- 21 August 2007
Financial result for the three months ended June 2007 (Unaudited)
This quarterly result is reported under the NZIFRS accounting standards for the first time. Prior period information has been restated accordingly.
The Mainfreight Group is pleased to report a net surplus of $67.3 million. During this reporting quarter, the Group divested its interests in Lep and Pan Orient, with an abnormal gain on sale (after tax) of $61.2 million. Excluding abnormals and divested operations, the net surplus was $5.8 million compared to $5.5 million in the same quarter last year.
For the continuing businesses, EBITDA performance improved 6.1% to $11.9 million. After taking foreign exchange effects into account, this increase is 10.8%. Trading conditions during the reported quarter were challenging, however all divisions continued their profit improvement performance.
Consolidated revenues for the period were $210.4 million compared to $233.7 million last year. When comparing revenues from continuing operations these were slightly reduced to $178.0 million compared to $180.5 million. Excluding foreign exchange adjustments, continuing revenues increased 4.0%.
Divisional Performance
New Zealand Domestic
In what is traditionally our quietest quarter, and in what we consider to be a challenging economic environment, revenues were reduced by 2.2%, largely as a result of reduced fuel adjustment factors. EBITDA improved 10.2%, which included a one off property gain on sale of $0.6 million. Trading remains flat into the second quarter.
New Zealand International
Revenues were significantly affected by the high New Zealand dollar impacting export volumes, however EBITDA performance was in line with last year. Import volumes continue to increase and contribute to improving performance into the second quarter.
Australian Domestic
Excluding foreign exchange, revenues continued to improve to AU$27.7 million; an increase of 13.7%. EBITDA, excluding foreign exchange, remained in line with last year. EBITDA growth was affected by higher warehousing occupation costs as capacity is increased to cope with future confirmed increased tonnage.
Australian International
Revenues continued to improve, up 10.0% from AU$24.6 million to AU$27.0 million. EBITDA improved 24.9% to AU$0.74 million.
USA International
USA acquisition activity remains intense with due diligence proceeding on schedule.
Asia International
During the quarter this business traded as an associate, where our share of earnings rose 25.7% (excluding foreign exchange) to NZ$0.3 million.
As announced previously, agreement has been reached to purchase the remaining shares not already owned by Mainfreight, and this business will in future report as a fully-owned subsidiary.
Group Operating Cash Flows
Operating cash flows were slightly ahead of last year. The sale of our interests in Lep and Pan Orient allowed the full repayment of long-term loans, which sees the Group in a positive net cash position of $18.6 million.
Capital Expenditure in the quarter totalled $4.0 million.
The EBITDA improvement of 10.8% in the continuing businesses is satisfactory in what is our quietest quarter. We expect Group earnings to continue their improvement as the financial year progresses despite tough trading conditions in New Zealand.
For further information, please contact Don Braid, Group Managing Director, phone 09 259 5503, 027 4961637 or email don@mainfreight.com.