CEVA Group Plc Reports Quarter 2, 2007 Results
Hoofddorp, The Netherlands (ots/PRNewswire)
- Second Quarter of Strong Results
CEVA Group Plc released its Quarter 2, 2007 interim financial statements today. These statements include the following highlights:
- Revenue growth of 3% between Q2 2007 and Q2 2006
- Operating income grew to EUR27.3 million from EUR16.5 million in Q2 2006
- EBITDA increased to EUR54.8 million from EUR36.1 million in Q2 2006
- Pro forma EBITDA improved to EUR60.6 million from EUR54.8 million in Q2 2006
- Cash position at the 30th June 2007 of EUR234.7 million
- Completion of EGL acquisition on 2nd August for approximately US$2 billion
- New CEO, John Pattullo, joined the company on 6th August
CEVA Group Plc delivered the following results:
Three months ended June Six months ended June 30
30
2007 2006 2007 2006
Net sales EUR905 EUR880 EUR1,766 EUR1,747
million million million million
EBITDA EUR54.8 EUR36.1 EUR100.0 EUR71.1
million million million million
Pro forma EBITDA EUR60.6 EUR54.8 EUR110.3 EUR100.8
million million million millionOn 2nd August CEVA announced the completion of the transaction to acquire freight forwarding company EGL, Inc. for approximately US$2 billion. The acquisition was financed including new debt, approximately US$200 million of cash equity from CEVA's balance sheet and approximately US$100 million new cash equity from Apollo. Due to the strong strategic rationale for the acquisition it was possible to secure US$400 million of new second lien senior secured notes as debt, despite the difficult current capital market environment. CEVA's strong cash generating performance since achieving independence ensured that the cash equity financing went smoothly. This combination has created the world's fourth largest integrated supply chain management company, with global capabilities in freight forwarding and contract logistics that will operate under the CEVA brand.
On a standalone basis EGL delivered the following results:
Three months ended June Six months ended June 30
30
2007 2006 2007 2006
Net sales EUR656 EUR607 EUR1,251 EUR1,225
million million million million
EBITDA EUR5.8 EUR25.2 EUR30.1 EUR48.4
million million million million
Adjusted EBITDA(i) EUR33.1 EUR29.1 EUR61.8 EUR54.0
million million million million
Pro forma EBITDA EUR33.2 EUR35.4 EUR62.1 EUR63.9
million million million million(i) primary adjustment relates to the unsuccessful acquisition bid of the previous EGL CEO Jim Crane
CEO John Pattullo commented: "The results of CEVA Group Plc included in these interim financial statements show clearly that the company has been building a solid base for the future. We can see that the growth and profit indicators are positive for CEVA and the ability of the company to generate value is demonstrated by the results of the global focus on cash management. It is pleasing to see that EGL's results continue to show good progress which has not been unduly impacted by the sale process this year and now that a platform has been established we will be able to address the potential of CEVA combined with EGL. With this combination, we have created one of the world's major players in the global supply chain industry, supported by a talented and experienced leadership team. Following the merger with EGL we have the capability to extend our service offering further and deliver a world-class service."
The two companies had 2006 combined annual revenue of EUR6.0 billion (48% in EMEA, 32% in Americas and 20% in Asia-Pacific) and employ more than 50,000 people with operations in more than 100 countries.
Contact:
For further information, please contact: CEVA Logistics, Mr Paul
Kwakkenbos, Marketing & Communications Director, Tel +31-612-059086,
Fax +31-23-568 3441, Email: paul.kwakkenbos@cevalogistics.com