International Container Terminal Services, Inc. (ICTSI) has reported consolidated unaudited financial results for the quarter ended 31 March 2012, posting first quarter revenue from port operations of US$173.8 million, an increase of 12 percent over the US$154.9 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$76.7 million, eight percent higher than the US$71.2 million generated in 2011; and net income attributable to equity holders of US$35.4 million, up 24 percent over the US$28.5 million earned last year.
The higher net income attributable to equity holders was mainly due to the growth in volume and revenues, and lower financing charges.
ICTSI handled consolidated volume of 1,338,316 twenty-foot equivalent units (TEUs) in the first quarter of 2012, 14 percent higher compared to the 1,171,969 TEUs handled in the same period in 2011. The increase in volume was mainly due to the sustained growth in countries where ICTSI’s terminals are located, new shipping lines and routes and the inclusion of the TEU volume generated by the Company’s new terminals in Portland, Oregon, USA and Rijeka, Croatia. Excluding the volume from the two latest port acquisitions, organic volume growth was nine percent.
Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74 percent of the Group’s consolidated volume in the first quarter of 2012, increased 11 percent, from 896,419 TEUs to 992,865 TEUs.
First quarter 2012 gross revenue from port operations increased 12 percent to US$173.8 million, from the US$154.9 million reported in 2011. The increase in revenues for 2012 was mainly due to the tariff increases in certain terminals, higher storage revenues and ancillary services, favorable volume mix, and the inclusion of the new terminals in Portland, Oregon, USA and Rijeka, Croatia. Excluding the revenues from the newly acquired terminals, organic revenue would have grown seven percent. Revenue contribution from the Group’s six key terminals in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 84 percent of the Group’s consolidated revenues in the first quarter of 2012, increased seven percent from US$137.2 million to US$146.1 million.
Total consolidated cash operating expenses for the first quarter of 2012 grew 16 percent to US$73.8 million, from US$63.5 million in the same period in 2011. The increase was mainly driven by higher manpower cost and facilities-related expenses relating to the new terminal operations in Portland, Oregon, USA and Rijeka, Croatia, higher contracted services, overtime, power, fuel, and repairs and maintenance expenses from existing operations, and higher concession fees in TSSA. Excluding the new terminals, total cash operating expenses would have increased by only six percent.
Consolidated EBITDA for the first quarter of 2012 increased eight percent to US$76.7 million, from US$71.2 million in 2011 mainly due to the volume growth across all geographic segments of the Group, favorable volume mix, tariff rate increases and stronger revenues from storage and ancillary services.
Consolidated EBITDA margin, however, declined in the first three months of 2012 by two percentage points to 44 percent from 46 percent in 2011 due to higher fixed and variable concession fees in Brazil, and the addition of the ports in Oregon, USA and Rijeka, Croatia. Excluding the new terminals, EBITDA margin would have only been higher by two percentage points at 48 percent.
Consolidated financing charges and other expenses for the first quarter of 2012 was lower by 30 percent at US$9.5 million compared to the previous year’s US$13.5 million. The reduction was primarily a result of higher capitalized borrowing costs in the first three months of 2012, and the absence of a one-time equity tax charge relating to the Group’s project in the Buenaventura, Colombia that was charged in the first quarter of 2011.
ICTSI’s capital expenditure amounted to US$96.7 million in the first quarter of 2012 against a full year capital expenditure budget of US$550 million. The established budget is mainly allocated for the greenfield projects in Argentina, Mexico and Colombia, and for civil works, systems improvement, and purchase of major cargo handling equipment at its terminal operations in Manila (MICT), Croatia (AGCT), Brazil (TSSA) and Ecuador (CGSA).