AAA AUTO GROUP N.V. 
By Regulatory Announcement of Inside Information
Published: 29.04.2013 at 17:15
Consolidated Unaudited Financial Results and Sales Results for 1Q 2013
Prague / Budapest, 29 April 2013 - According to consolidated financial results for the first quarter of 2013, AAA Auto Group N.V. net income tumbled 42% YOY by EUR 1.2 million to EUR 1.7 million from last years 1Q EUR 2,9 million. The 1Q sales results were flat YOY with 12,474 cars sold.
In the 1Q AAA AUTO Group faced lower supply of used cars, caused mainly by substantial drop in new car sales. Due to this situation the company had to spend more on its sourcing process, namely by increasing marketing and personnel expenditures. These factors together with unexpected foreign exchange losses lead to the 42% YOY net income drop. The company foresees the tightening trading market conditions to lead to the abovementioned increased expenditures until the 1Q of the next year. AAA AUTO Group's total revenues for 1Q 2013 grew by 2.6% to EUR 78.9 million compared to the same period last year. Operating expensesincreased to EUR 16.8 million. The increase in operating expenses of 10.8% outpaced the increase in total revenues of 2.6%. Main increase was recorded in marketing (+23% YOY) and personnel (+12% YOY) spendings. The opex / revenue ratio was 21,3%. Result of the increase in OPEX, EBITDA dropped down by 12.4% in the 1Q 2013 to the level of EUR 4.5 million compared to EUR 5.1 million achieved a year ago. The financial result was negatively influenced by unfavorable forex losses of EUR 0.8 million stemming mainly from exchange rate movements of local currencies versus EUR, which were compensated by lower interest expenses (-58% yoy).
Consolidated financial results for the first quarter of 2013 - key figures
· Total revenues of EUR 78.9m (+2.6% year-on-year)
o of which car sales accounted for EUR 64.2m (+0.2% yoy)
o of which revenues from financial services accounted for EUR 14.8m (+14.1%)
· Gross profit on sales reached EUR 21.2m (+5.2% yoy)
o The gross profit margin weakened to 26.9% in 1Q 2013 compared to the average profit margin of 27.6% for the whole 2012
· Together with the sales growth in the first quarter of 2013 the operating expenses increased by 10.8% yoy to EUR 16.8m
o of which personnel expenses representing 55% of total opex grew 12% to EUR 9.2m
o the opex / revenue ratio has exceeded the 21% level
· Operating profit (EBITDA) decreased by 12.4% to EUR 4.5m compared to EUR 5.1m in 1Q2012
· Profit before tax decreased to EUR 2.9m compared to EUR 4.1m in 1Q2012
· AAA AUTO Group decreased its consolidated net profit to EUR 1.7m in 1Q 2013 compared to EUR 2.9m achieved in 1Q 2012
Appendix
Interim Financial Report for the 3 months ended 31 March 2013
Unaudited
The consolidated financial statements of AAA Auto Group N.V. and all of its subsidiaries (the Group) have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the European Union ("IFRS").
AAA Auto Group N.V.
Consolidated Statement of Financial Position
at 31 March 2013 (EUR ´000)
ASSETS | 31/03/2013 | 31/03/2012 | |
Non-current assets | |||
Intangible assets | 824 | 138 | |
Property, plant and equipment | 39,570 | 39,856 | |
Other financial assets | 296 | 191 | |
Deferred tax assets | 115 | 44 | |
Total non-current assets | 40,805 | 40,229 | |
Current assets | |||
Inventories | 40,443 | 37,165 | |
Trade and other receivables | 9,050 | 6,704 | |
Current tax asset | 1 | ||
Other non-financial assets | 2,507 | 2,010 | |
Cash and cash equivalents | 10,760 | 4,286 | |
Total current assets | 62,885 | 50,167 | |
TOTAL ASSETS | 103,690 | 90,395 | |
EQUITY AND LIABILITIES | 31/03/2013 | 31/03/2012 | |
Equity | |||
Issued capital | 38,185 | 38,185 | |
Reserves | 7,861 | 8,372 | |
Retained earnings | 2,658 | (17,865) | |
Equity attributable to equity holders of the company | 48,703 | 28,692 | |
Total equity | 48,703 | 28,692 | |
Non-current liabilities | |||
Bank and other borrowings | 15,312 | 25,538 | |
Deferred tax liabilities | 68 | ||
Total non-current liabilities | 15,380 | 25,538 | |
Current liabilities | |||
Trade and other payables | 10,562 | 8,365 | |
Current tax liabilities | 1,975 | 2,630 | |
Bank overdrafts and borrowings | 16,378 | 14,515 | |
Provisions | 3,833 | 3,752 | |
Other financial liabilities | 384 | 1,308 | |
Other non-financial liabilities | 6,475 | 5,595 | |
Total current liabilities | 39,606 | 36,165 | |
Total liabilities | 54,986 | 61,703 | |
TOTAL EQUITY AND LIABILITIES | 103,690 | 90,395 | |
AAA Auto Group N.V.
Consolidated statement of comprehensive income
For the Quarter Ended 31 March 2013 (EUR ´000)
2013 | 2012 | ||
Continuing operations | |||
Revenue | 78,919 | 76,949 | |
Other income | 82 | 125 | |
Changes in inventories | 1,302 | 944 | |
Car inventory sold | (59,031) | (57,751) | |
Advertising expenses | (2,237) | (1,822) | |
Employee benefit expenses | (9,161) | (8,178) | |
Depreciation and amortisation expense | (545) | (569) | |
Impairment of property plant and equipment | (66) | (460) | |
Other expenses | (5,392) | (5,146) | |
Finance income/(cost) | (1,006) | 58 | |
Profit before tax | 2,866 | 4,149 | |
Income tax expense | (1,204) | (1,280) | |
Profit for the period | 1,662 | 2,869 | |
Other comprehensive income | |||
Foreign currency translation differences | 135 | (31) | |
Other comprehensive income for the period, net of income tax | 135 | (31) | |
Total comprehensive income for the period | 1,797 | 2,837 | |
Earnings per share from: | |||
operations attributable to the equity holders of the | |||
company during the year (expressed in EUR cent per share) | |||
Basic earnings per share | 2.45 | 4.23 | |
Diluted earnings per share | 2.39 | 4.10 | |
AAA Auto Group N.V.
consolidated statement of changes in Equity
For the Quarter Ended 31 March 2013 (EUR ´000)
Share capital | Share premium | Equity/ legal reserve ** | Share option reserve | Foreign currency translation reserve ** | Retained earnings | Total equity | ||
Balance at 01/01/12 | 6,776 | 31,409 | 456 | 580 | 7,317 | (20,733) | 25,805 | |
Profit for the year | - | - | - | - | - | 22,277 | 22,277 | |
Other comprehensive income | ||||||||
Foreign currency translation differences | - | - | - | - | (1,298) | - | (1,298) | |
Total comprehensive income | - | - | (1,298) | 22,277 | 20,979 | |||
Transactions with owners | ||||||||
Equity legal reserve | - | - | 547 | - | - | (547) | - | |
Distribution to the majority shareholder* | - | - | - | - | - | - | - | |
Share options | - | - | - | 84 | - | - | 84 | |
Balance at 31/12/12 | 6,776 | 31,409 | 1,003 | 664 | 6,019 | 997 | 46,868 | |
Balance at 01/01/13 | 6,776 | 31,409 | 1,003 | 664 | 6,019 | 997 | 46,868 | |
Profit for the year | - | - | - | - | - | 1,662 | 1,662 | |
Other comprehensive income | ||||||||
Foreign currency translation differences | - | - | - | - | 135 | - | 135 | |
Total comprehensive income | - | - | - | - | 135 | 1,662 | 1,797 | |
Transactions with owners | ||||||||
Equity legal reserve | - | - | - | - | - | - | - | |
Share options | - | - | - | 40 | - | - | 40 | |
Balance at 31/03/13 | 6,776 | 31,409 | 1,003 | 704 | 6,154 | 2,659 | 48,704 | |
AAA Auto Group N.V.
CONSOLIDATED CASH FLOW STATEMENT
For the Quarter ended 31 March 2013 (EUR´000)
2013 | 2012 | ||
Cash flows from operating activities | |||
Profit for the year | 1,662 | 2,869 | |
Adjustments for: | |||
Income tax expense | 1,204 | 1,280 | |
Depreciation and impairment of fixed assets | 611 | 1,029 | |
Provisions | 742 | (2,038) | |
(Gain) / loss on disposal of fixed assets | 541 | 11 | |
Interest income | - | 24 | |
Interest expense | 177 | 392 | |
Share options | - | 50 | |
Foreign exchange (gain)/loss | 802 | (550) | |
(Increase)/decrease in inventories | (2,246) | (4,378) | |
Decrease/(increase) in receivables and other assets | (1,849) | 2,534 | |
Increase/(decrease) in payables and other liabilities | 1,083 | (7,076) | |
Interest paid | (138) | (991) | |
Interest received | (24) | ||
Income tax paid | (1,691) | (3,494) | |
Net cash provided by operating activities | 899 | (10,363) | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment* | (286) | (3,785) | |
Proceeds from disposals of property, plant and equipment | 18 | 864 | |
Net cash used in investing activities | (268) | (2,921) | |
Cash flows from financing activities | |||
Proceeds from third party loans | 5,557 | 11,171 | |
Repayment of third party loans | (1,137) | (13,375) | |
Payment of finance lease liabilities | - | (37) | |
Changes in Equity | 168 | - | |
Net cash from financing activities | 4,588 | (2,241) | |
Net increase/(decrease) in cash and cash equivalents | 5,219 | (15,525) | |
Net foreign exchange difference | (62) | (70) | |
Cash and cash equivalents at the beginning of the year | 5,534 | 3,665 | |
Cash and cash equivalents at the end of the year | 10,760 | 4,286 | |
Contact:
Petr TošekPavel Tu
