AURELIUS grows its business and increases its operating profit in the first nine months of 2011
- Consolidated revenues up 63 percent to €835.5 million
- Portfolio companies continue to perform well
- Acquisition of a 72.5 percent interest in HanseYachts AG completed in the fourth quarter
Munich, November 14, 2011 – The Munich-based AURELIUS Group (ISIN: DE000A0JK2A8) increased its consolidated revenues by 63 percent to €835.5 million in the first nine months of 2011 (Q1-Q3 2010: €514.1 million). This increase was driven in large part by the new subsidiaries acquired during the course of financial year 2010, which have been fully consolidated in the consolidated financial statements of AURELIUS for the first time in 2011. Adjusted for the reversal of negative goodwill arising on consolidation (so-called “bargain-purchase” income), the earnings before interest, taxes, depreciation and amortization (EBITDA) for the first nine months of 2011 amounted to €44.9 million, reflecting an increase of 265 percent over the corresponding figure for the first nine months of 2010 (Q1-Q3 2010: €12.3 million). This increase reflects the positive performance of the Group’s portfolio companies. No bargain purchases were recognized in the first nine months of 2011. The acquisition of a 72.5 percent interest in HanseYachts AG was not completed until early November 2011 and will therefore lead to the recognition of bargain-purchase income in the fourth quarter. The figures for the first nine months of 2011 also do not include the effects from the sale of the investment in Wellman International to the Thai Indorama Group. The closing date for that transaction will occur during the fourth quarter. As of September 30, 2011, therefore, Wellman International has been presented as discontinued operations and is not contained in the EBITDA figure mentioned above. However, the EBITDA figure does contain the restructuring expenses and non-recurring negative effects incurred in connection with the reorganization of portfolio companies, in the total amount of €19.5 million (Q1-Q3 2010: €9.6 million). Many of these restructuring expenses and non-recurring effects were incurred in connection with the company Secop, which was acquired last year.
The operating cash flow for the first nine months of 2011 was negative, at €-7.7 million (Q1-Q3 2010: €24.2 million), particularly as a result of increasing the working capital of portfolio companies. As of September 30, cash and cash equivalents amounted to €137.9 million (12/31/2010: €177.2 million). The proceeds from the sale of Wellman International will be collected on the transaction closing date in the fourth quarter and are therefore not yet included in the current figure. The Group’s equity ratio was unchanged at 33 percent.
Acquisition of a 72.5 percent interest in HanseYachts AG completed in the fourth quarter
On September 9, 2011, Aurelius Development Invest GmbH, a wholly-owned subsidiary of AURELIUS, submitted a voluntary public take-over offer to the shareholders of HanseYachts AG (ISIN DE000A0KF6M8). Within the allowed acceptance period, this offer was accepted for shares representing 7.85 percent of share capital (= 502,617 shares) of HanseYachts AG. Including the shares purchased from the founder and former majority shareholder of HanseYachts AG, Michael Schmidt, AURELIUS holds 72.5 percent of the share capital of HanseYachts AG, now that the overall transaction has been completed.
Outlook
AURELIUS anticipates further acquisitions and sales of subsidiaries in the coming months. The operating performance of the Group’s existing portfolio companies is satisfactory on the whole and we expect that operating results will continue to improve in 2012. By way of exception, the compressor manufacturer Secop has encountered a substantial decrease in customer demand since the third quarter, by reason of the worsening market environment.