Announcement
QUARTER: MFT: Mainfreight Financial Results for Three Months to June 2011
08:30am
MFT
11/08/2011 08:30
QUARTER
REL: 0830 HRS Mainfreight Limited
QUARTER: MFT: Mainfreight Financial Results for Three Months to June 2011
MAINFREIGHT GROUP LIMITED
Financial result for the three months ended June 2011 (Unaudited)
Commentary
The Mainfreight Group is pleased to report a net surplus after taxation and
abnormals of $14.22 million for the first three months of the 2012 financial
year; an increase of 109% on the previous year's result of $6.82 million
(excluding abnormals the increase was 115%). Abnormals totalled just $0.43
million after tax and related to transaction costs for the Wim Bosman
acquisition.
EBITDA performance reached record levels for a first quarter result, reaching
$32.13 million up from $15.52 million for the same period a year ago.
Total revenue (sales) increased by 43% to $449.86 million from $315.25
million in the comparative periods last year (excluding foreign exchange,
this represents an increase of 46%).
For comparison purposes, results excluding Wim Bosman contributions saw sales
improve 5% to $331.04 million, and EBITDA improve 30% to $20.15 million.
Business performance improved in New Zealand, Australia, The United States
and Europe with only Asia behind the previous year's result, as a consequence
of increasing costs as we further develop our network in China.
Our domestic freight divisions in New Zealand, Australia, The United States
and Europe are standout performers for this period.
Divisional Performance (all figures in New Zealand dollars)
New Zealand
New Zealand Domestic
New Zealand Domestic EBITDA improved 28% to $8.88 million; an increase of
$1.94 million from the prior year. Sales revenues increased 9% to $73.44
million, an improvement of $6.31 million. Consistent freight volume and
market share increases, particularly in the FMCG sector assisted this
performance.
Trading in July and August continues to be positive with further market share
gains assisting.
New Zealand International
New Zealand International revenue improved 9% to $30.74 million and EBITDA
improved 29% to $1.18 million.
Despite currency issues hampering exports, we have been able to improve
freight tonnage across all sectors apart from air export. Perishable
exports, whilst improved, did not trade at levels expected.
Trading in July and August continued these trends albeit somewhat reduced in
the export sector.
Australia
Australian Domestic
In our Domestic operations we have seen a marked increase in performance,
with revenue improving 18% to $59.08 million (a 12% increase excluding
foreign exchange). EBITDA increased 80% to $4.30 million, up $1.91 million
(a 71% increase excluding foreign exchange).
Strong sales activities, margin and cost management has assisted this result.
Trading through July and August has seen this trend continue, with further
improvements likely as a number of new significant customers begin to trade.
Australian International
Sales revenues were at last year's level of $56.20 million (a 5% decrease
excluding foreign exchange) as a consequence of currency and freight rate
reductions. EBITDA however improved 15% to $1.38 million; an increase of
$0.18 million as cost and margin improvement assisted.
Import volumes from Asia were on the decline through this period, however
trading through July and August to date show improvement, with peak season
import tonnage expected over the next three months.
Asia
An increase in sales saw revenues increase 6% to $9.24 million (a 20%
increase excluding foreign exchange). However, as costs were incurred to
further expand our network within China, EBITDA reduced 33% to $0.60 million
(a decline of $0.30 million).
Airfreight volume has increased as our capability in this sector increases,
however seafreight volumes have not met expectations.
European growth through the acquisition of Wim Bosman has seen an anticipated
increase in seafreight and airfreight volumes to this region with
expectations of further increases as we expand and develop the Asian -
European network through the Wim Bosman operation.
Qingdao, our latest branch in China opened for trading on 1st of June.
United States of America
Revenues in our USA operations maintained levels to that of last year; at
$102.35 million (excluding foreign exchange, revenues improved 10%). EBITDA
improved 20% to $3.81 million (excluding foreign exchange an increase of
36%).
Divisional analysis saw revenues in Mainfreight USA improve 4% to $60.73
million up $2.41 million (excluding foreign exchange this increase improves
18%).
CaroTrans revenues declined 11% to $41.61 million, down $5.08 million
(excluding foreign exchange this increases 1%). Poor export freight volumes
in the USA contributed to the decline.
EBITDA performance in Mainfreight USA improved satisfactorily from breakeven
to $1.61 million. Better margins and cost management alongside increasing
domestic freight sales contribute to this result.
CaroTrans EBITDA declined 31% to $2.20 million down $0.98 million from the
year prior, due to poor trading volumes through the quarter.
Mainfreight USA trading through July and August has continued the trends of
the first quarter, and in CaroTrans an increase in export seafreight activity
is providing better results.
Europe
This is our first quarter result for the newly acquired Wim Bosman Group
which saw revenues of $118.82 million and EBITDA at $11.98 million. This
performance was an improvement over their same period the year prior.
Seasonality trading differences are yet to be fully understood as the
European holiday season takes effect during July and August.
Within this result we have seen good performances from our Netherlands and
Eastern European transport divisions. The Belgium transport division
disappointed as did our Air and Ocean (International) division. Logistics
contributions were in line with expectations.
International freight development is underway to and from our Asian and USA
operations and new management has been appointed to manage the Belgium
activities.
We are delighted with this satisfactory result for our first quarter but are
mindful of the seasonality differences as the year progresses.
Group Operating Cash Flows
Operating cash flows were $24.28 million, an increase of $10.63 million
reflecting the improved trading performance.
The acquisition price for Wim Bosman of EUR110,000,000 was fully debt funded
in this quarter on 1 April 2011.
Capital Expenditure totalled $11.97 million, of which $7.84 million related
to property development, predominantly funding our new Wellington facility.
Completion of this remains on track for a September opening.
Outlook
This satisfactory result is in line with our expectations and our commentary
provided at our AGM late July.
Trading in July and August continues these trends, particularly in our
domestic operations throughout the World.
We expect this improved financial performance to continue throughout the
financial year.
For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com.
End CA:00212266 For:MFT Type:QUARTER Time:2011-08-11 08:30:06
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