

-9.2%

EBITDA margin (%)

 

5.3%

6.1%

 

Net profit for the period

EUR million

-18.95

-17.1

-10.5%

Net profit margin (%)

 

-9.8%

-9.4%

 

 

 

 

 

 

Depreciation and amortization

EUR million

17.8

17.9

0.6%

Investments

EUR million

0.4

0.8

-43.7%

 

 

 

 

 

Weighted average number of ordinary shares outstanding

669 882 040

669 882 040

 

Earnings per share

EUR

-0.03

-0.03

 

 

 

 

 

 

Number of passengers

 

1 984 735

1 980 069

0.2%

Number of cargo units

 

72 667

66 635

9.1%

Average number of employees

 

6 702

6 674

0.4%

 

 

 

 

 

 

 

31.03.2012

31.12.2011

 

Total assets

EUR million

1 764.9

1 799.5

-1.9%

Interest-bearing liabilities

EUR million

935.9

959.6

-2.3%

Net debt

EUR million

886.6

884.2

0.2%

Total equity

EUR million

686.2

705.1

-2.9%

 

 

 

 

 

Equity ratio (%)

 

38.9%

39.2%

 

Net debt to EBITDA

 

5.5

5.4

 

 

 

 

 

 

Number of ordinary shares outstanding1

 

669 882 040

669 882 040

0%

Shareholders’ equity per share

EUR

1.02

1.05

-2.9%

EBITDA:  Earnings before net financial items, share of profit of equity accounted investees, 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)

01.01.2012-

01.01.2011-

 

31.03.2012

31.03.2011

Continuing operations

 

 

Revenue 

193,794

183,147

Cost of sales

-174,980

-162,275

Gross profit

18,814

20,872

 

 

 

 

Marketing expenses

-15,772

-14,871

Administrative expenses

-10,729

-9,862

Other income

156

344

Other expenses

-20

-10

Results from operating activities

-7,551

-3,527

 

 

 

Finance income 

72

1,857

Finance costs

-11,472

-12,375

 

 

 

 

Profit/-loss before income tax

-18,951

-14,045

 

 

 

 

Income tax

0

0

 

 

 

 

Net profit/-loss from continuing operations

-18,951

-14,045

 

 

 

Profit/-loss from discontinued operation 

0

-3,102

Net profit/-loss for the period

-18,951

-17,147

 

 

 

Other comprehensive income/-expense

 

 

Exchange differences on translating foreign operations

57

-34

Other comprehensive income/-expense for the period

57

-34

Total comprehensive income/-expense for the period

-18,894

-17,181

 

 

 

Profit/-loss attributable to:

 

 

 

Equity holders of the parent 

-18,951

-17,147

 

 

 

 

Total comprehensive income/-expense attributable to:

 

 

 

Equity holders of the parent

-18,894

-17,181

 

 

 

Earnings per share (in EUR per share)

 

 

 

- basic 

-0.03

-0.03

 

- diluted 

-0.03

-0.03

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS

31.03.2012

31.12.2011

 

 

 

 

Current assets

 

 

Cash and cash equivalents

49,296

75,421

Trade and other receivables

35,671

35,152

Prepayments

15,990

7,087

Inventories

24,788

25,198

Total current assets

125,745

142,858

 

 

 

 

Non-current assets

 

 

Investments in associates

226

226

Other financial assets

2,290

2,551

Deferred income tax assets

9,452

9,452

Investment property

300

300

Property, plant and equipment 

1,566,858

1,583,002

Intangible assets 

60,067

61,153

Total non-current assets

1,639,193

1,656,684

 

 

 

 

TOTAL ASSETS

1,764,938

1,799,542

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

Interest bearing loans and borrowings 

155,718

145,261

Trade and other payables

93,328

86,793

Deferred income

26,681

25,226

Derivatives 

22,668

22,668

Total current liabilities

298,395

279,948

 

 

 

 

Non-current liabilities

 

 

Interest bearing loans and borrowings 

780,169

814,305

Other liabilities

177

198

Total non-current liabilities

780,346

814,503

TOTAL LIABILITIES

1,078,741

1,094,451

 

 

 

 

EQUITY

 

 

Equity attributable to equity holders of the parent

 

 

Share capital

404,290

404,290

Share premium

639

639

Reserves

70,554

70,497

Retained earnings

210,714

229,665

Total equity attributable to equity holders of the parent

686,197

705,091

TOTAL EQUITY

686,197

705,091

 

 

 

 

TOTAL LIABILITIES AND EQUITY

1,764,938

1,799,542

   CONSOLIDATED CASH FLOW STATEMENT

 

(unaudited, in thousands of EUR)

01.01.2012 -

01.01.2011-

 

 

31.03.2012

31.03.2011

Cash flows from operating activities

 

 

Net profit/-loss for the period

-18,951

-17,147

Adjustments

28,618

27,639

Changes in assets related to operating activities

-8,745

-10,059

Changes in liabilities related to operating activities

7,573

4,183

Income tax paid

-8

-11

 

8,487

4,605

Cash flow used for investing activities

 

 

Purchase of property, plant and equipment and intangible assets 

-431

-766

Proceeds from disposals of property, plant and equipment

0

49

Payments from settlement of derivatives

-839

-1,236

Interest received

74

12

 

-1,196

-1,941

Cash flow from (+)/ used for (-) financing activities

 

 

Redemption of loans

-24,383

0

Repayment of finance lease liabilities 

-22

-21

Interest paid

-9,011

-8,305

 

-33,416

-8,326

 

 

 

 

TOTAL NET CASH FLOW

-26,125

-5,662

 

 

 

 

Cash and cash equivalents:

 

 

- at the beginning of period

75,421

44,946

- increase (+) / decrease (-)

-26,125

-5,662

Cash and cash equivalents at end of period

49,296

39,284