Tallink Grupp: Q1 results of the 2013 financial year

Tallinn, 2013-05-14 08:49 CEST (GLOBE NEWSWIRE) -- Q1 results of the 2013 financial year

In the first quarter (1 January- 31 March) of the 2013 financial year AS Tallink Grupp and its subsidiaries' (the Group) results were impacted by operational events. In the first quarter, which is low season, several of the Group's vessels went through scheduled maintenance works resulting in fewer voyages and hence lower passenger and cargo volumes compared to the previous years when there have been typically less vessels out of service. In addition, the cruise ferries Silja Europa and Baltic Princess changed their operating routes resulting temporarily in fewer sailings due to the change. Accordingly, based on earlier decision the cruise ferry Baltic Princess was rerouted to Turku-Stockholm route in the beginning of February 2013 and the larger cruise ferry Silja Europa to Tallinn-Helsinki route from the end of January 2013. The change of vessels will improve cost efficiency which will have positive effect to the Group's result.

The Group carried 1.9 million passengers in the first quarter which is 4.5% less compared to the same period last year. The Group's consolidated revenue in the first quarter was EUR 190.6 million, being 1.7% or EUR 3.2 million less than a year ago. Through more effective dynamic pricing the average ticket revenue per passenger increased 11% in same period resulting in a 6% increase in total ticket revenue, despite the lower passenger volumes.

In the first quarter of 2013 financial year the Group's gross profit amounted to EUR 16.2 million and EBITDA to EUR 7.0 million being respectively EUR 2.6 million and EUR 3.2 million less compared to the same period last year. The decline in the Group's results is mainly related to scheduled maintenance works and vessels' route changes which in addition to fewer sailings and decreased traffic volume brought higher maintenance costs. The Group's vessels sailed 3.5% trips less compared to the first quarter of 2012. Switching the cruise ferries Silja Europa and Baltic Princess on their routes required nearly EUR 1 million in one off costs.

The unaudited net loss for the first quarter was EUR 17.7 million or EUR 0.03 per share compared to the net loss of EUR 19.0 million or EUR 0.03 per share in the same period last year.

In the first quarter positive development continued on the Latvia-Sweden route where revenue increased nearly 18% driven by 8% growth in passenger volume and increase in revenue per passenger.

In the first quarter the Group started to phase in the new version of internet booking system. Currently live on the Group's Finnish and Estonian websites the new online booking offers easier, faster and more convenient booking process.

At the end of the first quarter 2013 the Group had EUR 83.4 million in cash and equivalents and the total of unused credit lines were at EUR 7.3 million. The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 90.7 million providing a strong position for sustainable operations.

Q4 KEY FIGURES 2013 2012 Change Jan-Mar Jan-Mar ---------------------------------------------------------- Revenue EUR million 190.6 193.8 -1.7% -------------------------------------------------------------------------------- Gross profit EUR million 16.2 18.8 -13.7% -------------------------------------------------------------------------------- Gross margin (%) 8.5% 9.7% -------------------------------------------------------------------------------- EBITDA EUR million 7.0 10.2 -31.2% -------------------------------------------------------------------------------- EBITDA margin (%) 3.7% 5.3% -------------------------------------------------------------------------------- Net profit for the EUR million -17.5 -19.0 7.5% period -------------------------------------------------------------------------------- Net profit margin (%) -9.20% -9.78% --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Depreciation and EUR million 17.7 17.8 -0.4% amortization -------------------------------------------------------------------------------- Investments EUR million 3.4 0.4 680.5% --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Weighted average number of ordinary shares 669 882 040 669 882 040 outstanding -------------------------------------------------------------------------------- Earnings per share EUR -0.03 -0.03 7.5% --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Number of passengers 1 895 353 1 984 735 -4.5% -------------------------------------------------------------------------------- Number of cargo units 67 003 72 671 -7.8% -------------------------------------------------------------------------------- Average number of 6 756 6 702 0.8% employees -------------------------------------------------------------------------------- ----------------------------------------------- -------

-------------------------- 31.03.2013 31.12.2012 -------------------------------------------------------------------------------- Total assets EUR million 1 750.1 1 741.8 0.5% -------------------------------------------------------------------------------- Interest-bearing EUR million 864.3 840.4 2.8% liabilities -------------------------------------------------------------------------------- Net debt EUR million 780.9 774.8 0.8% -------------------------------------------------------------------------------- Total equity EUR million 743.4 760.8 -2.3% --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Equity ratio (%) 42.5% 43.7% -------------------------------------------------------------------------------- Net debt to EBITDA 4.8 4.7 --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- Number of ordinary 669 882 040 669 882 040 0% shares outstanding1 -------------------------------------------------------------------------------- Shareholders' equity per EUR 1.11 1.14 -2.3% share --------------------------------------------------------------------------------

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) 01.01.2013- 01.01.2012- 31.03.2013 31.03.2012 ================================================================================

Revenue 190,583 193,794 Cost of sales -174,339 -174,980 Gross profit 16,244 18,814 --------------------------------------------------------------------------------

Marketing expenses -16,133 -15,772 Administrative expenses -11,240 -10,729 Other income 326 156 Other expenses -12 -20 -------------------------------------------------------------------------------- Results from operating activities -10,815 -7,551 -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

Finance income 2,604 72 Finance costs -9,306 -11,472

Profit/-loss before income tax -17,517 -18,951 --------------------------------------------------------------------------------

Income tax -8 0

-------------------------------------------------------------------------------- Net profit/-loss for the period -17,525 -18,951 -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

Other comprehensive income/-expense Exchange differences on translating foreign operations 9 57 Other comprehensive income/-expense for the period 9 57 -------------------------------------------------------------------------------- Total comprehensive income/-expense for the period -17,516 -18,894 --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit/-loss attributable to: Equity holders of the parent -17,525 -18,951

-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total comprehensive income/-expense attributable to: Equity holders of the parent -17,516 -18,894

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 31.03.2013 31.12.2012 ================================================================================

Current assets -------------------------------------------------------------------------------- Cash and cash equivalents 83,407 65,600 Trade and other receivables 39,599 42,555 Prepayments 16,176 5,151 Inventories 27,078 29,426 Total current assets 166,260 142,732 --------------------------------------------------------------------------------

Non-current assets -------------------------------------------------------------------------------- Investments in equity-accounted investees 245 245 Other financial assets 291 296 Deferred income tax assets 12,264 12,264 Investment property 300 300 Property, plant and equipment 1,512,200 1,526,995 Intangible assets 58,536 58,999 --------------------------------------------------------- Total non-current assets 1,583,836 1,599,099 --------------------------------------------------------------------------------

--------------------------------------------------------- TOTAL ASSETS 1,750,096 1,741,831 --------------------------------------------------------------------------------

LIABILITIES AND EQUITY ================================================================================

Current liabilities -------------------------------------------------------------------------------- Interest bearing loans and borrowings 146,343 103,685 Trade and other payables 96,081 92,988 Deferred income 26,702 25,458 Derivatives 19,580 22,102 Total current liabilities 288,706 244,233 --------------------------------------------------------------------------------

Non-current liabilities ----------------------- -------------------------------------------------------------------------------- Interest bearing loans and borrowings 717,926 736,699 Other liabilities 71 69 -------------------------------------------------------------------------------- Total non-current liabilities 717,997 736,768 -------------------------------------------------------------------------------- TOTAL LIABILITIES 1,006,703 981,001 --------------------------------------------------------------------------------

EQUITY -------------------------------------------------------------------------------- Equity attributable to equity holders of the parent -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Share capital 404,290 404,290 Share premium 639 639 Reserves 69,179 69,091 Retained earnings 269,285 286,810 -------------------------------------------------------------------------------- Total equity attributable to equity holders of the 743,393 760,830 parent -------------------------------------------------------------------------------- TOTAL EQUITY 743,393 760,830 --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- TOTAL LIABILITIES AND EQUITY 1,750,096 1,741,831 --------------------------------------------------------------------------------

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2013 - 01.01.2012- 31.03.2013 31.03.2012 Cash flows from operating activities Net profit/-loss for the period -17,525 -18,951 Adjustments 25,439 28,618 Changes in assets related to operating activities -5,686 -8,745 Changes in liabilities related to operating 3,749 7,573 activities Income tax paid -22 -8 -------------------------------------------------------------------------------- 5,955 8,487 -------------------------------------------------------------------------------- ------------------------------------------------------ Cash flow used for investing activities Purchase of property, plant and equipment and -3,364 -431 intangible assets Proceeds from disposals of property, plant and 31 0 equipment Payments for settlement of derivatives -1,123 -839 Interest received 13 74 -------------------------------------------------------------------------------- -4,443 -1,196 -------------------------------------------------------------------------------- ------------------------------------------------------ Cash flow from (+)/ used for (-) financing activities Payment of transaction costs related to loans -383 0 Change in overdraft 42,736 0 Redemption of loans -19,166 -24,383 Repayment of finance lease liabilities -2 -22 Interest paid -6,890 -9,011 16,295 -33,416 --------------------------------------------------------------------------------

-------------------------------------------------------------------------------- TOTAL NET CASH FLOW 17,807 -26,125 -------------------------------------------------------------------------------- ------------------------------------------------------ ------------

Cash and cash equivalents: - at the beginning of period 65,600 75,421 - increase (+) / decrease (-) 17,807 -26,125 -------------------------------------------------------------------------------- Cash and cash equivalents at end of period 83,407 49,296 --------------------------------------------------------------------------------

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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