KUWAIT CITY - April 2, 2012 - Agility (AGLTY), a leading global logistics provider, today announced its fourth quarter and full year financial results for 2011.
For the fourth quarter, the company reported a net profit of KD 3.5 million and earnings per share of 3.45 fils, an increase of 114% for both from same period in 2010. Fourth quarter revenue fell by 5%, from KD 368.6 million to KD 352 million, largely because of the loss of government contracting business. On a like-for-like basis, excluding government and discontinued business, Agility group revenue grew from KD 332 million to KD 345 million, an improvement of 4% despite a slowing economy.
The company remains focused on growing profit through continued financial discipline and transformation of its operating platform with the adaptation of new technology that will increase efficiency.
For the full year ending December 31, 2011, net profit was KD 27 million, vs. KD 25 million in 2010, an increase of 8%. Revenue and operating profit for 2011 were KD 1.33 billion and KD 19 million, respectively. The Board of Directors met and proposed a dividend distribution of 30% (30 fils per share) for the year ending 2011.
"Profits grew by 8% in 2011 even though revenues fell as Agility discontinued defense and government business. We are a different company today than we were a year ago, and we consider 2011 a new financial baseline against which we will measure future performance," said Tarek Sultan, Agility’s Chairman and Managing Director.
"In 2011 and continuing into 2012, we are heavily focused on strengthening our core commercial business. This includes redeploying resources: we sold the bulk of our vehicle fleet in the Middle East, freed up warehousing space for commercial customers, and converted working capital to cash. Having undergone some heavy lifting in terms of restructuring over the last two years, the company anticipates solid gains in 2012 and beyond," Sultan said.
Financial Highlights
Agility’s Core Business: Global Integrated Logistics
Revenue for Agility Global Integrated Logistics (GIL) for the full year 2011 was KD 1.19 billion, a decrease of 1.4% from FY 2010. Excluding government and discontinued business, GIL’ revenues grew by 3.2% from the same period in 2010, despite softened trade volumes that prevailed in the last two quarters of the year.
Agility’s excellent position in high-growth emerging markets was a major contributor to revenue, as reflected in the double-digit growth in the Asia Pacific region. This strength in the underlying business reflects GIL’s commitment to grow organically by focusing on key trade lanes, adding new customers and expanding existing accounts.
"We have worked hard to engineer a sustainable, durable turnaround in our core commercial (GIL) business. The message for customers is that we’re growing, healthy and here to support you," Sultan said. "Our focus in 2012 will continue to be growing business with existing and new customers by leveraging our global footprint and market-leading position in emerging markets. At the same time, we intend to drive efficiencies in our operating platform."
Agility’s Infrastructure Group: Logistics-Related Businesses
Agility’s Infrastructure companies contributed KD 111.3 million to FY 2011 revenue. Infrastructure revenue grew KD 18% from FY 2010, excluding government-related business.
"Our Infrastructure group of companies continues to provide us with the ability to address profitable niches in the marketplace,” Sultan said. “In 2011 we successfully closed two deals. We merged Agility Qatar operations with Gulf Warehousing Company (GWC) and realized gain of KD 8 million. We also formed a Joint Venture with France Telecom and converted our debt into Equity in Korek. Today we have an indirect stake of 24% in Korek and $100 million debt yielding 12% per annum".
Agility’s Real Estate business, in particular, is an important contributor to Agility’s financial performance, but other entities like National Aviation Services (NAS) have also shown healthy growth over the last several years. Agility is taking a number of actions to further enhance the potential of these companies.
Recap of Financial Performance for Q4 2011
· Agility net profit in Q4 2011 was KD 3.5 million, a 114% increase from the same period in 2010.
· Operating profit in Q4 of 2011 was KD 2.82 million, 78% decrease over Q4 2010.
· Agility revenue for fourth quarter 2011 was KD 352 million, a 5% decrease from same period in 2010.
· Agility net revenue margin for the fourth quarter increased by 3% as a result of the company’s focus on operational efficiencies.
Recap of Financial Performance for FY 2011
· Agility net profit rose to KD 27 million, an 8% increase from KD 25.1 million in 2010. EPS was 26.94 fils vs. 24.92 fils a year earlier.
· Operating profit stood at KD 19 million.
· Agility revenues for the FY 2011 were KD 1.33 billion, a decrease of 17% from KD 1.6 billion in the same period in 2010.
· GIL revenue was 1.19 billion KD, a 1.4% decrease from KD 1.2 billion in 2010. Adjusting for government and discontinued business, GIL revenue grew 3.2% from the same period in 2010.
· Infrastructure revenue excluding government-related business was KD 83.5 million compared with KD 71 million a year earlier, an 18% increase from 2010. Agility’s Infrastructure continues to be strong contributor to group revenues.
· Operating expenses decreased by 15% from 2010 as a result of discipline in cost management.
· Agility enjoys a healthy balance sheet with low leverage and net cash position of KD 57 million and free cash flow of KD 22 million.
Forward View
"Despite the changes over the last two years, we continue to be strong and financially stable. We have a strong balance sheet with over KD 1.4 billion in assets and KD 0.9 billion in total equity. We have a global network and a market-leading position in emerging markets that is continuing to grow. Above all, we have over 20,000 employees who are committed to the company’s long-term success," Sultan said. "Although 2012 is likely to be another tough year for the global economy, we are committed to continuing to drive the company forward and expect to see real gains over our 2011 baseline."
About Agility:
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.
