Bangkok--19 May--BrandComm Consultants
Hemaraj Land And Development Public Company Limited announced its operating and financial results for the first quarter of 2011 as summarized below.
Quarter 1’2011 Net Profit
For Quarter 1’2011, Hemaraj reported Net Loss of Baht 33.0 million. The decrease of Net Income for Quarter 1’2011 was mainly due to changing of accounting method from percent completion method to transfer of title method, based on new financial reporting standards issued by the Federation of Accounting Professions. Earnings per-share was -0.01 Baht per share, representing a decrease of 113% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“We are pleased with our market leading industrial estates sales, with a concentration in the automotive industry resulting in 312 rai (124.8 acres) sold in the first quarter of 2011.
This includes the Caterpillar manufacturing plant of 140 rai (56 acres) at Hemaraj Rayong Industrial Land to support its expansion in the Asia Pacific and Africa region. We believe the industrial opportunities partially reflect the 65 % automotive production growth to a record 1,645,000 vehicles for 2010 (#12 global), from depressed levels. There are new automotive plant and product initiatives underway in Thailand.
Including the results to date in 2011, we see continued broad based revenue growth opportunities this year and we have revised upwards our 2011 Industrial Estate Sales outlook from 1,200 rai (480 acres) to 1,400 rai (560 acres).
Hemaraj started the first quarter of 2011 with Total Revenue of Baht 566 million or a decrease of 75% compare to the same period of last year. The Net loss was Baht 33.0 million, a decrease of 104% from the same period of last year. However, the lower revenue is due to a change in the accounting method in Thailand from 2011. Our expectations are for revenue recognition from industrial estates to be at normal levels within Q3’2011 and for industrial estate revenue results for 2011 to exceed the prior year.
In 2011, we continue significant capital investments in industrial estates, utilities, and property while still preserving our strong liquid financial position. This includes the Baht 4.4 billion investment in our 35% shareholding in the Gheco-One IPP power project projected to operate in the first quarter of 2012.
The Hemaraj broadened revenue strategy continues to reduce the risk profile of the company while identify competing investment opportunities. Increasingly this will be reflected by superior long term returns to shareholders.”
Revenue and Results of Operations for Quarter 1’2011
Hemaraj was impacted in Q1’2011 by the change in accounting method in Thailand. For Q1’2011, Hemaraj’s Total Revenue was Baht 566.3 million compared with Baht 2,220.4 million for the same period of 2010, representing a 75% decrease. Total Operating Revenue from core businesses was Baht 536.0 million, a 76% decrease from the same period of 2010. Industrial Estate Land Sales for Q1’ 2011 including Profit from Associated Industrial Estate were Baht 28.4 million, or a 98% decrease. There is an additional Baht 995.01 million in deferred revenue, with recognition based on transfer date, from Industrial Estate Land Sales not recognized to date, based on new financial reporting standards issued by the Federation of Accounting Professions from industrial estates developments and representing sales that will be recognized primarily over the next 3 to 12 months.
Industrial estate utilities increased to Baht 286.4, or an increase of 32% reflecting the higher volume and the consolidation of Hemaraj SIL and Hemaraj RIL. Total Utilities which includes industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees decreased to Baht 265.6 million, a decrease of 17% mainly due to the foreign exchange translation loss from Gheco-One. Total Rented Property and Services Revenue including ready built factory rental, pipe-rack rental, and commercial office rental increased to Baht 125 million, an increase of 12%. Sale of Property including ready built factory sales, residential sales and other land/property sales decreased to Baht 116.9 million, a decrease of 52%.
The Gross Profit was Baht 254.2 million, a 68% decrease from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 105.1 million. The Gross Profit Margin and EBITDA Margin were 49% and 27%, respectively.
Significant Activities for Quarter 1, 2011
Industrial Estate Sales in Q1-2011 were 312 rai with 14 contracts, 9 new customers and 5 project expansions from existing customers. Hemaraj now has 435 distinct new customers with 657 contracts and 153 automotive customers with 231 automotive contracts.
The decrease of Industrial estate revenue and property revenue has a lag in new revenue recognition and will be back to normal in Q3’2011 and thereafter as titles transfer, which are reflected in the deferred revenue of Baht 995.01 million at the end of Q1’2011.
Industrial estate utilities revenue increased 32% reflecting higher volume and the consolidation of Hemaraj SIL and Hemaraj RIL since Q4’2010.
In Q1-2011, 6 Ready Built Factories rental contracts were signed or 10,291 square meter.
Ready Built Factories rental revenue increased 24% reflecting higher rental and occupancy.
Activities after Quarter 1, 2011
The Annual General Meeting (AGM) held on April 29, 2011 approved Baht 0.03 per share final dividend, totaling Baht 0.055 per share for the full year 2010.
Balance Sheet Highlights for the 3-month period ended 31st March 2011
At 31st March 2011, Hemaraj reported Total Assets of Baht 18,469.2 million, Total Liabilities of Baht 9,416.4 million and Total Shareholders Equity of Baht 9,052.8 million. The Net Debt to Equity ratio was 0.68 to 1 with Cash and Deposits on Hand of Baht 3,998.6 million.
For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact us by email at
[email protected]
Mr. Paopitaya Smutrakalin, Director — Investor Relations
Hemaraj Land And Development Public Company Limited
18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7
BrandComm Consultants Co., Ltd.
Ms. Pailin Buranamittranond /
Ms. Bussakorn Nunthavichitra
Tel. 02 314 6877-9 Fax. 02 318 8847
www.hemaraj.com