Bangkok--28 Jun--Spark Communications
Revenue of ?1,604 million, down 6% reflecting difficult market conditions
Balance sheet strengthened by transformational recapitalization completed in second quarter
Costcutting program starting to deliver results
Sales wins continue at strong rate.
CEVA Group Plc (“CEVA” or the “Company”), one of the world’s leading non-asset based supply chain management companies, reports results for the three months ended 31 March, 2013.
“The weak economic conditions impacting the global logistics industry continued to weigh on customer sentiment during the first quarter, impacting both revenue and Adjusted EBITDA,” said Marvin O. Schlanger, CEO of CEVA.“This is disappointing; however,we have now taken significant and decisive action to strengthen the company’s balance sheet through a major capital restructuring.”
Schlanger adds:“We continue to focus our efforts on implementing the previously announced cost-reduction program. We remain confident that, aided by the strength of our new capital structure, we can drive revenues across the business to position CEVA for profitable growth in the future. Business Development successes in the quarter met our target and will benefit future quarters. ”
The Company reported Adjusted EBITDA1 of ?31 million for the three months ended 31 March 2013, down from ?66 million in first quarter 2012. Excluding the 2012 impact from divested businesses, Adjusted EBITDA for the first quarter 2012 would have been ?57 million. Results were impacted by a variety of factors, including overall soft global logistics markets; the loss of Airfreight volume as some businesses transitioned to Ocean transport; the exposure to Eurozone markets; and underperforming CL contracts, which the Company addressed in a large manner in the quarter. During the first quarter 2013, the Company completed the sale of its Pallecon Container business for approximately ?135 million.
Revenues decreased by 6.3% to ?1,604 million for the three months ended 31 March 2013 compared to ?1,712 million for the three months ended 31 March 2012. Revenues in Freight Management declined by 6.8%, driven by softness in Airfreight volumes as market conditions continued to be challenging, partly compensated by growth in Ocean revenues. Revenues in the Company’s Contract Logistics segment declined by 5.9% driven in part by the sale of CEVA’s Pallecon Container business at the start of 2013; the impact of several contracts that were terminated as part of the costreductionprogram that was launched during the last quarter of 2012; and lower volumes in several key markets, notably Europe.
On 2 May, 2013 CEVA announced the successful recapitalization of its balance sheet and new capital raise. This major transaction has strengthened CEVA’s balance sheet by eliminating approximately ?1.3 billion of consolidated net debt. The transaction also reduces CEVA’s annual cash interest costs by over ?130 million (approx. 50%) and provides access to more than ?230 million of new capital infusion for investment in the company’s business plan.
For more information contact:
Archiraya Wangkiat
Spark Communications
Tel: 02-653-2717-9
Email:
[email protected]