Quarterly Report • May 15, 2014
Quarterly Report
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Delticom is Europe's leading online tyre retailer. Founded in 1999, the Hanover-based company has more than 100 online shops in 42 countries, among others ReifenDirekt, www.mytyres.co.uk in UK and www.123pneus.fr in France, as well as the Tirendo shops which enjoy a high level of recognition, not least due to its brand ambassador, Sebastian Vettel. Delticom offers a wide range of products for its private and business customers: more than 25,000 models from over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels, motor oil, replacement parts and accessories.
Customers enjoy all the advantages of modern E-Commerce: convenience in order placing, quick, efficient delivery, clear cost information and, last but not least, low prices. The products are delivered in two business days to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 38,000 service partners (8,800 in Germany alone) for professional fitting directly on to the customer's vehicle at a reasonable price.
| Key Figures | 01.01.2014 | 01.01.2013 | –/+ | |
|---|---|---|---|---|
| – 31.03.2014 | – 31.03.2013 | (%, %p) | ||
| Revenues | € million | 94.3 | 81.3 | +16.0 |
| Total income | € million | 97.3 | 82.8 | +17.5 |
| 1 Gross margin |
% | 24.5 | 24.9 | –0.4 |
| Gross profit | € million | 26.1 | 21.8 | +19.8 |
| EBIT | € million | 0.3 | 2.5 | –88.4 |
| 2 EBIT margin |
% | 0.3 | 3.1 | –2.8 |
| Net income | € million | 0.0 | 1.7 | –98.8 |
| 3 Earnings per share |
€ | 0.00 | 0.14 | –98.8 |
| Total assets | € million | 221.5 | 172.3 | +28.5 |
| Inventories | € million | 94.7 | 86.9 | +8.9 |
| 4 Investments |
€ million | 0.2 | 0.2 | +34.0 |
| 5 Capital Employed |
€ million | 73.1 | 67.2 | +8.9 |
| 6 Return on Capital Employed |
% | 0.4 | 3.8 | –3.4 |
| Equity | € million | 51.7 | 64.4 | –19.7 |
| Equity ratio | % | 23.3 | 37.4 | –14.0 |
| Return on equity | % | 0.0 | 2.6 | –2.6 |
| 7 Liquidity position |
€ million | 20.9 | 44.3 | –52.7 |
| Operating cash flow | € million | 10.7 | –1.4 | |
| 8 Free cash flow |
€ million | 10.5 | –1.5 | |
(1) Gross profit ex other operating income in % of revenues
(2) Consolidated earnings before interest and taxes (EBIT) to revenues
(3) Undiluted
(4) Investments in tangible and intangible assets
(5) Capital Employed = total assets – current liabilities
(6) ROCE = EBIT / Capital Employed
(7) Liquidity position = cash and cash equivalents + liquidity reserve
(8) Free cash flow = Operating cash flow – Cashflow from investing activities
Significant events after the reporting date
Tirendo
On 16.09.2013 Delticom acquired all shares in the Berlin-based online tyre retailer Tirendo Holding GmbH and its subsidiaries. Tirendo Holding GmbH and Tirendo Deutschland GmbH (both companies hereinafter collectively referred to as Tirendo) are fully consolidated in the Delticom Group from the date of acquisition (16.09.2013).
| Revenues |
|---|
| ---------- |
Group Delticom, Europe's leading online tyre retailer, generates the bulk of its revenues through sales of replacement tyres for cars, motorcycles, trucks and industrial vehicles.
In Q1-14 the company recognised revenues of €-94.3-million, an increase of 16.0-% after €-81.3-million in the prior-year period.
Winter tyre business in general represents only a small proportion of total replacement sales in Q1.
Unlike in 2013, spring-like temperatures in March prompted numerous drivers to switch to summer tyres even before Easter. The summer tyre business was therefore well above the previous year's level. The chart Revenues trend summarises the development of the quarterly revenues.
quarterly revenues in € million
E-Commerce Revenues in the E-Commerce division with its 137 online shops were up yearon-year by 18.5-%, from €-77.5-million to €-91.9-million. This includes the generated revenues of Tirendo of €-8.3-million (Q1-13: € 3.6 million, +131.2-%). The share of divisional revenues amounted to 97.4-%, compared to 95.4-% in the previous year.
Tirendo effect The following table shows a pro forma income statement for Q1-13 to reflect a Tirendo takeover already having occurred as of 1 January 2013.
| Delticom Group Q1 |
Delticom Group Q1 |
||||
|---|---|---|---|---|---|
| in € thousand | 14 | % | +% | 13 | % |
| Revenues | 94,283 100.0 | 11.1 | 84,878 100.0 | ||
| Cost of goods sold | –71,199 | –75.5 | 11.0 | –64,150 | –75.6 |
| Gross profit | 23,084 | 24.5 | 11.4 | 20,728 | 24.4 |
| Other operating income | 2,992 | 3.2 | 51.6 | 1,973 | 2.3 |
| Personal expenses | –3,636 | –3.9 | 12.5 | –3,231 | –3.8 |
| Other operating expenses | –20,062 | –21.3 | 7.7 | –18,623 | –21.9 |
| there of advertising costs | –4,785 | –5.1 | 17.8 | –4,061 | –4.8 |
| EBITDA | 2,378 | 2.5 180.9 | 846 | 1.0 | |
| Depreciation | –2,083 | –2.2 173.9 | –761 | –0.9 | |
| EBIT | 294 | 0.3 243.6 | 86 | 0.1 |
The combined revenues of Delticom and Tirendo in Q1-14 amounted to €-94.3-million, after € 84.9 million in Q1-13 (+11.1-%). Revenues in the core E-Commerce segment of €-91.9-million exceeded the aggregated prior year value of € 81.1 million by 13.3-%.
Customer numbers In Q1-14 the company was able to acquire a total of 210-thousand new customers (Q1-13: 182-thousand, Delticom and Tirendo accumulated, +15.5-%). This figure includes the 24 thousand new customers acquired by Tirendo in the reporting period. Customers who purchased for the first time at both Delticom and Tirendo and those quarterly new customers of Tirendo who purchased from Delticom before were offset. During the same period 172-thousand existing customers (Q1-13: 137-thousand, +24.8-%) made repeat purchases at Delticom. As Tirendo is a young company, the number of repeat buyers is comparatively low. As a consequence, we have not yet included these in the calculation for Q1-14.
Regional split The group offers its product range in 42 countries. Revenues in EU countries totalled €-74.1-million (+19.3-%). Across all non-EU countries the revenue contribution for Q1-14 was €-20.2-million (+5.3-%).
| Revenues by region | ||
|---|---|---|
| in € thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q114 | % | +% | Q113 | % | +% | Q112 | % | |
| Revenues | 94,283 | 100.0 | 16.0 | 81,275 | 100.0 | –4.9 | 85,484 | 100.0 |
| Regions | ||||||||
| EU | 74,121 | 78.6 | 19.3 | 62,121 | 76.4 | –3.6 | 64,471 | 75.4 |
| Rest | 20,163 | 21.4 | 5.3 | 19,155 | 23.6 | –8.8 | 21,013 | 24.6 |
The personnel expenses ratio in the first quarter came to 3.9-% (staff expenditures as percentage of revenues, Q1-13: 2.8-%).
of Tirendo. Q1-14 marketing spent with 5.1-% of revenues was higher than last year's 3.1-%.
Depreciation Depreciation for Q1-14 rose from €-0.7-million to €-2.1-million. Main reason for this increase is the scheduled depreciation of intangible assets totalling €-17.5-million, identified as part of the purchase price allocation.
Tirendo The following table shows the Q1-14 key income statement positions of Tirendo and the development against previous year. With this simulation Tirendo is presented as if they would take care for delivery themselves, like Delticom. In this case, the transportation costs has to be considered in the other operating expenses. With this calculation the COGS are reduced by the transportation costs. The intent of this simulation is to adapt the P&L of Tirendo to the P&L of old Delticom group.
| Only Tiren | Only Tiren- | ||||
|---|---|---|---|---|---|
| in € thousand | do Q1 14 | % | +% do Q1 13 | % | |
| Revenues | 8,328 100.0 131.2 | 3,603 100.0 | |||
| Cost of goods sold | –6,780 | –81.4 119.1 | –3,095 | –85.9 | |
| Gross profit | 1,548 | 18.6 205.0 | 508 | 14.1 | |
| Other operating income | 379 | 4.6 | –12.8 | 435 | 12.1 |
| Personal expenses | –1,330 | –16.0 | 37.2 | –969 | –26.9 |
| Other operating expenses | –3,355 | –40.3 | 43.4 | –2,340 | –65.0 |
| there of advertising costs | –2,047 | –24.6 | 29.7 | –1,578 | –43.8 |
| EBITDA | –2,758 | –33.1 | –16.5 | –2,367 | –65.7 |
| Depreciation | –524 | –6.3 502.5 | –87 | –2.4 | |
| EBIT | –3,282 | –39.4 | –33.8 | –2,454 | –68.1 |
The following table illustrates the profit and loss statement of old Delticom group for Q1-14. Based on the Delticom goup P&L statement, the line items of the simulated Tirendo P&L were substracted.
| Delticom | Delticom | |||
|---|---|---|---|---|
| Group with | Group with | |||
| out Tirendo | ||||
| Q1 14 | % | +% | Q1 13 | % |
| 5.8 | ||||
| –64,419 | –74.9 | 5.5 | –61,055 | –75.1 |
| 21,536 | 25.1 | 6.5 | 20,220 | 24.9 |
| 2,613 | 3.0 | 69.9 | 1,538 | 1.9 |
| –2,307 | –2.7 | 2.0 | –2,262 | –2.8 |
| –16,707 | –19.4 | 2.6 | –16,283 | –20.0 |
| –2,738 | –3.2 | 10.3 | –2,483 | –3.1 |
| 5,135 | 6.0 | 59.8 | 3,213 | 4.0 |
| –1,559 | –674 | –0.8 | ||
| 3,576 | 4.2 | 40.8 | 2,539 | 3.1 |
| 85,955 100.0 | –1.8 131.5 | out Tirendo 81,275 100.0 |
In the reporting period, old Delticom group achieved revenues of €-86.0-million, after €-81.3-million the previous year (+5.8-%). EBIT amounted to €-3.6-million (Q1-13: €-2.5-million, +40.8-%). This equates to an EBIT margin of 4.2-% (Q1-13: 3.1-%).
Gross margin The gross margin for the first quarter was set to 24.5-%, after 24.9-% in Q1-13.
Other operating income Other operating income for the first quarter was €-3.0-million (Q1-13: €-1.5-million), thereof gains from exchange rate differences to the order of €-0.6-million (Q1-13: €-1.1-million). FX losses are accounted for in the other operating expenses. In Q1-14 the FX losses amounted to €-0.4-million (Q1-13: €-0.8-million). In the reporting period, the balance from FX gains and losses was €-0.2-million (Q1-13: €-0.3-million).
EBIT The chart EBIT shows the preceding quarters.
quarterly, in € million
Q1-14 earnings before interest and taxes (EBIT) contracted by 88.4-% to €-0.3-million (Q1-13: €-2.5-million). This translates into an EBIT margin of 0.3-% (EBIT in percent of revenues, Q1-13: 3.1-%).
| Financial income | Financial income for the first three months amounted to €-8-thousand (Q1-13: €-13-thousand). Financial expenses were €-271-thousand (Q1-13: €-20-thousand). The financial result totalled €-–263-thousand (Q1-13: €-–7-thousand). |
|---|---|
| Income taxes | In Q1-14 the expenditure for income taxes was €-10.5-thousand (Q1-13: €-0.9-million). This equates to a tax rate of 33.9-% (Q1-13: 33.8-%). |
| Net income | Consolidated net income shrank from €-1.7-million by 98.8-% to €-20.4-thousand. |
The table Abridged P+L statement summarises key income and expense items from multiple years' profit and loss statements.
in € thousand
| Q114 | % | +% | Q113 | % | +% | Q112 | % | |
|---|---|---|---|---|---|---|---|---|
| Revenues | 94,283 100.0 | 16.0 | 81,275 100.0 | –4.9 | 85,484 100.0 | |||
| Other operating income | 2,992 | 3.2 | 94.5 | 1,538 | 1.9 122.6 | 691 | 0.8 | |
| Total operating income | 97,276 103.2 | 17.5 | 82,814 101.9 | –3.9 | 86,175 100.8 | |||
| Cost of goods sold | –71,199 | –75.5 | 16.6 | –61,055 | –75.1 | –3.7 | –63,427 | –74.2 |
| Gross profit | 26,076 | 27.7 | 19.8 | 21,758 | 26.8 | –4.4 | 22,748 | 26.6 |
| Personnel expenses | –3,636 | –3.9 | 60.8 | –2,262 | –2.8 | 2.8 | –2,201 | –2.6 |
| Other operating expenses | –20,062 | –21.3 | 23.2 | –16,283 | –20.0 | –1.0 | –16,447 | –19.2 |
| EBITDA | 2,378 | 2.5 | –26.0 | 3,213 | 4.0 | –21.6 | 4,100 | 4.8 |
| Depreciation | –2,083 | –2.2 209.3 | –674 | –0.8 | 0.3 | –672 | –0.8 | |
| EBIT | 294 | 0.3 | –88.4 | 2,539 | 3.1 | –25.9 | 3,429 | 4.0 |
| Net financial result | –263 | –0.3 3830.3 | –7 | 0.0 | –81.9 | –37 | 0.0 | |
| EBT | 31 | 0.0 | –98.8 | 2,532 | 3.1 | –25.3 | 3,392 | 4.0 |
| Income taxes | –10 | 0.0 | –98.8 | –856 | –1.1 | –20.2 | –1,073 | –1.3 |
| Consolidated net income | 20 | 0.0 | –98.8 | 1,676 | 2.1 | –27.7 | 2,319 | 2.7 |
| Inventories | Among the current assets, inventories is the biggest line item. Since the beginning of the year stock grew by €-21.8-million or 29.9-% to €-94.7-million (31.12.2013: €-72.8-million). This corresponds to a share of 42.7-% of total assets (31.12.2013: 41.1-%, 31.03.2013: 50.4-%). |
|---|---|
| Receivables | Trade receivables usually follow the seasons, but reporting date effects are often unavoidable. At the end of the quarter, the accounts receivable amounted to €-20.2-million (31.12.2013: €-11.3-million, 31.03.2013: €-13.3-million). |
| Payables | In the wake of this inventory build-up, the accounts payable increased from an opening balance of €-74.7-million by 52.7-% to €-114.1-million. |
As of 31.03.2014 the balance sheet total amounted to €-221.5-million (31.12.2013: €-177.0-million). Table Abridged balance sheet illustrates the low capital intensity of the business model.
| in € thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.03.14 | % | +% | 31.12.13 | % | +% | 31.12.12 | % | |
| Assets | ||||||||
| Non-current assets | 65,499 | 29.6 | –1.8 | 66,698 | 37.7 333.4 | 15,391 | 9.8 | |
| Fixed assets | 62,496 | 28.2 | –2.9 | 64,368 | 36.4 342.7 | 14,540 | 9.3 | |
| Other non-current assets | 3,003 | 1.4 | 28.8 | 2,330 | 1.3 173.7 | 852 | 0.5 | |
| Current assets | 155,984 | 70.4 | 41.4 | 110,322 | 62.3 –21.7 | 140,982 | 90.2 | |
| Inventories | 94,652 | 42.7 | 29.9 | 72,841 | 41.1 | –1.7 | 74,107 | 47.4 |
| Receivables | 40,385 | 18.2 | 54.4 | 26,158 | 14.8 | 26.3 | 20,707 | 13.2 |
| Liquidity | 20,947 | 9.5 | 85.0 | 11,323 | 6.4 –75.5 | 46,168 | 29.5 | |
| Securities | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 | ||
| Cash and cash equivalents | 20,947 | 9.5 | 85.0 | 11,323 | 6.4 –75.5 | 46,168 | 29.5 | |
| Assets | 221,482 100.0 | 25.1 | 177,020 100.0 | 13.2 | 156,374 100.0 | |||
| Equity and Liabilities | ||||||||
| Long-term funds | 73,120 | 33.0 | 13.1 | 64,635 | 36.5 | –1.4 | 65,560 | 41.9 |
| Equity | 51,691 | 23.3 | 0.0 | 51,679 | 29.2 –17.5 | 62,636 | 40.1 | |
| Long-term debt | 21,429 | 9.7 | 65.4 | 12,957 | 7.3 343.2 | 2,924 | 1.9 | |
| Provisions | 262 | 0.1 | 3.9 | 252 | 0.1 | 64.2 | 154 | 0.1 |
| Liabilities | 21,167 | 9.6 | 66.6 | 12,704 | 7.2 358.6 | 2,770 | 1.8 | |
| Short-term debt | 148,363 | 67.0 | 32.0 | 112,385 | 63.5 | 23.8 | 90,814 | 58.1 |
| Provisions | 1,974 | 0.9 | –2.7 | 2,028 | 1.1 | –6.8 | 2,177 | 1.4 |
| Liabilities | 146,388 | 66.1 | 32.7 | 110,357 | 62.3 | 24.5 | 88,637 | 56.7 |
Liquidity position Liquidity (cash and cash equivalents plus liquidity reserve) as of 31.03.2014 totalled €-20.9-million (31.12.2013: €-11.3-million, 31.03.2013: €-44.3-million). The company's net cash position amounted to €-8.7-million (liquidity less liabilities from current accounts, 31.03.2013: €-43.3-million).
Based on the cash flow, the chart Liquidity Bridge illustrates how the liquidity position changed in the trailing 12 months.
Operating cash flow Due to the positive development in net working capital and higher depreciations, the Q1-14 cash flow from ordinary business activities (operating cashflow) of €-10.7-million was better than in the comparison period (Q1-13: €-–1.4-million). Investing activities In the first quarter, Delticom invested €-0.2-million into property, plant and
equipment (Q1-13: €-0.1-million). Q1-14 cash flow from investing activities amounted to just €-–0.2-million (Q1-13: €-–0.1-million).
Financing activities Due to repayment of loans, the cash flow from financing activities amounted to €-–0.9-million in the reporting period (Q1-13: €-–0.4-million).
Legal structure The following section lists the subsidiaries that are fully consolidated in the consolidated financial statements as of 31.03.2014:
Wholesale Tire and Automotive Inc., Benicia (California, USA)
Tirendo Holding GmbH, Berlin (Germany)
An overview of all not-consolidated subsidiaries can be found in the notes.
Last year, the summer tyre business at the end of the first quarter was comparatively weak due to the cold weather conditions and the effect of Easter. Only from mid-April did the tyre changing business in Germany benefit from the catchup effect.
The development in the current year is different: At the end of March, demand was much higher than in the previous year. As of the end of the first quarter, the E-Commerce order volume of € 98.7 million exceeded the prior year base of € 82.7 million (Delticom and Tirendo accumulated) by 19.3-%. However, some of the orders received at the end of March were only delivered at the beginning of the second quarter.
Demand outside Germany will be decisive for the further development of business in the second quarter.
Dividend The Annual General Meeting on 29.04.2014 has decided on a dividend of €-0.50 per share- a decrease of 73.7-% of the previous year's dividend of €-1.90 per share.
As a company that operates internationally, Delticom is exposed to varying types of risk. In order to be able to identify, evaluate and respond to such risks in a timely fashion, Delticom put in place a risk management system early on. The system is based on corporate guidelines for the early risk detection and risk management.
An outline of the risk management process is presented in the Annual Report for fiscal year 2013 on pages 40ff, together with a list of key individual risks. Compared to the Annual Report 2013, the risk situation has not changed materially. Individual risks endangering the company do not exist, and considered together, the aggregate risk does not pose any danger to Delticom's going concern.
Economic environment Although growth in emerging economies has subsided somewhat, the global economy continues to stabilise thanks to the major national economies.
Experts expect the economic recovery in the eurozone to continue in 2014. The economies of the Southern European peripheral countries are also improving gradually. However, high unemployment and weak domestic demand continue to pose problems in many countries. The low level of inflation in the eurozone is also fuelling deflation fears.
Tyre retail Unlike in 2013, the tyre trade was boosted by the early start to the summer business at the beginning of the year. The sales increase generated in the first quarter, however, is related to the extremely weak basis in the previous year. Weather-induced shifts are also fairly common.
Only the next few months will show to what extent the forecasts of individual market experts regarding a slight increase in the European replacement tyre business will materialise. As in the previous years, the development for the full year will be largely determined by the winter business.
Guidance unchanged Even if market and weather conditions do not turn out better than in the previous year, we anticipate a revenues increase of 10-% for the current financial year. In terms of overall earnings before interest, tax, depreciation and amortisation (EBITDA), we aim to be at least on par with the financial year 2013.
| 01.01.2014 | 01.01.2013 | |
|---|---|---|
| in € thousand – 31.03.2014 |
– 31.03.2013 | |
| Revenues 94,283 |
81,275 | |
| Other operating income | 2,992 | 1,538 |
| Total operating income 97,276 |
82,814 | |
| Cost of goods sold –71,199 |
–61,055 | |
| Gross profit 26,076 |
21,758 | |
| Personnel expenses | –3,636 | –2,262 |
| Depreciation of intangible assets and property, plant and equipment | –2,083 | –674 |
| Other operating expenses –20,062 |
–16,283 | |
| Earnings before interest and taxes (EBIT) | 294 | 2,539 |
| Financial expenses | –271 | –20 |
| Financial income | 8 | 13 |
| Net financial result | –263 | –7 |
| Earnings before taxes (EBT) | 31 | 2,532 |
| Income taxes | –10 | –856 |
| Consolidated net income | 20 | 1,676 |
| Thereof allocable to: | ||
| Shareholders of Delticom AG | 20 | 1,676 |
| Earnings per share (basic) | 0.00 | 0.14 |
| Earnings per share (diluted) | 0.00 | 0.14 |
| 01.01.2014 | 01.01.2013 | |
|---|---|---|
| in € thousand | – 31.03.2014 | – 31.03.2013 |
| Consolidated Net Income | 20 | 1,676 |
| Changes in the financial year recorded directly in equity | ||
| Income and expense that will not be reclassified to the statement of income at a later date | ||
| Changes in currency translation | –1 | 34 |
| Income and expense that will be reclassified to the statement of income at a later date | ||
| Net Investment Hedge Reserve | ||
| Changes in current value recorded directly in equity | –11 | 28 |
| Deferred taxes relating to Net Investment Hedge Reserve | 3 | –9 |
| Other comprehensive income for the period | –8 | 53 |
| Total comprehensive income for the period | 12 | 1,729 |
| in € thousand | 31.03.2014 | 31.12.2013 |
|---|---|---|
| Non-current assets | 65,499 | 66,698 |
| Intangible assets | 51,384 | 52,826 |
| Property, plant and equipment | 10,279 | 10,708 |
| Financial assets | 833 | 833 |
| Deferred taxes | 2,551 | 1,867 |
| Other receivables | 452 | 463 |
| Current assets | 155,984 | 110,322 |
| Inventories | 94,652 | 72,841 |
| Accounts receivable | 20,183 | 11,260 |
| Other current assets | 19,105 | 12,594 |
| Income tax receivables | 1,096 | 2,305 |
| Cash and cash equivalents | 20,947 | 11,323 |
| Assets | 221,482 | 177,020 |
| in € thousand | 31.03.2014 | 31.12.2013 |
|---|---|---|
| Equity | 51,691 | 51,679 |
| Subscribed capital | 11,859 | 11,859 |
| Share premium | 24,446 | 24,446 |
| Other components of equity | –158 | –150 |
| Retained earnings | 200 | 200 |
| Net retained profits | 15,344 | 15,324 |
| Liabilities | 169,791 | 125,341 |
| Non-current liabilities | 21,429 | 12,957 |
| Long-term borrowings | 19,567 | 11,038 |
| Non-current provisions | 262 | 252 |
| Deferred tax liabilities | 1,600 | 1,667 |
| Current liabilities | 148,363 | 112,385 |
| Provisions for taxes | 427 | 182 |
| Other current provisions | 1,547 | 1,846 |
| Accounts payable | 114,096 | 74,703 |
| Short-term borrowings | 12,235 | 21,659 |
| Other current liabilities | 20,057 | 13,994 |
| Shareholders' equity and liabilities | 221,482 | 177,020 |
| 01.01.2014 | 01.01.2013 | |
|---|---|---|
| in € thousand | – 31.03.2014 | – 31.03.2013 |
| Earnings before interest and taxes (EBIT) | 294 | 2,539 |
| Depreciation of intangible assets and property, plant and equipment | 2,083 | 674 |
| Changes in other provisions | –289 | –169 |
| Net gain on the disposal of assets | 0 | –41 |
| Changes in inventories | –21,811 | –12,802 |
| Changes in receivables and other assets not allocated to | ||
| investing or financing activity | –15,423 | –5,184 |
| Changes in payables and other liabilities not allocated to | ||
| investing or financing activity | 45,423 | 14,515 |
| Interest received | 8 | 11 |
| Interest paid | –244 | –29 |
| Income tax paid | 692 | –920 |
| Cash flow from operating activities | 10,733 | –1,406 |
| Proceeds from the disposal of property, plant and equipment | 0 | 57 |
| Payments for investments in property, plant and equipment | –208 | –135 |
| Payments for investments in intangible assets | –4 | –17 |
| Payments for investments in financial assets | 0 | –5 |
| Cash flow from investing activities | –212 | –100 |
| Cash inflow of financial liabilities | 0 | 65 |
| Cash outflow of financial liabilities | –896 | –450 |
| Cash flow from financing activities | –896 | –385 |
| Changes in cash and cash equivalents due to currency translation | –1 | 34 |
| Cash and cash equivalents at the start of the period | 11,323 | 46,168 |
| Changes in cash and cash equivalents | 9,624 | –1,857 |
| Cash and cash equivalents - end of period | 20,947 | 44,311 |
| 01.01.2014 | 01.01.2013 | |
|---|---|---|
| in € thousand | – 31.03.2014 | – 31.03.2013 |
| Liquidity – start of period | 11,323 | 46,168 |
| Changes in cash and cash equivalents | 9,624 | –1,857 |
| Liquidity – end of period | 20,947 | 44,311 |
| Net Cash – start of period | –21,374 | 43,013 |
| Changes in cash and cash equivalents | 9,624 | –1,857 |
| Changes in financial liabilities | 896 | 385 |
| Net Cash – end of period | –10,854 | 41,541 |
| Net cash refer to short term financial liabilities: | ||
| Net Cash – start of period | –10,337 | 45,263 |
| Changes in cash and cash equivalents | 9,624 | –1,857 |
| Changes in short term financial liabilities | 9,425 | –65 |
| Net Cash – end of period | 8,712 | 43,341 |
| Net cash refer to long term financial liabilities: | ||
| Net Cash – start of period | 285 | 43,918 |
| Changes in cash and cash equivalents | 9,624 | –1,857 |
| Changes in long term financial liabilities | –8,529 | 450 |
| Net Cash – end of period | 1,380 | 42,511 |
| Accumulated profits / losses | ||||||||
|---|---|---|---|---|---|---|---|---|
| Net Invest | ||||||||
| Sub | Reserve from | ment | Net | |||||
| scribed | Share | currency | Hedge | Retained | retained | Total | ||
| in € thousand | capital | premium | translation | Reserve | earnings | profits | total | equity |
| as of 1 January 2013 | 11,847 | 24,311 | –2 | 0 | 200 | 26,279 | 26,479 | 62,636 |
| Total comprehensive income for the period |
34 | 19 | 1,676 | 1,676 | 1,729 | |||
| as of 31 March 2013 | 11,847 | 24,311 | 33 | 19 | 200 | 27,955 | 28,155 | 64,366 |
| as of 1 January 2014 | 11,859 | 24,446 | –181 | 31 | 200 | 15,324 | 15,523 | 51,679 |
| Total comprehensive income for the period |
–1 | –7 | 20 | 20 | 12 | |||
| as of 31 March 2014 | 11,859 | 24,446 | –182 | 24 | 200 | 15,344 | 15,544 | 51,691 |
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 137 online shops in 42 countries, the company offers its private and business customers a broad assortment of car tyres, motorcycle tyres, truck tyres, bus tyres, special tyres, bicycle tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. Further information about the reporting company can be found in the chapter Business Operations and in the chapter Organisation of the annual report 2013.
From 01.01.2014 to 31.03.2014 Delticom had an average of 248 employees (thereof 10 apprentices and interns). The calculation is based on full-time equivalents, thus taking into account the actual work hours.
In many countries, business with car replacement tyres depends to a large extent on the seasons with their different weather and road conditions. For example, the business in the northern parts of Europe and in German-speaking countries is characterized by two peak periods - the purchase of summer tyres in spring and winter tyres in early winter. Volume is generally weaker in the first quarter, as most winter tyres are bought and fitted with the first snow, and thus before the end of the year.
The second quarter is characterized by strong sales: the weather in April and May is usually quite warm and car drivers buy their new summer tyres.
The third quarter is a transitional quarter between the summer and winter business, with unit sales again being somewhat weaker.
In most European countries, the last quarter generates the highest sales as car drivers face difficult road conditions and become aware of the fact that they need new tyres.
Delticom's consolidated interim financial statements as of 31.03.2014 were prepared according to the International Financial Reporting Standards (IFRS), as prescribed by the International Accounting Standards Board (IASB), that were mandatory according to the European Union (EU) Directive. All applicable and mandatory IFRS standards on the balance sheet date were applied, especially IAS 34 (Interim Financial Reporting).
To the extent that there were no changes to standards requiring first-time application, the accounting, valuation and calculation methods explained in the 2013 Consolidated Financial Statements have also been applied in this set of interim financial statements, and apply correspondingly.
These interim financial statements contain all clarifications and information required for annual financial statements, and can therefore be read in conjunction with the annual financial statements as of 31.12.2013.
The Annual Report 2013 is made available on the Delticom website in the section Investor Relations or can be downloaded directly using the following link:
In contrast to the Annual Report 2013, no differentiation has been made between the reporting of the previous E-Commerce and Wholesale segments in the period under review. Delticom is therefore a one-segment company; this change means that the segment information previously reported in the interim reports is no longer presented.
The group of consolidated companies comprises Delticom AG as controlling company, five domestic and four foreign subsidiaries, all fully consolidated in the interim financial accounts.
Due to its negligible impact on Delticom's net assets, financial position and results of operations, the following companies are not consolidated, but instead recognized as a financial instrument pursuant to IAS 39.
The Tyrepac Pte. Ltd., Singapore of which Delticom owns 50.9-% of the shares, and Tyrepac's fully owned subsidiaries Hongkong Tyrepac Ltd., Hongkong and Guangzhou Tyrepac Trading Ltd., Guangzhou, China.
Compared with the Annual Report for fiscal year 2013 there were no changes in the group of consolidated companies.
No significant matters have arisen that affect the assets, liabilities, equity, result for the period, or cash flows, and which are unusual for Delticom AG's business due to their type, extent or frequency. Business trends are explained in the interim management report.
Detailed information with regards to business trends and the profit and loss statement can be found in the chapter Business performance and earnings situation of the interim management report. The chapter Financial and assets position presents additional Information concerning the balance sheet and the cash flow statement.
The following table shows the development of the other operating expenses.
| in € thousand | Q114 | Q113 |
|---|---|---|
| Transportation costs | 7,250 | 7,105 |
| Warehousing costs | 937 | 706 |
| Credit card fees | 867 | 664 |
| Bad debt losses and one-off loan provisions | 510 | 458 |
| Marketing costs | 4,785 | 2,483 |
| Operations centre costs | 1,491 | 1,235 |
| Rents and overheads | 1,763 | 1,634 |
| Financial and legal costs | 969 | 464 |
| IT and telecommunications | 433 | 323 |
| Expenses from exchange rate differences | 402 | 814 |
| Other | 655 | 398 |
| Total | 20,062 | 16,283 |
Basic earnings per share totalled €-0.00 (Q1-13: €-0.14). The diluted earnings per share totalled €-0.00 (Q1-13: €-0.14).
Pursuant to IAS-33, undiluted (basic) earnings per share are calculated by dividing the consolidated net income of €-20,411.41 (previous year: €-1,676,106.11) by the 11,855,440 weighted average number of ordinary shares in circulation during the financial year (previous year: 11,847,440 shares).
During the year under review, there were 15,810 potential shares (financial instruments and other agreements which entitle their holders to subscribe to ordinary shares) from the tranche dated 22.11.2007, 37,500 potential shares from the tranche dated 08.05.2008, 17,500 potential shares from the tranche dated 25.11.2008 and 15,000 potential shares from the tranche dated 30.03.2009. The exercise prices for the tranches 22.11.2007, 08.05.2008, 25.11.2008 and 30.03.2009 were below the average share prices since the options were issued. As a result all tranches are included in the diluted earnings per share.
The calculation of the diluted earnings per share was based (in accordance with IAS-33) on net income after taxes totalling €-20,411.41 (previous year: €-1,676,106.11) and the weighted average number of shares outstanding during the fiscal year and the number of potential shares from options totalling 11,945,250 shares (previous year: 11,945,250 shares).
At Delticom's Annual General Meeting on 29.04.2014, the Management Board and the Supervisory Board will propose a dividend of €-0.50 per share (previous year: of €-1.90).
Related companies and persons in the meaning of IAS 24 include the Managing and Supervisory boards of Delticom AG (category persons in key positions), the majority shareholders Binder GmbH and Prüfer GmbH (category companies with a significant influence on the Group), as well as not consolidated subsidiaries (category not cosolidated subsidiaries).
All transactions with related parties are agreed contractually, and conducted on terms as would also be usual with third parties. Transactions which occured during the interim reporting period did not have any significant effects on the earnings, financial and asset positions.
Related companies and persons (Category persons in key positions): In the reporting period, goods and services worth €-64-thousand (Q1-13: €-71-thousand) were purchased from related companies and persons, and goods and services worth €-0-thousand (Q1-13: €-0-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-0-thousand (Q1-13: €-1-thousand) and accounts payable totalled €-25-thousand (Q1-13: €-35-thousand).
Related companies and persons (category not cosolidated subsidiaries): In the reporting period, goods and services worth €-0-thousand (Q1-13: €-0-thousand) were purchased from related companies and persons, and goods and services worth €-278-thousand (Q1-13: €-989-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-665-thousand (Q1-13: €-1,050-thousand) and accounts payable totalled €-0-thousand (Q1-13: €-0-thousand).
As compared to 31.12.2013, the situation with regards to other financial commitments has not changed significantly:
As of the reporting date, there were no contingent liabilities or claims.
There were no key events that occurred after the reporting date.
The interim financial statements and the interim management report has not been reviewed by our auditors.
The website www.delti.com/Investor\_Relations/Entsprechungserklaerung.html shows the current statements made by the Managing and Supervisory boards of Delticom AG pursuant to Section 161 of the German Public Limited Companies Act (AktG).
To the best of our knowledge, we declare that, according to the principles of proper interim consolidated reporting applied, the interim consolidated financial statements provide a true and fair view of the company's net assets, financial position and results of operations, that the interim consolidated management report presents the company's business including the results and the company's position such as to provide a true and fair view and that the major opportunities and risks of the company's anticipated growth for the remaining financial year are described.
Hanover, 15.05.2014
(The Management Board)
| WKN | 514680 |
|---|---|
| ISIN | DE0005146807 |
| Reuters / Bloomberg | DEXGn.DE / DEX GR |
| Index membership | SDAX, CXPR, GEX, NISAX |
| Type of shares | No-par value, registered |
| Transparency level | Prime Standard |
| 14 August 2014 | full H1 report |
| 13 November 2014 | full Q3 report |
| 24 November 2014 | German Equity Forum |
| 01.01.2014 – 31.03.2014 |
01.01.2013 – 31.12.2013 |
||
|---|---|---|---|
| Number of shares | shares | 11,859,440 | 11,859,440 |
| 1 Share price on first trading day |
€ | 30.98 | 67.00 |
| 1 Share price on last trading day of the period |
€ | 35.54 | 32.30 |
| 1 Share performance |
% | +14.7 | –51.8 |
| 1 Share price high/low |
€ | 35.55 / 30.60 | 82,51 / 30,74 |
| 2 Market capitalisation |
€ million | 421.5 | 383.1 |
| Average trading volume per day (XETRA) | shares | 19,950 | 28,309 |
| EPS (undiluted) | € | 0.00 | 0.97 |
| EPS (diluted) | € | 0.00 | 0.97 |
| Equity per share | € | 4.36 | 4.36 |
(1) based on closing prices (2) based on official closing price at end of quarter
| Estimates for 2014 | Estimates for 2015 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Broker | Analyst | Recommen dation |
Target price |
Sales (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
Sales (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
| NordLB | Frank Schwope | Sell | 31.00 | 581.0 | 16.5 | 2.8 | 0.92 | 623.0 | 17.6 | 2.8 | 0.99 |
| Metzler | Jürgen Pieper | Buy | 42.00 | 588.0 | 17.0 | 2.9 | 0.80 | 656.0 | 28.0 | 4.3 | 1.36 |
| Exane | Andreas Inderst | Outperform | 46.00 | 588.0 | 21.1 | 3.6 | 1.17 | 684.0 | 30.9 | 4.5 | 1.75 |
| Deutsche Bank | Tim Rokossa | Hold | 35.00 | 584.0 | 27.0 | 4.6 | 1.47 | 667.0 | 35.0 | 5.2 | 2.02 |
| Commerzbank | Dennis Schmitt | Hold | 35.00 | 580.0 | 16.8 | 2.9 | 0.95 | 664.0 | 24.9 | 3.8 | 1.41 |
| Hauk & Aufhäuser | Sascha Berresch | Sell | 25.00 | 587.1 | 22.4 | 3.8 | 1.21 | 628.2 | 29.2 | 4.6 | 1.61 |
| Montega | Tim Kruse | Sell | 28.50 | 575.0 | 20.7 | 3.6 | 1.16 | 680.0 | 28.7 | 4.2 | 1.62 |
| Warburg | Marc-René Tonn | Buy | 41.00 | 586.0 | 16.2 | 2.8 | 0.87 | 665.5 | 27.6 | 4.1 | 1.52 |
| Average | 35.44 | 583.6 | 19.7 | 3.4 | 1.07 | 658.5 | 27.7 | 4.2 | 1.54 |
as of 12 May 2014
| Publisher | Delticom AG |
|---|---|
| Brühlstraße 11 | |
| 30169 Hanover | |
| Germany | |
| Contact Investor Relations | Melanie Gereke |
| Brühlstraße 11 | |
| 30169 Hanover | |
| Phone: +49-511-93634-8903 | |
| E-Mail: [email protected] | |
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