2011-10-20 07:30:00 CEST
2011-10-20 07:30:08 CEST
REGULATED INFORMATION
Trainer's House Oyj - Interim report (Q1 and Q3)
TRAINERS' HOUSE GROUP'S INTERIM REPORT FOR 1 JANUARY - 30 SEPTEMBER 2011
Espoo, Finland, 2011-10-20 07:30 CEST (GLOBE NEWSWIRE) -- TRAINERS' HOUSE PLC,
INTERIM REPORT, 20 OCTOBER 2011 AT 8:30
Trainers' House's operating profit during the third quarter was at the same
level as it was in the corresponding period in 2010.
January - September 2011 in brief (the figures are figures for the company's
continuing operations)
-- net sales amounted to EUR 11.9 million (EUR 11.2 million)
-- operating profit (EBIT) before non-recurring items and depreciation
resulting from the allocation of acquisition cost was EUR 1.4 million (EUR
1.0 million), or 11.9% of net sales (8.9%)
-- operating result after these items was EUR 0.2 million (EUR -1.1 million),
or 1.6% of net sales (-9.7%)
-- cash flow from operating activities was EUR 0.6 million (EUR -2.4 million)
-- earnings per share were EUR -0.00 (EUR -0.02)
July - September 2011 in brief (the figures are figures for the company's
continuing operations)
-- net sales EUR 2.8 million (EUR 2.8 million)
-- operating profit (EBIT) before non-recurring items and depreciation
resulting from the allocation of acquisition cost was EUR -0.1 million (EUR
-0.1 million), or -4.4% of net sales (-2.9%)
-- the operating result after these items was EUR -0.5 million (EUR -0.6
million), or -19.0% of net sales (-20.8%)
-- cash flow from operating activities was EUR 0.0 million (EUR -1.5 million).
-- earnings per share were EUR -0.01 (EUR -0.01)
Key figures at the end of the third quarter of 2011
-- liquid assets totalled EUR 4.0 million (EUR 4.1 million)
-- interest-bearing liabilities amounted to EUR 9.7 million (EUR 11.1
million), and interest-bearing net debt totalled EUR 5.7 million (EUR 7.0
million)
-- net gearing was 16.1% (14.0%)
-- the equity ratio was 69.5% (73.3%)
OUTLOOK FOR 2011
The company expects net sales to grow and operating profit after depreciation
resulting from the allocation of acquisition cost to improve in comparison to
2010.
REPORT OF VESA HONKANEN, CEO
The company's net sales and result during the third quarter were at the same
level as they were in the corresponding period in 2010.
The nature of the business is such that, due to the holiday period, the net
sales and result for the third quarter are typically weaker than the preceding
quarters.
During the third quarter of the year, the company strengthened sales management
and put in place measures to increase efficiency in the implementation of
projects.Marketing was used, in particular, to strengthen the services related
to managing work capacity and SaaS services.
For more information, please contact
Vesa Honkanen, CEO, on +358 500 432 993
Mirkka Vikström, CFO, on +358 50 376 1115
REVIEW OF OPERATIONS
Trainers' House is a training and marketing company that helps its customers
grow by supporting their everyday leadership.
This task is executed by offering customers business-critical training based on
the utilisation of marketing systems (Ignis) and management systems (SaaS).
Trainers' House projects are connected with clarifying our customers' business
strategies; marketing the strategies; and implementing them by spurring sales,
by enhancing customer service (for example, through service design), and by
developing the work of leaders and supervisors along with the skills of their
subordinates.Managing work capacity through physical and mental coaching holds
an important role in an increasing number of customer projects.
The results of customer projects are verified by auditing customers' everyday
work and by bringing in management systems to help monitor the activities.
Trainers' House implements some 600 bespoke customer projects each year, in
close co-operation with the customers.In addition, the company coaches hundreds
of its customers' representatives each year in personal management training
programmes.
During the third quarter of the year, the company strengthened sales management
and put in place measures to increase efficiency in the implementation of
projects.Marketing was used, in particular, to strengthen the services related
to managing work capacity and SaaS services.
FINANCIAL PERFORMANCE
Trainers' House net sales and operating profit remained at the previous year's
level during the third quarter.
Net sales from continuing operations in the period under review came to EUR
11.9 million (EUR 11.2 million).Operating profit from continuing operations
before depreciation resulting from the allocation of the acquisition cost of
Trainers' House Oy was EUR 1.4 million, or 11.9% of net sales (EUR 1.0 million,
or 8.9% of net sales). Profit for the period was EUR -0.2 million, or -1.4% of
net sales (EUR -1.4 million, or -12.1%).
Result
The comparative figures used for reporting on operating profit include the
operating profit reported as well as operating profit before depreciation of
allocated acquisition costs related to the acquisition of Trainers' House Oy
and non-recurring items (i.e., operating profit, EBIT).
The following table itemizes the Group's key figures (in thousands of euros):
1-9/2011 1-9/2010
Net sales 11,868 11,180
Expenses:
Personnel-related expenses -5,505 -5,816
Other expenses -4,556 -3,944
EBITDA 1,807 1,420
Depreciation of non-current assets -394 -430
Operating profit before depreciation 1,413 989
of acquisition cost
% of net sales 11.9 8.9
Depreciation of allocation of -1,229 -1,525
acquisition cost *)
Operating profit before non-recurring 185 -536
items
Non-recurring items -550
EBIT 185 -1,086
% of net sales 1.6 -9.7
Financial income and expenses -353 -749
Profit/loss before tax -168 -1,834
Tax **) 5 482
Profit/loss for the period continuing -163 -1,352
operations
% of net sales -1.4 -12.1
Discontinued operations ***) -4,743
Profit/loss for the period -163 -6,095
*) Of the purchase price for Trainers' House Oy in 2007, EUR 10.2 million has
been allocated to intangible assets with a limited useful life. This item is
depreciated over five years.The total remaining portion of this item will be
depreciated as follows: EUR 1.6 million in 2011 and EUR 1.4 million in 2012.
**) The tax included in the income statement is deferred. Taxes recognized in
the income statement have no effect on cash flow. On 30 September 2011, the
company's balance sheet included deferred tax assets from losses carried
forward in the amount of EUR 1.4 million. Tax loss carry-forwards must be
utilised within 10 years from their recognition.Of the deferred tax assets, EUR
0.4 million will expire in 2011-2012 and the remaining EUR 0.9 million in 2019.
***) Discontinued operations are specified in the notes.
The following table itemizes the distribution of net sales from continuing
operations and shows the quarterly profit/loss from the beginning of 2010 (in
thousands of euros. Q110 Q210 Q310 Q410 2010 Q111 Q211 Q311
--------------------------------------------------------------------
Net sales 4180 4168 2831 4398 15578 4420 4636 2812
--------------------------------------------------------------------
Operating 588 483 -81 118 1107 653 884 -124
profit before
depreciation
of acquisition
cost *)
--------------------------------------------------------------------
Operating profit 79 -575 -590 -14728 -15814 244 475 -533
--------------------------------------------------------------------
*) excluding non-recurring items
LONG-TERM OBJECTIVES
The company's long-term objective is profitable growth.
FINANCING, INVESTMENTS, AND SOLVENCY
Hybrid bond
On 15 January 2010, Trainers' House Plc issued a EUR 5.0 million domestic
hybrid bond.Interest in the amount of EUR 0.5 million has been paid on the
hybrid bond to the subscribers in the first quarter.The interest paid reduces
the non-restricted equity and is not recognised as income.
Cash flow and financing
Cash flow in the period under review from operating activities before financial
items totalled EUR 1.4 million (EUR -1.7 million), and after financial items
EUR 0.6 million (EUR -2.4 million).
There were no investments in the reporting period (EUR 6.1 million). Cash flow
from financing came to EUR -0.2 million (EUR -1.4 million).
Total cash flow amounted to EUR 0.4 million (EUR 2.3 million).
On 30 September 2011, the Group's liquid assets totalled EUR 4.0 million (EUR
4.1 million)The equity ratio was 69.5% (73.3%).Net gearing was 16.1% (14.0%).At
the end of the period under review, the company had EUR 9.7 million of
interest-bearing debt (EUR 11.1 million).
Financial risks
Interest rate risk is managed by covering some of the risk with hedging
agreements.A bad-debt provision, which is booked on the basis of ageing and
case-specific risk analyses, covers risks to accounts receivable.
SHORT-TERM BUSINESS RISKS AND FACTORS OF UNCERTAINTY
Risks in the company's operating environment have remained unchanged.On account
of the project-based nature of the company's operations, the order life cycle
is short, which makes it more difficult to estimate future developments. The
longer-term visibility remains unclear due to the weakening of the general
economic situation.
Short-term risks
The Group's goodwill and deferred tax assets recognised in the balance sheet
were re-tested for impairment at the end of the third quarter. No goodwill
write-downs were judged necessary from the results of this impairment testing.
If the company's profitability should fail to develop as predicted, or if
external factors beyond the company's control, such as interest rates, should
change significantly, there is a risk that some of the Group's goodwill may
have to be written down. Such a write-down would not affect the company's cash
flow.
At the end of the period under review, Trainers' House Plc's balance sheet
included deferred tax assets from losses carried forward in the amount of EUR
1.4 million.If the Group's taxable income does not reach approximately EUR 1.7
million for 2011-2012, there is a risk of some of the deferred tax assets
recognised in the consolidated balance sheet being unable to be utilised and
therefore having to be written down.Of the deferred tax assets, EUR 0.4 million
will expire during 2011 - 2012 and the remaining EUR 0.9 will expire in 2019.
However, any such write-down would not affect the company's cash flow.
In connection with the merger of Trainers' House Oy and Satama Interactive Plc,
the company concluded a loan agreement in the amount of EUR 40 million.At the
end of the period under review, the company had loans related to this loan
agreement in an amount of EUR 9.2 million.The loan agreement includes standard
covenants, including one concerning the ratio of net debt to EBITDA.
If the company's profitability should fail to develop as expected, there would
be a risk of the company being unable to fulfil the covenants, which would
increase financial expenses.
Risks are discussed in more detail in the annual report and on the company's
website at: www.trainershouse.fi > Investors.
PERSONNEL
At the end of September 2011, the Group employed 130 (141) people.
SHARES AND SHARE CAPITAL
The shares of Trainers' House Plc are listed on NASDAQ OMX Helsinki Ltd under
the symbol TRH1V.
At the end of the period under review, Trainers' House Plc had issued
68,016,704 shares and the company's registered share capital amounted to EUR
880,743.59.No changes took place in the number of shares or share capital
during the period under review.
Share performance and trading
In the period under review, 8.1 million shares in total, or 12.0% of the
average number of all company shares (12.3 million shares, or 18.1%), were
traded on the Helsinki stock exchange, for a value of EUR 2.3 million (EUR 5.4
million).The period's highest share quotation was EUR 0.36 (EUR 0.53), the
lowest EUR 0.19 (EUR 0.34) and the closing price EUR 0.22 (EUR 0.39).The
weighted average price was EUR 0.29 (EUR 0.44).With the closing price for 30
September 2011, the company's market capitalisation was EUR 15.0 million (EUR
26.5 million).
PERSONNEL OPTION PROGRAMMES
Trainers' House Plc has one option programme for its personnel, included in the
personnel's commitment and incentive scheme.
The Annual General Meeting held on 25 March 2010 decided to initiate an
employee option programme for key employees at Trainers' House and its
subsidiaries.
The number of option rights granted shall not exceed 5,000,000, and the option
rights shall entitle their holders to subscribe for no more than 5,000,000 new
shares or treasury shares in total.The subscription price for the 2010A warrant
is EUR 0.46 and for the 2010B warrant, EUR 0.29.The subscription period for
shares converted under the 2010A warrant runs from 1 September 2011 to 31
December 2012, and that for shares converted under the 2010B warrant is 1
September 2012 to 31 December 2013.
The total number of warrants granted to the personnel is 1.8 million.A total
cost of EUR 0.1 million has been expensed for the 2011 financial year.
CONDENSED FINANCIAL STATEMENTS AND NOTES
The Group divested its IT project business in August 2010, and the comparative
figures for 2010 have been adjusted to correspond to the structure of the
continuing and divested operations.
This report was compiled in accordance with the IAS 34 standard.
Amendments to and interpretations of published standards, as well as the new
standards in effect as of 1 January 2011, are presented in detail in the
financial statements for 2010.Adoption of the standards did not cause any
impact on the accounting principles applied for the financial statements that
would have called for retroactive changes to previous years' figures.
In producing this interim report, Trainers' House has applied the same
accounting principles for key figures as in its 2010 financial statements. The
calculation of key figures is described on page 50 of the financial statements
included in the Annual Report 2010.
The figures given in the interim report are unaudited.
INCOME STATEMENT, IFRS (kEUR)
Group Group Group Group Group
01/07- 01/07- 01/01- 01/01- 01/01-
30/09/11 30/09/10 30/09/11 30/09/10 31/12/10
CONTINUING OPERATIONS
NET SALES 2,812 2,831 11,868 11,180 15,578
Other income from operations 154 84 480 144 263
Costs:
Materials and services 492 551 1,698 1,388 2,231
Personnel-related 1,461 1,325 5,505 6,166 8,522
expenses
Depreciation 524 657 1,622 1,955 2,549
Impairment 14,445
Other operating expenses 1,023 972 3,338 2,900 3,908
Operating profit/loss -533 -590 185 -1,086 -15,814
Financial income and expenses -94 -106 -353 -749 -1,094
Profit/loss before tax -627 -696 -168 -1,834 -16,907
Tax *) 154 258 5 482 689
Profit/loss for the period -473 -438 -163 -1,352 -16,218
continuing operations
Discontinued operations -4,938 -4,743 -4,781
PROFIT/LOSS FOR THE PERIOD -473 -5,376 -163 -6,095 -20,999
Other comprehensive income:
Cash flow hedges 18 44 124 128 178
Income tax relating to -5 -12 -32 -33 -46
components of other
comprehensive income
Other comprehensive income 13 33 92 95 132
for the year, net of tax
TOTAL COMPREHENSIVE -460 -5,343 -71 -6,000 -20,867
INCOME FOR THE YEAR
Profit/loss attributable to:
Owners of the parent company -473 -5,376 -163 -4,743 -20,999
Total comprehensive income
attributable to:
Owners of the parent company -460 -5,343 -71 -6,000 -20,867
Earnings per share, undiluted:
EPS result for the period from -0.01 -0.01 -0.00 -0.02 -0.24
continuing operations
EPS attributable to hybrid -0.00 -0.01
bond investors
EPS continuing operations -0.01 -0.01 -0.00 -0.02 -0.24
EPS result for the period from -0.07 -0.07 -0.07
discontinued operations
EPS attributable to equity -0.01 -0.08 -0.00 -0.09 -0.31
holders of the parent company
EPS result for the period -0.01 -0.08 -0.00 -0.09 -0.31
Diluted earnings per share are the same as undiluted earning per share.
*) The tax included in the income statement is deferred.
BALANCE SHEET IFRS (kEUR)
Group Group Group
30/09/11 30/09/10 31/12/10
ASSETS
Non-current assets
Property, plant and equipment 676 1,065 1,032
Goodwill 25,806 40,251 25,806
Other intangible assets 11,548 13,347 12,871
Other financial assets 202 202 202
Other receivables 3,127 3,205 3,127
Deferred tax receivables 1,378 1,445 1,717
Total non-current assets 42,737 59,515 44,754
Current assets
Inventories 11 12 11
Accounts receivables and 3,711 5,011 4,121
other receivables
Cash and cash equivalents 4,046 4,114 3,686
Total current assets 7,768 9,138 7,817
TOTAL ASSETS 50,505 68,653 52,571
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 881 881 881
Premium fund 13,943 13,943 13,943
Hedging reserve -37 -166 -129
Distributable non-restricted 31,872 31,872 31,872
equity fund
Other equity fund 4,592 4,962 4,614
Retained earnings -16,127 -1,174 -16,062
Total shareholders' equity 35,124 50,318 35,119
Long-term liabilities
Deferred tax liabilities 2,969 3,403 3,288
Other long-term liabilities 7,510 9,639 4,649
Accounts payable and other 4,902 5,292 9,515
liabilities
Total liabilities 15,381 18,334 17,452
TOTAL SHAREHOLDERS' EQUITY AND 50,505 68,653 52,571
LIABILITIES
CASH FLOW STATEMENT, IFRS (kEUR)
Group Group Group
01/01- 01/01- 01/01-
30/09/11 30/09/10 31/12/10
Profit/loss for the period -163 -6,095 -20,999
Adjustments to profit/loss 2,087 6,153 22,447
for the period
Change in working capital -530 -1,807 -1,740
Financial items -821 -659 -1,176
Cash flow from operations 572 -2,408 -1,468
Divestment of business 6,183 6,183
Investments in tangible and -109 -118
intangible assets
Cash flow from investments 6,074 6,065
Repayment of long-term loans -6,200 -6,200
Repayment of short-term loans -1,250
Withdrawal of hybrid bond 4,962 4,962
Repayment of finance lease -211 -172 -281
liabilities
Cash flow from financing -211 -1,410 -2,769
Change in cash and cash 361 2,256 1,828
equivalents
Opening balance of cash and 3,686 1,858 1,858
cash equivalents
Closing balance of cash and 4,046 4,114 3,686
cash equivalents
CHANGE IN SHAREHOLDERS' EQUITY (kEUR)
Equity attributable to equity holders of the parent company
A. Share capital
B. Premium fund
C. Hedging reserve
D. Distributable non-restricted equity
E. Other equity fund
F. Retained earnings
G. Total
A. B. C. D. E. F. G.
---------------------------------------------------------------------
Equity 881 13,943 -260 31,872 4,921 51,357
01/01/2010
---------------------------------------------------------------------
Other 95 -6,095 -6,000
comprehensive
income
---------------------------------------------------------------------
Hybrid bond 4,962 4,962
---------------------------------------------------------------------
Equity 881 13,943 -166 31,872 4,962 -1,174 50,318
30/09/2010
---------------------------------------------------------------------
---------------------------------------------------------------------
Equity 881 13,943 -129 31,872 4,614 -16,062 35,119
01/01/2011
---------------------------------------------------------------------
Other 92 -163 -71
comprehensive
income
---------------------------------------------------------------------
Hybrid bond -22 -22
---------------------------------------------------------------------
Sharebased 99 99
payments
---------------------------------------------------------------------
Equity 881 13,943 -37 31,872 4,592 -16,127 35,124
30/09/2011
---------------------------------------------------------------------
RESTRUCTURING PROVISION (kEUR) Group Group Group
01/01- 01/01- 01/01-
30/09/11 30/09/10 31/12/10
Provisions 1 January 389 346 346
Provisions increase 550 675
Provisions used -120 -371 -633
Provisions 30 September/December 268 525 389
PERSONNEL Group Group Group 01/01- 01/01- 01/01-
30/09/11 30/09/10 31/12/10
Average number of personnel 129 209 150
Personnel at the end of 130 141 133
the period
COMMITMENTS AND CONTINGENT Group Group Group
LIABILITIES (kEUR) 30/09/11 30/09/10 31/12/10
Collaterals and contingent 12,102 13,248 12,894
liabilities given for
own commitments
Interest rate swaps:
Fair value -50 -224 -174
Nominal value 6,821 13,605 8,427
DISCONTINUED OPERATIONS (kEUR)
The results of a discontinued operations are as follows:
Group
01/01-
13/08/10
Revenue 4,877
Expenses -4,715
Profit/loss before tax 162
Tax -42
Profit/loss after tax 120
Profit from a divested operation 7,860
before tax
Share of the divested operation -10,717
in the goodwill
Loss from a divested operation -2,857
before tax
Tax -2,044
Profit/loss for the period from a -4,781
discontinued operations
Earnings per share discontinued operations:
Undiluted earnings/share (EUR) -0.07
Diluted earnings/share (EUR) -0.07
Impact on Group's financial position:
Group
13/08/10
Other intangible assets 22
Receivables 1,419
Accounts payable and other -301
liabilities
Receivables and liabilities total 1,140
Cash received 6,183
Cash and cash equivalents 0
of a divested business
Impact on cash flow 6,183
OTHER KEY FIGURES Group Group Group
30/09/11 30/09/10 31/12/10
Equity-to-assets ratio (%) 69.5 73.3 66.8
Net gearing (%) 16.1 14.0 17.7
Shareholders' equity/share (EUR) 0.52 0.74 0.52
Return on equity (%) -35.2 -9.3 -37.5
Return on investment (%) -26.8 -1.0 -27.8
Return on equity and return on investment have been calculated for the previous
12 months.
Helsinki 20 October 2011
TRAINERS' HOUSE PLC
BOARD OF DIRECTORS
For more information, please contact:
Vesa Honkanen, CEO, tel. +358 500 432 993
Mirkka Vikström, CFO, tel. +358 50 376 1115
DISTRIBUTION
OMX Nordic Exchange, Helsinki
Main media
www.trainershouse.fi > Investors
© 2024 Nasdaq, Inc. All Rights Reserved |