Second quarter shows stabilisation in revenue decline, costs lowered
by 22%
and an improved debt position
Almere, 24 July 2009, 07:00 AM CET
Q2 2009 highlights
* In the second quarter, the decline in revenue stabilised;
the group revenue fell by 31% in the second quarter
compared to last year (corrected for the difference in
the number of working days between Q2 2008 and
Q2 2009, this decline came to 28%)
* Operating cash flow rose to ¤ 25 million (Q2 2008: ¤ 22
million)
* The net debt position fell by ¤ 18 million to ¤ 485
million in the second quarter; the net borrowings from the
banks, excluding subordinated loans, amounted to ¤ 333
million on 30 June (31 December 2008: ¤ 352
million); the debt position was partly lowered as a
result of factoring of a part of the trade receivables to a
maximum of ¤ 50 million
* The bank covenants were satisfied, the senior leverage
ratio amounted to 2.1 at the end of the second
quarter and the interest coverage ratio came to 5.7;
the bank covenants were relaxed with effect from the
third quarter. The senior leverage ratio is raised
from 2.5 to 3.0 and the interest coverage ratio is lowered
from 4.0 to 3.0
* The underlying operating expenses declined by 22% compared
to last year
* The underlying EBITA came to ¤ 12 million (2008: ¤ 63
million)
Key figures
Results Q2 Q2 6 months 6 months
(in ¤ 2009* 2008 growth to June 2009* to June growth
millions) 2008
Revenue 722 -31% 1,477 2,004 -26%
1,040
Gross 163 -36% 341 495 -31%
result 257
Operating 145 -22% 304 366 -17%
expenses * 187
EBITDA 18 -74% 129 -71%
70 37
EBITA 12 -81% 115 -80%
63 23
Net result -97% -100%
1 32 0 61
EPS (in ¤ ¤ ¤ ¤ 0.95
euro) 0.01 0.49 0.00
* underlying results, excluding reorganisation costs and unrealised
value changes in interest-rate derivatives
"We saw some stabilisation in the decline in revenue in the last few
months," said Rob Zandbergen, CFO and interim CEO of USG People. "A
few markets are once again showing slight improvement and others seem
to be stabilising, although recovery is not yet clearly evident here.
If the markets manage to pick up again, our commercial efforts will
have more effect since we have drastically cut costs. In the second
quarter we lowered our operating expenses by 22% compared to last
year through restructuring. Our organisation has become more
streamlined as a result and we have become more decisive, which means
we will be able to fully benefit from a recovering market. Our
expertise and years of experience in Human Resource services and in
the small and medium-sized enterprise sector remain our foundation
for high-quality service provision towards our customers and an
appealing work environment for our candidates.
We took preventative measures in the second quarter to provide extra
security for our financing. The debt position has been lowered by
factoring of a part of the trade receivables to a maximum of ¤ 50
million and stringent working capital management. Additionally, the
conditions for the bank covenants were relaxed within the existing
credit facilities. In the coming months we will continue to focus on
further improving the balance sheet.
I would like to thank all the employees of USG People for their
dedication to the organisation in today's challenging circumstances."
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