KUWAIT CITY - 16 May, 2011
Financial Highlights
First Quarter Results
Agility (AGLTY) today announced financial results for the first quarter of 2011. The company reported a net profit of KD 7.70 million for the first quarter of 2011, and an EPS of 7.65 fils per share.
"After a year of adjustment in 2010, which included a transition away from government business, 2011 represents a new financial benchmark for Agility," said Tarek Sultan, Agility's Chairman and Managing Director. "Although our results this quarter reflect costs related to the restructuring of our defense and government business, it is important to note that today; we are first and foremost a commercial logistics provider."
"Our commercial business is steadily growing. We are acquiring new customers, expanding our business with existing customers, and transforming our operating platform to execute more efficiently," said Sultan. "We also promised discipline, and we are delivering on that promise. We have reduced SG&A costs by 20.43% this quarter and are continuing our efforts to streamline the organization while improving productivity."
"We enter 2011 with both a clear understanding of where we need to go as a company and deep determination to achieve our goals."
Update on the Core Business
Revenue in Agility's core business, Global Integrated Logistics (GIL), increased by 12.3% in Q1 of 2011 relative to the same quarter last year. This growth represents a like-for-like comparison which excludes revenue from government contracts and Agility's Qatar operations, given the recent merger with the Gulf Warehousing Company. Agility uses year-on-year comparisons for the commercial business because of the seasonality of the business. Revenues tend to be higher in the last two quarters of the year.
All regions contributed to this growth, with the biggest gains continuing to be made in emerging markets. The company's investment in emerging markets in the Middle East, Asia, Eastern Europe and Latin America are key to the company's long-term growth strategy.
Growth figures are driven by continuing global recovery in demand for logistics services, as well as continued progress in Agility GIL's strategy of growing through global accounts and trade-lane development. Agility GIL is also moving to improve productivity and efficiency by adopting a uniform set of processes that are supported by new technology.
Update on Agility's Portfolio of Companies
As government contracts largely wound down at the end of 2010, Agility restructured and reduced its Defense & Government Services business. Going forward, Agility Defense & Government Services will therefore be reported on as part of Agility's larger portfolio of logistics-related businesses.
The portfolio businesses also include Agility's Real Estate business, National Aviation Services (NAS), the Metal and Recycling Company (MRC), the Gulf Catering Company (GCC) and Global Clearinghouse Systems (GCS).
Agility's portfolio of businesses contributed KD 39 million to total revenue in Q1 of 2011. Excluding Agility Defense & Government Services, Agility's portfolio of companies showed a 26% increase in revenues from the same period last year. Agility's Real Estate business remains the main contributor to revenues in this portfolio. Other Agility portfolio businesses have shown healthy growth in the base business over the course of the last several years.
Recapping Financial Performance
Agility's revenue in the first quarter of 2011 stands at KD 318.51 million, a 21% decrease over Q1 of 2010.
Agility Global Integrated Logistics (GIL) revenue in Q1 of 2011 stands at KD 286 million.
Agility Qatar's merger with Gulf Warehousing Company (GWC) in Qatar resulted in KD 7.86 million in one-off gain this quarter. Note that, we will now report our commercial business without the consolidation of Qatar which would have contributed over KD 8 million in EBITDA for 2011.
Agility's portfolio of businesses contributed KD 39 million to total revenue in Q1 of 2011. This figure includes Agility Defense & Government Services as part of the portfolio business for the first time.
Operating profit stood at KD 1.67 million for the first quarter of 2011
Net profit is KD 7.70 million in the first quarter of 2011, as compared to KD 17.59 million for Q1 2010. This results in Earnings Per Share of 7.65 fils for this quarter, compared to an EPS of 17.46 fils in Q1 2010.
Improvements in working capital management resulted in a good operating cash flow of KD 15.15 million and free cash flow of KD 11.7 million.
Forward View
"We are pleased to report growth in our core commercial business, and are optimistic about the investments we have made in fast-growing emerging markets, growing our customer base, transforming our operating platform, and streamlining our organization," said Tarek Sultan.
"We continue to be proactive about adjusting our structure and processes in line with being a leaner and more efficient company," Sultan added. "We remain committed to our strategy of growing revenue organically, improving return on investment, managing costs and working capital prudently, and maximizing yields on core operating assets."
-Ends-
About Agility
From its roots in emerging markets, Agility brings efficiency to supply chains in some of the globe's most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed countries and emerging economies alike. A publicly traded company, Agility is one of the world's leading providers of integrated logistics with close to $6 billion in annual revenue and more than 25,000 employees in 550 offices across 100 countries.
Agility's commercial business, Global Integrated Logistics (GIL), is headquartered in Switzerland. Agility GIL provides supply chain solutions to meet complex and traditional customer needs. GIL offers air, sea and road freight forwarding, warehousing, distribution and specialized services in project logistics, fairs and events, fuels and chemicals.
Agility's unique collection of portfolio businesses includes Agility Defense & Government Services, a logistics provider to governments, ministries of defense and international organizations. Agility's Infrastructure group of companies manages commercial and industrial real estate and offers solutions in customs optimization and clearance, waste management and recycling, aviation services, remote infrastructure and life support.
For more information about Agility, visit www.agilitylogistics.com.
Contacts:
Henadi Al-Saleh
Director Investor Relations
Tel: +965 2 498 1138
Fax: +965 2 467 3098
email: HaAlSaleh@agilitylogistics.com
Soriana Borjas
Assistant Manager-Investor Relations
Tel. +965 24981024
Fax +965 246 73098
Email : sborjas@agilitylogistics.com
© Press Release 2011
