KUWAIT CITY - August 15, 2011 - Agility (AGLTY) today announced financial results for the second quarter of 2011, reporting a net profit of KD 7.83 million and earnings per share of 7.79 fils.
Revenue and net profit fell -- 23% and 57% respectively -- from the same period in 2010 as the result of lost defense and government business. Commercial logistics revenue (Global Integrated Logistics excluding U.S. government contracts) showed a 2% year-over-year gain and experienced its second consecutive quarter of growth.
“Our efforts to align our cost structure with the current business environment, streamline the organization and refocus on commercial logistics are paying off,” said Tarek Sultan, Agility’s Chairman and Managing Director. “We made hard choices last year and established a new financial baseline to start 2011. Our commercial logistics gains, combined with our drive to boost return on assets, manage cash conservatively and squeeze out additional cost are moving the company beyond lost government business into a new growth era.”
Figures in the table above have been rounded
· Q2 results reflect changes to establish a new financial baseline set at the start of 2011.
· Global Integrated Logistics (GIL) is growing by adding customers, expanding existing accounts and transforming its operating platform to execute more efficiently.
· Agility’s portfolio group of businesses consists of strong contributors, excluding Agility Defense & Government Services.
· Agility continues to cut SG&A costs, demonstrating its resolve to maintain financial discipline.Core Business
Revenue for Global Integrated Logistics (GIL) (excluding government operations) grew 2% in Q2 vs. the second quarter of 2010. Revenue grew in every region with the biggest gains coming from emerging markets in the Middle East, Asia, Eastern Europe and Latin America, which are the key to Agility’s long-term growth. GIL’s focus on global accounts and trade lane development is gaining momentum.
Agility’s Portfolio of Companies
Agility’s portfolio of businesses contributed KD 36.2 million to Q2 revenue. Revenue grew 24% from Q2 in 2010, excluding Agility Defense & Government Services. Agility’s Real Estate business remains the strongest contributor to group revenue, but other Agility portfolio businesses have shown healthy growth in the past several years.
Recap of Financial Performance
· Agility Q2 revenue was KD 330.57 million, a 23% decline from Q2 2010.
· Q2 operating profit stood at KD 10.18 million and Q2 net profit was KD 7.83 million, or 7.79 fils per share.
· Total Global Integrated Logistics (GIL) revenue was KD 301 million in Q2. Excluding revenues from U.S. contracts group’s revenues grew by 2% compared to Q2 2010.
· Agility’s portfolio group contributed KD 36.2 million to Q2 revenue. Since the start of 2011, the group has included Agility Defense & Government Services. Excluding DGS the group has shown a 24% growth compared to Q2 2010.
· Net cash in Q2 stood at KD 45.5 million, down from KD 90 million in Q1, following an annual dividend distribution so far totaling KD 37 million.
· Agility closed Q2 with KD 891 million in equity and KD 1.4 billion in assets.Forward View
We see growth in our core commercial business and reason to be upbeat about the investments we’ve made in fast-growing emerging markets. Our base of commercial customers is expanding. At the same time, we are transforming operations and continuing to streamline our organization, structure and processes in order to get leaner and gain efficiencies. Fresh initiatives intended to grow revenue and reduce costs should produce solid gains in 2012. We remain committed to our strategy of growing revenue organically, improving return on investment, reducing costs, managing working capital and strengthening yields on core operating assets.
From its roots in emerging markets, Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed countries and emerging economies alike. A publicly traded company, Agility is one of the world’s leading providers of integrated logistics with close to $6 billion in annual revenue and more than 22,000 employees in 550 offices across 100 countries.
Agility's commercial business, Global Integrated Logistics (GIL), is headquartered in Switzerland. Agility GIL provides supply chain solutions to meet complex and traditional customer needs. GIL offers air, sea and road freight forwarding, warehousing, distribution and specialized services in project logistics, fairs and events, fuels and chemicals.
Agility's unique collection of portfolio businesses includes Agility Defense & Government Services, a logistics provider to governments, ministries of defense and international organizations. Agility's Infrastructure group of companies manages commercial and industrial real estate and offers solutions in customs optimization and clearance, waste management and recycling, aviation services, remote infrastructure and life support.
For more information about Agility, visit www.agilitylogistics.com.