HOOFDDORP, Netherlands, April 8, 2013 /PRNewswire/ --
Highlights of the year:
CEVA Group Plc ("CEVA" or the "Company"), one of the world's leading non-asset based supply chain management companies, today reports preliminary unaudited results for the year ending 31 December 2012. CEVA delivered revenue growth of 4.8%, while Adjusted EBITDA in both Freight Management and Contract Logistics was adversely impacted by economic conditions.
"These are difficult times for everyone in the global logistics industry and CEVA has not been immune to those pressures," said CEVA CEO Marvin O. Schlanger. "While our revenue line has been resilient, we have seen a marked deterioration in EBITDA in both our FM and CL businesses. This simply isn't good enough and we have taken action to reverse this decline in profitability. We will continue to take actions necessary to establish satisfactory levels of profitability."
Year ended 31 December
| Key Financials (EUR millions) | Actual exchange rates | ||
| 2011 | 2012 | Change | |
| Revenue | 6,895 | 7,224 | 4.8% |
| Adjusted EBITDA [1], [2] | 321 | 251 | (21.8%) |
[1] All references to EBITDA are to Adjusted EBITDA.
[2] Excludes the impact of specific items which are significant non-recurring items such as restructuring and certain legal expenses.
Revenue increased 4.8% in the year to EUR7,224 million, a record for the Company. At constant currency revenue was broadly flat year on year. Revenue in Freight Management increased 6% as lower Airfreight volumes, particularly out of Asia, were offset by a solid performance in oceanfreight across all regions. The increase in the Company's Contract Logistics revenues reflects soft conditions across various key markets, most evident in Southern Europe, compensated by a strong performance in Asia Pacific.
EBITDA before specific items (Adjusted EBITDA) decreased 21.8% to EUR251 million (2011: EUR321 million). At constant exchange rates, EBITDA fell 28.0%. Freight Management Adjusted EBITDA in 2012 decreased by 17.7% compared to 2011, partly due to a modal shift to oceanfreight with increased competition and soft airfreight volumes. Contract Logistics Adjusted EBITDA decreased by 24.4% in 2012, as our business was affected by the continuing general economic downturn with lower volumes in various key markets, in particular Southern Europe.
Net working capital increased in the year to EUR(67) million (2011: EUR(76) million). The increase is due mainly to slightly higher trade receivables and accrued income balances at 2012 year end, partly offset by a higher trade payables balance. At 31 December 2012, headroom was EUR296 million (31 December 2011: EUR290). At 31 March 2013, the Company had approximately EUR200 million of total headroom.
Group annual results
| EUR millions | Actual FY 2012 | Actual FY 2011 | Actual % YTD 2012 vs 2011 |
| Freight management | 3,342 | 3,152 | 6% |
| Contract logistics | 3,882 | 3,743 | 4% |
| REVENUE | 7,224 | 6,895 | 5% |
| Freight management | 102 | 124 | (18%) |
| Contract logistics | 149 | 197 | (24%) |
| Adjusted EBITDA | 251 | 321 | (22%) |
| Freight management | 3.1% | 3.9% | |
| Contract logistics | 3.8% | 5.3% | |
| Adjusted EBITDA (Margin) | 3.5% | 4.7% |
| EUR millions @ actual foreign exchange rates | Full year | |
| 2012 | 2011 | |
| Adjusted EBITDA | 251 | 321 |
| Change in net working capital | (9) | 22 |
| Net Capital expenditure | (89) | (68) |
| Tax | (31) | (30) |
| Net financing cost | (284) | (225) |
| Sub-Total | (162) | 20 |
| Other significant movements: | ||
| Retirement benefit obligations | (9) | (8) |
| Specific items | (78) | (76) |
| Net Proceeds from sale of PP&E | 15 | 8 |
| Other | (7) | (38) |
| Other significant movements | (79) | (114) |
| Cash Flow before Financing | (241) | (94) |
All commentary based on actual results unless stated otherwise.
CEVA - Making business flow
CEVA, one of the world's leading, non-asset based supply chain companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 50,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors where CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 160 countries. For the year ended 31 December 2012, CEVA reported revenues on a preliminary unaudited basis of EUR7.2 billion. For more information, please visit www.cevalogistics.com
Preliminary Nature of Unaudited Results
We have not yet finalized our financial results as of and for our year ended 31 December 2012. The preliminary estimated financial results described herein have not been audited or reviewed by any party, including CEVA's independent accountants, and are therefore subject to revision pending the completion of the accounting and financial reporting processes necessary to complete CEVA's financial closing procedures and financial statements for the fourth quarter and full year ended 31 December 2102 (including, without limitation, an audit by CEVA's independent accountants). The changes that result from the closing procedures, the preparation of financial statements and the audit may be material. The foregoing preliminary estimates of our financial results were prepared by management. Although the preliminary estimates are based on a number of estimates and assumptions (including going concern valuation) that are inherently subject to significant business fluctuations, economic conditions and competitive uncertainties and contingencies, many of which are beyond our control, management believes that the preliminary estimates have been prepared on a reasonable basis and they represent, to the best of management's knowledge, our expected results. However, because this information is preliminary and highly subjective, it should not be relied on as indicative of our future actual results. We do not intend to update or otherwise revise the preliminary estimates to reflect future events. CEVA expects to make additional information concerning its preliminary unaudited results available to its bond investors in the near future and will make an announcement when the information is available on the bondholder section of the CEVA website.
Safe Harbor Statement:
This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2012 and beyond, and the other non-historical statements. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the airfreight business), risks associated with the Company's global operations, fluctuations and increases in fuel prices, the Company's substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Contact:
Mike Darcy
+31-622-482-604
mike.darcy@cevalogistics.com
