Tallink Grupp: Q1 results of the 2012 financial year

Tallinn, 2012-05-16 16:31 CEST (GLOBE NEWSWIRE) -- Q1 results of the 2012 financial year

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 2011 change Jan-Mar Jan-Mar -------------------------------------------------------------------------------- Continuing operations -------------------------------------------------------------------------------- Revenue from continuing EUR million 193.8 183.1 5.8% operations -------------------------------------------------------------------------------- Gross profit from continuing EUR million 18.8 20.8 -9.9% operations -------------------------------------------------------------------------------- Net profit from continuing EUR million -18.95 -14.0 -34.9% operations -------------------------------------------------------------------------------- Group total including the discontinued operations -------------------------------------------------------------------------------- Revenue EUR 193.8 183.1 5.8% million -------------------------------------------------------------------------------- Gross profit EUR 18.8 17.8 6.1% million -------------------------------------------------------------------------------- Gross margin (%) 9.7% 9.7% -------------------------------------------------------------------------------- EBITDA EUR 10.2 11.2 -9.2% million -------------------------------------------------------------------------------- EBITDA margin (%) 5.3% 6.1% -------------------------------------------------------------------------------- Net profit for the period EUR -18.95 -17.1 -10.5% million -------------------------------------------------------------------------------- Net profit margin (%) -9.8% -9.4% --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Depreciation and amortization EUR 17.8 17.9 0.6% million -------------------------------------------------------------------------------- Investments EUR 0.4 0.8 -43.7% million --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Weighted average number of ordinary shares 669 882 040 669 882 outstanding 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 1 764.9 1 799.5 -1.9% million -------------------------------------------------------------------------------- Interest-bearing liabilities EUR 935.9 959.6 -2.3% million -------------------------------------------------------------------------------- Net debt EUR 886.6 884.2 0.2% million -------------------------------------------------------------------------------- Total equity EUR 686.2 705.1 -2.9% million --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Equity ratio (%) 38.9% 39.2% -------------------------------------------------------------------------------- Net debt to EBITDA 5.5 5.4 --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Number of ordinary shares 669 882 040 669 882 0% outstanding1 040 -------------------------------------------------------------------------------- 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 686,197 705,091 parent -------------------------------------------------------------------------------- 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 7,573 4,183 activities Income tax paid -8 -11 -------------------------------------------------------------------------------- 8,487 4,605 -------------------------------------------------------------------------------- ------------------------------------------------------ Cash flow used for investing activities Purchase of property, plant and equipment and -431 -766 intangible assets Proceeds from disposals of property, plant and 0 49 equipment 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 --------------------------------------------------------------------------------

Janek Stalmeister Member of the Management Board, CFO

AS Tallink Grupp Tel [phone] E-mail [e-mail]

Harri Hanschmidt Head of Investor Relations

AS Tallink Grupp Sadama 5/7. 10111 Tallinn Tel [phone] E-mail [e-mail]

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