IFCO Announces 1999 and First Quarter 2000 Results.Business Editors AMSTERDAM Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. , The Netherlands--(BUSINESS WIRE)--May 31, 2000 IFCO IFCO Interreligious Foundation for Community Organization IFCO International Foster Care Organisation (Den Haag, Netherlands) IFCO International Fan Club Organization (Nashville, Tennessee) Systems N.V. ("IFCO Systems" or "the Company") (FRANKFURT:IFE Ife (ē`fā), city (1991 est. pop. 262,000), SW Nigeria. Located in a farm region, the city is an important center for marketing and shipping cacao. According to tradition, Ife is the oldest Yoruba town (founded c.1300). ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :IFCO) today announced its results for 1999 and the first quarter ended March 31, 2000. Highlights -- For 1999, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma combined revenues were approximately $547 million (DM1 billion) and pro forma combined EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was approximately $85 million (DM155 million). -- For the first quarter of 2000, pro forma combined revenues were approximately $133 million (DM264 million) and pro forma combined EBITDA was approximately $22 million (DM44 million). -- For both periods, EBITDA is up against prior periods. -- The Company believes its 1999 results exceeded expectations in the marketplace and our first quarter results equal or exceed the expectations in the marketplace. IFCO Systems results are presented as pro forma combined results. This method of presentation treats the companies that merged on March 8, 2000 to form IFCO Systems as being part of the Company since the beginning of the reporting period. Pro forma treatment excludes from consideration one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. income or expense items that primarily relate to the merger and related activities. EBITDA refers to earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Commenting on 1999 and first quarter 2000 results, Martin Schoeller, Chief Executive Officer of IFCO Systems, said, "We are pleased with our pro forma results. While our businesses were capital constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. during 1999 and during the first quarter of 2000, we showed good growth. 1999 pro forma EBITDA improved to approximately $85 million, and our pro forma EBITDA for the first quarter of 2000 was approximately $22 million. We believe our 1999 results exceed the expectations in the marketplace and our first quarter results equal or exceed the expectations in the marketplace. As discussed below, after considering currency exchange fluctuations relative to our U.S. dollar reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. , our results are even more impressive." "Developments in the first few months of 2000 confirm the growth path that we are on," continued Mr. Schoeller. "We have added important retail chains as system partners, including Rinascente in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , Atac (Auchan Auchan SA is an international retail group and multinational corporation headquartered in Croix, France. It is one of the world's principal distribution groups . It is present in 12 countries and employs 175,000 employees. ) in France, and Migros This article is about the Swiss enterprise and supermarket chain. For the Turkish supermarket chain of the same name, see Migros Türk. Migros (IPA: [ˈmiɡro] in Switzerland. In the U.S., we have taken over nationwide pallet management services on an outsourced basis for K-Mart. Acquisition efforts aimed at intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. network density are well underway. In addition, we have formed a strong team of internal managers and external consultants to pursue and develop our e-logistics initiatives." Regarding the recent acquisition of PalEx, Inc., Mr. Schoeller said, "We are pleased with the progress in integrating the two companies. We are especially excited about the growth prospects in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ." In presenting its pro forma results, IFCO Systems believes it is important to explain its financial results in two different currencies: U.S. dollars -- its reporting currency and Deutsche Marks - its functional currency in Europe, which is of interest to its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. investors and in which the Company conducts substantial business. The Company believes such a presentation is particularly important in light of the recent severe decline in the Euro and Deutsche Mark vs. the U.S. dollar and the negative effect on the Company's results reported in U.S. dollars. Prior to the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , the Company's pro forma combined revenue growth rate was constrained by lack of access to capital. In 1999, pro forma combined revenues were $547.4 million, up 6.0% from 1998's pro forma revenues of $516.2 million. When denominated in Deutsche Marks, revenues grew 10.5% from DM908.0 million to DM1003.7 million. In 1999, pro forma combined EBITDA was $84.7 million, up 13.8% from 1998's pro forma EBITDA of $74.4 million. When denominated in Deutsche Marks, EBITDA grew 18.6% from DM130.9 million to DM155.3 million. The Company's growth rate in EBITDA exceeded its revenue growth rate because of improvements in operating efficiency and the reduction in SG&A as a percentage of sales. In the first quarter of 2000, pro forma combined revenue was $133.3 million, down 2.0% from first quarter 1999 pro forma revenue of $136.0 million. When denominated in Deutsche Marks, revenues grew 11.5% from DM236.6 million to DM263.9 million. The IFCO European RTC See real time clock. business grew at a rate of about 15% on a functional currency basis. In the first quarter of 2000, pro forma combined EBITDA was $22.3 million, up 4.2% from first quarter 1999 pro forma EBITDA of $21.4 million. When denominated in Deutsche Marks, EBITDA grew 18.5% from DM37.2 million to DM44.1 million. EBITDA growth was aided by operating improvements in the European RTC business. EBITDA growth was affected by investments in (1) e-logistics and (2) North American infrastructure to support pallet system and RTC system growth. The Company's financial condition reflects its recent IPO and bond issuance. Its balance sheet reflected shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $292.8 million (DM548.3 million) and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $268.3 million (DM502.5 million). IFCO Systems completed its initial public offering on the Amtlicher Handel SMAX segment of the Frankfurt Stock Exchange Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. and the Nasdaq in March and operates round-trip systems in Europe, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , and Japan and North American pallet and industrial container operations. IFCO Systems is a logistics system provider. IFCO Systems is headquartered in Amsterdam, the Netherlands. Its European subsidiaries are headquartered in Munich, Germany and its U.S. subsidiaries are headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the (U.S.A). This announcement may contain statements that may be deemed "forward-looking" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may include financial information and/or statements for periods following the period covered by this report. You can find many of these statements by looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. words like believes, expects, anticipates, estimates or similar expressions used in this announcement. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. may be affected by known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions that the Company believes to be reasonable. Risks and uncertainties include, but are not limited to, the following: (1) IFCO Systems' ability to effectively integrate its operations and achieve its operational and growth objectives; (2) the competitive nature of the container businesses, including RTCs, pallets, and industrial containers; (3) customer demand and business and economic cycles; (4) the ability to finance capital expenditures and growth; (5) conditions in lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to markets; (6) seasonality; (7) weather conditions; (8) changes in national or international politics and economics; (9) currency exchange rate fluctuations; and (10) change in capital and financial markets, including the performance of companies listed on the Frankfurt Stock Exchange or the Nasdaq National Market. This announcement should be read in conjunction with the filings made by the Company with the Securities and Exchange Commission and the Frankfurt Stock Exchange. These filings disclose risk factors and other information that could cause actual results to materially differ from management's expectations.
Summary Comparative Pro forma Combined Income Statement Information
Year Ended Year Ended
December 31, 1999 % December 31, 1998 %
----------------- ----- ----------------- -----
Revenues $547,364 100.0 $516,232 100.0
Cost of Goods Sold 441,596 80.6 414,706 80.3
-------- ----- -------- -----
Gross Profit 105,768 19.4 101,526 19.7
S,G & A Expenses 70,904 13.0 69,948 13.6
Merger and
Restructuring Costs 3,519 .6 2,318 .4
Amortization of
Goodwill and Other
Intangibles 9,271 1.7 9,076 1.8
Other Operating Income,
Net (639) (.1) (3,081) (.6)
-------- ----- -------- -----
Income from Operations 22,713 4.2 23,265 4.5
Interest Expense (21,223) (3.9) (27,955) (5.3)
Other Income (Expense),
net 29 - (24) -
-------- ----- -------- -----
Income before Income
Taxes and Minority
Interest 1,519 .3 (4,714) (.8)
Minority Interest (1,291) (.2) - -
Income Tax Provision
(Benefit) 8,130 1.5 6,809 1.3
-------- ----- -------- -----
Net Loss ($7,902) (1.4) ($11,523) (2.1)
======== ===== ========= =====
Weighted Average Shares
- Diluted 40,432,278 40,429,195
Net Loss per share
-basic and diluted ($.20) ($.29)
Earnings Before
Interest, Taxes,
Depreciation and
Amortization $84,737 $74,430
======= =======
Summary Comparative Pro forma Combined Income Statement Information
Three Months Three Months
Ended Ended
March 31, 2000 % March 31, 1999 %
-------------- ----- -------------- -----
Revenues $133,283 100.0 $136,025 100.0
Cost of Goods Sold 110,804 83.1 109,535 80.5
-------- ----- -------- -----
Gross Profit 22,479 16.9 26,490 19.5
S,G & A Expenses 17,571 13.1 17,136 12.6
Merger Transaction Costs 1,283 1.0 582 .4
Amortization of
Goodwill and Other
Intangibles 2,442 1.8 2,326 1.7
Other Operating Income,
Net (147) - (234) (.1)
-------- ----- -------- -----
Income from Operations 1,330 1.0 6,680 4.9
Interest Expense (6,207) (4.6) (5,361) (3.9)
Other Income (Expense),
net 33 - (883) (.7)
-------- ----- -------- -----
Income before Income
Taxes and Minority
Interest (4,844) (3.6) 436 .3
Minority Interest - - (65) -
Income Tax Provision
(Benefit) 236 .2 2,488 1.9
-------- ----- -------- -----
Loss before
Extraordinary Item
and Cumulative Effect
of Accounting Change (5,080) (3.8) (2,117) (1.6)
Early Extinquishment of
Debt (5,600) (4.2) - -
Cumulative Effect of
Change in Accounting
Principle 770 .6 - -
-------- ----- -------- -----
Net Loss ($9,910) (7.4) ($2,117) (1.6)
======== ===== ======== =====
Weighted Average Shares
- Diluted 40,646,564 40,432,278
Net Loss per share -
basic and diluted ($.24) ($.05)
Earnings Before
Interest, Taxes,
Depreciation and
Amortization $22,268 $21,373
======== ========
CONFERENCE CALL SCHEDULED Live audio cast: www.vcall.com Call Participants (institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and IFCO analysts) may pre-register for the call and get dial-in information from the contacts listed below. Replay will be made available: www.vcall.com Replay Dial-In: +44.208.797.2499 pin: 113139(Pound Sign) |
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