HOOFDDORP, Netherlands, Aug. 11, 2014 /PRNewswire/ --
CEVA Holdings LLC, one of the world's leading non-asset based supply chain management companies, today reported results for the three months ended 30 June 2014.
| Key Financials ($ millions) |
Quarter |
||
| Q2 2014 |
Q1 2014 |
% Change |
|
| Revenue |
1,978 |
1,865 |
6% |
| Adjusted EBITDA[1] |
60 |
43 |
40% |
| [1] Excludes the impact of specific items which are significant non-recurring items such as restructuring and certain legal expenses. |
|||
Xavier Urbain, CEO of CEVA, said, "Our performance improvement coupled with the strong increase in our new business pipeline points to the company being on the right track for growth. Since joining CEVA in January, I have focused on strengthening the executive management team, expanding our current talent base with additional industry experience to drive forward our strategy, building revenue and improving operational efficiency for the benefit of our customers. The numbers show we are gaining traction and are positioned well to make further progress in the future.
"I am especially pleased with the progress made in rebuilding the leadership team, particularly the new additions. They know the industry and our customers. This allowed them to hit the ground running and make immediate contributions. Volume trends as we exited the quarter were encouraging and I am looking for even more from the entire team in the near future."
Revenue of $1,978 million declined 4.2% in the second quarter compared to $2,064 million for the same period a year earlier, driven by the prior year's successful recapitalization, and termination of lower margin business. Second quarter revenues were up 6.1% sequentially compared to the first quarter. Airfreight and Oceanfreight reported export volumes up both sequentially and year-on-year. Oceanfreight volumes were up 7% from the prior year, evidencing the company's early success in the 2014 tender season and well above industry growth. Airfreight volumes increased 1% from the prior year, strengthening as we exited the quarter, with three week rolling volumes up 4% in June.
For the second quarter, adjusted EBITDA of $60 million was 40% ahead of the previous quarter, and adjusted EBITDA as a percentage of revenue improved from 2.3% to 3.0%, reflecting continuing strength in Contract Logistics and the termination of lower margin business. EBITDA came in 25% lower than in the same period a year earlier as Freight Management revenues were impacted by lower rates in the market. CEVA, however, was able to maintain net revenue margins versus the prior year.
The company's new business wins were up 31% over the prior year, increasing to $763 million, compared to $582 million[2] for the same period in 2013. CEVA's investment in its tender management, trade lane management and field sales force each contributed to the improved level of wins in the quarter. CEVA is accelerating plans to improve productivity and on a like-for-like basis, and expects more than 5% cost reductions in the second half of the year.
| [2] |
New business wins based on expected annualized revenue of new contracts |
CEVA - Making business flow
CEVA Logistics, one of the world's leading non-asset based supply-chain management companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 44,000 employees in more than 170 countries are dedicated to delivering effective and robust supply-chain solutions across a variety of sectors where CEVA applies its operational expertise to provide best-in-class services across its integrated network. For more information, please visit www.cevalogistics.com
SAFE HARBOR STATEMENT:
This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2014 and beyond, and the other non-historical statements. These statements can be identified by the use of words such as "believes" "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the airfreight business), risks associated with the Company's global operations, fluctuations and increases in fuel prices, the Company's substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's annual and quarterly reports, available on the Company's website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Contact:
Mike Darcy
+31-622-482-604
mike.darcy@cevalogistics.com
