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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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3-month report
10.05.2012
ZURICH, May 10, 2012 --
-- Revenue of CHF 656.7 million, up 2.9% on a reported basis; up 6.0% in
constant currencies
-- Segment EBITDA of CHF 25.5 million, up 4.5% on a reported basis; up 7.0%
in constant currencies
-- EBITDA margin of 3.9%, up 0.1 percentage point
-- Operating profit of CHF 4.7 million, up 20.5% on a reported basis; up
17.9% in constant currencies
-- Loss for the quarter of CHF 14.8 million versus a loss of CHF 6.2 million
in 2011, due to refinancing costs
-- Cash flow from operations of CHF 2.7 million, compared to a negative
CHF 28.6 million reported the previous year
-- Net debt of CHF 205.5 million, an increase of CHF 11.6 million over 2011
-- Refinancing successfully completed with senior unsecured notes of
EUR 350 million and a EUR 100 million unsecured revolving credit facility
gategroup Holding AG, the leading independent global provider of onboard
products and services, delivered improved revenue and operating performance in
the first quarter ending March 31, 2012.
The results are the first ever published for the January-March period since the
Company listed on the SIX Swiss Exchange in 2009. This action follows a decision
by the Board of Directors to introduce quarterly reporting to enhance
performance tracking of gategroup by shareholders and investors.
gategroup's business is seasonal and a large percentage of revenue is generated
in the second and third quarters each year, which reflects long-established
consumer travel patterns and the performance of airlines, the Company's primary
customer base. This seasonality affects the comparability of gategroup results
between quarterly periods.
Earnings before interest, taxes, depreciation and amortization ("Segment
EBITDA") is also seasonal, and, like revenue, generally exhibits its strongest
performance in the second and third quarters. Cash generated from operations is
strongest in the fourth quarter due to the invoice-payment cycle following the
high travel season.
On a reported basis, Group revenue of CHF 656.7 million was CHF 18.3 million
higher than the comparable 2011 period, an improvement of 2.9%. The improvement
was driven mainly by higher passenger volume year over year. On a constant
currency basis, revenue rose to CHF 676.8 million, an increase of 6.0%.
Segment EBITDA was CHF 25.5 million, up 4.5% from CHF 24.4 million in 2011,
resulting in an EBITDA margin of 3.9% on both a reported and constant currencies
basis. An external event that impacted the Q1 income statement for 2011 was the
Japan disaster.
Operating profit was up 20.5% on a reported basis to CHF 4.7 million while on a
constant currency basis the operating profit showed a 17.9% improvement. Loss
for the period was CHF 14.8 million due to higher financial expenses that
include one-off costs associated with the refinancing, unfavorable foreign
exchange movements and taxes. In 2011 the loss was CHF 6.2 million.
Cash flow from operations, meanwhile, was CHF 2.7 million versus a negative
result in 2011 of CHF 28.6 million. The cash flow result was mainly due to
better working capital management driven by a lower investment in inventory,
lower outflows from trade payables and lower cash requirements for provisions
and retirement benefit obligations.
Notable developments in the first quarter of 2012 included:
-- Successful execution of a refinancing strategy including the issuance of
senior unsecured notes in the amount of EUR 350 million to repay
indebtedness and cancel all commitments under the existing credit
facilities, and issuance of a EUR 100 million multi-currency revolving
credit facility for working capital and general corporate purposes
-- The acquisition of Helios Market, Product and Production Development by
gategroup's deSter subsidiary to leverage synergies in marketing,
manufacturing and supply chains solutions by these complementary
businesses
-- The exercise of a call option with India Hospitality Corp. to acquire the
remaining 26% of Skygourmet to provide maximum flexibility to run the
Indian business as a fully owned and integrated operation
-- A realignment of gategroup operations into two businesses - Airline
Solutions and Product and Supply Chain Solutions
"Looking ahead for this year, gategroup is maintaining an expectation of flat
growth in real terms across its portfolio given the uncertain economic
conditions that exist. Therefore, we are not providing definitive guidance on
profitability due to potential volatility in certain key regions, notably Europe
and its associated sub-markets. Nevertheless, we balance our short-term tactics
with a long-term view and we will continue to invest in the business to enable
future growth," said gategroup CEO Andrew Gibson.
"Demand for air travel has shown steady upward growth for more than 40 years. We
see no reason why that long-term trend will not continue with rebounds in
passenger volumes after some periods of flat demand," Gibson said.
Please see the following link on the gategroup web site for a copy of the Q1
financial results report and additional information:
http://www.gategroupmember.com/index.php?option=com_content&view=article&id=534&Itemid=228
About gategroup:
gategroup is the leading independent global provider of products, services and
solutions related to a passenger's onboard experience. gategroup comprises the
following brands: deSter, eGate Solutions, Gate Aviation, Gate Gourmet, Gate
Retail Onboard, Gate Safe, Harmony, Performa, potmstudios, Pourshins and
Supplair.
Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the
symbol GATE. Please visit www.gategroup.com.
IMPORTANT NOTICE
This publication may contain specific forward-looking statements, e.g.,
statements including terms like "believe", "assume", "expect" or similar
expressions. Such forward-looking statements are subject to known and unknown
risks, uncertainties and other factors which may result in a substantial
divergence between the actual results, financial situation, development or
performance of the Company and those explicitly or implicitly presumed in these
statements. Against the background of these uncertainties readers should not
rely on forward-looking statements. The Company assumes no responsibility to
update or revise any of these forward-looking statements or to adapt them
whether to reflect new information, future events, developments or circumstances
or otherwise.
Financial overview
period ended March 31, 2012
in CHF m except per share data
January - March, January - March,
2012 2011
Income Statement
----------------
Revenue 656.7 638.4
------- ----- -----
EBITDA 25.5 24.4
------ ---- ----
EBITDA margin in % 3.9% 3.8%
----------------- --- ---
Operating profit 4.7 3.9
---------------- --- ---
Operating profit margin in % 0.7% 0.6%
--------------------------- --- ---
Loss before tax (9.7) (1.6)
--------------- ---- ----
Loss for the period (14.8) (6.2)
------------------- ----- ----
Basic earnings per share in CHF (0.58) (0.25)
------------------------------- ----- -----
Diluted earnings per share in CHF (0.58) (0.25)
--------------------------------- ----- -----
March 31, 2012 March 31, 2011
Balance Sheet
-------------
Current assets 706.6 869.6
-------------- ----- -----
Non-current assets 902.2 905.0
------------------ ----- -----
Total assets 1,608.8 1,774.6
------------ ------ -------
Current liabilities 545.6 561.4
------------------- ----- -----
Non-current liabilities 604.7 795.7
----------------------- ----- -----
Total liabilities 1,150.3 1,357.1
----------------- ------ -------
Total equity 458.5 417.5
------------ ----- -----
Short-term debt 23.3 31.8
--------------- ---- ----
Long-term debt 438.4 583.2
-------------- ----- -----
Cash and cash equivalents 256.2 421.1
------------------------- ----- -----
Net debt 205.5 193.9
-------- ----- -----
January - March, January - March,
2012 2011
Cash Flow
---------
Loss before tax (9.7) (1.6)
--------------- ---- ----
Cash generated from /
(used in) operations 2.7 (28.6)
--------------------------------------- --- -----
Interest, net (3.9) (5.9)
------------- ---- ----
Income taxes paid, net (8.4) (3.9)
---------------------- ---- ----
Net cash flow used in operating
activities (9.6) (38.4)
--------------------------------------- ---- -----
Acquisition of subsidiaries,
net of cash acquired (47.1) 0.0
--------------------------------------- ----- ---
Capital expenditure (12.5) (6.3)
------------------- ----- ----
Other 1.3 4.1
----- --- ---
Cash flow used in investing
activities (58.3) (2.2)
-------------------------------------- ----- ----
Cash flow used in financing
activities (110.0) (1.6)
-------------------------------------- ------ ----
Decrease in cash and cash
equivalents (177.9) (42.2)
------------------------------------- ------ -----
INVITATION TO ANALYSTS AND INVESTORS
gategroup CFO Thomas Bucher invites analysts and investors to participate in a
telephone conference call regarding the 2012 first quarter results.
The presentation can be accessed via webcast and dial-in teleconference at 14:00
CET on Thursday, May 10, 2012. To listen to the live presentation via
teleconference, call the dial-in number approximately 15 minutes before the
start time. Once dialed in, please follow the instructions given over the phone.
Direct dial-in numbers:
+41 (0)91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 41 66 (USA - Toll-Free)
To link to the live webcast of the presentation, please go to the "Investor
Pack" tab under the "Investor Relations" section of the gategroup web site,
www.gategroup.com. Please note that the Q&A session following the presentation
is for analysts and investors only.
Further inquiry note:
For media, John Bronson, jbronson@gategroup.com, +41 43 812 2048, or For
investors/analysts, Dagmara Robinson, drobinson@gategroup.com, +41 43 812 5496
end of announcement euro adhoc
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issuer: gategroup Holding AG
Balz-Zimmermannstrasse 7
CH-8302 Kloten
phone: +41 43 812 54 96
FAX: +41 43 812 91 19
mail: invest@gategroup.com
WWW: http://www.gategroupmember.com/
sector: Consumer Goods
ISIN: CH0100185955
indexes:
stockmarkets: Hauptsegment: SIX Swiss Exchange
language: English