IFCO SYSTEMS reports significant profitability and cash flow
* Q3 2007 revenues 9.3% above prior year levels as a result of
volume growth in both business segments.
* Q3 2007 EBITDA 51.3% above prior year levels due to improved
performance in the RPC-Management-Services business segment and
the continuing recovery of the Pallet-Management-Services
* Q3 2007 operating cash flows from continuing operations before
income tax payments increased 87.2% compared to Q3 2006 due to
higher operating profit levels and improved working capital
IFCO SYSTEMS' year-over-year profitability improved significantly in
Q3 2007. Aside from the continuing operational recovery of the
Pallet-Management-Services business segment, which led the
improvement, operating earnings in our RPC-Management-Services
segment also grew significantly. Operating cash flows grew in excess
of IFCO SYSTEMS' profitability improvements.
Revenues in Q3 2007 increased by 9.3% to US $173.8 million (YTD 2007,
4.4% to US $511.7 million). RPC-Management-Services' Q3 2007 revenues
grew by 9.9% to US $85.6 million compared to Q3 2006 (YTD 2007, 14.5%
to US $239.2 million) and Pallet-Management-Services' revenues grew
by 8.8% compared to the prior year quarter to US $88.3 million (YTD
2007, negative 3.0% to US $272.5 million).
Gross profit margin increased by 5.1 percentage points to 17.9% in Q3
2007 (YTD 2007, increased 1.0 percentage point to 17.4%). As with the
revenue gains described above, the gross profit margin increase in Q3
2007 was the result of improvement in both key business segments.
RPC-Management-Services' gross profit margin improved by 3.4
percentage points in Q3 2007. European gains were the result of
higher volumes in more profitable countries, further positive
economies of scale, and lower relative depreciation levels. US gross
profit margin improved primarily due to a more efficient operational
cost structure, partially offset by higher depreciation charges.
Pallet-Management-Services' gross profit margin improved by 6.7
percentage points to 12.5% in Q3 2007, as this segment continues to
recover following the ICE investigation.
EBITDA significantly increased by 51.3% to US $28.7 million in Q3
2007 (YTD 2007, grew by 9.7% to US $77.4 million) and LTM Q3 2007
EBITDA reached a level of US $103.1 million. EBITDA in the
RPC-Management-Services business segment grew by 20.4% in Q3 2007
compared to Q3 2006 (currency adjusted by 13.1%), and YTD 2007 EBITDA
improved by 11.2% to US $65.0 million (currency adjusted by 4.9%).
Pallet-Management-Services' EBITDA significantly increased to US $6.1
million in Q3 2007 compared to negative US $0.4 million in Q3 2006,
and YTD 2007 increased 3.3% to US $16.0 million.
Operating cash flows from continuing operations before income tax
payments increased in Q3 2007 by 87.2% or US $19.8 million to US
$42.4 million, compared to Q3 2006, as a result of higher operating
profit levels and improved working capital performance. YTD 2007
operating cash flows increased by 36.6% or US $21.7 million as
compared to YTD 2006. The improved working capital was primarily the
result of lower inventory and higher accounts payable levels.
Capital expenditure levels declined 32.0% in YTD 2007, largely due to
the acquisition of the CHEP USA RPC assets in Q1 2006. Excluding both
the CHEP USA RPC asset acquisition in Q1 2006 and the acquisition of
the shares in IFCO SYSTEMS Argentina S.A. in Q3 2007, YTD 2007
capital expenditure levels decreased by 6.2% as compared to YTD 2006.
ROCE from continuing operations, on a LTM basis, decreased to 17.5%
as of September 30, 2007, compared to 22.0% as of September 30,
2006. However, ROCE has increased sustainably each quarter since Q1
US $ in Q3 2007 Q3 2006 % YTD YTD % LTM Q3
thousands, Change 2007 2006 Change 2007
Revenues 173,838 159,055 9.3% 511,739 490,025 4.4% 668,950
Gross profit 31,164 20,340 53.2% 89,046 80,160 11.1% 117,852
margin 17.9% 12.8% 17.4% 16.4% 17.6%
EBITDA 28,738 18,997 51.3% 77,399 70,549 9.7% 103,124
EBITDA margin 16.5% 11.9% 15.1% 14.4% 15.4%
EBIT 17,846 9,110 95.9% 47,472 44,329 7.1% 65,426
EBIT margin 10.3% 5.7% 9.3% 9.0% 9.8%
(loss) 10,099 (1,968) 22,433 21,637 3.7% 38,083
share - basic 0.19 (0.04) 0.41 0.41 1.4% 0.70
diluted 0.19 (0.04) 0.41 0.40 2.3% 0.70
operations 42,443 22,669 87.2% 80,937 59,230 36.6% 113,989
operations 21,597 11,999 80.0% 52,915 77,873 (32.0%) 76,342
(ROCE) 17.5% 22.0%
Outlook: IFCO SYSTEMS expects that the economy in Europe will
slightly improve, while the Company sees indications that economic
growth in the United States is slowing moderately. IFCO SYSTEMS
continues to estimate good market conditions for both of its business
As experienced in recent quarters through improving operating
margins, IFCO SYSTEMS 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, that legal costs
related to the ICE investigation will decline in future periods, and
therefore anticipates an improved result for fiscal 2007 as compared
to fiscal 2006.
As a result IFCO SYSTEMS expects improved profitability for the
Company in fiscal 2007 as compared to fiscal 2006.
For further explanations, please see IFCO SYSTEMS' quarterly report,
which will be filed with the Deutsche Börse AG on or about November
08, 2007, 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.
Tel: +49 89 74491 222
Fax: +49 89 744767 222
www.ifcosystems.com or www.ifcosystems.de
--- End of Message ---
IFCO Systems N.V.
Zugspitzstraße 7 Pullach
WKN: 157670; ISIN:
NL0000268456 ; Index: CLASSIC All Share, Prime All Share;
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Freiverkehr
in Bayerische Börse München,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Börse Düsseldorf,
Prime Standard in Frankfurter Wertpapierbörse;