August 22, 2003
Global Automotive Logistics S.A.S. ("GAL") announced today the unaudited
financial results for the second quarter ended 30th June 2003. These results
are prepared in accordance with French GAAP.
All figures are in Euros millions unless otherwise indicated.
INCOME STATEMENT 2ndquarter 2ndquarter 6 6
ended June ended June months months
30, 2003 30, 2002 ended ended
June June
30, 30,
2003 2002
Total revenue 304.6 323.0 592.2 630.6
Total costs of sales (265.3) (279.9) (516.4) (549.1)
Gross profit 39.3 43.1 75.8 81.5
Selling, general and (17.6) (19.5) (34.3) (39.0)
administrative expense
Other income and (expense) (0.1) - (0.3) -
Operating income 21.6 23.6 41.1 42.5
Net financial income (expenses) (5.4) (6.9) (11.3) (13.1)
Goodwill amortization (5.4) (5.1) (10.7) (10.3)
Income before income taxes and 10.8 11.6 19.1 19.1
minority interests
Income taxes expense (6.2) (4.7) (11.2) (8.5)
Net income before minority 4.6 6.9 7.9 10.6
interests
Minority interests (0.1) - (0.2) -
Net Income 4.5 6.9 7.7 10.6
OTHER FINANCIAL INFORMATION
EBITDA 23.9 26.0 45.7 47.8
Depreciation and amortization 2.3 2.4 4.5 5.3
Capital expenditure 2.8 3.1 4.4 5.4
Acquisition debt 269.2 300.4 269.2 300.4
Shareholders equity 211.1 203.6 211.1 203.6
The revenue and costs included in the operating profit for the second quarter
ended 30th June 2003 are:
2ndquarter 2ndquarter 6 months 6 months
ended June ended June ended ended
30, 2003 30, 2002 June 30, June 30,
2003 2002
Revenue
Vehicle logistics
Renault 193.1 198.8 370.2 389.5
Non Renault 41.2 45.1 80.6 83.8
Total vehicle logistics 234.3 243.9 450.8 473.3
Logistics overseas
Renault 3.7 3.2 9.0 7.8
Non Renault 5.7 14.5 11.9 27.3
Total logistics overseas 9.4 17.7 20.9 35.1
Logistics cargo
Renault 30.2 29.8 60.0 57.7
Non Renault 30.7 31.6 60.6 64.5
Total logistics cargo 60.9 61.4 120.5 122.2
Total revenue 304.6 323.0 592.2 630.6
Cost of sales
Direct purchases (221.0) (236.5) (429.2) (463.7)
Direct personnel (22.6) (22.4) (44.1) (44.2)
Direct other (21.7) (21.0) (43.1) (41.2)
Total costs of sales (265.3) (279.9) (516.4) (549.1)
Second quarter 2003 compared with second quarter 2002
Total Revenue
Total revenue decreased by 5.7% to Euro304.6 million in the second quarter 2003
from Euro323.0 million in the second quarter 2002. This decrease was mainly
attributable to the drop of the volumes in Logistic vehicle activity.
Vehicle Logistics revenue decreased by 3.9% to Euro234.3 million in the second
quarter 2003 from Euro243.9 million in the second quarter 2002. The level of
Western European new car registrations in the second quarter 2003 decreased by
2.8%. Renault's new car registrations decreased by 1% in the same period
although there was significant volatility in the quarter with April and May
averaging a 7.6% decline, and June, a 12.9% increase.
Renault revenue decreased by 2.9% to Euro193.1 million in the second quarter 2003
from Euro198.8 million in the second quarter 2002. This decrease was attributed to
the drop of volumes and to the reduction by 3% of our tariffs, partly balanced
by level of business in Italy and Spain.
Non-Renault revenue decreased by 8.6% to Euro41.2 million in the second quarter
2003 from Euro45.1 million in the second quarter 2002. Nissan activity obtained in
Spain and in Poland partly balanced the weak activity in France, UK and Brazil
(Renault dealers).
Logistic overseas revenue decreased by 46.9% to Euro9.4 million in the second
quarter 2003 from Euro17.7 million in the second quarter 2002.
Sales to Renault increased by 15.6% to Euro3.7 million in the second quarter 2003
from Euro3.2 million in the second quarter 2002. The high air activity from Mexico
to Europe explained this increase.
Non Renault revenue decreased by 60.7% to Euro5.7 million in the second quarter
2003 from Euro14.5 million in the second quarter 2002 mainly due to a low activity
in industrial projects.
Logistic cargo revenue decreased by 0.8% to Euro60.9 million in the second quarter
2003 from Euro61.4 million in the second quarter 2002. Sales were negatively
affected by the drop of the volumes in France and in Brazil partly balanced by
new customers in Poland.
Cost of sales
Cost of sales decreased by 5.2% to Euro265.3 million in the second quarter 2003
from Euro279.9 million in the second quarter 2003. Cost of sales increased as a
percentage of total revenue to 87.1% in the second quarter 2003 from 86.6% in
the second quarter 2002.
Direct purchases represent the largest portion of CAT's cost of sales. Direct
purchases decreased by 6.6% to Euro221.0 million in the second quarter 2003 from Euro
236.5 million in the second quarter 2002, primarily as a result of volumes
decrease and productivity actions.
Direct personnel remained at the same level for the both period: Euro22.6 million
in the second quarter 2003 versus Euro22.4 million in the second quarter 2002.
Direct other increased by 3.3% to Euro21.7 million in the second quarter 2003 from
Euro21.0 million in the second quarter 2002.
Gross Profit
As a result of the above, gross profit decreased by 8.8% to Euro39.3 million in
the second quarter 2003 compared to Euro43.1 million in the second quarter 2002.
Gross profit decreased as a percentage of total revenue to 12.9% in the second
quarter 2003 from 13.3% in the second quarter 2002.
Selling, General and Administrative Expense
Selling, general and administrative expense decreased by 9.7% to Euro17.6 million
in the second quarter 2003 from Euro19.5 million in the second quarter 2002.
Selling, general and administrative expense decreased as a percentage of total
revenue to 5.8% in the second quarter 2003 from 6.0% in the second quarter
2002. Productivity actions launched in the year 2002 explain this evolution.
Operating Income
Operating income decreased by 8.5% to Euro21.6 million in the second quarter 2003
from Euro23.6 million in the second quarter 2002. Operating margin decreased as a
percentage of total revenue to 7.1% in the second quarter 2003 from 7.3% in the
second quarter 2002.
Net Financial Income (Expense)
Net financial expense decreased to Euro5.4 million in the second quarter 2003 from
Euro6.9 million in the second quarter 2002 primarily as a result of debt
reimbursement in the year 2002 and to the reduction of the margin applied on
the rate in accordance with our covenants.
Goodwill amortization
The amount in the second quarter 2003 was Euro5.4million against Euro5.1 million in
the second quarter 2002 and represented the depreciation of the goodwill on the
acquisition of CAT on July 17th, 2001 after the final price allocation.
Income Tax Expense
Income tax expense increased to Euro6.2 million in the second quarter 2003 from Euro
4.7 million in the second quarter 2002.
Minority interests
Minority interests were (0.1) in the second quarter 2003 versus null in the
second quarter 2002.
Net Income
As a result of the factors described above, net income decreased to Euro4.5
million in the second quarter 2003 from Euro6.9 million in the second quarter
2002.
EBITDA
EBITDA remained at the same level for the both period: Euro23.9 million in the
second quarter 2003 versus Euro26.0 million in the second quarter 2002.
Depreciation
Depreciation decreased to Euro2.3million in the second quarter 2003 from Euro2.4
million in the second quarter 2002.
Capital Expenditures
Our total capital expenditures were Euro2.8 million in the second quarter 2003,
lower than Euro3.1 million in the second quarter 2002. Most of our capital
expenditures were used for information technology software's and for the
maintenance of our centres in France and Spain.
Six months of the year 2003
An income statement, a balance sheet and a cash flow statement are enclosed in
the appendix of this report.
About Global Automotive Logistics S.A.S.
GAL is the holding company for CAT, one of Europe's largest lead logistics
providers for the automotive industry, managing and organization primarily
outbound transportation and distribution requirements on a global, regional or
national basis through a multi-modal network of road, rail sea and air
subcontractors. GAL was formed by a consortium of leading logistics operators
in Europe to acquire CAT from Renault S.A. The shareholders of GAL include
AutoLogic Holdings plc, TNT Post Group N.V and Wallenius Wilhelmsen Lines. The
acquisition of CAT occurred on 17th July 2001.
For further information please contact:
Hubert De Contenson Alain Rouas Philip Nuttall
Finance Director Directeur G�n�ral Director
Tel: 00 33 1 41 03 71 05 Tel: 00 33 1 41 03 74 44 Tel: 00 44 207 420 0555
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED BALANCE SHEET
(Euros in Thousands)
June 30,
2003 2002
Unaudited Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents .************************ 106,033 81,775
Accounts receivable, net of allowance for doubtful 218,091 240,917
accounts of Euro8,549k and Euro8,878k ...
Deferred tax assets *************************** 20,692 23,410
Other current assets **************************... 44,965 72,821
Total current assets *************************** 389,781 418,923
NON-CURRENT ASSETS:
Fixed assets, net of accumulated depreciation of Euro 25,932 34,400
37,323k and Euro55,996k *****..
Intangible assets, net of accumulated amortization of Euro 398,191 408,243
59,172k and Euro33,070k ***...
Other non-current assets ************************* 3,394 3,074
Total non-current assets ************************* 427,517 445,717
TOTAL ASSETS ***************************.. 817,298 864,640
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED BALANCE SHEET (Continued)
(Euros in Thousands)
June 30,
2003 2002
Unaudited Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ***************************.. 222,719 256,557
Accrued payroll ****************************. 25,835 25,490
Taxes payable ****************************... 39,178 27,419
Current portion of long-term debt *********************. 29,962 26,012
Provision for profit sharing current portion *********** 559 686
*****.......
Provisions ******************************.. 10,443 5,623
Deferred tax liabilities *************************... 2,167 2,053
Other liabilities ****************************.. 9,905 15,770
Total current liabilities *************************.. 340,768 359,610
NON-CURRENT LIABILITIES:
Long term debt ****************************.. 246,206 278,990
Provisions for pensions and other benefits ************* 15,347 17,011
*****
Provision for profit sharing non current portion ******* 3,555 4,517
*********
Total non-current liabilities ***********************... 265,108 300,518
Total liabilities ****************************.. 605,876 660,128
COMMITMENTS AND CONTINGENCIES ****************.. - -
MINORITY INTERESTS ************************ 331 876
SHAREHOLDERS' EQUITY:
Share capital, Euro10 par value, authorized, issued and 187,000 187,000
outstanding: 18,700,000 shares *...
Share premium ****************************.. 3,618 3,000
Foreign currency translation ***********************.. (4,206) (2,809)
Retained earnings ***************************.. 24,679 16,445
Total shareholders' equity ************************. 211,091 203,636
TOTAL *******************************. 817,298 864,640
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED STATEMENTS OF INCOME
(Euros in Thousands)
Six months ended
June 30,
2003 2002
Unaudited Unaudited
REVENUE ****************************** 592,160 630,668
COST OF SALES ***************************. (516,358) (549,177)
GROSS PROFIT ***************************... 75,802 81,491
Selling, general and administrative ******************* (34,337) (38,958)
*...
Other income and (expenses) *********************** (328) -
OPERATING INCOME ************************... 41,137 42,533
FINANCIAL INCOME (EXPENSE)
Interest and other financial income ******************* 2,325 1,900
*...
Interest and other financial expense ******************* (13,624) (14,994)
*..
Total financial income (expense) *********************.. (11,299) (13,094)
Amortization of goodwill and purchased intangible assets (10,740) (10,296)
***********
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS **** 19,098 19,143
*...
Income tax expense **************************... (11,243) (8,500)
INCOME BEFORE MINORITY INTERESTS ***************... 7,855 10,643
Minority interests ***************************.. (157) 23
NET INCOME ****************************.. 7,698 10,666
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Euros in Thousands)
Six months ended
June 30,
2003 2002
Unaudited Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ****************************** 7,698 10,666
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization **********************.. 15,289 15,591
Loss (gain) on sale of subsidiary and fixed assets ***** (672) (5)
**********.
Provision for deferred taxes ***********************.. (4,540) (5,255)
Minority interests ***************************.. 157 (23)
Other non-cash items ************************** 11,299 7,857
Provisions ******************************.. 1,335 1,392
Changes in operating assets:
Accounts receivable **************************.. (688) (14,852)
Other current assets **************************... 13,747 (12,436)
Changes in operating liabilities:
Accounts payable ***************************.. 19,203 20,326
Other creditors ****************************... 3,076 9,210
Net cash inflow from operating activities ************** 65,904 32,471
****..
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures **************************.. (4,380) (5,428)
Proceeds from disposals of subsidiary and fixed assets * 3,560 184
************.
Net cash flow from investing activities **************** (820) (5,244)
***.
CASH FLOWS FROM FINANCING ACTIVITIES:
Term loans and other financing **********************. (22,316) (14,194)
Net cash outflow from financing activities ************* (22,316) (14,194)
*................
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS ******* 42,768 13,033
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH 3 (2,158)
EQUIVALENTS ...
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ******** 63,262 70,900
CASH AND CASH EQUIVALENTS, END OF PERIOD ***********.. 106,033 81,775
A conference call has been scheduled in connection with the above announcement
of the results of Global Automotive Logistics S.A.S. and GAL Finance S.A. for
the 2nd quarter ended June 30, 2003.
The details of the conference call are as follows -
Date: Thursday 28th August 2003
Time: 3 pm (CET)
Reference: GAL Results (AutoLogic)
Dial in: 0870 043 4990 from the UK
+44 1452 542 361 from all other countries
PIN Code: 56 41 87 followed by the # key
If you are unable to participate in the conference call, a transcript of the
conference call will be available 48 hours after the call. Please contact
Shanny Looi if you would like to receive a copy of the transcript.
Name of contact and telephone number for queries - Shanny Looi
Telephone: 00 44 20 7420 0555
E-mail: slooi@autologic.co.uk
Name and signature of authorised company official responsible for making this
notification
Shanny Looi
END