SAINT-PRIEST, France--(BUSINESS WIRE)--Regulatory News:
Jacquet Metal Service (Paris:JCQ):
On November 12, 2015, the Board of Directors, chaired by Eric Jacquet, examined the unaudited consolidated financial statements for the nine months ended September 30, 2015.
|€ millions||Q3 2015 (1)||Q3 2014||2015 9-month (1)||2014 9-month|
|% of sales||20.7%||24.9%||22.8%||24.8%|
|Adjusted EBITDA (2)||9.4||16.4||37.4||46.4|
|% of sales||2.5%||5.9%||3.7%||5.4%|
|Operating income before non-recurring items||3.7||12.5||24.4||34.5|
|% of sales||0.9%||4.5%||2.4%||4.0%|
|Net income (Group share)||48.7||6.9||59.6||18.1|
(1) Including the distribution business purchased from
Schmolz+Bickenbach from July 22, 2015
(2) Adjusted for non-recurring items (non-IFRS financial indicators)
Third quarter 2015 sales and earnings
On July 22, 2015, via its IMS group division, the Group acquired certain Schmolz+Bickenbach group's distribution businesses, based mainly in Germany. The business generates annual sales of around €600 million. The new operations are consolidated in the Group financial statements from July 22, 2015.
Group third quarter sales including this acquisition amounted to €378.0 million, +35.4% higher than Q3 2014:
- volume effect at constant consolidation: up 3.1%; all divisions increased their volumes distributed (Jacquet-Abraservice +9.9%, Stappert +0.2%, IMS group +2.1%),
- change in consolidation: up 39.6%, mainly due to the Schmolz+Bickenbach distribution acquisition (sales of €104 million recorded between July 22 and September 30, 2015),
- price effect: down 7.3%; the third quarter was marked by a decline in raw material prices that had a knock-on effect on sale prices.
The consolidated gross margin rate amounted to 20.7% of sales (22.9% at constant consolidation) versus 24.9% in Q3 2014.
EBITDA adjusted for non-recurring items came to €9.4 million (2.5% of sales) and operating income before non-recurring items amounted to €3.7 million.
Third quarter operating income amounted to €52.7 million, which includes non-recurring expenses of €8.5 million mainly related to the Schmolz+Bickenbach distribution acquisition. It includes a provisional €57 million badwill gain arising from first consolidation.
Third quarter net income (Group share) came to €48.7 million.
Acting in an environment characterized by low prices, the Group is focusing on continuously improving the operating efficiency of its divisions and, in particular, turning round the Schmolz+Bickenbach distribution companies currently generating insufficient results.
Sales and earnings for the period ended September 30, 2015
Sales for the nine months ended September 30, 2015 amounted to €1,000.8 million, up 16.8% versus the same period in 2014 (+17.9% volume effect, including a 3.4% volume increase at constant consolidation and consolidation changes of +14.5%; -1.1% price effect).
EBITDA adjusted for non-recurring items came to €37.4 million (3.7% of sales), operating income to €73.3 million and net income (Group share) was €59.6 million.
Proforma sales for the period ended September 30, 2015 (i.e. including Schmolz+Bickenbach distribution sales as from January 1, 2015) amounted to €1,330 million, generating adjusted EBITDA of €36.9 million.
Financial position at September 30, 2015
The Group consolidated balance sheet shows total assets of over €1 billion. Operating working capital amounted to €394 million, or 22% of sales.
Group net debt stood at €216.8 million compared to shareholders' equity of €302 million, resulting in a net debt to equity ratio of 72%.
On October 30, 2015 the Group, advised by Bayern LB, carried out a Schuldschein issue (private placement of debt securities under German law), which enabled it to raise €88 million (5-year bullet loan), mainly used to refinance the €48.6 million paid out for the acquisition of Schmolz+Bickenbach distribution.
Earnings per division
As of the third quarter 2015, the Jacquet Metal Service group has reorganized its financial communication on the basis of three divisions:
- Jacquet-Abraservice: the two brands, specialized in the distribution of quarto plates respectively in stainless steel and wear-resistant steel, now form a single division under the same operating management, given that they offer opportunities for synergies in terms of procurement. This combination will not affect the sales networks, which will remain separate.
- Stappert: division specialized in the distribution of long stainless steel products.
- IMS group: division specialized in the distribution of engineering steels, mainly in the form of long products. This division now includes the Schmolz+Bickenbach distribution businesses.
Stainless steel and wear-
resistant quarto plates
Long stainless steel
|€ millions||Q3 2015 (2)||
|Q3 2015 (2)||
|Q3 2015 (2)||
|Change vs. 2014||+7.2%||+19.3%||-6.6%||-1.3%||+118.4%||+37.4%|
|Changes in consolidation||+8.7%||+9.2%||0.0%||0.0%||+119.8%||+36.2%|
|Adjusted EBITDA (1)(3)||1.4||7.6||3.1||13.5||1.2||10.7|
|% of sales||1.8%||2.9%||2.9%||3.9%||0.6%||2.7%|
|Operating income before non-recurring items||(0.5)||1.8||2,5||12,1||(1.3)||6,0|
|% of sales||-0.7%||0,7%||2,2%||3,5%||-0,7%||1,5%|
(1) Non-brand operations (including Jacquet Metal
Service SA) contributed €3.7 million to Q3 2015 adjusted EBITDA and €5.6
million to 2015 9-month adjusted EBITDA.
(2) Including the distribution business purchased from Schmolz+Bickenbach from July 22, 2015
(3) Adjusted for non-recurring items (non-IFRS financial indicators)
Q3 2015 sales totaled €79.8 million, up 7.2% versus Q3 2014 (+18.6% volume effect, including a 9.9% volume increase at constant consolidation and consolidation changes of +8.7%; -11,4% price effect), while adjusted EBITDA came to €1.4 million. Third quarter earnings were impacted by falling prices and challenging market conditions in the United States.
The division posted sales of €261.6 million for the nine months ended September 30, 2015, up 19.3% versus 2014 (+19.7% volume effect including consolidation changes of +10.5%; -0.4% price effect). Accordingly, Jacquet-Abraservice reported adjusted EBITDA of €7.6 million.
For the third quarter of 2015, the division posted sales of €109.1 million, down 6.6% from the same period in 2014 (+0.2% volume effect; -6.9% price effect), and adjusted EBITDA of €3.1 million. Quarterly earnings were impacted by falling prices.
The division posted sales of €345.9 million for the nine months ended September 30, 2015, down 1.3% versus 2014 (-2.1% volume effect; +0.7% price effect). Adjusted EBITDA came to €13.5 million.
For the third quarter of 2015, sales amounted to €189.8 million, up 118.4% versus Q3 2014 (+121.9% volume effect, including a +2.1% volume increase at constant consolidation and consolidation changes of +119.8% resulting from the consolidation of Schmolz+Bickenbach distribution; -3.5% price effect). Accordingly, adjusted EBITDA came to €1.2 million, including a €1.4 million loss generated by Schmolz+Bickenbach distribution.
The division posted sales of €395 million for the nine months ended September 30, 2015, up 37.4% versus 2014 (+40.7% volume effect including consolidation changes of +36.2%; -3.3% price effect). IMS group posted adjusted EBITDA of €10.7 million.
September 30, 2015 interim report available: www.jacquetmetalservice.com.
2015 Annual report: Thursday, March 10, 2016 after close of trading