- Q1 2008 revenues increased 4.4% over prior year levels.
- Q1 2008 EBITDA 13.4% above prior year levels.
IFCO SYSTEMS' group revenues and operational profitability improved in Q1 2008. Revenue and EBITDA in our Pallet Management Services business segment increased, while revenue and EBITDA in our RPC Management Services segment decreased due to the termination of a contract in 2007.
Revenues on a group level increased by US $7.1 million, or 4.4%, to US $167.8 million in Q1 2008. RPC Management Services' Q1 2008 revenues decreased by US $1.4 million, or 2.0%, to US $70.5 million compared to Q1 2007, as a result of the termination of the Company's EDEKA contract, effective January 1, 2008. Eliminating this effect, Q1 2008 volumes in the RPC Management Services segment would have grown by double digits. Pallet Management Services' revenues grew by US $8.5 million, or 9.6%, to US $97.3 million compared to the prior year quarter.
Gross profit margin on a group level increased in Q1 2008 by 0.7 percentage points to 15.6%, primarily as a result of cost efficiency improvements in our Pallet Management Services segment. RPC Management Services' gross profit margin dropped from 18.8% to 17.2% in Q1 2008, with improvements in the RPC US gross profit margin more than offset by decreases in Europe resulting from lower volumes and therefore less fixed cost coverage.
EBITDA increased by US $2.6 million, or 13.4%, to US $22.3 million in Q1 2008, with LTM Q1 2008 EBITDA at US $109.7 million. EBITDA in the RPC Management Services business segment decreased by 5.8% to US $15.7 million in Q1 2008 compared to Q1 2007. Pallet Management Services' EBITDA significantly increased by 84.8% to US $8.3 million in Q1 2008 compared to Q1 2007.
EBIT increased by US $0.8 million, or 7.7%, to US $11.5 million in Q1 2008, with LTM Q1 2008 EBIT at US $67.4 million.
Net profit decreased by US $1.0 million, or 44.5%, to US $1.3 million in Q1 2008. The operational improvements discussed above were mainly offset by a higher income tax provision.
Operating cash flows from continuing operations before income tax payments declined significantly in Q1 2008 compared to Q1 2007 by US $24.1 million to a use of US $28.8 million. This decline was primarily caused by reduced refundable deposit levels and other related effects on working capital following the termination of the EDEKA contract in Europe.
Capital expenditure levels decreased by US $2.2 million, or 22.8%, to US $7.4 million.
ROCE from continuing operations, on a LTM basis, increased to 16.8% as of March 31, 2008, compared to 15.5% as of March 31, 2007.
US $ in thousands, except per share amounts |
Q1 2008
|
Q1 2007
|
% Change
|
LTM
Q1 2008
|
|
|
|
|
|
Revenues |
167,807 |
160,720 |
4.4% |
699,635 |
Gross profit |
26,204 |
23,931 |
9.5% |
124,879 |
Gross profit margin |
15.6% |
14.9% |
|
17.8% |
EBITDA |
22,285 |
19,654 |
13.4% |
109,721 |
EBITDA margin |
13.3% |
12.2% |
|
15.7% |
EBIT |
11,510 |
10,689 |
7.7% |
67,356 |
EBIT margin |
6.9% |
6.7% |
|
9.6% |
Net profit |
1,292 |
2,329 |
(44.5%) |
26,070 |
|
|
|
|
|
Net profit per share - basic |
0.02 |
0.04 |
(44.3%) |
0.48 |
Net profit per share - diluted |
0.02 |
0.04 |
(44.1%) |
0.48 |
|
|
|
|
|
Operating cash flows from continuing operations |
(28,773) |
(4,722) |
509.3% |
93,846 |
Capital expenditures from continuing operations |
7,421 |
9,615 |
(22.8%) |
75,305 |
|
|
|
|
|
Return on capital employed (ROCE) |
16.8% |
15.5% |
|
|
Outlook: IFCO SYSTEMS expects that the economy in Europe will slightly improve, while the Company sees that economic growth in the United States has slowed markedly in recent quarters and may remain somewhat depressed during the remainder of 2008. IFCO SYSTEMS estimates fair market conditions for both of its business segments.
The Company is intently focused on covering the shortfall of trip volume following the termination of the EDEKA contract and did already make good progress in that respect.
As IFCO SYSTEMS has experienced in recent quarters through improving operating margins, the company expects that the disruption in its US Pallet Management Services segment resulting from the ICE investigation will continue to have a lessening effect on these operations in future periods. The Company anticipates that the recovery in the productivity and profitability of the Pallet Management Services segment will continue and therefore anticipates an improved result for fiscal 2008 as compared to fiscal 2007.
As a result, IFCO SYSTEMS expects improved profitability for the Company in fiscal 2008 as compared to fiscal 2007.
For further explanations, please see IFCO SYSTEMS' quarterly report, which will be filed with the Deutsche Börse AG on or about May 08, 2008, and will be available on the Company's website www.ifcosystems.com or www.ifcosystems.de.
This release contains forward-looking statements that reflect Management's current view with respect to future events. All statements contained in this release that are not clearly historical in nature or necessarily depend on future events are forward-looking. The words "anticipate", "believe", "expect", "estimate", "planned" and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections of the Management on currently available information. Many factors could cause the actual results, performance or achievements to be materially different from those that may be expressed or implied by such statements. We do not assume any obligation to update the forward-looking statements contained in this release.
