Tallink Grupp

Q1 results of the 2014 financial year

Tallinn, 2014-05-15 08:50 CEST (GLOBE NEWSWIRE) --

Q1 results of the 2014 financial year

In the first quarter (1 January- 31 March) of the 2014 financial year AS

Tallink Grupp and its subsidiaries? (the Group) carried 1.9 million passengers

which is 0.5% more compared to the same period last year. In the first quarter,

which is also low season, several of the Group?s vessels went through scheduled

maintenance works. As a one-time effect the results were affected by the cruise

ferry Silja Serenade going through extensive upgrade works. Volatility to the

first quarter was added by the fact that the Easter holiday, which is a very

popular travel period fell this time in to the second quarter of the 2014

financial year. Throughout the first quarter an increased amount of marketing

campaigns were conducted, including the extension of gift vouchers expiration

periods.

The cruise ferry Silja Serenade was out of operations in January and February

for a total of 40 days undergoing an extensive upgrade of the public areas. In

February the refreshed vessel Silja Serenade was launched on the

Stockholm-Helsinki route. The vessel has a 50% expanded shopping area and

includes upgrades to stores, the buffet and features a new restaurant. Several

of the public areas received a facelift including the refurbishment of cabins

and a refreshed SPA & Sauna area. The maintenance & upgrade works resulted

temporary in fewer voyages and hence lower passenger and cargo volumes on

Sweden-Finland routes.

In the first quarter the Estonia-Finland route continued to show positive

developments with revenue increasing nearly 5.2% driven by 4.5% growth in

passenger volume and 34.2% growth in cargo units. Due to the extended upgrade

works the Finland-Sweden routes experienced a 6.1% decline in passenger

volumes. Despite the decline in the passenger numbers the Group managed to

increase the passenger market share on the Finland-Sweden route in the first

quarter compared to the same period last year. The passenger volume in the

first quarter for the Group in total remained on the last year?s level.

The Group?s consolidated revenue in the first quarter was EUR 188.2 million,

being 1.2% or EUR 2.4 million less than a year ago. The average revenue per

passenger decreased by 4.4%. In the first quarter of the 2014 financial year

the Group?s gross profit amounted to EUR 11.8 million and EBITDA to EUR 4.5

million being respectively EUR 4.5 million and EUR 2.6 million less compared to

the same period last year. The decline in the Group?s results is related to

maintenance and upgrade works on Silja Serenade and the Easter falling into the

second quarter. In the first quarter there were 31% more service days where

ships were out of the operation when compared to the same period in the last

year.

The unaudited net loss for the first quarter of the 2014 financial year was EUR

23.4 million or EUR 0.03 per share compared to the net loss of EUR 17.5 million

or EUR 0.03 per share in the same period last year.

The total liquidity, cash and unused credit facilities at the end of the first

quarter were EUR 64.1 million providing a strong position for sustainable

operations. At the end of the first quarter 2014 the Group had EUR 62.6 million

in cash and equivalents and the total of unused credit lines were at EUR 1.5

million.

Q1 KEY FIGURES 2014 2013 Change

Jan-Mar Jan-Mar

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Revenue EUR million 188.2 190.6 -1.2%

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Gross profit EUR million 11.8 16.2 -27.4%

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Gross margin (%) 6.3% 8.5%

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EBITDA EUR million 4.5 7.0 -36.4%

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EBITDA margin (%) 2.4% 3.7%

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Net profit for the EUR million -23.4 -17.5 -33.4%

period

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Net profit margin (%) -12.4% -9.2%

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Depreciation and EUR million 19.7 17.8 10.4%

amortization

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Investments EUR million 14.1 3.4 319.8%

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Weighted average number of ordinary shares 669 882 040 669 882 040

outstanding

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Earnings per share EUR -0.03 -0.03 -33.4%

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Number of passengers 1 905 555 1 895 353 0.5%

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Number of cargo units 76 791 67 003 14.6%

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Average number of 6 867 6 756 1.6%

employees

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31.03.2014 31.12.2013

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Total assets EUR million 1 711.8 1 722.1 -0.6%

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Interest-bearing EUR million 811.5 794.3 2.2%

liabilities

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Net debt EUR million 748.9 722.3 3.7%

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Total equity EUR million 747.8 771.1 -3.0%

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Equity ratio (%) 43.7% 44.8%

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Net debt to EBITDA 4.9 4.6

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Number of ordinary 669 882 040 669 882 040 0%

shares outstanding1

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Shareholders? equity per EUR 1.12 1.15 -3.0%

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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) 01.01.2014- 01.01.2013-

31.03.2014 31.03.2013

\================================================================================

Revenue 188,206 190,583

Cost of sales -176,419 -174,339

Gross profit 11,787 16,244

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Marketing expenses -15,798 -16,133

Administrative expenses -11,389 -11,240

Other income 213 326

Other expenses -48 -12

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Result from operating activities -15,235 -10,815

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Finance income 3,316 2,604

Finance costs -11,445 -9,306

Profit/-loss before income tax -23,364 -17,517

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Income tax -10 -8

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Net profit/-loss for the period -23,374 -17,525

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Other comprehensive income/-expense

Items that may be reclassified to profit or loss

Exchange differences on translating foreign operations 59 9

Other comprehensive income/-expense for the period 59 9

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Total comprehensive income/-expense for the period -23,315 -17,516

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Earnings per share (in EUR per share)

- basic -0.035 -0.026

- diluted -0.035 -0.026

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS 31.03.2014 31.12.2013

\================================================================================

Current assets

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Cash and cash equivalents 62,568 72,012

Trade and other receivables 41,960 40,544

Prepayments 10,432 3,185

Derivatives 172 679

Inventories 30,155 33,457

Total current assets 145,287 149,877

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Non-current assets

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Investments in equity-accounted investees 262 262

Other financial assets 252 385

Deferred income tax assets 17,413 17,413

Investment property 300 300

Property, plant and equipment 1,491,547 1,495,895

Intangible assets 56,751 57,925

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Total non-current assets 1,566,525 1,572,180

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TOTAL ASSETS 1,711,812 1,722,057

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LIABILITIES AND EQUITY

\================================================================================

Current liabilities

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Interest bearing loans and borrowings 136,103 106,014

Trade and other payables 89,499 97,387

Deferred income 35,343 28,315

Derivatives 27,589 30,888

Total current liabilities 288,534 262,604

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Non-current liabilities

-----------------------

--------------------------------------------------------------------------------

Interest bearing loans and borrowings 675,390 688,327

Other liabilities 63 63

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Total non-current liabilities 675,453 688,390

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TOTAL LIABILITIES 963,987 950,994

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EQUITY

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Equity attributable to equity holders of the parent

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Share capital 404,290 404,290

Share premium 639 639

Reserves 70,247 70,111

Retained earnings 272,649 296,023

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Total equity attributable to equity holders of the 747,825 771,063

parent

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TOTAL EQUITY 747,825 771,063

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TOTAL LIABILITIES AND EQUITY 1,711,812 1,722,057

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CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2014 - 01.01.2013-

31.03.2014 31.03.2013

Cash flows from operating activities

Net profit/-loss for the period -23,374 -17,525

Adjustments 28,461 25,439

Changes in receivables and prepayments related to -8,512 -8,034

operating activities

Changes in inventories 3,302 2,348

Changes in liabilities related to operating -1,391 3,749

activities

Income tax paid -15 -22

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-1,529 5,955

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Cash flow used for investing activities

Purchase of property, plant and equipment and -14,121 -3,364

intangible assets

Proceeds from disposals of property, plant and 97 31

equipment

Interest received 4 13

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-14,020 -3,320

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

Redemption of loans -15,024 -19,166

Change in overdraft 30,003 42,736

Repayment of finance lease liabilities -70 -2

Interest paid -7,783 -6,890

Payments for settlement of derivatives -1,021 -1,123

Payment of transaction costs related to loans 0 -383

6,105 15,172

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TOTAL NET CASH FLOW -9,444 17,807

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Cash and cash equivalents:

- at the beginning of period 72,012 65,600

- increase (+) / decrease (-) -9,444 17,807

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Cash and cash equivalents at the end of period 62,568 83,407

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Harri Hanschmidt

Head of the Finance Department

AS Tallink Grupp

Sadama 5/7. 10111 Tallinn

Tel +372 640 8981

E-mail [email protected]

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Q1 results of the 2014 financial year

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