IFCO SYSTEMS continues to drive strong operational profit and cash
flow growth in Q3 2009 with group sales at previous year levels
2009-11-11 09:37:02 -
London, November , 11, 2009
Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
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Amsterdam, Netherlands, November 11, 2009
IFCO SYSTEMS' currency adjusted operational profitability (EBITDA)
continued to grow significantly in Q3 2009 by 24.2% to US $35.9
million (YTD 2009 by 17.1% to US $90.5 million). As a result IFCO
SYSTEMS achieved strong EBITDA margin growth from 15.5% in Q3 2008 to
19.2% in Q3 2009 (from 14.6% YTD 2008 to 16.7% YTD 2009). Although
RPC Management Services currency adjusted revenues grew by 10.5% in
Q3 2009 (17.0% in YTD 2009), currency adjusted group revenues grew
only slightly by 0.1% to US $186.6 million (YTD 2009 by 1.0% to US
$541.4 million) due to weak demand in Pallet Management Services as a
result of the effects of the US economic recession.
Currency adjusted revenues in RPC Management Services increased in Q3
2009 by 10.5% to US $105.7 million (YTD 2009 by 17.0% to US $284.5
million). These gains are the result of organic volume growth in our
European RPC business, the YTD effects of the Q2 2008 STECO
acquisition, increased volume in RPC South America and accelerating
growth in our RPC US business. Revenues in Pallet Management Services
declined in Q3 2009 by 11.0% to US $80.9 million (YTD 2009 by 12.2%
to US $256.9 million). Although IFCO SYSTEMS continued to increase
its market share by selling more key pallet product volumes compared
to previous year, increasing pricing pressure resulting from weakened
market demand drove average prices lower in this segment.
Gross profit margin on a group level increased in Q3 2009 by 0.5
percentage points to 19.2% (YTD 2009 grew 2.0 percentage points to
19.4%). RPC Management Services' gross profit margin grew from 22.6%
in Q3 2008 to 23.5% in Q3 2009. RPC Management Services benefited in
Europe from increasing synergies resulting from the integration of
the former STECO organization. Gross profit margin improvements in
Europe and the US were also achieved through lower per unit washing
and transportation costs and sustainable economies of scale effects.
Gross profit margin in the Pallet Management Services business fell
to 13.6% from 14.4% in Q3 2008 due to the effects of lower customer
prices partially offset by lower raw materials costs and fuel prices.
Currency adjusted group EBITDA increased in Q3 2009 by 24.2% to US
$35.9 million (YTD 2009 by 17.1%) to US $90.5 million. EBITDA on a
currency adjusted basis in RPC Management Services increased
significantly in Q3 2009 by 39.5% to US $32.6 million (YTD 2009 by
37.7% to US $79.2 million). RPC Management Services EBITDA margin
improved in Q3 2009 by 6.5 percentage points to 30.8%. EBITDA in
Pallet Management Services decreased by 21.7% to US $5.7 million in
Q3 2009 (YTD 2009 by 28.2% to US $17.8 million). EBITDA margin in
this segment fell in Q3 2009 to 7.0% from 8.0% in Q3 2008.
Q3 2009 currency adjusted group EBIT grew by 30.1% to US $24.7
million (YTD 2009 increased by 32.5% to US $59.8 million). LTM Q3
2009 currency adjusted EBIT reached a level of US $82.4 million. EBIT
margin increased significantly to a level of 13.2% in Q3 2009 (11.1%
in YTD 2009) from 10.1% in Q3 2008 (8.4% in YTD 2008).
Net profit significantly increased from US $2.5 million in Q3 2008 to
US $7.3 million in Q3 2009 (YTD 2009 decreased from US $8.4 million
to US $5.2 million). On a YTD basis, gains in 2009 operating profit
were more than offset by a higher non-cash deferred income tax
provision and the one-time costs recognized in connection with IFCO
SYSTEMS' comprehensive refinancing, which were included in net
finance costs. Excluding these refinancing expenses, net profit for
YTD 2009 would have been US $13.6 million.
IFCO SYSTEMS cash flow from continuing operations, excluding the cash
flow effect of income tax payments and ICE related payments,
increased significantly to US $84.4 million in YTD 2009 from US $32.3
million in YTD 2008. The lower 2008 result was primarily due to
reduced refundable deposit levels and other related effects on
working capital following the termination of the EDEKA contract in
Europe during early 2008.
Our capital expenditure levels (excluding the cash paid for the STECO
acquisition in Q2 2008) decreased by US $8.2 million, or 38.1%, to US
$13.4 million during Q3 2009 (YTD 2009 decreased by 3.3% to US $38.2
million). The realization of the planned growth in the US and South
America has led to continued investments in these RPC pools in 2009.
Lower absolute RPC related capital expenditures in YTD 2009 compared
to YTD 2008 are the result of significantly improved turns of our RPC
pool. Additionally, significantly lower costs of raw materials for
all of our RPC pools has reduced the average per unit acquisition
cost of a new RPC during 2009.
ROCE from continuing operations, on a LTM basis, increased to 17.5%
as of September 30, 2009, compared to 14.7% as of September 30, 2008.
This development is due to improved utilization of the employed
capital as well as an increased EBIT level.
Our sources of liquidity currently include cash from operations, cash
and cash equivalents on hand, amounts available under our RCF and
certain factoring agreements. As of September 30, 2009, our liquidity
more than doubled to US $116.0 million compared to US $53.5 million
as of December 31, 2008. We believe that these sources are sufficient
to finance our future capital and operational requirements in
accordance with our business plans.
US $ in Q3 2009 Q3 2008 % YTD YTD % LTM Q3
thousands, Change 2009 2008 Change 2009
except per
share
amounts
Revenues 186,634 190,343 (1.9%) 541,367 556,105 (2.7%) 721,150
Revenues
currency
adjusted 186,634 186,521 0.1% 541,367 535,850 1.0% 729,430
Gross profit 35,870 35,555 0.9% 104,866 96,630 8.5% 140,413
Gross profit
margin 19.2% 18.7% 19.4% 17.4% 19.5%
EBITDA 35,863 29,572 21.3% 90,518 81,002 11.7% 120,560
EBITDA
currency
adjusted 35,863 28,873 24.2% 90,518 77,329 17.1% 122,478
EBITDA
margin 19.2% 15.5% 16.7% 14.6% 16.7%
EBIT 24,683 19,273 28.1% 59,826 46,618 28.3% 81,003
EBIT
currency
adjusted 24,683 18,977 30.1% 59,826 45,152 32.5% 82,378
EBIT margin 13.2% 10.1% 11.1% 8.4% 11.2%
Net profit
(loss) 7,290 2,466 195.6% 5,206 8,440 (38.3%) (9,272)
Net profit
(loss) per
share -
basic 0.14 0.05 201.1% 0.10 0.16 (37.6%) (0.17)
Net profit
(loss) per
share -
diluted 0.14 0.05 201.8% 0.10 0.16 (36.5%) (0.17)
Operating
cash flows
from
continuing
operations 50,264 26,687 88.3% 76,092 26,135 191.2% 107,099
Capital
expenditures
from
continuing
operations 13,356 21,465 (37.8%) 38,185 68,807 (44.5%) 58,331
Return on
capital
employed
(ROCE) 17.5% 14.7%
Outlook: As the financial crisis that unfolded in 2008 spread to the
worldwide economy in 2009, IFCO SYSTEMS has experienced challenging
economic climates in many of its markets so far during 2009. While
the economies in both Europe and the United States, its two key
markets, have remained in weakened states in 2009, it is expected
that these economies will begin to recover in 2010.
IFCO SYSTEMS believes that its RPC Management Services business will
not materially suffer from the worldwide economic downturn, as the
grocery food retail industry, which is IFCO SYSTEMS' main customer
base, has not been as strongly affected as other industries.
Accordingly, the European RPC Management Services business will
continue to leverage IFCO SYSTEMS' leadership position and market
experience to meet or exceed overall market development. The Company
will increase its sales initiatives and continue to expand geographic
presence in Western Europe, Central Eastern Europe (CEE) and South
America. In the United States, IFCO SYSTEMS has seen increases in the
overall RPC penetration among grocery food retailers and expects to
grow in excess of this market development. Based on the Company's
solid RPC business model, the RPC Management Services businesses will
continue to grow for the remainder of 2009. Therefore, IFCO SYSTEMS
has, and will continue to, invest in its RPC pool during 2009 in
anticipation of continued growth in 2010. These investments, however,
will be carefully aligned with IFCO SYSTEMS' business development and
are targeted to continually increase the return on IFCO SYSTEMS'
invested capital.
IFCO SYSTEMS Pallet Management Services business has clearly been
negatively affected by the overall economic decline in the United
States in 2009, primarily as a result of pressure on prices from
lower market demand. Although the Company remains confident that the
key competitive advantages of Pallet Management Services business -
the breadth of service offerings, the national network and the value
proposition at a national and local level - have not changed and will
allow its Pallet Management Services segment to increase revenues and
profitability in 2010, it is expected that the pallet market will
remain weak in Q4 2009 and in line with previous quarters.
Despite the dramatic economic downturn in 2009, IFCO SYSTEMS believes
that the above described trends will result in overall flat revenues
but significantly increased operational profitability in 2009 as
compared to 2008.
Financially, IFCO SYSTEMS is in a position to be able to fund its
capital, operational and debt service requirements through its own
operational cash flows.
For further explanations, please see IFCO SYSTEMS' quarterly report,
which will be filed with the Deutsche Börse AG on or about November
11, 2009, and will be available on the Company's website
www.ifcosystems.com or www.ifcosystems.de. The Company will hold a
conference call on November 17, 2009. The details will be available
on the Company's website.
This release contains forward-looking statements that reflect
Management's current view with respect to future events. All
statements contained in this release that are not clearly historical
in nature or necessarily depend on future events are forward-looking.
The words "anticipate", "believe", "expect", "estimate", "planned"
and similar expressions are generally intended to identify
forward-looking statements. These statements are based on current
expectations, estimates and projections of the Management on
currently available information. Many factors could cause the actual
results, performance or achievements to be materially different from
those that may be expressed or implied by such statements. We do not
assume any obligation to update the forward-looking statements
contained in this release.
IFCO SYSTEMS
Sabine Preiss
Investor Relations
Tel +49 89 744 91 316
Fax +49 89 744 767 316
email: ir@ifcosystems.com
www.ifcosystems.com or www.ifcosystems.de
--- End of Message ---
IFCO Systems N.V.
Zugspitzstraße 7 Pullach
WKN: 157670; ISIN:
NL0000268456 ; Index: CLASSIC All Share, Prime All Share;
Listed: Freiverkehr in Bayerische Börse München, Freiverkehr in
Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Düsseldorf, Prime Standard in Frankfurter
Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
