Helsinki, Finland, 2012-04-26 07:00 CEST (GLOBE NEWSWIRE) --
Net sales for the first quarter EUR 171.3 million (EUR 159.5 million)
Operating profit EUR 4.9 million (EUR 6.5 million)
Operating profit excluding non-recurring items EUR 5.0 million (EUR 6.8 million)
Earnings per share EUR 0.07 (EUR 0.10)
Full-year net sales in 2012 are expected remain at the 2011 level. Operating profit, excluding non-recurring items, is expected to remain at the 2011 level or improve slightly.
CEO PEKKA OJANPÄÄ:
“Our performance in the first quarter was disappointing. We will therefore adopt an accelerated schedule of profitability-enhancement measures, such as planned price increases and fixed cost cuts. Key projects associated with logistics and production optimisation, as well as with the development of procurement operations, will be carried out as scheduled during 2012.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Lassila & Tikanoja’s net sales for the first quarter increased by 7.4% to EUR 171.3 million (EUR 159.5 million).
Operating profit was EUR 4.9 million (EUR 6.5 million), representing 2.9% (4.1%) of net sales, and operating
profit excluding non-recurring items was EUR 5.0 million (EUR 6.8 million). Earnings per share were EUR 0.07
(EUR 0.10).
Acquisitions made in the previous year contributed to the growth in net sales.
Financial performance was adversely affected by higher fuel, repair and overtime costs than in the comparison period, as well as declining profitability in international operations. Price competition taxed the profitability of commissioned wintertime assignments in property maintenance services. Similarly, the performance of the joint venture L&T Recoil weakened from the comparison period. Thanks to smaller depreciation and a trimmer cost structure, Renewable Energy Sources was able to improve its profitability.
Financial summary
1-3/ 2012 |
1-3/ 2011 |
Change % |
1-12/ 2011 |
|
Net sales, EUR million | 171.3 | 159.5 | 7.4 | 652.1 |
Operating profit excluding non-recurring items, EUR million* | 5.0 | 6.8 | -26.5 | 44.3 |
Operating profit, EUR million | 4.9 | 6.5 | -23.7 | 25.6 |
Operating margin, % | 2.9 | 4.1 | 3.9 | |
Profit before tax, EUR million | 4.0 | 5.4 | -26.4 | 21.0 |
Earnings per share, EUR | 0.07 | 0.10 | -30.0 | 0.44 |
EVA, EUR million | -1.5 | -0.2 | -2.2 |
* Breakdown of operating profit excluding non-recurring items is presented below the division reviews.
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
The division’s net sales for the first quarter were up by 6.3% to EUR 77.0 million (EUR 72.4 million). Operating
profit totalled EUR 3.0 million (EUR 4.2 million) and operating profit excluding non-recurring items was EUR 3.0
million (EUR 4.2 million).
The division’s net sales growth could be primarily attributed to waste management services, half of this growth being organic.
Recycled raw material volumes remained healthy in the first quarter, as did the prices of secondary raw materials (fibres, plastics, metals). Meanwhile, demand for services provided to the industry, especially process cleaning services, was weaker than anticipated.
The quarter’s operating profit decreased from the comparison period due to higher fuel and repair costs and weaker profitability in international operations (Latvia, Russia). The rise in cost levels can be transferred to service prices during 2012.
The joint venture L&T Recoil also saw its performance deteriorate from the comparison period, due to the two-week shutdown in March. However, the plant’s reliability and operating rate improved from the comparison period.
Cleaning and Office Support Services
The division’s net sales for the first quarter totalled EUR 39.3 million (EUR 34.9 million), showing an increase of
12.8%. Operating profit totalled EUR 0.9 million (EUR 1.5 million) and operating profit excluding non-recurring
items was EUR 1.0 million (EUR 1.5 million).
Acquisitions made in the previous spring contributed to net sales growth.
Swedish operations were in the red, which significantly taxed the division’s operating profit. The result from Finnish operations was at the comparison period’s level, even though profitability was eroded by an increase in labour costs, which could not be fully transferred to service prices.
At the beginning of April, reorganisation of the Swedish operations and a savings programme were launched to improve profitability.
Property Maintenance
The division’s net sales for the first quarter were up by 3.5% to EUR 40.3 million (EUR 38.9 million). Operating
profit totalled EUR 0.8 million (EUR 1.9 million) and operating profit excluding non-recurring items was EUR 0.8
million (EUR 1.9 million).
Expansion of the damage repair service network and the resulting increase in workload contributed to the year-on-year increase in the division’s net sales.
Increasingly tough price competition and the rise in subcontracting and overtime costs eroded the operating profit in property maintenance services.
Renewable Energy Sources
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were up by 9.8% to EUR 17.6 million
(EUR 16.0 million). The division recorded an operating profit of EUR 0.8 million (a loss of EUR 0.7 million), and
an operating profit excluding non-recurring items of EUR 0.8 million (a loss of EUR 0.4 million).
Net sales increased from the comparison period thanks to successful new sales. In the comparison period, a suspension in the payment of electricity production subsidy to power plants had a negative effect on the demand for wood-based fuels.
Thanks to smaller depreciation and a trimmer cost structure, there was a marked improvement in the operating profit excluding non-recurring items.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million |
1-3/ 2012 |
1-3/ 2011 |
1-12/ 2011 |
Operating profit | 4.9 | 6.5 | 25.6 |
Non-recurring items: | |||
Impairment of L&T Biowatti | 17.1 | ||
Discontinuation of wood pellet production of L&T Biowatti | 0.1 | 0.1 | |
Restructuring costs | 0.1 | 0.2 | 1.5 |
Operating profit excluding non-recurring items | 5.0 | 6.8 | 44.3 |
FINANCING
Cash flows from operating activities amounted to EUR 8.9 million (EUR 10.5 million). EUR 2.5 million was tied up in the working capital (EUR 1.9 million).
At the end of the period, interest-bearing liabilities amounted to EUR 159.0 million (EUR 141.8 million). Net interest-bearing liabilities amounted to EUR 151.2 million, showing an increase of EUR 24.0 million from the beginning of the year and an increase of EUR 19.2 million from the comparison period.
Net finance costs showed a slight decrease in January-March and amounted to EUR 1.0 million (EUR 1.1 million). Net finance costs were 0.6% (0.7%) of net sales. The average interest rate on long-term loans (with interest-rate hedging) was 3.1% (3.2%). Long-term loans totalling EUR 19.9 million will mature during the rest of the year.
The equity ratio was 39.7% (42.4%) and the gearing rate 75.4 (63.9). Liquid assets at the end of the period amounted to EUR 7.8 million (EUR 9.8 million).
Of the EUR 100 million commercial paper programme, EUR 46 million (EUR 25 million) was in use at the end of the period. Committed limits totalling EUR 45 million, were not in use, as was the case in the comparison period.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on March 15 2012 resolved that the profit for 2011 be placed in retained earnings and that no dividend be paid. A capital repayment of EUR 0.55 per share would be paid for the financial year 2011. The capital repayment, totalling EUR 21.3 million, was paid to the shareholders on 27 March 2012.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 11.5 million (EUR 12.9 million) and was mainly comprised of machine and equipment purchases.
In the first quarter the property maintenance operations of IK Kiinteistöpalvelu Oy, the business of Jyvässeudun Talonmiehet Oy and Kiinteistöhuolto Markku Hyttinen Oy were acquired into Property Maintenance.
PERSONNEL
In January-March the average number of employees converted into full-time equivalents was 8,119 (7,520). The total number of full-time and part-time employees at the end of the period was 9,229 (8,725). Of them 7,257 (6,989) people worked in Finland and 1,972 (1,736) people in other countries.
SHARE AND SHARE CAPITAL
Traded volume and price
The volume of trading excluding the shares held by the company in Lassila & Tikanoja plc shares on NASDAQ OMX Helsinki in January-March was 2,728,251 which is 7.1% (8.5%) of the average number of outstanding shares. The value of trading was EUR 31.4 million (EUR 44.1 million). The trading price varied between EUR 10.70 and EUR 12.15. The closing price was EUR 11.03. At the end of the period, the company held 113,305 of its own shares. The market capitalisation excluding the shares held by the company was EUR 426.7 million (EUR 492.0 million) at the end of the period.
Own shares
At the end of the period the company held 113,305 of its own shares, representing 0.3% of all shares and votes.
Share capital and number of shares
The company’s registered share capital amounts to EUR 19,399,437, and the number of outstanding shares to 38,685,569 shares. The average number of shares excluding the shares held by the company totalled 38,685,569.
Share option scheme 2008
In 2008, 230,000 share option rights were issued, each entitling its holder to subscribe for one share of Lassila & Tikanoja plc. 33 key persons hold 168,000 options and L&T Advance Oy 62,000 options.
The exercise price is EUR 15.65. It was reduced by EUR 0.55 as of 20 March 2012. The price was reduced with the amount of capital repayment in accordance with the terms and conditions of the share option scheme. The exercise period in NASDAQ OMX Helsinki is from 1 November 2010 to 31 May 2012.
As a result of the exercise of the outstanding 2008 share options, the number of shares may increase by a maximum of 168,000 new shares, which is 0.4% of the current number of shares.
Share-based incentive programme 2012
Lassila & Tikanoja plc’s Board of Directors decided on 14 December 2011 on a new share-based incentive programme. Rewards will be based on the EVA result of Lassila & Tikanoja group without L&T Recoil. They will be paid partly as shares and partly in cash. The part paid in cash will cover the taxes caused by the reward. Based on the programme a maximum of 65,520 shares of the company can be granted. The company will buy the shares from the stock market. The programme covers 22 persons.
Shareholders
At the end of the period, the company had 9,460 (9,665) shareholders. Nominee-registered holdings accounted for 15.1% (11.2%) of the total number of shares.
Notifications on major holdings
On 8 March 2012, Tapiola Mutual Pension Insurance Company announced that its holding of the shares and votes in Lassila & Tikanoja plc had fallen to 3.9%.
Authorisation for the Board of Directors
The Annual General Meeting held on 15 March 2012 authorised Lassila & Tikanoja plc’s Board of Directors to make decisions on the repurchase of the company’s own shares using the company’s unrestricted equity.
The Board of Directors is authorised to purchase a maximum of 500,000 company shares, which is 1.3% of the total number of shares. The share issue authorisation will be effective for 18 months
RESOLUTIONS BY THE GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 15 March 2012, adopted the financial statements for the financial year 2011 and released the members of the Board of Directors and the Presidents and CEOs from liability.
The AGM resolved that the profit for 2011 be placed in retained earnings and that no dividend be paid. A capital repayment of EUR 0.55 per share, as proposed by the Board of Directors, would be paid for the financial year 2011 on the basis of the balance sheet adopted. The capital repayment, totalling EUR 21.3 million, payment date was resolved to be on 27 March 2012.
The Annual General Meeting confirmed the number of the members of the Board of Directors five. The following Board members were re-elected to the Board until the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Hille Korhonen, Sakari Lassila and Miikka Maijala.
KPMG Oy Ab, Authorised Public Accountants, was elected auditor. KPMG Oy Ab has announced that it will name Lasse Holopainen, Authorised Public Accountant, as its principal auditor.
The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 15 March 2012.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi, Hille Korhonen, Sakari Lassila and Miikka Maijala. In its constitutive meeting the Board elected Heikki Bergholm as Chairman of the Board and Eero Hautaniemi as Vice Chairman.
From among its members, the Board elected Eero Hautaniemi as Chairman and Sakari Lassila and Miikka Maijala as members of the audit committee. Heikki Bergholm was elected as Chairman of the remuneration committee and Hille Korhonen as member of the committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE SECURITIES MARKETS ACT
In a release published on 13 January 2012 the company announced that Antti Tervo has been appointed Chief Procurement Officer and Group Executive of Lassila & Tikanoja plc as of 14 February 2012.
In a release on 9 February 2012 the company announced that Lassila & Tikanoja plc has redeemed the remaining 30 percent of share capital of L&T Biowatti Oy as agreed in an agreement signed 18 December 2006.
EVENTS AFTER THE PERIOD
In a release published on 26 April 2012 the company announced that Lassila & Tikanoja is launching a new operational enhancement programme to improve its profitability and to adapt operations to the current market environment. The planned actions are estimated to improve profitability at least by EUR 4 million annually, over half of this in 2012.
The programme involves fixed cost cuts, price increases, holiday pay arrangements and other efficiency improvement measures.
L&T will record approximately EUR 1.0 million in non-recurring adjustment costs associated with the programme for the second quarter.
NEAR-TERM UNCERTAINTIES
Economic uncertainty may cause remarkable changes in the Environmental Services division’s secondary raw material markets and in industrial customer relationships.
Any disturbances in L&T Recoil plant’s production could have a negative effect on the Environmental Services division’s performance. End-product and raw material price fluctuations, as well as the plant's supply volumes, have a major effect on L&T Recoil’s performance.
Uncertainties associated with the government subsidies for renewable fuels and their continuity could affect demand for the Renewable Energy Sources division's services.
More detailed information on L&T's risks and risk management is available in the Annual Report for 2011, in the report of the Board of Directors, and in the consolidated financial statements.
OUTLOOK FOR THE REST OF THE YEAR
Despite the economic uncertainty, the outlook for Environmental Services is, by and large, stable, but any weakening in demand for industrial services and in new construction may give a reason to make operational adjustments. Secondary raw material price developments and the operational reliability of L&T Recoil’s plant in particular will affect the division’s profitability.
The business environment for Cleaning and Office Support Services and Property Maintenance is expected to remain stable, though price competition is expected to remain tough.
Demand for L&T Biowatti's wood-based fuels is expected to grow slightly from the comparison period, and the division's profitability is likely to improve.
Full-year net sales in 2012 are expected remain at the 2011 level. Operating profit excluding non-recurring items, is expected to remain at the 2011 level or improve slightly.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-31 MARCH 2012
CONSOLIDATED INCOME STATEMENT
EUR 1000 |
1-3/2012 | 1-3/2011 | Change % | 1-12/2011 |
Net sales | 171 286 | 159 474 | 7.4 | 652 130 |
Cost of sales | -159 711 | -146 658 | 8.9 | -584 152 |
Gross profit | 11 575 | 12 816 | -9.7 | 67 978 |
Other operating income | 548 | 680 | -19.4 | 3 038 |
Selling and marketing costs | -4 091 | -3 796 | 7.8 | -15 217 |
Administrative expenses | -3 008 | -2 966 | 1.4 | -11 408 |
Other operating expenses | -91 | -270 | -66.3 | -1 733 |
Impairment, non-current assets | -5 677 | |||
Impairment, goodwill and other intangible assets | -11 384 | |||
Operating profit | 4 933 | 6 464 | -23.7 | 25 597 |
Finance income | 355 | 299 | 18.7 | 1 041 |
Finance costs | -1 315 | -1 363 | -3.5 | -5 644 |
Profit before tax | 3 973 | 5 400 | -26.4 | 20 994 |
Income tax expense | -1 209 | -1 404 | -13.9 | -4 030 |
Profit for the period | 2 764 | 3 996 | -30.8 | 16 964 |
Attributable to: | ||||
Equity holders of the company | 2 769 | 3 994 | 16 960 | |
Non-controlling interest | -5 | 2 | 4 |
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR | 0.07 | 0.10 | 0.44 | |
Diluted earnings per share, EUR | 0.07 | 0.10 | 0.44 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 |
1-3/ 2012 |
1-3/ 2011 |
1-12/ 2011 |
Profit for the period | 2 764 | 3 996 | 16 964 |
Other comprehensive income, after tax | |||
Hedging reserve, change in fair value | 309 | 921 | -487 |
Revaluation reserve | |||
Gains in the period | 3 | -2 | -4 |
Current available-for-sale financial assets | 3 | -2 | -4 |
Currency translation differences | 681 | 32 | 111 |
Currency translation differences, non-controlling interest | 18 | -11 | |
Other comprehensive income, after tax | 1 011 | 951 | -391 |
Total comprehensive income, after tax | 3 775 | 4 947 | 16 573 |
Attributable to: | |||
Equity holders of the company | 3 762 | 4 943 | 16 580 |
Non-controlling interest | 13 | 4 | -7 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 |
3/2012 | 3/2011 | 12/2011 |
ASSETS | |||
Non-current assets | |||
Intangible assets | |||
Goodwill | 119 847 | 114 670 | 119 509 |
Customer contracts arising from acquisitions | 9 867 | 5 753 | 10 591 |
Agreements on prohibition of competition | 2 918 | 10 711 | 3 162 |
Other intangible assets arising from business acquisitions | 73 | 743 | 78 |
Other intangible assets | 10 925 | 13 271 | 11 149 |
143 630 | 145 148 | 144 489 | |
Property, plant and equipment | |||
Land | 4 283 | 4 655 | 4 589 |
Buildings and constructions | 78 381 | 78 617 | 78 217 |
Machinery and equipment | 121 836 | 112 244 | 120 015 |
Other | 85 | 85 | 85 |
Prepayments and construction in progress | 4 720 | 5 021 | 4 616 |
209 305 | 200 622 | 207 522 | |
Other non-current assets | |||
Available-for-sale investments | 590 | 589 | 605 |
Finance lease receivables | 3 808 | 3 549 | 3 578 |
Deferred tax assets | 6 273 | 4 116 | 6 323 |
Other receivables | 3 306 | 3 318 | 3 315 |
13 977 | 11 572 | 13 821 | |
Total non-current assets | 366 912 | 357 342 | 365 832 |
Current assets | |||
Inventories | 26 916 | 24 146 | 27 953 |
Trade and other receivables | 105 079 | 95 829 | 91 629 |
Derivative receivables | 405 | 1 413 | 419 |
Prepayments | 5 690 | 6 334 | 438 |
Current available-for-sale financial assets | 1 999 | 2 497 | 2 299 |
Cash and cash equivalents | 5 800 | 7 277 | 5 770 |
Total current assets | 145 889 | 137 496 | 128 508 |
TOTAL ASSETS | 512 801 | 494 838 | 494 340 |
EUR 1000 |
3/2012 | 3/2011 | 12/2011 |
EQUITY AND LIABILITIES | |||
Equity | |||
Equity attributable to equity holders of the company | |||
Share capital | 19 399 | 19 399 | 19 399 |
Share premium reserve | 50 673 | ||
Other reserves | -1 476 | -1 138 | -2 469 |
Unrestricted equity reserve | 29 403 | -52 | 50 658 |
Retained earnings | 150 133 | 133 559 | 133 125 |
Profit for the period | 2 769 | 3 994 | 16 960 |
200 228 | 206 435 | 217 673 | |
Non-controlling interest | 284 | 282 | 271 |
Total equity | 200 512 | 206 717 | 217 944 |
Liabilities | |||
Non-current liabilities | |||
Deferred tax liabilities | 29 126 | 33 829 | 29 389 |
Retirement benefit obligations | 670 | 630 | 628 |
Provisions | 2 569 | 2 755 | 2 500 |
Borrowings | 88 236 | 90 969 | 92 914 |
Other liabilities | 1 123 | 478 | 960 |
121 724 | 128 661 | 126 391 | |
Current liabilities | |||
Borrowings | 70 801 | 50 819 | 42 319 |
Trade and other payables | 118 140 | 107 768 | 105 751 |
Derivative liabilities | 1 490 | 665 | 1 850 |
Tax liabilities | 14 | 18 | 85 |
Provisions | 120 | 190 | |
190 565 | 159 460 | 150 005 | |
Total liabilities | 312 289 | 288 121 | 276 396 |
TOTAL EQUITY AND LIABILITIES | 512 801 | 494 838 | 494 340 |
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 | 3/2012 | 3/2011 | 12/2011 |
Cash flows from operating activities | |||
Profit for the period | 2 764 | 3 996 | 16 964 |
Adjustments | |||
Income tax expense | 1 209 | 1 404 | 4 030 |
Depreciation, amortisation and impairment | 10 826 | 10 568 | 61 548 |
Finance income and costs | 959 | 1 064 | 4 602 |
Other | -459 | -739 | -858 |
Net cash generated from operating activities before change in working capital | 15 299 | 16 293 | 86 286 |
Change in working capital | |||
Change in trade and other receivables | -16 993 | -16 343 | -7 843 |
Change in inventories | 1 033 | 3 810 | 9 |
Change in trade and other payables | 13 476 | 10 657 | 11 055 |
Change in working capital | -2 484 | -1 876 | 3 221 |
Interest paid | -1 311 | -1 566 | -6 165 |
Interest received | 257 | 254 | 1 020 |
Income tax paid | -2 854 | -2 623 | -9 896 |
Net cash from operating activities | 8 907 | 10 482 | 74 466 |
Cash flows from investing activities | |||
Acquisition of subsidiaries and businesses, net of cash acquired | -746 | -5 331 | -24 430 |
Proceeds from sale of subsidiaries and businesses, net of sold cash | |||
Purchases of property, plant and equipment and intangible assets | -10 940 | -5 860 | -45 503 |
Proceeds from sale of property, plant and equipment and intangible assets | 223 | 727 | 1 850 |
Purchases of available-for-sale investments | -20 | ||
Change in other non-current receivables | 10 | 91 | 98 |
Proceeds from sale of available-for-sale investments | |||
Dividends received | |||
Net cash used in investing activities | -11 453 | -10 373 | -68 005 |
Cash flows from financing activities | |||
Change in short-term borrowings | 28 483 | 19 558 | 8 712 |
Proceeds from long-term borrowings | 20 000 | ||
Repayments of long-term borrowings | -5 007 | -4 677 | -19 761 |
Dividends paid and other asset distribution | -21 254 | -19 773 | -21 284 |
Repurchase of own shares | -517 | ||
Net cash generated from financing activities | 2 222 | -4 892 | -12 850 |
EUR 1000 | 3/2012 | 3/2011 | 12/2011 | |||
Net change in liquid assets | -324 | -4 783 | -6 389 | |||
Liquid assets at beginning of period | 8 069 | 14 548 | 14 548 | |||
Effect of changes in foreign exchange rates | 54 | 9 | -90 | |||
Change in fair value of current available-for-sale investments | ||||||
Liquid assets at end of period | 7 799 | 9 774 | 8 069 | |||
Liquid assets | ||||||
EUR 1000 | 3/2012 | 3/2011 | 12/2011 | |||
Cash and cash equivalents | 5 800 | 7 277 | 5 770 | |||
Available-for-sale financial assets | 1 999 | 2 497 | 2 299 | |||
Total | 7 799 | 9 774 | 8 069 | |||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital
B = Share premium reserve
C = Currency translation differences
D = Revaluation reserve
E = Hedging reserve
F = Invested unrestricted equity reserve
G = Retained earnings
H = Equity attributable to equity holders of the company
I = Non-controlling interest
J = Total equity
EUR 1000 | A | B | C | D | E | F | G | H | I | J |
Equity at 1.1.2012 |
19 399 | 0 | -1 412 | 0 | -1 057 | 50 658 | 150 085 | 217 673 | 271 | 217 944 |
Expense recognition of share-based benefits |
48 | 48 | 48 | |||||||
Repurchase of own shares |
||||||||||
Capital repayment |
-21 255 | -21 255 | -21 255 | |||||||
Total comprehen sive income |
681 | 3 | 309 | 2 769 | 3 762 | 13 | 3 775 | |||
Equity at 31.3.2012 |
19 399 | 0 | -731 | 3 | -748 | 29 403 | 152 902 | 200 228 | 284 | 200 512 |
Equity at 1.1.2011 |
19 399 | 50 673 | -1 523 | -48 | -570 | 0 | 154 785 | 222 716 | 278 | 222 994 |
Expense recognition of share-based benefits |
80 | 80 | 80 | |||||||
Repurchase of own shares |
||||||||||
Dividends paid |
-21 306 | -21 306 | -21 306 | |||||||
Transfer from revaluation reserve |
52 | -52 | ||||||||
Total comprehen sive income |
32 | -2 | 921 | 3 994 | 4 945 | 4 | 4 949 | |||
Equity at 31.3.2011 |
19 399 | 50 673 | -1 491 | 2 | 351 | -52 | 137 553 | 206 435 | 282 | 206 717 |
KEY FIGURES
1-3/ 2012 |
1-3/ 2011 |
1-12/ 2011 |
|
Earnings per share, EUR | 0.07 | 0.10 | 0.44 |
Earnings per share, diluted, EUR | 0.07 | 0.10 | 0.44 |
Cash flows from operating activities per share, EUR | 0.23 | 0.27 | 1.92 |
EVA, EUR million | -1.5 | -0.2 | -2.2 |
Capital expenditure, EUR 1000 | 11 474 | 12 868 | 70 590 |
Depreciation, amortisation and impairment, EUR 1000 | 10 826 | 10 568 | 61 548 |
Equity per share, EUR | 5.18 | 5.33 | 5.63 |
Return on equity, ROE, % | 5.3 | 7.4 | 7.7 |
Return on invested capital, ROI, % | 5.9 | 7.7 | 7.6 |
Equity ratio, % | 39.7 | 42.4 | 44.5 |
Gearing, % | 75.4 | 63.9 | 58.3 |
Net interest-bearing liabilities, EUR 1000 | 151 239 | 132 015 | 127 165 |
Average number of employees in full-time equivalents | 8 119 | 7 520 | 8 513 |
Total number of full-time and part-time employees at end of period | 9 229 | 8 725 | 9 357 |
Number of outstanding shares adjusted for issues, 1000 shares | |||
average during the period | 38 686 | 38 738 | 38 722 |
at end of period | 38 686 | 38 738 | 38 686 |
average during the period, diluted | 38 711 | 38 769 | 38 762 |
ACCOUNTING POLICIES
This financial statements release is in compliance with IAS 34 standard. The same accounting policies as in the annual financial statements for the year 2011 have been applied. The following new, revised or amended IFRS standards and IFRIC interpretations that have become effective in 2012 have not had an impact on the financial statements:
IFRS 7 (amendment) Financial Instruments: Disclosures - Derecognition
IAS 12 (amendment) Income taxes - Deferred tax
annual improvements to IFRS.
The preparation of financial statements in accordance with IFRS require the management to make such estimates and assumptions that affect the carrying amounts at the balance sheet date for the assets and liabilities and the amounts of revenues and expenses. Judgements are also made in applying the accounting policies. Actual results may differ from the estimates and assumptions.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
1-3/2012 | 1-3/2011 | ||||||
EUR 1000 | External | Inter-division | Total | External | Inter-division | Total | Total net sales, change % |
Environmental Services | 75 961 | 1 030 | 76 991 | 71 520 | 909 | 72 429 | 6.3 |
Cleaning and Office Support Services | 38 901 | 420 | 39 321 | 34 549 | 307 | 34 856 | 12.8 |
Property Maintenance | 39 885 | 414 | 40 299 | 38 212 | 727 | 38 939 | 3.5 |
Renewable Energy Sources | 16 539 | 1 045 | 17 584 | 15 193 | 818 | 16 011 | 9.8 |
Eliminations | -2 909 | -2 909 | -2 761 | -2 761 | |||
L&T total | 171 286 | 0 | 171 286 | 159 474 | 0 | 159 474 | 7.4 |
1-12/2011 | |||
EUR 1000 | External | Inter-division | Total |
Environmental Services | 322 264 | 3 620 | 325 884 |
Cleaning and Office Support Services | 155 817 | 1 454 | 157 271 |
Property Maintenance | 132 399 | 2 192 | 134 591 |
Renewable Energy Sources | 41 650 | 3 752 | 45 402 |
Eliminations | 0 | -11 018 | -11 018 |
L&T total | 652 130 | 0 | 652 130 |
Operating profit
EUR 1000 |
1-3/ 2012 |
% |
1-3/ 2011 |
% |
1-12/ 2011 |
% |
Environmental Services | 3 015 | 3.9 | 4 175 | 5.8 | 33 970 | 10.4 |
Cleaning and Office Support Services | 845 | 2.1 | 1 475 | 4.2 | 7 131 | 4.5 |
Property Maintenance | 751 | 1.9 | 1 902 | 4.9 | 8 181 | 6.1 |
Renewable Energy Sources | 787 | 4.5 | -651 | -4.1 | -21 250 | -46.8 |
Group admin. and other | -465 | -437 | -2 435 | |||
L&T total | 4 933 | 2.9 | 6 464 | 4.1 | 25 597 | 3.9 |
Finance costs, net | -960 | -1 064 | -4 603 | |||
Profit before tax | 3 973 | 5 400 | 20 994 |
Other segment information
EUR 1000 |
3/2012 | 3/2011 | 12/2011 |
Assets | |||
Environmental Services | 348 582 | 340 318 | 346 224 |
Cleaning and Office Support Services | 58 010 | 42 643 | 54 302 |
Property Maintenance | 53 992 | 42 050 | 45 048 |
Renewable Energy Sources | 29 966 | 46 035 | 27 346 |
Group admin. and other | 2 057 | 2 107 | 2 528 |
Unallocated assets | 20 194 | 21 685 | 18 892 |
L&T total | 512 801 | 494 838 | 494 340 |
Liabilities | |||
Environmental Services | 59 123 | 56 020 | 57 367 |
Cleaning and Office Support Services | 32 297 | 26 758 | 29 804 |
Property Maintenance | 19 986 | 18 812 | 15 889 |
Renewable Energy Sources | 8 592 | 6 529 | 3 932 |
Group admin. and other | 1 120 | 2 585 | 1 343 |
Unallocated liabilities | 191 171 | 177 417 | 168 061 |
L&T total | 312 289 | 288 121 | 276 396 |
EUR 1000 | 1-3/2012 | 1-3/2011 | 1-12/2011 |
Capital expenditure | |||
Environmental Services | 6 182 | 8 814 | 43 362 |
Cleaning and Office Support Services | 1 517 | 1 222 | 14 721 |
Property Maintenance | 3 675 | 2 631 | 11 776 |
Renewable Energy Sources | 97 | 88 | 454 |
Group admin. and other | 3 | 113 | 277 |
L&T total | 11 474 | 12 868 | 70 590 |
Depreciation and amortisation | |||
Environmental Services | 8 006 | 7 379 | 30 760 |
Cleaning and Office Support Services | 1 269 | 953 | 4 928 |
Property Maintenance | 1 479 | 1 069 | 4 873 |
Renewable Energy Sources | 72 | 1 167 | 3 919 |
Group admin. and other | 0 | 7 | |
L&T total | 10 826 | 10 568 | 44 487 |
Impairment | |||
Renewable Energy Sources | 17 061 | ||
L&T total | 17 061 |
INCOME STATEMENT BY QUARTER
EUR 1000 |
1-3/ 2012 |
10-12/ 2011 |
7-9/ 2011 |
4-6/ 2011 |
1-3/ 2011 |
10-12/ 2010 |
7-9/ 2010 |
4-6/ 2010 |
Net sales | ||||||||
Environmental Services | 76 991 | 84 014 | 85 906 | 83 535 | 72 429 | 73 992 | 75 806 | 75 624 |
Cleaning and Office Support Services | 39 321 | 40 101 | 41 530 | 40 784 | 34 856 | 34 580 | 35 659 | 35 710 |
Property Maintenance | 40 299 | 33 451 | 31 322 | 30 879 | 38 939 | 31 596 | 26 926 | 28 090 |
Renewable Energy Sources | 17 584 | 12 578 | 7 213 | 9 600 | 16 011 | 15 266 | 7 617 | 12 097 |
Inter-division net sales | -2 909 | -3 143 | -2 502 | -2 612 | -2 761 | -3 927 | -2 238 | -2 507 |
L&T total | 171 286 | 167 001 | 163 469 | 162 186 | 159 474 | 151 507 | 143 770 | 149 014 |
Operating profit | ||||||||
Environmental Services | 3 015 | 8 305 | 12 308 | 9 182 | 4 175 | 8 204 | 10 930 | 10 124 |
Cleaning and Office Support Services | 845 | 937 | 3 718 | 1 001 | 1 475 | 181 | 4 088 | 2 218 |
Property Maintenance | 751 | 1 928 | 3 582 | 769 | 1 902 | 633 | 3 263 | 1 075 |
Renewable Energy Sources | 787 | -18 189 | -1 085 | -1 325 | -651 | -361 | -1 432 | -3 900 |
Group admin. and other | -465 | -887 | -344 | -767 | -437 | -104 | -574 | -762 |
L&T total | 4 933 | -7 906 | 18 179 | 8 860 | 6 464 | 8 553 | 16 275 | 8 755 |
Operating margin | ||||||||
Environmental Services | 3.9 | 9.9 | 14.3 | 11.0 | 5.8 | 11.1 | 14.4 | 13.4 |
Cleaning and Office Support Services | 2.1 | 2.3 | 9.0 | 2.5 | 4.2 | 0.5 | 11.5 | 6.2 |
Property Maintenance | 1.9 | 5.8 | 11.4 | 2.5 | 4.9 | 2.0 | 12.1 | 3.8 |
Renewable Energy Sources | 4.5 | -144.6 | -15.0 | -13.8 | -4.1 | -2.4 | -18.8 | -32.2 |
L&T total | 2.9 | -4.7 | 11.1 | 5.5 | 4.1 | 5.6 | 11.3 | 5.9 |
Finance costs, net | -960 | -1 099 | -1 277 | -1 163 | -1 064 | -987 | -1 272 | -917 |
Profit before tax | 3 973 | -9 005 | 16 902 | 7 697 | 5 400 | 7 566 | 15 003 | 7 838 |
BUSINESS ACQUISITIONS
Business combinations in aggregate
Consideration
EUR 1000 | Fair values used in consolidation |
Cash | 933 |
Equity instruments | |
Contingent consideration | 201 |
Total consideration transferred | 1 134 |
Indemnification asset | |
Fair value of equity interest held before the acquisition | |
Total consideration | 1 134 |
Acquisition-related costs (included in the administrative expenses in the consolidated financial statements) | 4 |
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment | 515 |
Customer contracts | 146 |
Agreements on prohibition of competition | 151 |
Other intangible assets arising from business acquisitions | |
Other intangible assets | |
Non-current available-for-sale financial assets | |
Inventories | 2 |
Trade and other receivables | 87 |
Cash and cash equivalents | 154 |
Total assets | 1 056 |
Deferred tax liabilities | |
Non-current interest-bearing liabilities | 44 |
Trade and other payables | 146 |
Retirement benefit obligations | |
Contingent liability | |
Total liabilities | 190 |
Total identifiable net assets | 865 |
Non-controlling interest | |
Goodwill | 268 |
Total | 1 134 |
Acquisitions by Property Maintenance
1 January 2012, the property maintenance operations of IK Kiinteistöpalvelu Oy.
1 February 2012, the business of Jyvässeudun Talonmiehet Oy and Kiinteistöhuolto Markku Hyttinen Oy.
The figures for these acquired businesses are stated in aggregate, because none of them is of material importance when considered separately. Fair values have been determined as of the time the acquisition was realised. No business operations have been divested as a consequence of any acquisition. All acquisitions have been paid for in cash. With share acquisitions, L&T was able to gain 100% of the voting rights. The conditional consideration is tied to the transfer of the customer contracts to Lassila & Tikanoja plc, and the estimates of the fair values of considerations were determined on the basis of probability-weighted final acquisition price. The estimates for the conditional consideration have not changed between the time of acquisition and the balance sheet date. Trade and other receivables have been recorded at fair value at the time of acquisition. Individual acquisition prices have not been itemised because none of them is of material importance when considered separately. Profit for the period includes changes allocated to acquisition prices amounting to EUR 140 thousand.
By net sales, the largest acquisition was the business of Jyvässeudun Talonmiehet Oy (EUR 858 thousand).
It is not possible to itemise the effects of the acquired businesses on the consolidated net sales and profit for the period, because L&T integrates its acquisitions into the current business operations as quickly as possible to gain synergy benefits.
The accounting policy concerning business combinations is presented in Annual Report under Note 2 of the consolidated financial statements and under Summary on significant accounting policies.
CHANGES IN INTANGIBLE ASSETS
EUR 1000 |
1-3/2012 | 1-3/2011 | 1-12/2011 |
Carrying amount at beginning of period | 144 489 | 142 681 | 142 681 |
Business acquisitions | 566 | 3 894 | 22 859 |
Other capital expenditure | 621 | 884 | 2 646 |
Disposals | -10 | -1 | -18 |
Amortisation and impairment | -2 121 | -2 408 | -23 865 |
Transfers between items | |||
Exchange differences | 85 | 98 | 186 |
Carrying amount at end of period | 143 630 | 145 148 | 144 489 |
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 |
1-3/2012 | 1-3/2011 | 1-12/2011 |
Carrying amount at beginning of period | 207 522 | 200 700 | 200 700 |
Business acquisitions | 515 | 1 693 | 4 441 |
Other capital expenditure | 9 772 | 6 397 | 40 616 |
Disposals | -199 | -58 | -477 |
Depreciation and impairment | -8 705 | -8 160 | -37 683 |
Transfers between items | |||
Exchange differences | 400 | 50 | -75 |
Carrying amount at end of period | 209 305 | 200 622 | 207 522 |
CAPITAL COMMITMENTS
EUR 1000 | 1-3/2012 | 1-3/2011 | 1-12/2011 |
Intangible assets | 0 | 60 | 0 |
Property, plant and equipment | 4 669 | 5 489 | 4 593 |
Total | 4 669 | 5 549 | 4 593 |
The Group’s share of capital commitments of joint ventures |
50 | 75 | 0 |
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 |
1-3/2012 | 1-3/2011 | 1-12/2011 |
Sales | 488 | 309 | 2 489 |
Other operating income | 12 | 18 | 63 |
Interest income | 203 | 219 | 707 |
Non-current receivables | |||
Capital loan receivable | 25 146 | 21 646 | 24 396 |
Current receivables | |||
Trade receivables | 2 466 | 2 083 | 2 710 |
Loan receivables | 1 801 | 1 232 | 1 633 |
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 | 3/2012 | 3/2011 | 12/2011 |
Mortgages on rights of tenancy | 42 186 | 42 179 | 42 186 |
Company mortgages | 21 460 | 21 460 | 21 460 |
Other securities | 191 | 218 | 174 |
Bank guarantees required for environmental permits | 5 140 | 4 399 | 5 702 |
Other securities are security deposits.
The Group has given no pledges, mortgages or guarantees on behalf of outsiders.
Operating lease liabilities
EUR 1000 | 3/2012 | 3/2011 | 12/2011 |
Maturity not later than one year | 7 231 | 8 175 | 7 708 |
Maturity later than one year and not later than five years | 13 968 | 20 089 | 15 504 |
Maturity later than five years | 4 103 | 4 252 | 4 185 |
Total | 25 302 | 32 516 | 27 397 |
Liabilities associated with derivative agreements
Interest rate and currency swaps
EUR 1000 | 3/2012 | 3/2011 | 12/2011 |
Nominal values of interest rate and currency swaps* | |||
Maturity not later than one year | 13 429 | 11 716 | 13 429 |
Maturity later than one year and not later than five years | 36 272 | 47 668 | 38 033 |
Maturity later than five years | |||
Total | 49 701 | 59 384 | 51 462 |
Fair value | -1 095 | -665 | -1 504 |
Nominal value of interest rate swaps** | |||
Maturity not later than one year | 4 000 | 0 | 4 000 |
Maturity later than one year and not later than five years | 19 455 | 0 | 19 455 |
Maturity later than five years | 4 545 | 0 | 4 545 |
Total | 28 000 | 0 | 28 000 |
Fair value | -174 | 0 | -144 |
* The interest rate and currency swaps are used to hedge cash flow related to a floating rate loan, and hedge accounting under IAS 39 has been applied to it. The hedges have been effective, and the changes in the fair values are shown in the consolidated statement of comprehensive income for the period. On the balance sheet date, the value of foreign currency loans was EUR 0.3 million positive. The fair values of the swap contracts are based on the market data at the balance sheet date.
** Hedge accounting under IAS 39 has not been applied to these interest rate swaps. Changes in fair values
have been recognised in finance income and costs.
Commodity derivatives
metric tons | 3/2012 | 3/2011 | 12/2011 |
Nominal values of diesel swaps | |||
Maturity not later than one year | 2 544 | 6 333 | 2 544 |
Maturity later than one year and not later than five years | 636 | 1 908 | 636 |
Total | 3 180 | 8 241 | 3 180 |
Fair value, EUR 1000 | 405 | 1 322 | 419 |
Commodity derivative contracts were concluded, for hedging of future diesel oil purchases. IAS 39 -compliant hedge accounting will be applied to these contracts, and the effective change in fair value will be recognised in the hedging reserve within equity. The fair values of commodity derivatives are based on market prices at the balance sheet date.
Currency derivatives
EUR 1000 | 3/2012 | 3/2011 | 12/2011 |
Volume of forward contracts | |||
Maturity not later than one year | 253 | 0 | 1 079 |
Fair value | -6 | 0 | -19 |
Hedge accounting under IAS 39 has not been applied to forward contracts. Changes in fair values have been recognised in finance income and costs.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average basic number of shares
Earnings per share, diluted:
profit attributable to equity holders of the parent company / adjusted average diluted number of shares
Cash flows from operating activities/share:
cash flow from operating activities as in the statement of cash flows / adjusted average number of shares
EVA:
operating profit - cost calculated on invested capital (average of four quarters)
WACC 2011: 7.7% and WACC 2012: 7.1%
Equity per share:
equity attributable to equity holders of the parent company / adjusted basic number of shares at end of period
Return on equity, % (ROE):
(profit for the period / equity (average)) x 100
Return on investment, % (ROI):
(profit before tax + finance costs) / (total equity and liabilities - non-interest-bearing liabilities (average)) x 100
Equity ratio, %:
equity / (total equity and liabilities - advances received) x 100
Gearing, %:
net interest-bearing liabilities / equity x 100
Net interest-bearing liabilities:
interest-bearing liabilities - liquid assets
Operating profit excluding non-recurring items:
operating profit +/- non-recurring items
Helsinki, 25 April 2012
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
For additional information please contact:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810,
Ville Rantala, CFO, tel. +358 50 385 1442 or
Keijo Keränen, Head of Treasury & IR, tel. +358 50 385 6957.
Lassila & Tikanoja specialises in environmental management and property and plant support services. L&T is a significant supplier of wood-based biofuels, recovered fuels and recycled raw materials. With operations in Finland, Sweden, Latvia and Russia, L&T employs 9,500 persons. Net sales in 2011 amounted to EUR 652 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com