Trading Update for the Third Quarter 2012

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• Publié par: tmc-group-n-v
• Nombre de lectures: 7
• Langue: English

Extrait

Trading Update for the Third Quarter 2012

PR Newswire

EINDHOVEN, The Netherlands, November 12, 2012

EINDHOVEN, The Netherlands, November 12, 2012 /PRNewswire/ --

This press release contains unaudited financial information.

• Turnover: Eur 12.9 million in Q3 2012 versus Eur 12.6 million in Q3 2011 (+2.3%);
• Gross margin excluding subsidies: Eur 4.2 million in Q3 2012 versus Eur 4.3 million in Q3 2011 (-2.8%);
• Operating result: Eur 1.6 million in Q3 2012 versus Eur 1.8 million in Q3 2011 (-13.0%);
• Headcount at the end of Q3 2012 506 versus 463 at the end of Q3 2011;
• Headcount increase of 4 in Q3 2012 versus 8 in Q3 2011.

"The continued uncertain economic climate in 2012 has had an adverse impact on the Group results compared to a very strong 2011. Especially the Member Companies TMC Construction and TMC ICT are operating in a challenging market environment, with no evidence indicating a turnaround in the near term. The Member Company Technology is showing continued growth with a stable increase in the number of Employeneurs. However, overall market conditions and governmental policies have put pressure on margins resulting in reduced profitability."

Rogier van Beek, CEO/CFO

Offer by Time Acquisition B.V. for TMC Group N.V.

This press release is issued in view of the press release dated 12 November 2012 issued by Time Acquisition B.V. and TMC Group N.V. confirming commencement of the recommended all-cash public offer by Time Acquisition B.V. for all issued and outstanding shares in TMC and in addition confirming the availability of the offer memorandum prepared in the context of the offer (available at http://www.tmc.nl). The contents of this press release will be replicated in the offer memorandum.

Developments in the third quarter

In the third quarter revenues increased modestly (+2.3%) compared to the same quarter in 2011. The average number of direct FTE's increased by 9.0% to 488.4 in Q3 2012 compared to 448.0 in the same period in 2011. Despite the increase in FTE's, the average revenue per FTE decreased compared to the same period in 2011 due to the fact that productivity and tariffs showed a negative trend and decreased compared to prior year.

Gross margin increased by 2.1% compared to the same period last year to Eur 4.4 million. The gross margin excluding subsidies decreased with 2.8% compared to the same period in 2011. This decline is the result of decreasing average sales per FTE and higher personnel costs. Social security and pension costs increased on average with 13.6% per FTE, caused by an increase of the thresholds for maximum income assessable for social insurance under the Healthcare Insurance Act and the related employer's contributions. Gross margin including subsidies of Eur 4.4 million increased by 2.1% compared to the same period last year. In Q3 2012 subsidies amounted to Eur 208 thousand compared to nil subsidies in Q3 2011. Overall subsidies are lower in 2012 as compared to prior year.

Total indirect costs amounted to Eur 2.8 million compared to Eur 2.5 million in the same period 2011, an increase of 13.3%. The increase is predominantly attributable to higher personnel costs. At the same time non-personnel indirect costs also increased.

Indirect personnel related costs increased with 16.9%, related to an increase in indirect personnel and the increase in social security and pension charges. The average number of indirect FTE's in Q3 2012 ended at 65.8 compared to 61.3 in Q3 2011, an increase of 7.3%. The indirect non-personnel related costs increased with 6.6% mainly due to increased marketing and consultancy costs.

The operating result in the third quarter of 2012 decreased with 13.0% to Eur 1.6 million (Eur 1.8 million in Q3 2011). The operating result as a percentage of the revenue was 12.3% in Q3 2012 compared to 14.5% in the same quarter last year. Depreciation and amortisation in Q3 2012 was Eur 0.1 million (Q3 2011: Eur 0.1 million) resulting in EBITDA of Eur 1.7 million (Q3 2011: Eur 2.0 million), a decline of 12.8% year-on-year.    

Developments per Member Company

TMC Technology

The revenues of the Member Company Technology increased by 4.7% to Eur 11.1 million in the third quarter of 2012 (Eur 10.6 million in Q3 2011). The increase in revenues is a direct result of the increase in FTE's as TMC Technology at the same time was faced with lower productivity and lower tariffs. The average number of direct FTE's for the Member Company Technology increased with 11.6% to 423.5 (379.6 in Q3 2011).

The gross margin declined from 35.9% in Q3 2011 to 33.5% in Q3 2012. The total direct personnel costs increased with 8.5% as a result of a higher number of direct FTE's and increased social security and pension costs. The direct bonuses decreased with 14.8% due to a lower number of billable hours.

For Q3 2012 indirect costs excluding allocated corporate costs were Eur 969 thousand versus Eur 777 thousand last year, an increase of 24.8%. The average number of indirect FTE's went up from 35.4 in Q3 2011 to 37.5 in Q3 2012 (+5.9%). The indirect cost increase is mainly due to higher personnel related costs such as salaries, social security costs and pension costs.

The operating result excluding allocated corporate costs was Eur 2.7 million in Q3 2012 compared to Eur 3.0 million in Q3 2011 (-9.0%).

TMC ICT

Revenues dropped by -19.9% in Q3 2012 versus Q3 2011 and ended at Eur 693,000. The average number of direct FTE's in Q3 2011 was 22.5 and decreased to 18.8 in Q3 2012 (-16.4%). In addition to the decrease in FTE's there remains pressure on commercial tariffs. The number of billable hours has decreased compared to the same period in 2011 due to the fact that less direct FTE's were able to be staffed.

The gross margin declined further from 16.0% in Q3 2011 to 14.1% in Q3 2012. Direct personnel costs decreased with 18.1% as a result of the lower number of direct FTE's and less billable hours. Direct bonuses decreased with 56.7% but could not prevent a gross margin decline.

The indirect costs for the Member Company ICT excluding allocated corporate costs decreased from Eur 195 thousand in Q3 2011 to Eur 99 thousand in Q3 2012. In Q3 2011 one-off costs of Eur 112 thousand were booked for doubtful debtors. Excluding these one-off costs the indirect costs increased by 20.2% primarily due to higher costs for external consultancy.

The operating result excluding allocated corporate costs remained negative at Eur -2 thousand in Q3 2012 compared to Eur -56 thousand in Q3 2011.

TMC Construction

The Member Company Construction had slightly higher revenues in Q3 2012 compared to the same period last year. The revenues increased with 1.6% from Eur 1.2 million in Q3 2011 to Eur 1.2 million in Q3 2012. The revenues increased due to a higher number of billable hours and higher tariffs, driven by the Oil & Gas cell. The major part of the Member Company Construction continues to face considerable adverse end-market conditions.

The average number of direct FTE's for the Member Company remained stable at 46.0 (45.8 in Q3 2011).

The gross margin decreased from 29.8% in Q3 2011 to 27.5% in Q3 2012. This decrease is primarily due to increasing personnel cost, lower productivity and pressure on tariffs.

The operating result excluding allocated corporate costs was Eur 119 thousand in Q3 2012 compared to Eur 203 thousand in Q3 2011.

Cash flow

At the end of September 2012 the net cash position increased to Eur 6.8 million. The net cash flow from operations over the third quarter of 2012 was Eur 1.7 million (Q3 2011: Eur 2.4 million). The decrease in net cash flow from operations is primarily due to the lower profitability for the period and an increase in working capital. The total net cash flow decreased with 32.2% from Eur 2.3 million over the third quarter of 2011 to Eur 1.6 million over the same period this year.

Results YTD September 2012

Revenues YTD September 2012 were Eur 40.9 million versus Eur 39.0 million over the same period last year, an increase of 5.0%. The Member Company Technology contributed 84.4% of the Group revenues in the first nine months of 2012 compared to 80.2% in the first nine months of 2011. The relative contribution from the Member Company ICT decreased from 7.8% in the first nine months of 2011 to 6.0% in the same period this year. The Member Company Construction represented 10.1% of the revenues YTD September 2012 versus 11.9% in the same period last year.

The total average direct FTE increased with 10.8% from 440.5 in the first nine months last year to 488.1 in the first nine months of 2012.

The gross margin excluding subsidies decreased from 33.2% in the first nine months of 2011 to 29.8% in the same period this year. The gross margin including subsidies decreased from 36.7% over the first nine months of 2011 to 32.4% in the first nine months of 2012. One of the main reasons for this margin decrease is a lower productivity rate. In addition, total direct personnel related costs increased while average tariffs remained stable compared to the same period last year. The total direct personnel related costs increased with 12.1% due to a higher number of direct FTE's as well as a strong increase in social security and pension costs.

Despite the slight rise in the average number of indirect employees, the indirect costs went down by 3.0% compared to the same period last year. The operating result over the first nine months of 2012 amounted to Eur 5.0 million (2011: Eur 5.8 million), a decrease of 13.7%. The operating result as a percentage of the revenue was 12.2% in the first nine months of 2012 compared to 14.9% in 2011. Depreciation and amortisation YTD September 2012 was Eur 0.4 million (YTD September 2011: Eur 0.4 million) resulting in EBITDA of Eur 5.4 million (YTD September 2011: Eur 6.2 million), a decline of 13.1% year-on-year.  

Mnemo            : ALTMC

ISIN            : NL0000290997

Employeneurship model

The driving force behind TMC is the unique Employeneurship model. This enables us to bind top talent to our company. The model features the following five principles:

• Long-term employment relationship

TMC values employing its Employeneurs and offering them long-term employment. By doing this we emphasise the faith we have in our people and that we would like to enter into a long-term working relationship together. Furthermore, this way of working offers our customers the correct quality of Employeneurs and continuity in R&D projects. This clearly deviates in relationship to project deployment agencies, job agencies and other intermediaries.

• Individual profit sharing

On commencing employment the Employeneur's rate, as it will be charged to the customer by TMC, is determined transparently and in consultation with the Employeneur. Depending on his experience and seniority, the Employeneur shares in the profit. This can accumulate to 50%. This variable component is paid out monthly, depending on the actual rate and the hours worked. The variable reward makes our terms and conditions of employment highly competitive.

• 1-on-1 career coaching /TMC Academy

One of the principles of our business model is aimed at the individual development of our Employeneurs by way of coaching. This will primarily be geared towards the inter and intrapersonal skills and enhancement of the entrepreneurial behaviour. Within the TMC Academy all these competencies are developed further. As far as the substantive professional knowledge is concerned, all our people are extremely highly developed. This is a part of the selection procedure when recruiting.

• Specialised business cells

TMC is formed by various business cells. Each cell represents a certain area of competencies. The advantage of this structure is that the people in a cell feel connected with their peers. In addition they can share and request knowledge. For TMC the advantage is that we can enter both the customer market and the candidate market. Within the business cells we involve our Employeneurs in company policy and strategy development. This increasingly enables them to become an Employeneur.

• Entrepreneurial Lab

In the Entrepreneurial Lab Employeneurs from various business cells work together on various projects. This way knowledge is shared and entrepreneurship is put into practice, with the accompanying budget and marketing plans. This is how we introduce our Employeneurs to true entrepreneurship, in a safe environment.

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