IFCO Systems Pro Forma Revenue Grew 9.3% to $98.8 Million in Q3 2000 Compared to the Prior Year Period.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. , Netherlands--(BUSINESS WIRE)--Nov. 29, 2000 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 Currency Adjusted Revenue Growth was 15.7%; RTC See real time clock. Systems Revenue Grew 12.7%, On an Constant Currency Basis; Pallet and Industrial Container (1) Software that acts as a parent program to hold and execute a set of commands or to run other software routines. (2) A data structure that holds one or more different types of data. See metafile and OLE. Systems and Services Revenue Grew 18.1%; YTD See Year-to-date. YTD See year to date (YTD). 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 Totaled $41.4 Million 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 Frankfurt (frängk`f  rt) or Frankfurt am Main (frängk`f :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:IFCO), a global leader in
round-trip logistics logisticsIn military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. systems and services announced its third quarter results today. For the quarter ended Sept. 30, 2000 the company reported revenue of $98.8 million and a net loss of $9.9 million in the third quarter 2000 according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . This compares to revenue of $38.5 million and a net loss of $3.3 million in the same period in 1999. Revenue for the nine months ended Sept. 30, 2000 totaled $243.7 million, with a net loss of $15.9 million. The increases in revenue for the third quarter 2000 and nine-months period are primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the acquisition of PalEx in March 2000. The net loss for both periods was partially due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs related to infrastructure-building investments, pallet pooling activities 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. and IFCO Online initiatives. During the first nine months, IFCO Systems incurred $6.9 million of cost relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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. and the refinancing Refinancing An extension and/or increase in amount of existing debt. of the bank credit facility. On a pro forma basis, as if PalEx had been acquired at the beginning of 1999, and reflecting acquisitions completed in the third quarter on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis -- from date of acquisition, revenue increased 9.3% to $98.8 million in Q3 2000 compared to $90.4 million in Q3 1999. Pro forma revenue for the 2000 nine-months period totaled $285.8 million, 7.4% above the same period in 1999. Pro forma EBITDA totaled $8.1 million in Q3 2000 compared to $11.5 million in Q3 1999. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. RTC revenue declined 6.8% to $35.9 million in Q3 2000 compared to the same period in 1999. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. RTC revenue increased more than 100% during the 2000 quarter compared with the 1999 period, which was in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with expectations. Pallet and industrial container systems and services pro forma revenue grew 18.1% to $59.3 million in Q3 2000 compared to Q3 1999 primarily due to the consolidation of acquisitions completed in the third quarter. These results were adversely affected by several extraordinary factors including: -- The EUR declined 16% against the $, which reduced revenue and EBITDA by $5.8 million and $0.6 million, respectively, in the 2000 quarter compared to the 1999 period. It is important to note that IFCO Systems' business is functionally hedged as all revenue generated and costs incurred in EUR-linked currencies are only translated to $ for purposes of reporting consolidated results and that the decline in the EUR/$ exchange rates has no effect on IFCO System's ability to generate cash. The European revenue reported in $ therefore does not reflect the actual growth of the business. -- European RTC revenue grew 8.3% on a currency adjusted basis, which was lower than expected partially due to external events including floods in Southern Europe, which adversely affected harvest yields and a trucking strike in France. -- IFCO Systems invested $8.9 million in infrastructure-building investments, pallet pooling activities in North America and IFCO Online initiatives during Q3 2000. EBITDA for the 2000 period was $8.1 million (nine months 2000: $41.4 million). Excluding these costs EBITDA in Q3 2000 would have been $17.1 million, 23.9% above Q3 1999. EBITA was $-1.0 million (nine months 2000 = $16.3 million). In Q3 2000 IFCO Systems added new RTC system partners throughout Europe Europe (y r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , which management believes begin to contribute to the
company's growth in 2001. These partners include Eurospin and
Iperal 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. , 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. and Systeme U in France, ADEG ADEG Arbeitsgemeinschaft der EinkaufsGenossenschaften (German/Austrian retailer cooperative and supermarket franchise)ADEG Asociación de Damas Españolas Guatemaltecas (Spanish-Guatemalan Ladies' Association) in Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. , Grupo Hermanos Martin in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , Supergros in Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. . North American pro forma revenues from the pallet services and industrial container business grew by 18.1% to $59.3 million in Q3 2000 (nine months 2000 = $171.3 million, a growth of 14.2% over the 1999 period). This increase is primarily due to the consolidation of the network completing acquisitions. The sale of the pallet manufacturing business remains one of the company's top priorities and management intends to complete the sales of this business in the first half in 2001. The pallet manufacturing business was not included in the above results as it is classified as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. according to U.S. GAAP. Management was disappointed with the results and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in the quarter ended Sept. 30, 2000. IFCO Systems' management is confident in its business model and growth potential. The company is committed to intelligently implementing its business plan and driving earnings. IFCO Systems was in compliance with its bank covenants as of Sept. 30, 2000. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Martin Schoeller explains: "It will still take some time for our investments and strategy to show results. However, I believe IFCO is strategically very well positioned and should be able to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the growth opportunities in North America with the help of our acquired service network. The company owns the critical mass for further expansion of the round trip systems and logistics services on both sides of the Atlantic." IFCO Systems is a global logistics systems and service provider, with an international network of more than 160 facilities, primarily in North America and Europe. IFCO Systems operates round-trip container ("RTC") systems, which include containers for consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , pallets and industrial containers. IFCO Systems owns and manages the leading rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. pool of round-trip containers for consumer goods in Europe and the second largest rental pallet pool in North America. It is also the largest provider of recycled pallets and industrial container reconditioning services in North America. IFCO Systems is listed on the SMAX segment of the Frankfurt Stock Exchange Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. under the symbol "IFE" and on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol "IFCO". The company results are reported in U.S dollars and, except for the pro forma information described in this release, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. GAAP. The statements in this press release regarding management's expectations constitute "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. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to risks and uncertainties that could cause IFCO Systems' results to differ materially from those expectations. These forward-looking statements 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information is based on various factors and was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. using numerous assumptions that IFCO Systems believes to be reasonable. Risks and uncertainties include 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) the ability to sell the pallet manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. ; (9) changes in national or international politics and economics; (10) currency exchange rate fluctuations; and (11) changes in capital and financial markets, including the performance of companies listed on the Frankfurt Stock Exchange or the Nasdaq National Market. Filings by IFCO Systems with the Securities Exchange Commission, including its Registration Statement on Form F-1 (filed on Feb. 4, 2000) and its Quarterly Report for the quarter ended Sept. 30, 2000, discuss some of the important factors that could cause the company's actual results to differ materially from those in such forward-looking statements.
Conference Call Scheduled
Wednesday, Nov. 29, 2000
4 p.m., Central European Time/10 a.m., Eastern Daylight TimeLive
audiocast: www.vcall.com
Dial-In Number:
Europe/RoW: +49 69 27113 700
United States: +49 69 27113 700
Moderator: Michael W. Nimtsch
Replay Dial-In:
http://www.vcall.com
International: +49 69 920 53 444 available for 48 hours
Institutional investors and IFCO analysts must pre-register to
participate in the question and answer segment by contacting the
following:
Europe
Catja M. Collen
Head of Investor Relations
IFCO Systems, N.V.
Tel. +49 89 744 91 222
Fax + 49 89 744 767 222
german communications dbk AG
Jorg Bretschneider
Holzdamm 28-32, 20099 Hamburg,
Tel. +49 (0) 40/46 88 33-0
Fax + 49 (0) 40/47 81 80
United States
Jennifer Daniels
IFCO Systems North America.
Tel: 863-533-1148, ext. 1530
IFCO SYSTEMS N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
Dec. 31, Sept. 30,
1999 2000
----- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $12,240 $21,628
Accounts receivable 64,809 99,312
Inventories -- 17,160
Net current assets of
discontinued operations -- 23,397
Other current assets 4,591 32,551
--------- ---------
Total current assets 81,640 194,048
PROPERTY, PLANT AND
EQUIPMENT, net 167,678 245,903
GOODWILL AND OTHER
INTANGIBLE ASSETS -- 296,110
NET NONCURRENT ASSETS OF
DISCONTINUED OPERATIONS -- 89,636
OTHER ASSETS 17,303 3,785
--------- ---------
Total assets $266,621 $829,482
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans $795 $ --
Current maturities of
long-term debt and
related party loans 72,318 1,377
Current maturities of
capital lease obligations 10,329 7,725
Refundable deposits 66,436 63,435
Accounts payable, accrued
expenses and other current
liabilities 96,586 99,235
--------- ---------
Total current
liabilities 246,464 171,772
ACCUMULATED LOSSES IN
EXCESS OF INVESTMENT
IN EQUITY
ENTITIES 5,623 --
LONG-TERM DEBT, net of
current maturities -- 316,732
CAPITAL LEASE OBLIGATIONS,
net of current maturities 24,198 18,703
MINORITY INTEREST,
PARTICIPATING AND
REDEEMABLE PARTICIPATING
RIGHTS 30,008 --
OTHER LONG-TERM
LIABILITIES -- 18,931
COMMITMENTS AND
CONTINGENCIES
STOCKHOLDERS' EQUITY:
Ordinary shares, 2 euros
nominal value,
25,000,000 and 100,000,000
authorized shares,
respectively; 25,000 and
43,934,650 issued
and outstanding,
respectively 54 89,618
Additional paid-in capital 10,339 273,242
Accumulated other
comprehensive income:
Foreign currency
translation adjustment 2,672 9,149
Accumulated deficit (52,737) (68,665)
--------- ---------
Total stockholders' equity (39,672) 303,344
--------- ---------
Total liabilities and
stockholders' equity $266,621 $829,482
========= =========
IFCO SYSTEMS N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
--------------------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
--------- ---------- --------- ---------
1999 2000 1999 2000
---- ---- ---- ----
REVENUES $38,527 $98,865 $112,260 $243,655
COST OF GOODS
SOLD, excluding
depreciation 27,229 69,919 64,656 168,977
DEPRECIATION 7,475 9,196 26,415 24,006
---------- ---------- ---------- ----------
TOTAL COST OF
GOODS SOLD 34,704 79,115 91,071 192,983
---------- ---------- ---------- ----------
Gross profit 3,823 19,750 21,189 50,672
SELLING, GENERAL
AND ADMINISTRATIVE
EXPENSES 2,226 20,314 17,118 38,766
MERGER TRANSACTION
EXPENSES 673 -- 1,918 1,283
GOODWILL
AMORTIZATION 71 1,793 218 4,164
OTHER OPERATING
EXPENSE (INCOME),
NET 622 260 (529) 90
---------- ---------- ---------- ----------
Income from
operations 231 (2,617) 2,464 6,369
INTEREST EXPENSE,
NET (2,121) (6,831) (8,845) (17,239)
FOREIGN CURRENCY
(LOSS) INCOME,
NET (372) 166 (709) (351)
LOSS FROM
EQUITY ENTITIES (607) -- (1,486) (417)
OTHER INCOME
(EXPENSE), NET 617 (373) (212) (781)
---------- ---------- ---------- ----------
LOSS BEFORE INCOME
TAXES AND
MINORITY
INTEREST (2,252) (9,655) (8,788) (12,419)
INCOME TAX
PROVISION
(BENEFIT) 51 15 69 (589)
MINORITY INTEREST 1,021 -- 962 --
---------- ---------- ---------- ----------
Loss from
continuing
operations
before
extraordinary
loss and
cumulative effect
of change in
accounting
principle (3,324) (9,670) (9,819) (11,830)
(LOSS) INCOME
FROM DISCONTINUED
OPERATIONS -- (237) -- 732
EXTRAORDINARY LOSS
ON EARLY
EXTINGUISHMENT
OF DEBT -- -- -- (5,600)
CUMULATIVE EFFECT
OF CHANGE IN
ACCOUNTING
PRINCIPLE -- -- -- 770
---------- ---------- ---------- ----------
Net loss $(3,324) $(9,907) $(9,819) $(15,928)
========== ========== ========== ==========
LOSS PER SHARE
FROM CONTINUING
OPERATIONS --
basic and
diluted $(.17) $(.22) $(.49) $(.32)
(Loss) income
from discontinued
operations -- (.01) -- .02
Extraordinary
item -- loss
on early
extinguishments
of debt -- -- -- (.15)
Cumulative effect
of change in
accounting
principle -- -- -- .02
---------- ---------- ---------- ----------
NET LOSS PER
SHARE -- $(.17) $(.23) $(.49) $(.43)
========== ========== ========== ==========
Weighted average
shares used in
computing net
(loss) income
per share --
basic and
diluted 20,000,000 43,252,803 20,000,000 37,169,482
IFCO SYSTEMS N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended
-------------------
Sept. 30, Sept. 30,
1999 2000
----- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(9,819) $(15,928)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating
activities --
Depreciation and
amortization 27,886 31,794
Foreign currency exchange
(loss) gain (692) 340
Gain on sale of fixed
assets -- (121)
Net proceeds from
factoring 28,650 24,503
Losses from equity
entities 952 97
Extraordinary loss from
extinguishment of debt -- 5,600
Changes in operating
assets and liabilities --
Accounts receivable (31,137) (39,233)
Inventories (2,026) 5,717
Other current assets (6,558) (5,422)
Accounts payable and
accrued expenses 23,245 (30,940)
Other assets and liabilities (724) (7,013)
--------- ---------
Net cash provided by
(used in) operating activities 29,777 (30,606)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of RTCs (30,257) (39,014)
Purchases of property,
plant and equipment (2,572) (17,652)
Proceeds from sale of fixed assets -- 465
Investment in equity entities 879 --
Purchase of intangible assets (496) (35,844)
Purchase of investments carried
at cost (2,266) (480)
Cash paid for business acquisitions,
net of cash acquired -- (164,042)
--------- ---------
Net cash used in
investing activities (34,712) (256,567)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt
and related party loans 11,387 429,869
Payments on long-term debt
and related party loans (10,998) (296,609)
Payments of indebtedness
of purchased companies -- (24,026)
Payments on capital lease
obligations (4,872) (8,007)
Payments for termination
of participating rights -- (3,206)
Net proceeds from issuance
of common stock -- 195,252
Net proceeds from exercise
of stock options -- 6,821
Repayment to former partners -- (1,433)
--------- ---------
Net cash (used in) provided
by financing activities (4,483) 298,661
--------- ---------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (2,564) (2,100)
--------- ---------
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (11,982) 9,388
CASH AND CASH EQUIVALENTS --
beginning of period 23,642 12,240
--------- ---------
CASH AND CASH EQUIVALENTS --
end of period $11,660 $21,628
========= =========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid for --
Interest $9,136 $19,515
========= =========
Income taxes $62 $244
========= =========
Additional financial information will be released by 12:00 p.m. EST.
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