West Atlantic reports a challenging first quarter
January - March
- Strong revenue growth for B737/B767 aircraft fleet offset by decreasing ATP fleet utilisation. Underlying revenue growth amounted to 1.8 % year-on-year.
- EBITDA decreased to MSEK 4.0 (37.9) corresponding to a margin of 1.2 % (11.4).
- Earnings per share of SEK -1.34 (-0.46).
- The quarter was heavily impacted by an aircraft accident of a CRJ200PF.
- The bond loan issued in 2015 (WEST002) was listed on Nasdaq, Stockholm in January 2016.
- Following an EGM the shareholders of the company changed the composition of the Board of Directors. The CEO also stepped down and an interim CEO was appointed.
- One B737-400 aircraft was acquired out on an operating lease agreement.
Key performance indicators for the Group
| All figures in MSEK unless stated otherwise | Jan - Mar | Jan - Mar | Jan - Dec |
| 2016 | 2015 | 2015 | |
| Financial metrics | |||
| Revenue | 323.9 | 332.0 | 1 ,409.9 |
| Revenue growth | -2.4% | 8.8% | 13.3% |
| Underlying revenue growth | 1.8% | 6.0% | 8.6% |
| EBITDA | 4.0 | 37.9 | 177.9 |
| EBITDA margin (%) | 1.2% | 11.4% | 12.6% |
| Net income | -36.1 | -12.4 | -49.6 |
| Cash flow from operating activities | -13.9 | 29.5 | 216.7 |
| Earnings per share before dilution (SEK) | -1.34 | -0.46 | -1.84 |
| Net interest bearing debt / EBITDA** | 5.3 | - | 3.6 |
| Interest coverage ratio** | 2.2 | - | 2.9 |
| Equity / Asset ratio | 11.0% | 19.9% | 13.3% |
| Total assets | 1,379.8 | 1,112.1 | 1,412.1 |
| Operating metrics | |||
| Fleet dispatch regularity | 98.2% | 98.9% | 99.1% |
| Performed flights | 6,018 | 6,592 | 26,790 |
| Aircraft in service (incl. wet leases) | 48 | 44 | 48 |
| Average employees | 499 | 499 | 508 |
CEO's comments
"The first quarter of 2016 was operationally and financially challenging for the West Atlantic Group. The tragic accident of one of our CRJ200PF operating over northern Sweden on January 8 had a tremendous impact on the entire Company. Financially, the group delivered a result for the first quarter below expectations with an EBITDA margin of 1.2 percent (11.4). We knew that the first quarter was going to be a rough one where we would have to adapt to a less utilised ATP fleet and closing down the Swedish mail operation, which stopped in December 2015, while simultaneously investing in the start-up of two B737 operations in France and placing the third B767 in service.
We continue to direct all our attention at being customer centric and cost focused, while also ensuring the organisation is right sized to take on future opportunities. I am pleased that all employees are really contributing their utmost to make the Group shine again. We are seeing an increase in customer new business and we are optimistic about the future. This year will continue to be a year of transition and adapting, but I firmly believe that this change will be good. I am confident that we will stand much stronger going into 2017 and beyond." - says Mr. Fredrik Groth, Int. CEO & President
The full report can be downloaded at http://www.westatlantic.eu/
For further information, please contact:
CEO, Fredrik Groth, +46 (0) 10-452 97 09
CFO, Magnus Dahlberg, +46 (0) 10-452 95 49
About West Atlantic
The West Atlantic Group is one of the market leading providers of dedicated air freight services to European NMO's and air freight capacity to Global Integrators and Freight Forwarders. The Group has a well-established geographic network and operates an aircraft fleet of 48 customised aircraft, whereof a majority is wholly owned. West Atlantic was founded in 1962 and is headquartered in Gothenburg, Sweden. Operations are performed all over Europe and per December 31 2015 West Atlantic had 511 employees. For 2015 West Atlantic reported revenues of MSEK 1,410 and EBITDA of MSEK 178.
West Atlantic AB (publ) discloses the information contained in this interim report pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instrument Trading Act.
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