Tallinn, 2015-02-26 08:50 CET (GLOBE NEWSWIRE) -- 12 months unaudited results of the 2014 financial year
AS Tallink Grupp and its subsidiaries (the Group) carried a total of nearly 8.9 million passengers in the 2014 financial year which is 2.6% less than the the year before. The Group’s unaudited consolidated revenue was EUR 921.5 million which is 2.2% lower compared to the previous year. The unaudited gross profit was EUR 181.8 million, EBITDA EUR 150.6 million. Unaudited net profit amounted to EUR 27.3 million or EUR 0.04 per share, which is a 37.1% decrease compared to the previous year.
The 2014 revenue was affected by several actions and changes in the operations and market developments. Most noticeably the revenue from charters increased by 53.1% or EUR 16.3 million. This is a result of more vessels being in charter and is expected to continue showing a positive effect to the profitability in the forthcoming quarters. The ticket and cargo sales decreased by 7.5% and 2.4% respectively. Estonia-Finland route showed a slight decline with passenger’s numbers decreasing by 1.3%, however cargo units transported increased by 13.8% and the segment revenue increased by 1.4%. On the Finland-Sweden route the passenger’s volume decreased by 3.4%, cargo units transported decreased by 8.8% and the sales decreased by 5.6%. due to Silja Symphony and Silja Serenade being altogether 80 days in upgrade works and did not operate. The Latvia-Sweden route showed a decline with passenger’s numbers decreasing by 12.5%, cargo units transported decreased by 26.5%, passenger vehicles transported decreased by 15.0% and the sales decreased by 16.5%. 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 year there was increased pressure from competitors in the form of aggressive pricing and added capacity.
In the fourth quarter (1 October - 31 December) of the 2014 financial year the Group carried over 2.05 million passengers which is 4.5% less compared to the same period last year. The number of cargo units transported decreased by 1.2% and the number of passenger vehicles transported decreased by 1.7%. The Group’s consolidated revenue in the fourth quarter was EUR 224.1 million, being on the same level as in the last year. In the fourth quarter of the 2014 financial year the Group’s gross profit amounted to EUR 49.5 million and EBITDA to EUR 41.1 million being respectively 33.4% or EUR 12.4 million and 37.7% or EUR 11.2 million more compared to the same period last year. The unaudited net profit for the fourth quarter of the 2014 financial year was EUR 8.4 million or EUR 0.01 per share compared to the net profit of EUR 7.5 million or EUR 0.01 per share in the same period last year.
In the fourth quarter the Estonia-Finland route showed a 1.8% decline in passenger’s numbers, however cargo units transported increased by 8.2% and the segment revenue increased by 0.8%. The Finland-Sweden route showed a decline with passenger’s numbers decreasing by 3.1%, cargo units transported decreased by 8.9%, the segment revenue decreased by 3.8%. The results were affected by Silja Symphony being out of operations due to upgrade works for two weeks in October. Despite the slight decline in passenger numbers we maintained our market share on the Finland-Sweden route. The Latvia-Sweden route showed a decline with passenger’s numbers decreasing by 32.2%, cargo units transported decreased by 58.8%, passenger vehicles transported decreased by 36.9% and the segment revenue decreased by 35.1%. The results were affected by Romantika changing to Tallinn-Stockholm route, leaving Isabelle as the only operating vessel on the route. The 119.5% higher revenues from charters altogether EUR 16.2 million and lower cost had a positive effect to the fourth quarter result.
The Group was successful in lowering fuel cost in the fourth quarter by approximately EUR 9 million compared to the same period last year. This was a combined effect of reducing consumption through optimising current operations, by way of re-routings and charters and the drop in fuel global prices in the end of the 2014 financial year. The Group had a smooth transition switching to the low sulphur fuel in the end of the fourth quarter.
The unstable macro-economic situation in Europe has had a negative impact to the Group’s operations. The decline in the passenger volume from the Russian market has been visible throughout the year.
The Group successfully continued the deleveraging strategy and the net debt decreased by EUR 44 million to a total of EUR 678 million in the 2014 financial year.
The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 67.9 million providing a strong position for sustainable operations. At the end of the fourth quarter 2014 the Group had EUR 65.3 million in cash and equivalents and the total of unused credit lines were at EUR 2.6 million.
The 2014 financial year result did not meet the management’s expectations, however the fourth quarter result was strong and provides a good base for the forthcoming year. Due to increased competition, continuously weak Nordic economic environment and one-off effects the annual results for the 2014 financial year were weaker than expected. During the financial year several steps have been taken including charters, upgrades and re-routings with the goal to optimise operations. A positive effect to the profitability can be seen from the fourth quarter result. The management expects an improvement in the results for the 2015 financial year.
In management’s opinion, the Group’s financial position allows the Group to pay dividends. Management will propose to the shareholders’ general meeting a dividend distribution of EUR 0.02 per share, i.e. EUR 13,397,641 in aggregate.
Q4 KEY FIGURES |
2014 Oct-Dec |
2013 Oct-Dec |
Change | ||
Revenue | EUR million | 224.1 | 224.0 | 0.1% | |
Gross profit | EUR million | 49.5 | 37.1 | 33.4% | |
Gross margin (%) | 22.1% | 16.6% | |||
EBITDA | EUR million | 41.1 | 29.8 | 37.7% | |
EBITDA margin (%) | 18.3% | 13.3% | |||
Net profit for the period | EUR million | 8.4 | 7.5 | 11.5% | |
Net profit margin (%) | 3.7% | 3.4% | |||
Depreciation and amortization | EUR million | 20.9 | 18.6 | 12.0% | |
Investments | EUR million | 18.1 | 5.0 | 265.6% | |
Weighted average number of ordinary shares outstanding | 669 882 040 | 669 882 040 | |||
Earnings per share | EUR | 0.01 | 0.01 | 11.5% | |
Number of passengers | 2 051 410 | 2 148 204 | -4.5% | ||
Number of cargo units | 77 816 | 78 771 | -1.2% | ||
Average number of employees | 6 715 | 6 898 | -2.7% | ||
31.12.2014 | 30.09.2014 | ||||
Total assets | EUR million | 1 685.6 | 1 688.4 | -0.2% | |
Interest-bearing liabilities | EUR million | 743.4 | 770.9 | -3.6% | |
Net debt | EUR million | 678.1 | 704.8 | -3.8% | |
Total equity | EUR million | 778.3 | 770.1 | 1.1% | |
Equity ratio (%) | 46.2% | 45.6% | |||
Net debt to EBITDA | 4.5 | 5.1 | |||
Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0% | ||
Shareholders’ equity per share | EUR | 1.16 | 1.15 | 0.7% |
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) | 01.10.2014- | 01.10.2013- | 01.01.2014- | 01.01.2013- | |
31.12.2014 | 31.12.2013 | 31.12.2014 | 31.12.2013 | ||
Revenue | 224,141 | 223,982 | 921,466 | 941,983 | |
Cost of sales | -174,619 | -186,859 | -739,626 | -751,827 | |
Gross profit | 49,522 | 37,123 | 181,840 | 190,156 | |
Marketing expenses | -15,702 | -13,650 | -62,585 | -63,292 | |
Administrative expenses | -13,870 | -12,679 | -49,443 | -45,148 | |
Other income | 709 | 1,035 | 1,696 | 2,120 | |
Other expenses | -496 | -664 | -854 | -805 | |
Result from operating activities | 20,163 | 11,165 | 70,654 | 83,031 | |
Finance income | 4,623 | 5,757 | 11,760 | 21,547 | |
Finance costs | -19,059 | -14,538 | -52,443 | -57,503 | |
Share of profit/-loss from equity accounted investees | 24 | 17 | 24 | 17 | |
Profit/-loss before income tax | 5,751 | 2,401 | 29,995 | 47,092 | |
Income tax | 2,633 | 5,117 | -2,734 | -3,786 | |
Net profit/-loss for the period | 8,384 | 7,518 | 27,261 | 43,306 | |
Other comprehensive income/-expense | |||||
Items that may be reclassified to profit or loss | |||||
Exchange differences on translating foreign operations | 242 | 34 | 286 | 114 | |
Other comprehensive income/-expense for the period | 242 | 34 | 286 | 114 | |
Total comprehensive income/-expense for the period | 8,626 | 7,552 | 27,547 | 43,420 | |
Earnings per share (in EUR per share) | |||||
- basic | 0.01 | 0.01 | 0.04 | 0.06 | |
- diluted | 0.01 | 0.01 | 0.04 | 0.06 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
ASSETS | 31.12.2014 | 31.12.2013 | |
Current assets | |||
Cash and cash equivalents | 65,311 | 72,012 | |
Trade and other receivables | 38,210 | 40,544 | |
Prepayments | 5,448 | 3,185 | |
Derivatives | 0 | 679 | |
Inventories | 31,315 | 33,457 | |
Total current assets | 140,284 | 149,877 | |
Non-current assets | |||
Investments in equity-accounted investees | 286 | 262 | |
Other financial assets | 252 | 385 | |
Deferred income tax assets | 21,338 | 17,413 | |
Investment property | 300 | 300 | |
Property, plant and equipment | 1,467,964 | 1,495,895 | |
Intangible assets | 55,174 | 57,925 | |
Total non-current assets | 1,545,314 | 1,572,180 | |
TOTAL ASSETS | 1,685,598 | 1,722,057 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Interest bearing loans and borrowings | 149,850 | 106,014 | |
Trade and other payables | 92,536 | 97,387 | |
Deferred income | 29,408 | 28,315 | |
Derivatives | 41,982 | 30,888 | |
Total current liabilities | 313,776 | 262,604 | |
Non-current liabilities | |||
Interest bearing loans and borrowings | 593,532 | 688,327 | |
Other liabilities | 0 | 63 | |
Total non-current liabilities | 593,532 | 688,390 | |
TOTAL LIABILITIES | 907,308 | 950,994 | |
EQUITY | |||
Equity attributable to equity holders of the parent | |||
Share capital | 404,290 | 404,290 | |
Share premium | 639 | 639 | |
Reserves | 70,129 | 70,111 | |
Retained earnings | 303,232 | 296,023 | |
Total equity attributable to equity holders of the parent | 778,290 | 771,063 | |
TOTAL EQUITY | 778,290 | 771,063 | |
TOTAL LIABILITIES AND EQUITY | 1,685,598 | 1,722,057 |
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of euros) | 01.01.2014 - | 01.01.2013- | |
31.12.2014 | 31.12.2013 | ||
Cash flows from operating activities | |||
Net profit/-loss for the period | 27,261 | 43,306 | |
Adjustments | 124,329 | 118,619 | |
Changes in receivables and prepayments related to operating activities | -2,291 | 4,229 | |
Changes in inventories | 2,142 | -4,031 | |
Changes in liabilities related to operating activities | -803 | 6,649 | |
Income tax paid/repaid | 71 | -378 | |
150,709 | 168,394 | ||
Cash flow used for investing activities | |||
Purchase of property, plant and equipment and intangible assets | -49,148 | -43,291 | |
Proceeds from disposals of property, plant and equipment | 215 | 1,318 | |
Interest received | 140 | 114 | |
-48,793 | -41,859 | ||
Cash flow from (+)/ used for (-) financing activities | |||
Proceeds from loans | 0 | 24,000 | |
Redemption of loans | -89,842 | -198,126 | |
Change in overdraft | 43,993 | 18,456 | |
Proceeds from bonds | 0 | 115,487 | |
Repayment of finance lease liabilities | -75 | -96 | |
Interest paid | -33,270 | -32,439 | |
Payments for settlement of derivatives | -3,985 | -4,451 | |
Payment of transaction costs related to loans | 0 | -557 | |
Dividends paid | -20,096 | -33,494 | |
Income tax on dividends paid | -5,342 | -8,903 | |
-108,617 | -120,123 | ||
TOTAL NET CASH FLOW | -6,701 | 6,412 | |
Cash and cash equivalents: | |||
- at the beginning of period | 72,012 | 65,600 | |
- increase (+) / decrease (-) | -6,701 | 6,412 | |
Cash and cash equivalents at the end of period | 65,311 | 72,012 |
Harri Hanschmidt
Head of the Finance Department
AS Tallink Grupp
Sadama 5/7. 10111 Tallinn
Tel +372 640 8981
E-mail harri.hanschmidt@tallink.ee