FORACO INTERNATIONAL SA Revenue
Q3 2015 revenue amounted to US$ 31.1 million compared to US$ 51.6 million in Q3 2014, a decrease of 40%. Using Q3 2014 exchanges rates, Q3 2015 revenue decreased by 17%.
The utilization rate was 30% in Q3 2015 compared to 37% in Q3 2014.
Profitability
The Q3 2015 gross margin including depreciation within cost of sales was US$ 4.4 million compared to US$ 3.3 million in Q3 2014. The reduction in revenues was compensated by the effect of the
cost cutting actions and the performance on contracts, as most projects have delivered their expected gross margin.
SG&A costs reduced by US$ 2.0 million between Q3 2014 and Q3 2015 as a result of foreign exchange variances and the cost cutting action plans.
EBIT amounted to US$ 0.2 million in Q3 2015 compared to US$ (2.8) million in Q3 2014.
During the quarter, EBITDA amounted to US$ 6.2 million (or 20% of revenue) compared to US$ 5.4 million (or 11% of revenue) for the same quarter last year.
Capital expenditure was US$ 3.0 million in Q3 2015 compared to US$ 3.9 million in Q3 2014. This Capex is mainly linked to new contracts.
Nine-months Q3 2015 (YTD Q3 2015) HighlightsRevenue
YTD Q3 2015 revenue amounted to US$ 108.2 million compared to US$ 145.4 million for the same period last year, a decrease of 26% or 4% excluding the impact of exchange rates.
Profitability
YTD Q3 2015 gross margin including depreciation within cost of sales was US$ 6.6 million compared to US$ 6.8 million in YTD Q3 2014. The Company encountered a certain number of operational difficulties in Q1. In Q2 and Q3, most contracts delivered their expected gross margin and the company continues to benefit from the cost cutting action plan.
SG&A costs reduced by US$ 5.4 million (or 28%) between YTD Q3 2014 and YTD Q3 2015. Excluding the impact of exchange rates amounting to US$1.3 million, SG&A reduced by US$ 1.7 million as a result of the cost cutting action plans and US$ 0.5 million related to the payment of a receivable provided for in Q4 2014.
Capital expenditures were US$ 7.1 million in YTD Q3 2015 compared to US$ 7.4 million in YTD Q3 2014.
Selected financial data
(In thousands of US$)
(unaudited)
Three-month period ended September 30,
Nine-month period ended September 30,
2015 2014 2015 2014Revenue
31,051
51,580
108,156
145,432
Gross profit (1)
4,412
3,287
6,611
6,808
As a percentage of sales
14.2%
6.4%
6.1%
4.7%
EBITDA
6,162
5,447
11,823
12,735
As a percentage of sales
19.8%
10.6%
10.9%
8.8%
Operating profit / (loss)
210
(2,784)
(7,551)
(12,307)
As a percentage of sales
0.7%
-5.4%
-7.0%
-8.5%
Profit / (loss) for the period
(973)
(3,509)
(9,584)
(13,517)
Attributable to:
Equity holders of the Company
(1,286)
(3,564)
(9,452)
(13,502)
Non-controlling interests
313
55
(132)
(15)
EPS (in US cents)
Basic
(1.45)
(4.01)
(10.70)
(15.21)
Diluted
(1.45)
(4.01)
(10.70)
(15.21)
includes amortization and depreciation expenses related to operations
Financial results
Revenue
(In thousands of US$) - (unaudited) | Q3 2015 | % change | Q3 2014 | YTD Q3 2015 | % change | YTD Q3 2014 |
Reporting segment | ||||||
Mining ...................................... | 28,535 | -40% | 47,197 | 95,650 | -25% | 127,958 |
Water....................................... | 2,516 | -43% | 4,383 | 12,506 | -28% | 17,474 |
Total revenue ............................ | 31,051 | -40% | 51,580 | 108,156 | -26% | 145,432 |
Geographic region | ||||||
Europe, Middle East and Africa......... | 8,302 | -30% | 11,897 | 33,710 | -10% | 37,378 |
South America ............................ | 7,572 | -44% | 13,402 | 26,555 | -40% | 44,180 |
North America ............................ | 6,874 | -39% | 11,236 | 23,863 | -16% | 28,370 |
Asia Pacific ................................ | 8,303 | -45% | 15,045 | 24,028 | -32% | 35,503 |
Total revenue ............................ | 31,051 | -40% | 51,580 | 108,156 | -26% | 145,432 |
Q3 2015
Q2 2015 revenue amounted to US$ 43.8 million compared to US$ 48.4 million in Q2 2014, a decrease Q3 2015 revenue amounted to US$ 31.1 million compared to US$ 51.6 million in Q3 2014, a decrease of 40%. Using Q3 2014 exchanges rates, Q3 2015 revenue decreased by 17%.
In EMEA, revenue decreased by 30% (5% increase excluding the foreign exchange impact mainly linked to the Russian Ruble variance), from US$ 11.9 million in Q3 2014 to US$ 8.3 million in Q3 2015. In Africa some water contracts were postponed from Q3 to Q4 and 2016.
Revenue in South America amounted to US$ 7.6 million in Q3 2015 (US$ 13.4 million in Q3 2014), a
decrease of 44% or 15% excluding the foreign exchange impact, mainly due to reduced activity in Chile partially offset by increased operations in Brazil.
Revenue in North America decreased by 39% or 27% excluding the impact of exchange rates, due to pressure on prices and the non-renewal of contract.
In Asia Pacific, Q3 2015 revenue amounted to US$ 8.3 million, a decrease of 45%, or 30% excluding the impact of exchange rates, due to the early termination of contract.
YTD Q3 2015
YTD Q3 2015 revenue amounted to US$ 108.2 million compared to US$ 145.4 million in YTD Q3 2014, a decrease of 26% or 7% excluding the impact of exchange rates.
In EMEA, revenue decreased from US$ 37.4 million in YTD Q3 2014 to US$ 33.7 million in YTD Q3 2015. Excluding the foreign exchange impact mainly linked to the Russian Ruble variance, revenue increased by 18% compared to the same period last year.
Revenue in South America amounted to US$ 26.6 million in YTD Q3 2015 (US$ 44.2 million in YTD Q3 2014), a decrease of 40%. In Brazil, revenue increased by 12% excluding the impact of exchange rates compared to the same period last year. In YTD Q3 2015, the activity in Chile reduced by 74% compared to YTD Q3 2014 due to contracts being halted and adverse climate conditions.
Revenue in North America decreased by 16% but was stable when excluding the impact of exchange rates.
In Asia Pacific, YTD Q3 2015 revenue amounted to US$ 24.0 million, a decrease of 32% or 18% excluding the impact of exchange rates, mainly due to pressure on selling prices, a lower utilization rate and the early termination of contract.
Gross profit
(In thousands of US$) - (unaudited) | Q3 2015 | % change | Q3 2014 | YTD Q3 2015 | % change | YTD Q3 2014 |
Reporting segment | ||||||
Mining ......................................... | 4,647 | 81% | 2,568 | 6,759 | 36% | 4,955 |
Water.......................................... | (235) | -133% | 719 | (148) | -108% | 1,853 |
Total gross profit / (loss) ............... | 4,412 | 34% | 3,287 | 6,611 | -3% | 6,808 |
Q3 2015 gross margin including depreciation within cost of sales was US$ 4.4 million compared to US$
3.3 million in Q3 2014. The reduction in revenues was compensated by the effect of the cost cutting actions and the performance on contracts, as most projects have delivered their expected gross margin.
YTD Q3 2015 gross margin including depreciation within cost of sales was US$ 6.6 million compared to US$ 6.8 million in YTD Q3 2014. The Company encountered a certain number of operational difficulties
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