CHANGÉ, France--(BUSINESS WIRE)--Regulatory News:
Revenue: +10% to €402.1 M
Group net income:
+10% to €27.4 M
Robust business growth: Revenue up 10.0% to €402.1 million
- Solid waste treatment and recovery markets
- Sales momentum and penetration of new markets
Solid operating performance and results
- Good improvement in EBITDA: +5.0% to €101.4 M, i.e. 25.2% of revenues
- COI up 5.5% to €66.9 M, i.e. 16.6% of revenues
- Group net income up 10.0% to €27.4 M, i.e. 6.8% of revenues (excl. IFRS 3 revised,
Group net income would have risen 23% to €30.5 M, i.e. 7.6% of revenue)
Fast deleveraging and reinforced balance sheet
- Improved FCF and strong cash generation
- Further develeraging: net debt/EBITDA of 1.91
- Dividend maintained at €1.30 per share, i.e. a payout rate of 41% of EPS
Positive outlook for 2011
- Revenue up by about 7% 1
- COI of over €70 million
- CAPEX of about €50 million 1
Hime-Saur:
- Growth in all activities: Revenue up 2.6% to €1,557.0 M
- Another gain in EBITDA: +6.4% to €187.0 M
- Net loss reduced to €(58.1) million vs. €(69.2) million
Commenting on these results, Joël Séché expressed satisfaction with the sales and operating performances achieved in 2010: "Séché Environnement boasted solid results in 2010, showing a significant improvement on 2009, a year in which our business nevertheless proved its resilience and our margins were driven to very high levels.
In 2010, all of our business lines returned to a strong growth track, posting extensive commercial success which solidified our position as a highly innovative leader in environmental management for local authorities and industrial clients. Boosted by its operating performance, and despite sizeable one-off items, Séché Environnement's Group net income once again rose sharply in 2010, in line with its activity.
In 2011, Séché Environnement will continue to expand by drawing on the solidity of its regulated markets, the development of its recovery businesses and its commercial creativity to offer local authorities and industrial clients more high value-added environmental and sustainable development services."
Robust operating performance, offsetting significant one-off expenses (€7.7 M)
With consolidated revenues up 10.0% to €402.1 million over the fiscal year, Séché Environnement (Paris:SCHP) saw another rise in its operating income over 2010:
- EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) totaled €101.4 million, reflecting a 5.0% increase on 2009, i.e. 25.2% of revenue. This increase can mainly be attributed to the contribution of organic growth, offsetting the persistently negative mix effects (particularly in Haz. Waste) and a one-off tax expense of €1.3 million;
-
COI (Current Operating Income) gained 5.5% to €66.9 million, reaching
16.6% of revenue. COI posted a slightly stronger improvement than
EBITDA, on the back of good CAPEX control, and taking account of a
one-off expense related to the full provisioning of operating disputes
for €1.4 million.
Excluding these one-off expense items, which had a total negative impact of €2.7 million, COI would have been €69.6 million and current operating profitability 17.3% of revenue, a high level identical to that achieved in 2009.
- Operating income dipped slightly on 2009 to €60.4 million (versus €63.5 million in 2009), due primarily to the application of the IFRS 3 (revised), reducing it by €5 million (non-cash impact).
Sharp increase in net income: +10.0%, in line with the rise in revenue
Financial income climbed by a substantial €6.9 million versus an increase of €2.5 million in 2009. This performance reflects both the decline in the cost of financial debt and the Group's continued fast deleveraging efforts. In 2010, the Group received a positive impact of €1.2 million from the capitalization of interest accrued and not paid on Hime convertible bonds.
After corporate tax (€21.2 million versus €18.2 million in 2009, i.e. a nominal corporate tax rate of 31.5%, vs. 27.6% in 2009), net income from consolidated companies came out at €46.1 million, i.e. 11.5% of revenue.
The share of affiliated companies (€-19.2 million) showed a slight improvement, thanks in large part to the lowering of Hime's losses, bringing Group net income to €27.4 million, up 10.0% on 2009.
Excluding the application of IFRS 3 as revised, Group net income would have been €30.5 million, i.e. +23% compared to last year.
Fast deleveraging and reinforced balance sheet
Operating cash flow picked up 40% to €66.0 million, primarily thanks to improved cash flow (€101.5 million versus €94.6 million in 2009), a positive change in WCR, lower taxes paid and solid management of net capex (booked at €34 million, i.e. 8.4% of revenue).
Consolidated net debt fell steeply to €195 million, i.e. 0.53x shareholders' equity and 1.91x EBITDA (vs. €245 million in 2009, i.e. 0.68x shareholders' equity and 2.53x EBITDA).
Positive outlook for 2011
Séché Environnement is expanding on the high value-added regulated waste treatment and recovery markets.
In 2011, these markets will continue to be driven by European and national regulations, aimed at stepping up the obligations of waste producers in terms of treatment and recovery. They will, however, enjoy a more normalized economic environment on the back of the recovery which took place in 2010.
Growth in the Hazardous Waste division will draw on the solidity of the Group's niche markets. Vis-à-vis its industrial client base, Séché Environnement will continue to build up its offer of outsourced waste management and environmental management services.
In Non Hazardous Waste, the Group will focus on developing forward-looking businesses associated with waste recovery and green energy generation (biogas recovery, production of alternative fuels, solar energy, etc.).
Séché Environnement is confident that 2011 will be a strong year for growth.
The Group has set a business growth target of about 7%, raising
consolidated revenue to nearly €430 million.
The new contracts
won in 2010 will go a long way towards reaching this target (Strasbourg
incinerator, decontamination of La Gabarre site in Guadeloupe, etc.).
This
target does not take into account the investments made for the
Strasbourg contract that will be rebilled to the city in accordance with
IFRIC 12.
This level of business should lead Current Operating Income (COI) to another improvement, reaching over €70 million in 2011.
Séché Environnement will continue to focus the expansion of its businesses on its new markets and has earmarked capex of about €50 million in 2011, part of which will go to renewable energies.
The Groups should be able to consolidate its financial solidity thanks to the robustness of its activity and operating income.
Key figures
Audited consolidated figures in €m under IFRS
| As at December 31 | 2009 | 2010 |
Change
2010/2009 |
|||
| Revenues | 365.7 | 402.1 | +10.0% | |||
| EBITDA | 96.5 | 101.4 | +5.0% | |||
| Current operating income | 63.4 | 66.9 | +5.5% | |||
| Net income from consolidated companies | 47.8 | 46.1 | -3.5% | |||
| Group net income | 24.9 | 27.4 | +10.0% |
Financial statements prepared by the Board of Directors’ meeting of February 18, 2011
Hime/Saur
Further growth in operating profitability
EBITDA up 6.4% to €187 million (12.0% of revenues)
Hime’s consolidated results for fiscal year 2010 are characterized by:
- Growth in activity, driven by International business: consolidated revenue rose by 2.6% to €1,557.0 million (versus €1,516.7 million in 2009).
- Another EBITDA improvement (+6.4%), to €187.0 million, i.e. 12.0% of revenues (vs. 11.6% in 2009), thanks to the margin turnaround in the International division and the rise in secondary commodities prices in Environmental Services.
- COI up 12.9% to €65.1 million, impacted by a provision of €15.3 million for a tax-related dispute;
- Financial income reigned in at €(135.2) million versus €(137.5) million in 2009, with the reduced cost of net debt partially offsetting the higher income expense on the convertibles;
At December 31, 2010, Hime's net income stood at €(58.1) million versus a net loss of €(69.2) million in 2009.
Key figures
Consolidated figures in €m under IFRS
| As at December 31 | 2009 | 2010 | 2009/2008 change | |||
| Revenues | 1,516.9 | 1,557.0 | +2.6% | |||
| EBITDA | 175.8 | 187.0 | +6.4% | |||
| Current operating income | 57.7 | 65.1 | +12.9% | |||
| Financial income | (137.5) | (135.2) | - | |||
| Tax income | 9.1 | 15.1 | +65.9% | |||
| Group consolidated net income | (69.2) | (58.1) | - |
The results presentations will be available
on March 1,
2011 (11.30 a.m. Paris time) at:
http://www.groupe-seche.com/majic/pageServer/1b0100000m/fr/Presentations-SFAF.html
APPENDICES
Consolidated income statement as at December 31,
2010
Consolidated balance sheet as at December 31, 2010
Consolidated
statement of cash flows at December 31, 2010
Calendar:
Publication of consolidated revenues as at
March 31, 2011 on April 26, 2011 (after market
close)
About Séché Environnement
Séché Environnement is one of the leading French players in the treatment and storage of all types of non-radioactive industrial and household waste. Its facilities enable it to offer high-quality global solutions that incorporate all environmental requirements.
It is the leading independent operator in the country with a unique positioning at the hub of the high value-added waste recovery, treatment and storage markets.
The Group offers integrated specialized services:
- treatment (by incineration, physical-chemical treatment and solvent regeneration) and processing for energy recovery of hazardous and non-hazardous waste;
- storage of final residue comprised of hazardous or non-hazardous waste.
In April 2007, Séché Environnement acquired a 33% stake in Saur Group, the No. 3 player in the Water and Environmental Services sector in France.
Séché Environnement has been listed on Eurolist by Euronext since November 27, 1997.
- Eurolist - Compartment B – ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters: CCHE.PA)
Important notice
This press release may contain information of a provisional nature. This information represents either trends or targets at the date of the press release's publication and may not be considered as results forecasts or as any other type of performance indicators. This information is by nature subject to risks and uncertainties which are difficult to foresee and are usually beyond the Company's control, which may imply that expected results and developments differ significantly from announced trends and targets. These risks notably include those described in the Company's Registration Document, available on its website (www.groupe-seche.com). This information therefore does not reflect the Company's future performances, which may differ considerably, and no guarantee can be given as to the achievement of these forward-looking figures. The Company makes no commitment on the updating of this information. More detailed information on the Company can be obtained on its website (www.groupe-seche.com), in the Regulated Information section. This press release represents does not constitute an offer of shares nor a solicitation in view of an offer of shares in any country whatsoever, including the United States. Distribution of this press release may be subject to the laws and regulations in force in France or abroad. Persons in possession of this press release must be aware of these restrictions and observe them.
APPENDICES
Consolidated income statement as at December 31, 2010
| In EURO thousand | Actual 12/31/09 | Actual 12/31/10 | ||||||
| Revenue | 365 666 | 402 122 | ||||||
| EBITDA | 96 525 | 26,4% | 101 397 | 25,2% | ||||
| Current Operating Income (COI) | 63 406 | 17,3% | 66 887 | 16,6% | ||||
| Operating Income | 63 472 | 17,4% | 60 431 | 15,0% | ||||
| Financial Income | 2 500 | 0,7% | 6 892 | 1,7% | ||||
| Corporate Tax | 18 210 | 5,0% | 21 226 | 5,3% | ||||
| Net Income for Consolidated Companies | 47 762 | 13,1% | 46 097 | 11,5% | ||||
| Share of Affiliated Companies | (22 902) | 6,3% | (19 201) | 4,8% | ||||
| Minority Interests | 8 | 0,0% | (470) | 0,1% | ||||
| NET INCOME (share of the Group) | 24 851 | 6,8% | 27 366 | 6,8% | ||||
Consolidated balance sheet as at December 31, 2010
| In EURO thousand | 12/31/09 | 12/31/10 | ||
| NON CURRENT ASSETS | 591 928 | 575 268 | ||
| CURRENT ASSETS (excluding cash and assimilated) | 136 406 | 133 144 | ||
| Cash and assimilated | 19 108 | 43 431 | ||
| TOTAL ASSETS | 747 441 | 751 843 | ||
| SHAREHOLDER’S EQUITY | 359 685 | 369 268 | ||
| FINANCIAL DEBT | 264 346 | 238 363 | ||
| HEDGING INSTRUMENTS | 5 251 | 2 593 | ||
| PROVISIONS | 17 235 | 20 838 | ||
| OTHER LIABILITIES | 100 924 | 120 321 | ||
| TOTAL LIABILITIES | 747 441 | 751 843 |
Consolidated statement of cash flows at December 31, 2010
| In EURO thousand | 12/31/09 | 12/31/10 | ||
| CASH FLOW before corporate tax and financial expenses | 94 583 | 101 536 | ||
| CHANGE IN WCR | -4 423 | 3 202 | ||
| Paid taxes | -18 051 | -11 731 | ||
| NET CASH from Operations | 72 109 | 93 007 | ||
| Capex paid | -30 757 | -30 298 | ||
| Asset disposals | 5 560 | 7 784 | ||
| Net cash from acquisitions/disposals | 96 | -56 | ||
| NET CASH from Investments | -25 100 | -22 571 | ||
| Dividends | -11 130 | -11 151 | ||
| Change in bank loans | -4 585 | -26 812 | ||
| Interest expenses | -10 726 | -8 544 | ||
| Other cash | 0 | 230 | ||
| NET CASH from Financings | -26 441 | -46 507 | ||
| CHANGE IN CASH | 20 568 | 23 930 | ||
| Change in Forex | -102 | 67 | ||
| Initial Cash Position | -1 832 | 18 622 | ||
| Final Cash Position | 18 622 | 42 849 |
1 Excluding investments related to the Strasbourg contract