CEVA Holdings LLC
Results for the Third Quarter ended 30 September 2017
- Continued good revenue growth of 5.4% in Q3 in constant currency
- Adjusted EBITDA of $85 million in Q3, up $11 million in constant currency
- Excellence program continues driving performance
- Operating cash flow of $81 million in Q3, up $68 million vs. previous year
- Maturity of US ABL extended from 2018 to 2020
- Confirm expectation of stronger result for 2017
Hoofddorp, the Netherlands, 14 November, 2017 – CEVA Holdings LLC (“CEVA” or the “Company”), one of the world’s leading non‐asset based supply chain management companies, today reported results for the third quarter of the year ended 30 September, 2017.
Q3 2017 ($ million)
|Q3 2017||Q3 2017 at constant FX||Q3 2016||change YoY constant FX|
Adjusted EBITDA (a)
year-to-date ($ million)
|YTD 2017||YTD 2017 at constant FX||YTD 2016||change YoY constant FX|
Adjusted EBITDA (a)
(a) Adjusted EBITDA includes the proportional contribution of the ANJI-CEVA joint venture and excludes specific items and share-based compensation cost
“I am pleased to announce another good quarter for CEVA" says Xavier Urbain, CEO of CEVA. “We have been able to offset ongoing market volatility in air and ocean freight. Our procurement and pricing strategy has enabled us to protect yields sequentially. Contract logistics continues to grow and delivers improved results through focused action on contracts. CEVA is on track to deliver a stronger result in 2017. The transformation we have embarked on is positioning CEVA as a strong player for the future."
In Q3, Freight Management maintained volume growth for its air product at 11.8% versus prior year. Market volatility in airfreight rates continues, notably on routes ex-Asia. Volume planning and pricing measures have enabled us to mitigate that pressure to a large extent.
Ocean freight saw an organic growth of 2.8% in the quarter.
Our excellence program delivered cost and quality improvements, supporting stable yields.
Freight management EBITDA in Q3 was $26 million, down $1 million year-over-year as a result of margins pressure from rates.
Revenues are up 1.7% in Q3 in constant currency in spite of less trading days in the quarter and the termination of certain contracts. We had a number of new business wins notably in the consumer & retail, e-commerce and industrial sectors.
Contract Logistics EBITDA was $43 million in Q3, up $5 million YoY in constant currency, a strengthening of the margin by 50 bps. This positive result is driven by the focus on productivity improvement on key contracts through the Excellence Program and the portfolio review.
Third Quarter revenues were $1,782 million up 5.4% in constant currency and up 6.1% in actual currency. For the nine months, revenues were $5,099 million up 5.6% in constant currency and up 3.8% in actual currency.
In Q3, adjusted EBITDA came in at $85 million, up $11 million in constant currency versus the prior year. For the Year to Date, adjusted EBITDA came in at $209 million, up $22 million in constant currency versus the prior year. Cost reductions will support profits in the coming quarters.
Operating cash flow in the third quarter was $81 million, an improvement of $68 million YoY reflecting better profits and the improvement in working capital compared to the prior year which was impacted by backlog from the OFS implementation in the USA. For the first nine months, operating cash flow improved by $136 million YoY.
Extension of Maturity of US ABL
CEVA successfully extended the maturity of its US ABL facility from December 2018 to August 2020 at essentially same terms.
For more information, please contact:
SVP Corporate Development
+41 799 333 083
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 40,000 employees in more than 160 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 or joint ventures, its liquidity and capital resources, its guidance for 2017 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 Air freight 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.