2011-04-27 07:00:00 CEST
2011-04-27 07:00:04 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 31 March 2011
Helsinki. Finland, 2011-04-27 07:00 CEST (GLOBE NEWSWIRE) --
-- Net sales for the first quarter EUR 159.5 million (EUR 153.9 million)
-- Operating profit EUR 6.5 million (EUR 6.6 million)
-- Operating profit excluding non-recurring items EUR 6.8 million (EUR 7.8
million)
-- Earnings per share EUR 0.10 (EUR 0.11)
-- Full-year net sales will grow slightly from 2010 and operating profit
excluding non-recurring items is expected to remain at the 2010 level.
Previous estimate: Net sales and operating profit excluding non-recurring
items in 2011 are expected to remain at the 2010 level.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Lassila & Tikanoja's net sales for the first quarter increased by 3.6% to EUR
159.5 million (EUR 153.9 million). Operating profit was EUR 6.5 million (EUR
6.6 million), representing 4.1% (4.3%) of net sales, and operating profit
excluding non-recurring items was EUR 6.8 million (EUR 7.8 million). Earnings
per share were EUR 0.10 (EUR 0.11).
Environmental Services and Property Maintenance saw their net sales grow from
the comparison period. Meanwhile lower volumes of wood-based fuels were
supplied than a year earlier due to a suspension in the payment of power
plants' electricity production subsidy.
High salary, subcontracting and repair costs as well as the increase in the
price of diesel oil and price competition eroded profitability. The joint
venture L&T Recoil's operating profit improved significantly from the
comparison period.
Financial summary
1-3/ 1-3/ Change 1-12/
2011 2010 % 2010
----------------------------------------------------------------------------
Net sales, EUR million 159.5 153.9 3.6 598.2
----------------------------------------------------------------------------
Operating profit excluding non-recurring items, 6.8 7.8 -13.3 45.5
EUR million*
------------------------------------------------ ------
Operating profit, EUR million 6.5 6.6 -2.6 40.2
------------------------------------------------ ------
Operating margin, % 4.1 4.3 6.7
------------------------------------------------ ------
Profit before tax, EUR million 5.4 5.6 -3.3 36.0
------------------------------------------------ ------
Earnings per share, EUR 0.10 0.11 -9.1 0.68
------------------------------------------------ ------
EVA, EUR million -0.2 -1.1 10.1
----------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring items is presented
below the division reviews.
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
The division's net sales for the first quarter were up by 12.1% to EUR 72.4
million (EUR 64.6 million). Operating profit totalled EUR 4.2 million (EUR 4.4
million) and operating profit excluding non-recurring items was EUR 4.2 million
(EUR 4.8 million).
Waste management services and the joint venture L&T Recoil boosted the
Environmental Services division's net sales growth. In addition, the prices of
secondary raw materials (fibres, plastics, metals) rose significantly.
Lower-than-expected operating rates of recycling plants, the steep increase in
the price of diesel oil and the higher salary, subcontracting and repair costs
undermined profitability. The division was unable to adapt the process cleaning
and waste water services operations to fluctuations in demand. Special
attention will be paid to project work planning.
Although the operating rate of the joint venture L&T Recoil's re-refinery
improved, production reliability and base oil supply still haven't reached a
satisfactory level. Action will be taken in connection with the
maintenance-related shutdown in August to improve technical reliability. The
joint venture's operating result for the quarter saw a major improvement from
the comparison period and showed a slight profit.
The net sales and profitability of the Environmental Services division's
international operations declined from the comparison period, largely due to
the competitive situation in Latvia.
Cleaning and Office Support Services
The division's net sales for the first quarter totalled EUR 34.9 million (EUR
34.7 million), showing an increase of 0.5%. Operating profit totalled EUR 1.5
million (EUR 1.0 million) and operating profit excluding non-recurring items
was EUR 1.5 million (EUR 1.2 million).
Net sales in domestic operations remained at the previous year's level. In
Sweden, sales to new customers were successful.
The EUR 0.7 million credit loss recorded for Russian operations taxed the
operating profit for the comparison period. The start-up costs of new projects
in Finland burdened the operating profit more than a year earlier.
Property Maintenance
The division's net sales for the first quarter were up by 5.6% to EUR 38.9
million (EUR 36.9 million). Operating profit totalled EUR 1.9 million (EUR 2.8
million) and operating profit excluding non-recurring items was EUR 1.9 million
(EUR 2.9 million).
The healthy work load for damage repair services and the stronger demand for
maintenance services for technical systems boosted the division's net sales.
The decrease in operating profit could be attributed to the demanding winter
weather conditions, which raised the division's subcontracting and overtime
costs. Due to the price competition, the profitability of snow-related
commissioned assignments was weaker than a year earlier.
Renewable Energy Sources
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
20.4% to EUR 16.0 million (EUR 20.1 million). The division recorded an
operating loss of EUR 0.7 million (a loss of EUR 0.9 million), and an operating
loss excluding non-recurring items of EUR 0.4 million (a loss of EUR 0.9
million).
The suspension in the payment of the electricity production subsidy weakened
the demand for wood-based fuels from the comparison period. As a result,
several power plant customers used fossil fuels for energy production instead
of renewable energy sources. Payment of the subsidy re-commenced at the end of
the period.
The division's competitiveness will be improved by a reorganisation programme
involving fixed cost cuts and operational efficiency enhancement, and by sales
price hikes.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 1-3/ 1-3/ 1-12/
2011 2010 2010
----------------------------------------------------------------------------
------------------
Operating profit 6.5 6.6 40.2
Non-recurring items:
Discontinuation of wood pellet production of L&T Biowatti 0.1 3.4
Discontinuation of cleaning business in Moscow 0.4
Restructuring costs 0.2 1.2 1.5
Operating profit excluding non-recurring items 6.8 7.8 45.5
----------------------------------------------------------------------------
FINANCING
Cash flows from operating activities amounted to EUR 10.5 million (EUR 13.9
million). EUR 1.9 million was tied up in the working capital (EUR 0.4 million).
At the end of the period, interest-bearing liabilities amounted to EUR 141.8
million (EUR 139.1 million). Net interest-bearing liabilities amounted to EUR
132.0 million, showing an increase of EUR 25.8 million from the comparison
period.
Net finance costs in January-March amounted to EUR 1.1 million which is on a
par with the amount of the comparison period. Net finance costs were 0.7%
(0.7%) of net sales. Long-term loans totalling EUR 17.3 million will mature
during the rest of the year. The average interest rate of loans (with interest
rate hedging) was 3.2% (3.3%).
The equity ratio was 42.4% (40.3%) and the gearing rate 63.9 (52.9). Liquid
assets at the end of the period amounted to EUR 9.8 million (EUR 32.9 million).
The dividend, totalling EUR 21.3 million, was paid at the end of the period. In
the comparison period the dividend was paid in the second quarter.
Of the EUR 50 million commercial paper programme, EUR 25.0 million (EUR 0.0
million) was in use. The EUR 15.0 million committed limit was not in use, as
was the case in the comparison period.
DIVIDEND
The Annual General Meeting held on 17 March 2011 resolved on a dividend of EUR
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the
shareholders on 29 March 2011.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 12.9 million (EUR 5.5 million), approximately
half of it consisting of acquisitions.
In the first quarter, Pentti Laurila Ky and businesses of Matti Hossi Ky and
PPT Luttinen Oy were acquired into Environmental Services. The business of
Kestosiivous Oy was acquired into Cleaning and Office Support Services and the
business of KH-Kiinteistöhuolto Oy was acquired into Property Maintenance.
PERSONNEL
In January-March, the average number of employees converted into full-time
equivalents was 7,520 (7,668). The total number of full-time and part-time
employees at the end of the period was 8,725 (8,599). Of them 6,989 (6,723)
people worked in Finland and 1,736 (1,876) people in other countries.
SHARE AND SHARE CAPITAL
Traded volume and price
The volume of trading excluding the shares held by the company in Lassila &
Tikanoja plc shares on NASDAQ OMX Helsinki in January-March was 3,301,780 which
is 8.5% (3.7%) of the average number of outstanding shares. The value of
trading was EUR 44.1 million (EUR 22.3 million). The trading price varied
between EUR 12.40 and EUR 15.18. The closing price was EUR 12.70. At the end of
the period, the company held 60,758 of its own shares. The market
capitalisation excluding the shares held by the company was EUR 492.0 million
(EUR 598.9 million) at the end of the period.
Share capital and number of shares
The company's registered share capital amounts to EUR 19,399,437, and the
number of outstanding shares to 38,738,116 shares. The average number of shares
excluding the shares held by the company totalled 38,738,116.
Share option scheme 2005
In 2005, 600,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. In the beginning of the
exercise period, 37 key persons held 200,000 2005C options. L&T Advance Oy, a
wholly-owned subsidiary of Lassila & Tikanoja plc, holds 30,000 2005C options
and these options will not be exercised. The exercise period for the 2005A has
ended on 29 May 2009 and for the 2005B options on 31 May 2010.
The exercise price for the 2005C options is EUR 26.80 as of 22 March 2011. The
exercise period for 2005C options is 2 November 2009 to 31 May 2011.
As a result of the exercise of the outstanding 2005 share options, the number
of shares may increase by a maximum of 200,000 new shares, which is 0.5% of the
current number of shares. The 2005C options have been listed on NASDAQ OMX
Helsinki since 2 November 2009.
Share option scheme 2008
In 2008, 230,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. 33 key persons hold 168,000
options and L&T Advance Oy 62,000 options.
The exercise price is EUR 16.20. It was reduced by EUR 0.07 as of 22 March
2011. The exercise price of the share options shall, as per the dividend record
date, be reduced by the amount of dividend which exceeds 70% of the profit per
share for the financial period to which the dividend applies. However, only
such dividends whose distribution has been agreed upon after the option pricing
period and which have been distributed prior to the share subscription are
deducted from the subscription price. The exercise price shall, however, always
amount to at least EUR 0.01. The exercise period is from 1 November 2010 to 31
May 2012.
As a result of the exercise of the outstanding 2008 share options, the number
of shares may increase by a maximum of 168,000 new shares, which is 0.4% of the
current number of shares. The 2008 options have been listed on NASDAQ OMX
Helsinki since 1 November 2010.
Share-based incentive programme
Lassila & Tikanoja plc's Board of Directors decided on 24 March 2009 on a
share-based incentive programme. The programme includes three earnings periods
one year each, of which the first one began on 1 January 2009 and the last one
ends on 31 December 2011. The basis for the determination of the reward is
decided annually. Rewards to be paid for the year 2011 will be based on the EVA
result of Lassila & Tikanoja group. They will be paid partly as shares and
partly in cash. The proportion paid in cash will cover taxes arising from the
reward. The programme covers 23 persons.
A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the
basis of the programme. The shares will be obtained in public trading, and
therefore the incentive programme will have no diluting effect on the share
value.
Shareholders
At the end of the financial period, the company had 9,665 (7,668) shareholders.
Nominee-registered holdings accounted for 11.2% (9.3%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 31 March 2010 authorised Lassila & Tikanoja
plc's Board of Directors to make decisions on the repurchase of the company's
own shares using the company's unrestricted equity and on the issuance of these
shares. Shares will be repurchased otherwise than in proportion to the existing
shareholdings of the company's shareholders in public trading on the NASDAQ OMX
Helsinki Ltd at the market price quoted at the time of the repurchase.
The Board of Directors is authorised to repurchase and transfer a maximum of
500,000 company shares, which is 1.3% of the total number of shares. The
repurchase authorisation will be effective for 18 months and the share issue
authorisation for four years. These authorisations revoke the authorisation for
the repurchase of the company's own shares and the authorisation to issue
shares issued by the Annual General Meeting 2009.
The Board of Directors is not authorised to launch a convertible bond or share
option rights.
Own shares
At the end of the period, the company held 60,758 of its own shares,
representing 0.2% of all shares and votes.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 17
March 2011, adopted the financial statements for the financial year 2010 and
released the members of the Board of Directors and the President and CEO from
liability. The AGM resolved that a dividend of EUR 0.55 per share, a total of
EUR 21.3 million, as proposed by the Board of Directors, be paid for the
financial year 2010. The dividend payment date was resolved to be 29 March
2011.
The Annual General Meeting confirmed the number of the members of the Board of
Directors six. The following Board members were re-elected to the Board until
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Matti Kavetvuo,
Hille Korhonen and Miikka Maijala. Sakari Lassila was elected as a new member
for the same term.
PricewaterhouseCoopers Oy, Authorised Public Accountants, was elected auditor.
The Annual General Meeting resolved on decreasing the share premium reserve by
EUR 50,672,564.52 by transferring all the funds in the share premium reserve to
the unrestricted equity reserve. The resolution was not registered at the
appointed time and therefore the arrangement cannot be implemented.
The resolutions of the Annual General Meeting were announced in more detail in
a stock exchange release on 17 March 2011.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,
Matti Kavetvuo, Hille Korhonen, Sakari Lassila and Miikka Maijala. In its
constitutive meeting the Board elected Heikki Bergholm as Chairman of the Board
and Matti Kavetvuo as Vice Chairman.
From among its members, the Board elected Eero Hautaniemi as Chairman and
Sakari Lassila and Miikka Maijala as members of the audit committee. Heikki
Bergholm was elected as Chairman of the remuneration committee and Matti
Kavetvuo and Hille Korhonen as members of the committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release published on 22 March 2011, the company announced that M.Sc.
(Econ.) Ville Rantala has been appointed as Managing Director of L&T Biowatti
Oy and Vice President, Renewable Energy Sources division, as of 22 March 2011.
Rantala will also continue as CFO of Lassila & Tikanoja plc. He will report to
Jari Sarjo, President and CEO. Tomi Salo, Managing Director of L&T Biowatti,
will not continue in the company.
In a release published on 5 April 2011, the company announced that a total of
2,547 shares of Lassila & Tikanoja plc have been returned to the company free
of consideration, by virtue of the terms of the share-based incentive programme
of 2009. The current total number of own shares held by Lassila & Tikanoja plc
is 63,305, the returned shares included.
NEAR-TERM UNCERTAINTIES
L&T Recoil's production has not yet fully stabilised, and any further
disturbances in the plant's production could have a negative effect on the
Environmental Services division's performance. End-product and raw material
price fluctuations would have a major effect on L&T Recoil's performance.
The government support for renewable fuels will have a positive effect on the
demand for wood-based fuels in the future, but with some delay. Changes in the
prices of emission rights will affect the competitiveness of L&T Biowatti's
wood-based fuels.
More detailed information on L&T's risks and risk management is available in
the Annual Report, in the report of the Board of Directors, and in the
consolidated financial statements.
PROSPECTS FOR THE REST OF THE YEAR
Higher operating rates in the industry will increase waste volumes and the
demand for process cleaning and polluted soil and materials utilisation. Higher
prices of secondary raw materials and a rise in waste tax improve the outlook
for the recycling business.
The production reliability of L&T Recoil's facility will affect the
Environmental Services division's profitability. Raising the operating rate of
the facility and improving the supply of base oil continue to be the key
priorities.
The markets for Cleaning and Office Support Services and for Property
Maintenance are expected to remain challenging, and the fierce price
competition is expected to continue.
The demand for L&T Biowatti's wood-based fuels is expected to strengthen. The
government support measures targeting renewable fuels will have a positive
effect on the demand for wood-based fuels and on their price level in the
second half.
The net sales will grow more than estimated previously due to the acquisitions.
Full-year net sales will grow slightly from 2010 and operating profit excluding
non-recurring items is expected to remain at the 2010 level. Previous estimate:
Net sales and operating profit excluding non-recurring items in 2011 are
expected to remain at the 2010 level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-31 MARCH 2011
CONSOLIDATED INCOME STATEMENT
EUR 1000 1-3/ 1-3/ Change 1-12/
2011 2010 % 2010
-------------------------------------------------------------------
-------------------------------------------------------------------
Net sales 159 474 153 902 3.6 598 193
Cost of sales -146 658 -139 945 4.8 -531 066
-------------------------------------------------------------------
Gross profit 12 816 13 957 -8.2 67 127
-------------------------------------------------------------------
Other operating income 680 318 113.8 2 708
Selling and marketing costs -3 796 -3 469 9.4 -13 779
Administrative expenses -2 966 -3 055 -2.9 -10 519
Other operating expenses -270 -1 115 -75.8 -2 686
Impairment -2 632
Operating profit 6 464 6 636 -2.6 40 219
-------------------------------------------------------------------
Finance income 299 338 -11.5 1 053
Finance costs -1 363 -1 391 -2.0 -5 282
-------------------------------------------------------------------
Profit before tax 5 400 5 583 -3.3 35 990
-------------------------------------------------------------------
Income tax expense -1 404 -1 452 -3.3 -9 786
-------------------------------------------------------------------
Profit for the period 3 996 4 131 -3.3 26 204
-------------------------------------------------------------------
Attributable to:
Equity holders of the company 3 994 4 127 26 188
Non-controlling interest 2 4 16
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR 0.10 0.11 0.68
Diluted earnings per share, EUR 0.10 0.11 0.68
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 1-3/ 1-3/ 1-12/
2011 2010 2010
------------------------------------------------------------
Profit for the period 3 996 4 131 26 204
Other comprehensive income, after tax
Hedging reserve, change in fair value 921 -195 223
Current available-for-sale investments
Gains in the period -2 -58
Current available-for-sale investments -2 -58
------------------------------------------------------------
Currency translation differences 32 807 792
------------------------------------------------------------
Other comprehensive income, after tax 951 612 957
------------------------------------------------------------
Total comprehensive income, after tax 4 947 4 743 27 161
Attributable to:
Equity holders of the company 4 943 4 717 27 130
Non-controlling interest 4 26 31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 114 670 113 371 113 467
Customer contracts arising from acquisitions 5 753 5 800 4 736
Agreements on prohibition of competition 10 711 11 122 10 023
Other intangible assets arising from business 743 2 704 1 229
acquisitions
Other intangible assets 13 271 13 608 13 226
--------------------------------------------------------------------------------
145 148 146 605 142 681
--------------------------------------------------------------------------------
Property, plant and equipment
Land 4 655 4 075 4 671
Buildings and constructions 78 617 71 399 78 908
Machinery and equipment 112 244 107 612 111 733
Other 85 82 85
Prepayments and construction in progress 5 021 15 174 5 303
--------------------------------------------------------------------------------
200 622 198 342 200 700
--------------------------------------------------------------------------------
Other non-current assets
Available-for-sale investments 589 525 598
Finance lease receivables 3 549 4 159 3 547
Deferred tax assets 4 116 2 477 3 924
Other receivables 3 318 644 3 401
--------------------------------------------------------------------------------
11 572 7 805 11 470
--------------------------------------------------------------------------------
Total non-current assets 357 342 352 752 354 851
Current assets
Inventories 24 146 28 214 27 957
Trade and other receivables 95 829 87 645 85 662
Derivative receivables 1 413 407
Prepayments 6 334 3 302 317
Available-for-sale investments 2 497 24 479 9 895
Cash and cash equivalents 7 277 8 440 4 653
--------------------------------------------------------------------------------
Total current assets 137 496 152 080 128 891
TOTAL ASSETS 494 838 504 832 483 742
EUR 1000 3/2011 3/2010 12/2010
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the company
Share capital 19 399 19 399 19 399
Share premium reserve 50 673 50 673 50 673
Other reserves -1 138 -2 494 -2 141
Unrestricted equity reserve -52
Retained earnings 133 559 128 852 128 597
Profit for the period 3 994 4 127 26 188
-------------------------------------------------------------------------------
206 435 200 557 222 716
Non-controlling interest 282 273 278
-------------------------------------------------------------------------------
Total equity 206 717 200 830 222 994
Liabilities
Non-current liabilities
Deferred tax liabilities 33 829 32 918 33 718
Retirement benefit obligations 630 613 615
Provisions 2 755 2 486 2 748
Borrowings 90 969 116 231 95 563
Other liabilities 478 1 496 364
-------------------------------------------------------------------------------
128 661 153 744 133 008
Current liabilities
Borrowings 50 819 22 915 31 261
Trade and other payables 107 768 123 794 94 891
Derivative liabilities 665 1 336 1 173
Tax liabilities 18 1 667 15
Provisions 190 546 400
159 460 150 258 127 740
-------------------------------------------------------------------------------
Total liabilities 288 121 304 002 260 748
TOTAL EQUITY AND LIABILITIES 494 838 504 832 483 742
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 3 996 4 131 26 204
Adjustments
Income tax expense 1 404 1 452 9 786
Depreciation, amortisation and impairment 10 568 10 295 43 937
Finance income and costs 1 064 1 053 4 229
Other -739 342 1 570
--------------------------------------------------------------------------------
Net cash generated from operating activities before 16 293 17 273 85 726
change in working capital
Change in working capital
Change in trade and other receivables -16 343 -13 041 -6 118
Change in inventories 3 810 4 620 4 874
Change in trade and other payables 10 657 7 991 -918
--------------------------------------------------------------------------------
Change in working capital -1 876 -430 -2 162
Interest paid -1 566 -266 -5 409
Interest received 254 211 914
Income tax paid -2 623 -2 912 -15 259
--------------------------------------------------------------------------------
Net cash from operating activities 10 482 13 876 63 810
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -5 331 -1 655
cash acquired
Proceeds from sale of subsidiaries and businesses, 199
net of sold cash
Purchases of property, plant and equipment and -5 860 -5 004 -36 003
intangible assets
Proceeds from sale of property, plant and equipment 727 1 331 3 655
and intangible assets
Purchases of available-for-sale investments -3 -74
Change in other non-current receivables 91 85 -2 673
Dividends received 1
--------------------------------------------------------------------------------
Net cash used in investing activities -10 373 -3 591 -36 550
Cash flows from financing activities
Change in short-term borrowings 19 558 26 5 091
Repayments of long-term borrowings -4 677 -5 002 -23 166
Dividends paid -19 773 -21 301
Repurchase of own shares -1 125
--------------------------------------------------------------------------------
Net cash generated from financing activities -4 892 -4 976 -40 501
--------------------------------------------------------------------------------
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------
--------------------------------------------------------------------
Net change in liquid assets -4 783 5 309 -13 241
Liquid assets at beginning of period 14 548 27 583 27 583
Effect of changes in foreign exchange rates 9 27 206
Liquid assets at end of period 9 774 32 919 14 548
--------------------------------------------------------------------
Liquid assets
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------
Cash and cash equivalents 7 277 8 440 4 653
Money market investments 2 497 24 479 9 895
--------------------------------------------------------------------
Total 9 774 32 919 14 548
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR 1000 Share Share Revalu Unrestri Retaine Equity Non-co Total
capita premiu -ation cted d attribu ntroll equity
l m and equity earning table ing
reserv other reserve s to intere
e reserv equity st
es holders
of the
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at 19 399 50 673 -2 141 0 154 785 222 716 278 222 994
1.1.2011
Expense 80 80 80
recognitio
n of
share-base
d benefits
Dividends -21 306 -21 306 -21 306
paid
Transfer 52 -52
from
revaluatio
n reserve
Total 951 3 994 4 945 4 4 949
comprehens
ive income
------------ --------
Equity at 19 399 50 673 -1 138 -52 137 553 206 435 282 206 717
31.3.2011
--------------------------------------------------------------------------------
Equity at 19 399 50 673 -3 084 0 150 014 217 002 247 217 249
1.1.2010
Expense 161 161 161
recognitio
n of
share-base
d benefits
Dividends -21 323 -21 323 -21 323
paid
Total 590 4 127 4 717 26 4 743
comprehens
ive income
--------------------------------------------------------------------------------
Equity at 19 399 50 673 -2 494 0 132 979 200 557 273 200 830
31.3.2010
--------------------------------------------------------------------------------
KEY FIGURES
1-3/ 1-3/ 1-12/ 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.10 0.11 0.68
Earnings per share, diluted, EUR 0.10 0.11 0.68
Cash flows from operating activities per share, EUR 0.27 0.36 1.65
EVA, EUR million -0.2 -1.1 10.1
Capital expenditure, EUR 1000 12 868 5 460 39 321
Depreciation, amortisation and impairment, EUR 1000 10 568 10 295 43 937
Equity per share, EUR 5.33 5.17 5.75
Return on equity, ROE, % 7.4 7.9 11.9
Return on invested capital, ROI, % 7.7 8.0 11.6
Equity ratio, % 42.4 40.3 46.5
Gearing, % 63.9 52.9 50.3
Net interest-bearing liabilities, EUR 1000 132 015 106 227 112 277
Average number of employees in full-time equivalents 7 520 7 668 7 835
Total number of full-time and part-time employees at 8 725 8 599 8 732
end of period
Number of outstanding shares adjusted for issues, 1000 shares
average during the period 38 738 38 769 38 749
at end of period 38 738 38 769 38 738
average during the period, diluted 38 769 38 769 38 773
ACCOUNTING POLICIES
This interim report is in compliance with IAS 34 Interim Financial Reporting
standard. The same accounting policies as in the annual financial statements
for the year 2010 have been applied. This interim report has been prepared in
accordance with the IFRS standards and interpretations as adopted by the EU.
The following amendments to standards that have become effective in 2010 have
had an impact on the financial statements release:
IFRS 3 (revised) Business Combinations
The revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition date,
with contingent payments classified as debt subsequently re-measured through
the income statement. There is a choice on an acquisition-by-acquisition basis
to measure the non-controlling interest in the acquiree at fair value or at the
non-controlling interest's proportionate share of the acquiree's net assets.
All acquisition-related costs should be expensed.
The preparation of financial statements in accordance with IFRS require the
management to make such estimates and assumptions that affect the carrying
amounts at the balance sheet date for the assets and liabilities and the
amounts of revenues and expenses. Judgements are also made in applying the
accounting policies. Actual results may differ from the estimates and
assumptions.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
1-3/2011 1-3/2010 Total
--------- ---------
EUR 1000 Externa Inter-d Total Externa Inter-d Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmental 71 520 909 72 429 63 520 1 089 64 609 12.1
Services
--------- ---------
Cleaning and 34 549 307 34 856 34 381 285 34 666 0.5
Office Support
Services
--------- ---------
Property 38 212 727 38 939 36 541 316 36 857 5.6
Maintenance
--------- ---------
Renewable Energy 15 193 818 16 011 19 460 666 20 126 -20.4
Sources
--------- ---------
Eliminations -2 761 -2 761 -2 356 -2 356
--------------------------------------------------------------------------------
L&T total 159 474 0 159 474 153 902 0 153 902 3.6
--------- ---------
1-12/2010
EUR 1000 External Inter-division Total
-----------------------------------------------------------------------
Environmental Services 286 260 3 771 290 031
Cleaning and Office Support Services 139 399 1 216 140 615
Property Maintenance 121 546 1 923 123 469
Renewable Energy Sources 50 988 4 118 55 106
Eliminations -11 028 -11 028
-----------------------------------------------------------------------
L&T total 598 193 0 598 193
Operating profit
EUR 1000 1-3/ % 1-3/ % 1-12/ %
2011 2010 2010
-------------------------------------------------------------------------------
Environmental Services 4 175 5.8 4 416 6.8 33 674 11.6
Cleaning and Office Support Services 1 475 4.2 1 037 3.0 7 524 5.4
Property Maintenance 1 902 4.9 2 793 7.6 7 764 6.3
Renewable Energy Sources -651 -4.1 -860 -4.3 -6 553 -11.9
Group admin. and other -437 -750 -2 190
-------------------------------------------------------------------------------
L&T total 6 464 4.1 6 636 4.3 40 219 6.7
------------------------------------------
Finance costs, net -1 064 -1 053 -4 229
-------------------------------------------------------------------------------
Profit before tax 5 400 5 583 35 990
------------------------------------------
Other segment information
EUR 1000 3/2011 3/2010 12/2010
-------------------------------------------------------------------
Assets
Environmental Services 340 318 329 286 330 963
Cleaning and Office Support Services 42 643 40 349 39 007
Property Maintenance 42 050 40 576 38 098
Renewable Energy Sources 46 035 57 395 49 113
Group admin. and other 2 107 333 1 902
Unallocated assets 21 685 36 893 24 659
-------------------------------------------------------------------
L&T total 494 838 504 832 483 742 ------------------------------
Liabilities
Environmental Services 56 020 54 359 50 300
Cleaning and Office Support Services 26 758 26 561 25 654
Property Maintenance 18 812 16 361 15 784
Renewable Energy Sources 6 529 8 277 4 835
Group admin. and other 2 585 21 955 1 193
Unallocated liabilities 177 417 176 489 162 982
-------------------------------------------------------------------
L&T total 288 121 304 002 260 748
------------------------------
EUR 1000 1-3/2011 1-3/2010 1-12/2010
-------------------------------------------------------------------
Capital expenditure
Environmental Services 8 814 4 253 31 409
Cleaning and Office Support Services 1 222 466 2 112
Property Maintenance 2 631 509 5 074
Renewable Energy Sources 88 123 654
Group admin. and other 113 109 72
-------------------------------------------------------------------
L&T total 12 868 5 460 39 321
-------------------------------------------------------------------
Depreciation and amortisation
Environmental Services 7 379 7 120 28 558
Cleaning and Office Support Services 953 1 021 4 023
Property Maintenance 1 069 983 4 017
Renewable Energy Sources 1 167 1 168 4 702
Group admin. and other 3 5
-------------------------------------------------------------------
L&T total 10 568 10 295 41 305
-------------------------------------------------------------------
Impairment
Renewable Energy Sources 2 632
-------------------------------------------------------------------
L&T total 0 0 2 632
-------------------------------------------------------------------
INCOME STATEMENT BY QUARTER
EUR 1000 1-3/ 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/
2011 2010 2010 2010 2010 2009 2009 2009
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
sales
Environm 72 429 73 992 75 806 75 624 64 609 71 178 72 055 74 121
ental
Service
s
Cleaning 34 856 34 580 35 659 35 710 34 666 35 686 36 338 36 108
and
Office
Support
Service
s
Property 38 939 31 596 26 926 28 090 36 857 25 829 23 746 24 541
Mainten
ance
Renewabl 16 011 15 266 7 617 12 097 20 126 17 702 10 669 14 691
e Energy
Sources
Inter-di -2 761 -3 927 -2 238 -2 507 -2 356 -2 354 -2 069 -2 367
vision
net
sales
--------------------------------------------------------------------------------
L&T 159 474 151 507 143 770 149 014 153 902 148 041 140 739 147 094
total
--------------------------------------------------------------------------------
Operatin
g profit
Environm 4 175 8 204 10 930 10 124 4 416 6 793 11 816 10 937
ental
Service
s
Cleaning 1 475 181 4 088 2 218 1 037 1 697 4 076 2 597
and
Office
Support
Service
s
Property 1 902 633 3 263 1 075 2 793 1 070 3 157 1 695
Mainten
ance
Renewabl -651 -361 -1 432 -3 900 -860 -321 -1 029 -279
e Energy
Sources
Group -437 -104 -574 -762 -750 -735 -1 111 -84
admin.
and
other
--------------------------------------------------------------------------------
L&T 6 464 8 553 16 275 8 755 6 636 8 504 16 909 14 866
total
--------------------------------------------------------------------------------
Operatin
g margin
Environm 5.8 11.1 14.4 13.4 6.8 9.5 16.4 14.8
ental
Service
s
Cleaning 4.2 0.5 11.5 6.2 3.0 4.8 11.2 7.2
and
Office
Support
Service
s
Property 4.9 2.0 12.1 3.8 7.6 4.1 13.3 6.9
Mainten
ance
Renewabl -4.1 -2.4 -18.8 -32.2 -4.3 -1.8 -9.6 -1.9
e Energy
Sources
--------------------------------------------------------------------------------
L&T 4.1 5.6 11.3 5.9 4.3 5.7 12.0 10.1
total
--------------------------------------------------------------------------------
Finance -1 064 -987 -1 272 -917 -1 053 -1 078 -1 242 -1 233
costs,
net
Profit 5 400 7 566 15 003 7 838 5 583 7 426 15 667 13 633
before
tax
--------------------------------------------------------------------------------
BUSINESS ACQUISITIONS
Business combinations in aggregate
Consideration
EUR 1000 Fair values used in
consolidation
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash 3 844
Contingent consideration 1 487
Total consideration 5 331
--------------------------------------------------------------------------------
Acquisition-related costs (included in the administrative 3
expenses in the consolidated financial statements)
Recognised amounts of identifiable assets acquired and liabilities assumed
EUR 1000 Fair values used in consolidation
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Property, plant and equipment 1 693
Customer contracts 1 526
Agreements on prohibition of competition 1 236
Other intangible assets 2
Inventories 17
Trade and other receivables 175
Total assets 4 649
---------------------------------------------------------------------------
Deferred tax liabilities 258
Trade and other payables 192
---------------------------------------------------------------------------
Total liabilities 450
---------------------------------------------------------------------------
Total identifiable net assets 4 199
Goodwill 1 132
---------------------------------------------------------------------------
Total 5 331
---------------------------------------------------------------------------
On 4 January 2011, the Environmental Services division acquired Pentti Laurila
Ky, an environmental management business operating in the Keuruu and Multiala
region in Central Finland. Furthermore, on 1 February 2011 the division
acquired the Ypäjä-based Matti Hossi Ky, a waste management and interchangeable
platform business, as well as the PPT Luttinen Oy waste management business on
1 March 2011. On 1 January 2011, the Cleaning and Office Support Services
division acquired the operations of Kestosiivous Oy, a cleaning company
operating in the Helsinki region. On 1 March 2011, the Property Maintenance
division acquired the operations of KH-Kiinteistöhuolto Oy operating in the
Nurmijärvi region.
The figures for these acquired businesses are stated in aggregate, because none
of them is of material importance when considered separately. Fair values have
been determined as of the time the acquisition was realised. No business
operations have been divested as a consequence of any acquisition. All
acquisitions have been paid for in cash. With share acquisitions, L&T was able
to gain 100% of the voting rights. The conditional consideration is tied to the
transfer of the customer contracts to Lassila & Tikanoja plc, and the estimates
of the fair values of considerations were determined on the basis of
probability-weighted final acquisition price. The estimates for the conditional
consideration did not change between the time of acquisition and the balance
sheet date. Trade and other receivables have been recorded at fair value at the
time of acquisition. Individual acquisition prices have not been itemised
because none of them is of material importance when considered separately.
By annual net sales, the largest acquisition was KH-Kiinteistöhuolto Oy (EUR
2,372 thousand).
It is not possible to itemise the effects of the acquired businesses on the
consolidated net sales and profit for the period, because L&T integrates its
acquisitions into the current business operations as quickly as possible to
gain synergy benefits.
On 1 April 2011, L&T acquired the cleaning and property maintenance businesses
of Savon Kiinteistöhuolto- ja Siivouspalvelu Oy, Varkauden Kiinteistönhoito ja
Siivouspalvelu Oy and Jo-Pe Huolto Oy, operating in Varkaus region in eastern
Finland. On 1 April 2011, L&T acquired Hansalaiset Oy, a cleaning company
operating in Helsinki, Turku, Tampere and Oulu, was acquired into Cleaning and
Office Support Services. The accounting process for these acquisitions is still
in progress.
The accounting policy concerning business combinations is presented in Annual
Report under Note 2 of the consolidated financial statements and under Summary
on significant accounting policies.
CHANGES IN INTANGIBLE ASSETS
EUR 1000 1-3/2011 1-3/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 142 681 148 417 148 417
Business acquisitions 3 894 -3 1 175
Other capital expenditure 884 805 2 944
Disposals -1 -778 -1 760
Amortisation and impairment -2 408 -2 276 -9 134
Transfers between items -4
Exchange differences 98 440 1 043
---------------------------------------------------------------------
Carrying amount at end of period 145 148 146 605 142 681
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 1-3/2011 1-3/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 200 700 201 651 201 651
Business acquisitions 1 693 500
Other capital expenditure 6 397 4 656 34 628
Disposals -58 -465 -1 711
Depreciation and impairment -8 160 -8 019 -34 803
Transfers between items 4
Exchange differences 50 519 431
---------------------------------------------------------------------
Carrying amount at end of period 200 622 198 342 200 700
CAPITAL COMMITMENTS
EUR 1000 1-3/2011 1-3/2010 1-12/2010
-----------------------------------------------------------------------
------------------------------
Intangible assets 60 275
Property, plant and equipment 5 489 11 356 5 106
-----------------------------------------------------------------------
Total 5 549 11 631 5 106
------------------------------
The Group's share of capital commitments 75 160 0
of joint ventures
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 1-3/2011 1-3/2010 1-12/2010
------------------------------------------------------
Sales 309 724 2 332
Other operating income 18 18 74
Interest income 219 103 505
Non-current receivables
Capital loan receivable 21 646 16 896 20 646
Current receivables
Trade receivables 2 083 148 2 375
Loan receivables 1 232 641 1 034
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 3/2011 3/2010 12/2010
---------------------------------------------------------------------------
------------------------
Mortgages on rights of tenancy 42 179 42 179 42 179
Company mortgages 21 460 21 460 21 460
Other securities 218 225 222
Bank guarantees required for environmental permits 4 399 3 151 4 634
Other securities are security deposits.
The Group has given no pledges, mortgages or guarantees on behalf of outsiders.
Operating lease liabilities
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------------------
------------------------
Maturity not later than one year 8 175 7 318 8 087
Maturity later than one year and not later than five 20 089 16 446 20 087
years
Maturity later than five years 4 252 5 294 4 509
--------------------------------------------------------------------------------
Total 32 516 29 058 32 683
------------------------
Derivative financial instruments
Interest rate swaps
EUR 1000 3/2011 3/2010 12/2010
--------------------------------------------------------------------------------
------------------------
Nominal values of interest rate swaps
Maturity not later than one year 11 716 4 629 11 010
Maturity later than one year and not later than five 47 668 30 071 49 355
years
Maturity later than five years 267
--------------------------------------------------------
Total 59 384 34 700 60 632
--------------------------------------------------------------------------------
Fair value -665 -1 336 -1 173
The interest rate swaps are used to hedge cash flow related to a floating rate
loan, and hedge accounting under IAS 39 has been applied to it. The hedges have
been effective, and the changes in the fair values are shown in the
consolidated statement of comprehensive income for the period. The fair values
of the interest rate swaps are based on the market data at the balance sheet
date.
Commodity derivatives
metric tons 3/2011 3/2010 12/2010
-------------------------------------------------------------------------------- ------------------------
Nominal values of diesel swaps
Maturity not later than one year 6 333 7 596
Maturity later than one year and not later than five 1 908 2 544
years
--------------------------------------------------------------------------------
Total 8 241 10 140
--------------------------------------------------------------------------------
Fair value, EUR 1000 1 322 400
Commodity derivative contracts were concluded, for hedging of future diesel oil
purchases. IAS-39-compliant hedge accounting will be applied to these
contracts, and the effective change in fair value will be recognised in the
hedging reserve within equity. The fair values of commodity derivatives are
based on market prices at the balance sheet date.
Currency derivatives
EUR 1000 3/2011 3/2010 12/2010
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 161 196
Fair value 1 7
Hedge accounting under IAS 39 has not been applied to currency derivatives.
Changes in fair values have been recognised in finance income and costs.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average
basic number of shares
Earnings per share, diluted:
profit attributable to equity holders of the parent company / adjusted average
diluted number of shares
Cash flows from operating activities/share:
cash flow from operating activities as in the statement of cash flows /
adjusted average number of shares
EVA:
operating profit - cost calculated on invested capital (average of four
quarters)
WACC 2010: 8.7%
WACC 2011: 7.7%
Equity per share:
equity attributable to equity holders of the parent company / adjusted basic
number of shares at end of period
Return on equity, % (ROE):
(profit for the period / equity (average)) x 100
Return on investment, % (ROI):
(profit before tax + finance costs) / (total equity and liabilities -
non-interest-bearing liabilities (average)) x 100
Equity ratio, %:
equity / (total equity and liabilities - advances received) x 100
Gearing, %:
net interest-bearing liabilities / equity x 100
Net interest-bearing liabilities:
interest-bearing liabilities - liquid assets
Operating profit excluding non-recurring items:
operating profit +/- non-recurring items
Helsinki, 26 April 2011
LASSILA & TIKANOJA PLC
Board of Directors
Jari Sarjo
President and CEO
For additional information please contact Jari Sarjo, President and CEO, tel.
+358 10 636 2810 or Ville Rantala, CFO, tel. +358 50 385 1442 or Keijo Keränen,
Head of Treasury & IR, tel. +358 50 385 6957.
Lassila & Tikanoja specialises in environmental management and property and
plant support services and is a leading supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 9,400 persons. Net sales in 2010 amounted to EUR
598 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com
© 2024 Nasdaq, Inc. All Rights Reserved |