November 13, 2014

Agility’s Financial Results for the Third Quarter 2014

Financial Highlights


	Q3 2014 (Million KD)	Q3 2013 (Million KD)	Variance (%)	9months 2014 (Million KD)	9 months 2013 (Million KD)	Variance (%)
Revenue	337.09	326.75	+3%	993.06	1,034.50	-4%
Net Revenues	96.34	94.27	+2%	287.30	283.45	+1%
EBITDA	25.50	23.63	+8%	73.13	68.89	+6%
Net Profit	13.04	12.13	+8%	37.14	33.77	+10%
EPS (fils)	11.90	11.07	+7%	33.90	30.82	+10%

Figures in the table above have been rounded

Agility’s Financial Results for Q3 2014

Agility today reported a new Q3 2014 profit of KD 13.04 million, or 11.90 fils per share, an increase of 7% from the same period in 2013. Third-quarter revenues were KD 337.09 million, a 3% increase from the same period a year earlier. EBITDA was KD 25.50 million, an 8% increase compared to Q3 2013 with margin improving from 7.23% in Q3 2013 to 7.57% in this quarter.

For the first 9 months of 2014, Agility reported a net profit of KD 37.14 million with an earnings-per-share of 33.90 fils, an increase of 10% from the same period of 2013. Revenues for the same period were KD 993.06 million, a 4% decrease from same period last year. EBITDA increased by 6% to reach KD 73.13 million.

“Agility continues to grow the bottom line with all entities showing improvements in their financial performance. The Agility Global Integrated Logistics (GIL) business, our core commercial business, saw revenues contract because of the wind down of major project logistics contracts. At the same time, we managed to improve net revenue margins by boosting commercial performance in other areas and realizing gains in technology-driven transformation and productivity initiatives. Agility Infrastructure companies continue to grow, fueled by new opportunities in the Middle East and Africa,” said Tarek Sultan, Agility’s Chief Executive Officer.

“Agility also remains open to any business opportunity that might be accretive in value for our shareholders.” Sultan added.

Agility’s Global Integrated Logistics (GIL)

GIL revenue for the third quarter of 2014 was KD 267.80 million a 4% decline from the same period last year; however, net revenues have improved by 2.2%, with margins expanding from 21.8% in Q3 2013 to 23.34% in Q3 2014 driven by better performance of contract logistics specifically in the Middle East.

“We have managed to stay agile and responsive in a world where growth is slowing, trade patterns are changing and competition is intensifying. We have shown good progress in our technology driven transformation, where we are building a new operating system aimed at improving productivity, service and growth.

On the commercial side, we have a sales strategy aimed at both global accounts and field sales that allows us to stay close to customers and evolve our service offerings to meet their needs. We remain committed to financial disciplines that allow us to run a lean, efficient business,” Sultan said.

Agility’s Infrastructure Group

Agility’s Infrastructure companies contributed KD 69.39 million to third quarter 2014 revenues, a 16% increase over Q3 2013. Agility Real Estate grew revenue by 11% this quarter compared with the same period last year.

“Agility Infrastructure companies posted strong results this quarter and are expected to continue to grow through investments in emerging markets,” Sultan said. “Agility sees Africa as a major opportunity for all of its business going forward.” |

Among the major recent business developments and new contracts for infra group: a $250 million concession won by Agility’s National Aviation Services (NAS) for ground handling at Port Bouet Airport, the primary international airport into Abidjan, Ivory Coast; an $82.5 million contract awarded by UK Ministry of Defense to Agility DGS for the management of household moves for the UK forces and Ministry of Defense personnel; an investment agreement by United Projects for Aviation Services (UPAC) develop a commercial mall in Abu Dhabi.

Recap of Financial Performance for Q3 2014

• Agility’s net profit stood at KD 13.04 million, an 8% increase from KD 12.13 million in Q3 2013. EPS was 11.90 fils, compared to 11.07 fils a year earlier.
• EBITDA stood at KD 25.5 million, an 8% increase from the same period a year before.
• Agility’s revenues for the Q3 2014 were KD 337.09 million, an increase of 3% from KD 326.75 million in the same period in 2013. Agility’s net revenues increased by 2% from the same period.
• GIL’s revenue stood at KD 267.80 million a 4% decrease from the same period a year earlier.
• Infrastructure’s revenue was KD 69.39 million compared with KD 59.70 million in Q3 2013, a 16% increase from Q3 2013.
• Agility enjoys a healthy balance sheet with a net cash position of KD 58 million as of 30th September 2014, and free-cash-flow of KD 8.6 million for the 3rd quarter of 2014.

About Agility

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 and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.