HOOFDDORP, The Netherlands, May 31 /PRNewswire/ --
-- Strong Business Performance in all Segments
CEVA Group Plc, the leading global pure play contract logistics company, released its first quarterly statements today since achieving independence from TNT N.V. on November 4, 2006. These statements represent a further milestone in the company's history and include the following highlights:
-- Stable revenue performance between Q1 2007 and Q1 2006
-- Operating income grew to EUR15.5 million from EUR15.0 million Q1, 2006
-- EBITDA increased to EUR45.2 million from EUR35.0 million in Q1 2006
-- Pro forma adjusted EBITDA improved to EUR48.9 million from EUR45.6 million in 2006 (unaudited)
-- Net loss of EUR(14.9) million compared to EUR(7.7) million in Q1 2006, driven by higher interest costs owing to the company's new capital structure
-- Net cash flow of EUR14.2 million compared to EUR(22.1) million in Q1 2006
-- Pending acquisition of EGL, Inc. for approximately US$2 billion
CEO Dave Kulik commented: "The first quarter of 2007 represented new evidence of the success our growth strategy. Major new contracts were signed with, amongst others, General Motors Thailand Limited, Rolls Royce Marine AS and John West Foods Ltd. These new contracts confirm that our focus on targeted sectors and our service offering results in successful and long-term growth. Close long-term customer relationships are the essence of our business. We have begun implementing our new global operating strategy, our roadmap for optimising, enhancing and transforming CEVA's business. Our first priority is growing our customer base and increasing our market share. Our service portfolio, global network, sector expertise and proven skills in cost control and efficiency will help us meet these goals. With the same objectives in mind we are also putting increased focus on improving our business development and account management activities, as well as enhancing our people policies."
Net sales remained stable between Q1 2006 and Q1 2007 with reported revenues of EUR861.6 million and EUR861.6 million for the respective periods. This is the result of a decrease in North America which was offset by strong growth in all other regions. Despite neutral revenue development, EBITDA increased by 29% to EUR45.2 million for the quarter, up from EUR35.0 million in Q1 2006. This is the result of a combination of improved operational performance, lower head office costs and the absence of licence fee costs in 2007. Net financial expense rose in Q1 2007 which increased the loss for the quarter to EUR(14.9) million from EUR(7.7) million in Q1 2006.
In the first quarter of 2007 CEVA announced that John Pattullo will take up the position of Chief Executive Officer in the August 2007. Dave Kulik will then become Vice Chairman of the CEVA Group.
In May 2007 CEVA announced that it will acquire freight forwarding company EGL, Inc. for approximately US$2 billion. CEVA currently intends to finance the acquisition with a combination of debt, with up to approximately US$200 million of cash equity from CEVA's balance sheet and up to approximately US$100 million new cash equity from Apollo (US$65 million minimum commitment). The combination will create the world's fourth largest integrated supply chain management company, with global capabilities in freight forwarding and contract logistics. It is anticipated that the transaction will close in the third quarter of 2007, and is subject to EGL shareholder approval, regulatory approval and certain other conditions."