OREANDA-NEWS. November 19, 2012. In the third quarter of the 2012 financial year AS Tallink Grupp and its subsidiaries (the Group) continued with the growth in sales. The Group carried a total of 2.77 million passengers in the third quarter, 2% more than in the same period last year. The Group's consolidated revenue in the third quarter increased by 3.8% to EUR 282.4 million. The start of the third quarter was affected by adverse weather in the beginning of the summer causing higher than usual promotional activities to July bookings. Hence the Group's total ticket revenue per passenger for the third quarter decreased and resulted in less revenue from ticket sales compared to same period in last year. However, the Group was able to improve the shop and restaurant sales resulting in overall higher total revenue.

Due to the structural changes in the revenue and the related higher direct cost from goods, the Group's gross profit for the third quarter stayed the same as last year. Total unaudited Gross profit for the third quarter amounted to EUR 85.2 million, up by 0.5% and EBITDA amounted to EUR 77.0 million down by 1.4% when compared to the same period in last year. In the third quarter of 2012 the Group's unaudited net profit was EUR 49.6 million compared to EUR 40.7 million last year. Improvement in the net profit is mainly the effect of the decreased financial costs. The total cumulative net profit for the nine months of the 2012 financial year amounts to EUR 50.6 million, EUR 13.5 million higher than year ago.

In the third quarter the fuel prices continued to be at a high level. When measured in euros and compared to the same quarter of the last year the average quarterly price for ship fuel was approximately 13% higher. The Group's fuel cost in the continuing operations increased by EUR 5.2 million. Impacted from the earlier closure of Finland-Germany operations the total fuel cost in the third quarter 2012 shows a EUR 1.2 million increase.

During the 2012 the Group has invested nearly EUR 1.5 million to upgrade and improve the visibility and appearance in the electronic channels. The new consumer marketing web pages just went live. The Group is soon to finish and launch a new version of online booking for the individual customers which has been developed emphasizing the easiness, usability, convenience and price transparency. In addition, Tallink's mobile booking application will be available in the beginning of 2013.

Cash flow from operations amounted to EUR 59 million in the third quarter of 2012. EUR 41 million was used to repay the bank debt resulting in a 4.5% decrease in interest bearing liabilities in the third quarter. During the past 12 months the Group has reduced its interest bearing liabilities by EUR 134 million. The net debt in the end of the third quarter was EUR 803 million and the net debt ratio to the last 12-months EBITDA was 4.9. At the end of September the Group had EUR 59 million in cash and equivalents and the total of unused credit lines stood at EUR 66 million. The total liquidity, cash and unused credit facilities at the end of the second quarter were EUR 125 million providing a strong position for sustainable operations.

During the past few years the Group had significantly reduced the leverage in accordance to our strategy. In anticipation of the dividend policy in the near future the management is focusing to optimize the current aggressive loan repayment schedule for the next years to strengthen the Group's free cash flow.

Q3 KEY FIGURES

 

2012
July-September

2011
July-September

change

Continuing operations

 

 

 

 

Revenue from continuing operations

EUR million

282.4

264.8

6.7%

Gross profit from continuing operations

EUR million

85.2

85.0

0.2%

Net profit from continuing operations

EUR million

49.6

41.1

20.6%

Group total including the discontinued operations

 

 

 

Revenue

EUR million

282.4

272.2

3.8%

Gross profit

EUR million

85.2

84.8

0.5%

Gross margin (%)

 

30.1%

31.1%

 

EBITDA

EUR million

77.0

78.0

-1.4%

EBITDA margin (%)

 

27.3%

28.7%

 

Net profit for the period

EUR million

49.6

40.7

21.9%

Net profit margin (%)

 

17.6%

14.9%

 

 

 

 

 

 

Depreciation and amortization

EUR million

17.7

17.7

-0.4%

Investments

EUR million

5.2

2.1

146%

 

 

 

 

 

Weighted average number of ordinary shares outstanding

669 882 040

669882 040

 

Earnings per share

EUR

0.07

0.06

21.9%

 

 

 

 

 

Number of passengers

 

2770 147

2716 702

2.0%

Number of cargo units

 

68 831

70 059

-1.8%

Average number of employees

 

7 132

7 175

-0.6%

 

 

 

 

 

 

 

30.09.2012

30.06.2012

 

Total assets

EUR million

1754.3

1760.7

-0.4%

Interest-bearing liabilities

EUR million

862.2

902.3

-4.5%

Net debt

EUR million

803.1

850.5

-5.6%

Total equity

EUR million

755.6

706.1

7.0%

 

 

 

 

 

Equity ratio (%)

 

43.1%

40.1%

 

Net debt to EBITDA

 

4.9

5.1

 

 

 

 

 

 

Number of ordinary shares outstanding1

 

669 882 040

669 882 040

0%

Shareholders' equity per share

EUR

1.13

1.05

7.0%

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 EUR)

01.07.2012-

01.07.2011-

01.01.2012-

01.01.2011-

 

30.09.2012

30.09.2011

30.09.2012

30.09.2011

Continuing operations

 

 

 

 

Revenue

282,441

264,827

721,052

676,980

Cost of sales

-197,290

-179,851

-559,833

-516,852

Gross profit

85,151

84,976

161,219

160,128

 

 

 

 

 

 

Marketing expenses

-15,591

-14,497

-48,224

-44,551

Administrative expenses

-10,561

-10,232

-33,455

-30,479

Other income

347

534

853

1,072

Other expenses

-820

-15

-852

-30

Results from operating activities

58,526

60,766

79,541

86,140

 

 

 

 

 

Finance income

1,382

-2,434

2,534

213

Finance costs

-11,130

-17,106

-32,258

-41,060

Profit from subsidiaries

783

0

783

0

 

 

 

 

 

 

Profit/-loss before income tax

49,561

41,226

50,600

45,293

 

 

 

 

 

 

Income tax

0

-115

0

-115

 

 

 

 

 

 

Net profit/-loss from continuing operations

49,561

41,111

50,600

45,178

 

 

 

 

 

Profit/-loss from discontinued operation

0

-453

0

-8,047

Net profit/-loss for the period

49,561

40,658

50,600

37,131

 

 

 

 

 

Other comprehensive income/-expense

 

 

 

 

Exchange differences on translating foreign operations

-116

28

-121

151

Other comprehensive income/-expense for the period

-116

28

-121

151

Total comprehensive income/-expense for the period

49,445

40,686

50,479

37,282

 

 

 

 

 

Profit/-loss attributable to:

 

 

 

 

 

Equity holders of the parent

49,561

40,658

50,600

37,131

 

 

 

 

 

 

Total comprehensive income/-expense attributable to:

 

 

 

 

 

Equity holders of the parent

49,445

40,686

50,479

37,282

 

 

 

 

 

Earnings per share (in EUR per share)

 

 

 

 

 

- basic

0.07

0.06

0.08

0.06

 

- diluted

0.07

0.06

0.08

0.06

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS

30.09.2012

31.12.2011

 

 

 

 

Current assets

 

 

Cash and cash equivalents

59,077

75,421

Trade and other receivables

44,631

35,152

Prepayments

11,828

7,087

Inventories

27,749

25,198

Total current assets

143,285

142,858

 

 

 

 

Non-current assets

 

 

Investments in associates

226

226

Other financial assets

1,761

2,551

Deferred income tax assets

9,452

9,452

Investment property

300

300

Property, plant and equipment

1,540,207

1,583,002

Intangible assets

59,040

61,153

Total non-current assets

1,610,986

1,656,684

 

 

 

 

TOTAL ASSETS

1,754,271

1,799,542

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

Interest bearing loans and borrowings

164,090

145,261

Trade and other payables

90,323

86,793

Deferred income

22,274

25,226

Derivatives

23,739

22,668

Total current liabilities

300,426

279,948

 

 

 

 

Non-current liabilities

 

 

Interest bearing loans and borrowings

698,128

814,305

Other liabilities

147

198

Total non-current liabilities

698,275

814,503

TOTAL LIABILITIES

998,701

1,094,451

 

 

 

 

EQUITY

 

 

Equity attributable to equity holders of the parent

 

 

Share capital

404,290

404,290

Share premium

639

639

Reserves

71,752

70,497

Retained earnings

278,889

229,665

Total equity attributable to equity holders of the parent

755,570

705,091

TOTAL EQUITY

755,570

705,091

 

 

 

 

TOTAL LIABILITIES AND EQUITY

1,754,271

1,799,542

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR)

01.01.2012 -

01.01.2011-

 

 

30.09.2012

30.09.2011

Cash flows from operating activities

 

 

Net profit/-loss for the period

50,600

37,131

Adjustments

82,687

94,726

Changes in assets related to operating activities

-15,974

-17,530

Changes in liabilities related to operating activities

1,297

120

Income tax paid

-11

-114

 

118,599

114,333

Cash flow used for investing activities

 

 

Purchase of property, plant and equipment and intangible assets

-8,898

-6,652

Proceeds from disposals of property, plant and equipment

47

59

Proceeds from subsidiaries

1,992

0

Payments from settlement of derivatives

-2,912

-3,575

Interest received

236

181

 

-9,535

-9,987

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

 

 

Redemption of loans

-99,477

-39,284

Repayment of finance lease liabilities

-51

-64

Interest paid

-25,880

-28,068

 

-125,408

-67,416

 

 

 

 

TOTAL NET CASH FLOW

-16,344

36,930

 

 

 

 

Cash and cash equivalents:

 

 

- at the beginning of period

75,421

44,946

- increase (+) / decrease (-)

-16,344

36,930

Cash and cash equivalents at end of period

59,077

81,876