Atnaujinta: 2024.07.20 11:09 (GMT+3)
Klementi FINANCIAL REPORT 25.11.2004
FINANCIAL REPORT III Q 2004
Letter of explanation to interim report for the 3rd quarter of
2004
AS Klementi is a company operating in Estonia in the field of
development, production, retail sale and wholesale of sewn
products. The company is registered and operates in Tallinn. The
head office of the company is located at Akadeemia tee 33,
Tallinn.
Results for nine months of 2004
The unaudited consolidated net sales of AS Klementi for the
first nine months of 2004 were MEEK 104.7 (MEUR 6.7) and the net
loss was MEEK 5,9 (MEUR 0.4). The unaudited consolidated net
sales of for the same period of the previous year were MEEK
105.6 (MEUR 6.8) and the net loss was MEEK 16.5 (MEUR 1.1).
During the nine months, sales decreased by 0.9% compared to the
same period of the previous year.
There are no significant changes in the sales structure compared
to the same period of the previous year. Sales of clothes formed
81.5% of the total sales (83.2% in 2003). The relative share of
subcontracted production decreased by 2.2% compared to the same
period of the previous year. Export sales decreased by MEEK 5.0
(MEUR 0.3) or by 7.3% compared to the same period of the
previous year.
Retail sales formed nearly 52% of the clothes sales during the
first nine months of 2004. The respective percentage in the same
period of 2003 was 42%. The average retail sales per square
metre increased by more than 27% during the first nine months of
2004 compared to the same period of the previous year. As of the
end of September 2004, Klementi was using 2744 square metres of
sales area (compared to 2689 square metres a year ago).
Compared to 2003, the company’s cash flow from operating
activities has grown by MEEK 23.8 (MEUR 1.5) and the external
finance involved has more than halved.
Mass customisation of women clothing was launched under the
Avenue trademark, using a wider range of models and textiles, in
the 3rd quarter of 2004. Marketing events for the newly launched
Avenue brand are scheduled for the 4th quarter.
The group employed 460 people as of 30 September 2004 (494 in
2003), which is 7.4% less than at the end of the 3rd quarter of
2003.
Profit analysis
Earnings before intrest, taxes, depreciation and amortisation
(EBITDA) for the first nine months of 2004 amounted to MEEK 4.0
(MEUR 0.3), representing a MEEK 11.0 (MEUR 0.7) growth compared
to the same period last year. Net loss decreased by MEEK 10.6m
(MEUR 0.7) compared to the same period of the previous year.
Earnings before intrest and taxes (EBIT) of the 3rd quarter of
2004 amounted to MEEK 0.2 (MEUR 0.02). The return of the 2003
autumn collection and 2004 spring collection products worth MEEK
4.2 (MEUR 0.3) by the Swedish wholesale chains had a negative
impact on the 3rd quarter results. During the nine months of
2004, labour expenses have decreased by nearly MEEK 7.0 (MEUR
0.4) compared to the same period last year.
Balance sheet and ratios
The consolidated balance sheet total of AS Klementi was MEEK
122.6 (MEUR 7.8) as of 30 September 2004. The balance sheet
total has decreased by MEEK 0.6 (MEUR 0.04) since the beginning
of the year.
Accounts receivable have increased by MEEK 8.6 (MEUR 0.5) since
the beginning of the year due to the sale of the autumn/winter
collection. The group’s inventories totalled MEEK 28.5 (MEUR
1.8) at the end of the 3rd quarter of 2004. The MEEK 4.7 (MEUR
0.3) decrease in inventories is attributable to the sale of the
autumn/winter collection. Accounts payable have increased by
MEEK 1,1 (MEUR 0,07) due to the purchase of materials and goods
for making the 2005 spring collection. The net change in short
and long-term debt obligations of MEEK 6.7 (MEUR 0.4) arises
from the difference between the loans received and paid during
the nine months of 2004.
The main financial indicators and ratios that characterise the
consolidated data of the AS Klementi group for the first nine
months of 2004 are as follows:
9 months 9 months Change
Main financial indicators 2004 2003
Operating income, EEK ‘000 107 985 106 801 1,1 %
Operating profit/loss before
depreciation (EBITDA), EEK ‘000 3 963 -7 028 10 991
Margin, % 3,7 % -6,6 % -
Operating loss (EBIT), EEK ‘000 -1 756 -12 639 10 833
EBIT to net sales, % -1,6 % -11,8 % -
Loss for the period, EEK ‘000 -5 941 -16 496 10 555
ROA, % -4,9 % -13,0 % -
ROE, % -22,4 % -46,8 % -
Earnings per share (EPS), EEK -3,13 -10,58 7,45
Sales growth (reduction), % -0,9 % 10,6 % -
Share of clothes sales in total 81,5 % 83,2 % -
sales, %
Current ratio 0,76 0,94 -
Quick ratio 0,40 0,53 -
Inventory turnover 3,39 4,01 -
The ratios were calculated as follows:
Return on assets (ROA): Net profit / average total assets
Return on equity (ROE): Net profit / average equity capital
Earnings per share (EPS): Net profit / average common shares
Current ratio: Current assets / current liabilities
Quick ratio: (Current assets – inventories) / current
liabilities
Inventory turnover: Net turnover / average inventory for the
period
Toomas Leis
CEO of AS Klementi
Balance Sheet
Consolidated, unaudited
30 Sept 31 Dec 30 Sept 31 Dec
2004 2003 2004 2003
EEK EEK EUR EUR
‘000 ‘000 ‘000 ‘000
ASSETS
Current assets
Cash and bank 4 804 2 916 307 186
Trade receivables 23 448 14 862 1 499 950
Other short-term receivables 540 1 097 34 70
Prepaid expenses 2 245 945 144 60
Inventories 28 542 33 284 1 824 2 127
Total current assets 59 579 53 104 3 808 3 393
Fixed assets
Long-term investments 956 1 173 61 75
Tangible assets 54 185 60 403 3 463 3 861
Intangible assets 7 902 7 306 505 467
Total fixed assets 63 043 68 882 4 029 4 403
TOTAL ASSETS 122 622 121 986 7 837 7 796
OWNERS’ EQUITY AND LIABILITIES
Current liabilities
Debt obligations 58 916 47 604 3 765 3 042
Customer prepayments 33 470 2 30
Accounts payable 10 883 9 745 696 623
Other payables 782 782 50 50
Tax debt 3 550 3 242 227 207
Accrued expenses 3 961 5 064 253 324
Short-term provisions 2 12 0 1
Total current 78 127 66 919 4 993 4 277
liabilities
Noncurrent liabilities
Long-term debt 16 646 21 283 1 064 1 360
Other long-term payables 4 203 4 204 269 269
Long-term provisions 68 68 4 4
Total noncurrent liabilities 20 917 25 555 1 337 1 633
Total liabilities 99 044 92 474 6 330 5 910
Owners’ equity
Share capital 18 969 18 969 1 212 1 212
Share premium 40 294 40 294 2 575 2 575
Revaluation reserve 15 578 15 578 996 996
Other reserves 1 046 1 046 67 67
Retained earnings -46 -24 798 -2 968 -1 585
Foreign exchange differences 71 64 5 4
Profit for the financial year -5 941 -21 641 -380 -380
Total owners’ equity 23 578 29 512 1 507 1 886
TOTAL OWNERS’ EQUITY AND 122 622 121 986 7 837 7 796
LIABILITIES
Income Statement – 3rd quarter
Consolidated, unaudited
2004 2003 2004 2003
3rd q 3rd q 3rd q 3rd q
EEK ‘000 EEK EUR EUR
‘000 ‘000 ‘000
Operating income
Net sales 41 124 50 864 2 628 3 251
Other income 2 065 543 132 35
Total operating income 43 189 51 407 2 760 3 286
Operating expenses
Change in inventories 593 3 514 38 225
Materials, raw materials and 20 109 19 540 1 285 1 249
services
Other operating expenses 8 261 8 616 528 551
Labour 11 825 13 600 756 869
Other expenses 256 370 16 24
Total operating expenses 41 044 45 640 2 623 2 918
Earnings before depreciation 2 145 5 767 137 368
Depreciation 1 898 1 918 121 122
OPERATING PROFIT 247 3 849 16 246
Financial income and expenses
Interest expenses -1 234 -1 481 -92 -95
Foreign exchange gain (loss) -258 104 -4 7
Other financial income and -3 35 0 2
expenses
Total financial income and -1 495 -1 342 -96 -86
expenses
Net profit (loss) -1 248 2 507 -80 160
Earnings per share
Basic earnings per share -0,66 1,32 -0,04 0,08
(EEK/EUR)
Diluted earnings per share -0,66 1,32 -0,04 0,08
(EEK/EUR)
Income Statement – nine months
Consolidated, unaudited
2004 2003 2004 2003
9 months 9 months 9 months 9 months
EEK ‘000 EEK ‘000 EUR ‘000 EUR ‘000
Operating income
Net sales 104 726 105 643 6 693 6 752
Other income 3 259 1 158 208 74
Total operating income 107 985 106 801 6 901 6 826
Operating expenses
Change in inventories 772 5 504 49 352
Materials, raw materials and 44 984 42 392 2 875 2 709
services
Other operating expenses 22 766 23 328 1 455 1 491
Labour 33 947 40 945 2 170 2 617
Other expenses 1 553 1 660 99 106
Total operating expenses 104 022 113 829 6 648 7 275
Earnings before depreciation 3 963 -7 028 253 -449
Depreciation 5 719 5 611 365 359
Operating loss -1 756 -12 639 -112 -808
Financial income and expenses
Interest expenses -4 059 -4 017 -260 -257
Foreign exchange gain (loss) -120 24 -8 2
Other financial income and expenses -6 136 0 9
Total financial income and -4 185 -3 857 -268 -246
expenses
Net profit (loss) -5 941 -16 496 -380 -1 054
Earnings per share
Basic earnings per share(EEK/EUR) -3,13 -10,58 -0,20 -0,68
Diluted earnings per share(EEK/EUR)-3,13 -10,58 -0,20 -0,68
Cash Flow Statement
Consolidated, unaudited
30 Sept 30 Sept 30 Sept 30 Sept
2004 2003 2004 2003
9 months 9 months 9 months 9 months
EEK ‘000 EEK ‘000 EUR ‘000 EUR ‘000
Cash flow from operating activities
Net loss -5 941 -16 496 -380 -1 054
Adjustments:
Loss from long-term investments 0 -2 141 0 -137
Depreciation of fixed assets 5 719 5 611 365 359
Gain from sale of fixed assets -1 646 -29 -105 -2
Change in receivables and -9 329 0 -596 0
prepayments related to
business operations
Changes in inventories 4 742 -10 180 303 -651
Change in liabilities and -846 -7 341 -54 -469
prepayments related to
business operations
Accrued interest 4 059 4 017 260 257
Interest paid -3 341 -3 780 -213 -242
Unrealised foreign exchange 7 -80 0 -5
differences
Total cash flow from -6 576 -30 419 -420 -1 944
operating activities
Cash flow from investing activities
Sale of shares of subsidiaries 0 14 0 1
Acquisition of shares of 0 -218 0 -14
subsidiaries
Acquisition of tangible assets -2 380 -3 591 -152 -230
Sale of tangible assets 5 712 150 365 10
Repayments of loans granted 150 446 10 29
Interest received 39 48 2 3
Total cash flow from 3 521 -3 151 225 -201
investing activities
Cash flow from financing
activities
Loans received 18 700 54 000 1 195 3 451
Loan repayments -13 114 -39 165 -838 -2 503
Repayments of financial lease -754 -1 216 -48 -78
principal
Factoring paid -144 0 -9 0
Increase in long-term debts 0 27 0 2
to suppliers
Overdraft received 14 622 23 120 934 1 478
Overdraft paid -14 367 -19 460 -918 -1 244
Proceeds of share issues 0 15 181 0 970
Total cash flow from 4 943 32 487 316 2 076
financing activities
Increase/ – decrease in cash 1 888 -1 083 121 -69
and cash equivalents
Cash and cash equivalents at 2 916 4 485 186 286
beginning of period
Cash and cash equivalents at 4 804 3 402 307 217
end of period
Toomas Leis
Chairman
+372 6 710 700
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