November 25, 2003
Global Automotive Logistics S.A.S. ("GAL") announced today the unaudited
financial results for the third quarter ended 30th September 2003. These
results are prepared in accordance with French GAAP.
All figures are in Euros millions unless otherwise indicated.
INCOME STATEMENT 3rdquarter 3rdquarter 9months 9months
ended ended ended ended
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
Total revenue 278.9 266.6 871.1 897.2
Total costs of sales (245.9) (236.3) (762.1) (785.4)
Gross profit 33.0 30.3 109.0 111.8
Selling, general and (16.8) (16.6) (51.5) (55.6)
administrative expense
Other income and (expense) (2.1) - (2.4) -
Operating income 14.1 13.7 55.2 56.2
Net financial income (expenses) (5.8) (7.7) (17.0) (20.8)
Goodwill amortization (5.4) (5.1) (16.2) (15.4)
Income before income taxes and 2.9 0.9 22.0 20.0
minority interests
Income taxes expense (3.1) (1.2) (14.4) (9.7)
Net income before minority (0.2) (0.3) 7.6 10.3
interests
Minority interests - 0.4 - 0.4
Net Income (0.2) 0.1 7.6 10.7
OTHER FINANCIAL INFORMATION
EBITDA 16.7 16.4 62.4 64.2
Depreciation and amortization 2.6 2.7 7.2 8.0
Capital expenditure 4.2 3.7 8.6 9.1
Acquisition debt 256.1 283.7 256.1 283.7
Shareholders equity 211.3 202.6 211.3 202.6
The revenue and costs included in the operating profit for the third quarter
ended 30th September 2003 are:
3rdquarter 3rdquarter 9months 9months
ended ended ended ended
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
Revenue
Vehicle logistics
Renault 172.2 154.3 542.5 543.8
Non Renault 40.2 40.0 120.7 123.9
Total vehicle logistics 212.4 194.3 663.2 667.7
Logistics overseas
Renault 3.2 3.0 12.1 10.7
Non Renault 6.0 10.7 17.9 38.0
Total logistics overseas 9.2 13.7 30.1 48.7
Logistics cargo
Renault 28.8 28.8 88.8 86.5
Non Renault 28.5 29.8 89.1 94.3
Total logistics cargo 57.3 58.6 177.9 180.8
Total revenue 278.9 266.6 871.1 897.2
Cost of sales
Direct purchases (204.3) (195.4) (633.5) (659.0)
Direct personnel (19.8) (21.1) (63.9) (65.3)
Direct other (21.8) (19.8) (64.7) (61.1)
Total costs of sales (245.9) (236.3) (762.1) (785.4)
Third quarter 2003 compared with third quarter 2002
Total Revenue
Total revenue increased by 4.6% to Euro278.9 million in the third quarter 2003
from Euro266.6 million in the third quarter 2002. This increase was attributable
to good volumes in Logistic vehicle activity during this quarter.
Vehicle Logistics revenue increased by 9.3% to Euro212.4 million in the third
quarter 2003 from Euro194.3 million in the third quarter 2002. The level of
Western European new car registrations in the third quarter 2003 increased by
1.1%. Renault's new car registrations increased by 1.8% in the same period
although there was significant volatility in the quarter with July and August
averaging a 6.3% decline, and September, a 16% increase.
Renault revenue increased by 11.6% to Euro172.2 million in the third quarter 2003
from Euro154.3 million in the third quarter 2002. This increase was attributed
mainly to the peak of volumes in September.
Non-Renault revenue remained at the same level for the two periods: Euro40.2
million in the third quarter 2003 versus Euro40.0 million in the third quarter
2002. Nissan activity obtained in Spain and in Poland balanced the weak
activity in France, UK and Brazil (Renault dealers).
Logistic overseas revenue decreased by 46.9% to Euro9.2 million in the third
quarter 2003 from Euro13.7 million in the third quarter 2002.
Sales to Renault increased by 6.7% to Euro3.2 million in the third quarter 2003
from Euro3.0 million in the third quarter 2002.
Non Renault revenue decreased by 43.9% to Euro6.0 million in the third quarter
2003 from Euro10.7 million in the third quarter 2002 mainly due to a low activity
in industrial projects.
Logistic cargo revenue decreased by 2.2% to Euro57.3 million in the third quarter
2003 from Euro58.6 million in the third quarter 2002. Sales were negatively
affected by the drop of the volumes in France and in Brazil partly balanced by
new customers in Poland and Renault in Spain.
Cost of sales
Cost of sales increased by 4.1% to Euro245.9 million in the third quarter 2003
from Euro236.3 million in the third quarter 2003. Cost of sales decreased as a
percentage of total revenue to 88.2% in the third quarter 2003 from 88.6% in
the third quarter 2002.
Direct purchases represent the largest portion of CAT's cost of sales. Direct
purchases increased by 4.6% to Euro204.3 million in the third quarter 2003 from Euro
195.4 million in the third quarter 2002, primarily as a result of volumes
increase in September. Direct purchases remained at the same level at 73.2% as
a percentage of total revenue for the both period.
Direct personnel decreased by 6.2% to Euro19.8 million in the third quarter 2003
from Euro21.1 million in the third quarter 2002.
Direct other increased by 10.1% to Euro21.8 million in the third quarter 2003 from
Euro19.8 million in the third quarter 2002.
Gross Profit
As a result of the above, gross profit increased by 8.9% to Euro33.0 million in
the third quarter 2003 compared to Euro30.3 million in the third quarter 2002.
Gross profit increased as a percentage of total revenue to 11.8% in the third
quarter 2003 from 11.4% in the third quarter 2002.
Selling, General and Administrative Expense
Selling, general and administrative expense amounted to Euro16.8 million in the
third quarter 2003 versus Euro16.6 million in the third quarter 2002. Selling,
general and administrative expense decreased as a percentage of total revenue
to 6.0% in the third quarter 2003 from 6.2% in the third quarter 2002.
Productivity actions launched in the year 2002 explain this evolution.
Operating Income
Operating income increased by 2.9% to Euro14.1 million in the third quarter 2003
from Euro13.7 million in the third quarter 2002. Operating margin remained at the
level of 5.1% as a percentage of total revenue for both periods, despite
exceptional expenses for Euro2.1 million in the third quarter 2003.
Net Financial Income (Expense)
Net financial expense decreased to Euro5.8 million in the third quarter 2003 from
Euro7.7 million in the third quarter 2002 primarily as a result of debt
reimbursement in the years 2002 and 2003 and to the reduction of the margin
applied on the rate in accordance with our covenants.
Goodwill amortization
The amount in the third quarter 2003 was Euro5.4 million against Euro5.1 million in
the third 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 Euro3.1 million in the third quarter 2003 from Euro
1.2 million in the third quarter 2002.
Minority interests
Minority interests were nil in the third quarter 2003 versus 0.4 in the third
quarter 2002.
Net Income
As a result of the factors described above, net income decreased to Euro(0.2)
million in the third quarter 2003 from Euro0.1 million in the third quarter 2002.
EBITDA
EBITDA increased to Euro16.7 million in the third quarter 2003 from Euro16.4 million
in the third quarter 2002.
Depreciation
Depreciation remained at the same level for the both periods: Euro2.7 million.
Capital Expenditures
Our total capital expenditures were Euro4.2 million in the third quarter 2003,
higher than Euro3.7 million in the third quarter 2002. Most of our capital
expenditures were used for information technology software and for the
maintenance of our centres in France and Spain.
Nine 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 organizing 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 Sverker Ohrn 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)
September 30,
2003 2002
Unaudited Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..************************ 63,171 37,658
Accounts receivable, net of allowance for doubtful 222,455 219,482
accounts of Euro8,549k and Euro8,878k ...
Deferred tax assets *************************** 22,780 25,866
Other current assets **************************... 46,108 64,061
Total current assets *************************** 354,514 347,067
NON-CURRENT ASSETS:
Fixed assets, net of accumulated depreciation of Euro 25,265 30,997
37,323k and Euro55,996k *****..
Intangible assets, net of accumulated amortization of Euro 394,820 407,838
59,172k and Euro33,070k ***...
Other non-current assets ************************* 3,360 3,199
Total non-current assets ************************* 423,445 442,034
TOTAL ASSETS ***************************.. 777,959 789,101
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED BALANCE SHEET (Continued)
(Euros in Thousands)
September 30,
2003 2002
Unaudited Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ***************************.. 193,884 203,490
Accrued payroll ****************************. 26,343 25,748
Taxes payable ****************************... 43,787 24,229
Current portion of long-term debt *********************. 29,860 25,137
Provision for profit sharing current portion *********** 559 686
*****.......
Provisions ******************************.. 10,578 5,561
Deferred tax liabilities *************************... 2,114 2,068
Other liabilities ****************************.. 8,986 15,915
Total current liabilities *************************.. 316,111 302,834
NON-CURRENT LIABILITIES:
Long term debt ****************************.. 231,557 263,495
Provisions for pensions and other benefits ************* 15,491 16,446
*****
Provision for profit sharing non current portion ******* 3,522 3,257
*********
Total non-current liabilities ***********************... 250,570 283,198
Total liabilities ****************************.. 566,681 586,032
COMMITMENTS AND CONTINGENCIES ****************.. - -
MINORITY INTERESTS ************************ (16) 465
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 ***********************.. (3,950) (3,900)
Retained earnings ***************************.. 24,626 16,504
Total shareholders' equity ************************. 211,294 202,604
TOTAL *******************************. 777,959 789,101
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED STATEMENTS OF INCOME
(Euros in Thousands)
Nine months ended
September 30,
2003 2002
Unaudited Unaudited
REVENUE ****************************** 871,136 897,232
COST OF SALES ***************************. (762,106) (785,397)
GROSS PROFIT ***************************... 109,030 111,835
Selling, general and administrative ******************* (51,367) (55,597)
*...
Other income and (expenses) *********************** (2,422) -
OPERATING INCOME ************************... 55,241 56,238
FINANCIAL INCOME (EXPENSE)
Interest and other financial income ******************* 2,921 1,516
*...
Interest and other financial expense ******************* (19,952) (22,312)
*..
Total financial income (expense) *********************.. (17,031) (20,796)
Amortization of goodwill and purchased intangible assets (16,166) (15,400)
***********
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS **** 22,044 20,042
*...
Income tax expense **************************... (14,399) (9,708)
INCOME BEFORE MINORITY INTERESTS ***************... 7,645 10,334
Minority interests ***************************.. - 361
NET INCOME ****************************.. 7,645 10,695
GLOBAL AUTOMOTIVE LOGISTICS S.A.S.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Euros in Thousands)
Nine months ended
September 30,
2003 2002
Unaudited Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ****************************** 7,645 10,300
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization **********************.. 23,368 23,400
Loss (gain) on sale of subsidiary and fixed assets ***** (729) 602
**********.
Provision for deferred taxes ***********************.. (6,643) (7,764)
Minority interests ***************************.. - -
Other non-cash items ************************** 16,898 12,300
Provisions ******************************.. 1,379 (36)
Changes in operating assets:
Accounts receivable **************************.. (4,411) 7,254
Other current assets **************************... 11,799 (5,326)
Changes in operating liabilities:
Accounts payable ***************************.. (9,255) (33,773)
Other creditors ****************************... 7,716 7,552
Net cash inflow from operating activities ************** 47,767 14,509
****..
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures **************************.. (8,576) (9,065)
Proceeds from disposals of subsidiary and fixed assets * 3,668 3,696
************.
Net cash flow from investing activities **************** (4,908) (5,369)
***.
CASH FLOWS FROM FINANCING ACTIVITIES:
Term loans and other financing **********************. (42,488) (40,325)
Net cash outflow from financing activities ************* (42,488) (40,325)
*................
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS ******* 371 (31,185)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (422) (2,057)
EQUIVALENTS ...
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ******** 63,262 70,900
CASH AND CASH EQUIVALENTS, END OF PERIOD ***********.. 63,171 37,658
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 3rd quarter ended September 30, 2003.
The details of the conference call are as follows -
Date: Friday 28th November 2003
Time: 3 pm (UK time)
Reference: GAL Results (AutoLogic)
Dial in: 0845 245 3471 from the UK
00 44 1452 542 300 from all other countries
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