- THE MAGAZINE
CEVA Holdings LLC (CEVA), a non-asset based supply chain management company, reported results for the Q4 and Full Year 2013.
Fourth quarter results demonstrated a continuing recovery in CEVA’s business, with adjusted EBITDA up 57 percent to $77 million, compared to the same quarter last year, as cost reduction actions implemented in 2013 contributed to ongoing year-on-year improvements in Adjusted EBITDA. Fourth quarter cash flow continued to reflect the trend of improving working capital performance. CEVA finished the year with more than $750 million in cash and committed facilities.
Fourth quarter ended 31 December 2014 ($ millions at actual exchange rates)
2Excludes the impact of specific items that are significant non-recurring items, such as restructuring and certain legal expenses.
³Adjusted for disposals of businesses.
“The steps taken in 2013 have positioned CEVA for a future where we can invest and grow the business to serve our customers,” said CEVA’s CEO Xavier Urbain.
“The results of the team’s efforts in addressing underperforming contracts in our contract logistics business significantly increased the company’s adjusted EBITDA compared to a year ago. We are also seeing evidence of improvement in our freight management business as actions to strengthen our freight management organization gain traction in the marketplace and with our customers.
Results for the year to 31 December, 2013
Revenue decreased 8.3 percent to $8,517 million mainly as a result of weaker freight management volumes, with freight management revenue declining 12 percent largely due to lower airfreight volumes out of Asia and disruption arising from the recapitalization in the first half. Previously announced actions reduced revenue in contract logistics 2.6 percent (adjusted for disposals). Strong performance in the U.S. Automotive and European Consumer and Retail sectors were offset as a result of our focus on addressing underperforming contracts.
Adjusted EBITDA continued to improve, with a year-on-year increase of 57 percent in the Q4. For the year as a whole, adjusted EBITDA of $277 million decreased 2.8 percent (adjusted for disposals). As a result of the company’s ongoing business actions, adjusted EBITDA for the second half of 2013 increased 20.8 percent, compared to the same period 2012. In Contract Logistics, adjusted EBITDA increased 23 percent on the year, benefiting from the company’s work to address underperforming contracts. In contrast, adjusted EBITDA declined 67.7 percent in freight management mainly due to weaknesses in airfreight, principally out of Asia, and to disruption arising from the recapitalization in the first half.
CEVA benefited from the successful recapitalization of its balance sheet in the first half of the year. As a result, net debt was reduced to $1,551 million, compared to $3,301 million for 2012, with annual cash interest costs now roughly half the level of a year ago. Cash generated from operations increased 59.6 percent to $292 million and net working capital improved 112.5 percent.
CEVA shows growing marketplace momentum in Q4, announcing deals across the globe, including an extension of its partnership with Vileda in Turkey; extension of a customs brokerage deal with Avon in Latin America, an oceanfreight project with Petrobras, Brazil; as well as contracts with Daikin Europe and Scania in Iberia.