Mainfreight USA - Investor Solutions

Mainfreight USA is a division of Mainfreight Inc.; publically traded on the New Zealand Stock Exchange (NZX) as MFT. For more information, please visit our investor center.

MAINFREIGHT LIMITED

Financial result for the six months ended 30 September 2012 (Unaudited) 

The Mainfreight Group is pleased to report a net surplus after taxation of $27.74 million for the first six months of the 2013 financial year; a decrease of 4.6% on the previous year’s result of  $29.08 million (excluding non-recurring items, the decrease is 6.3%).

EBITDA performance declined 5.1% to $61.06 million, down $3.31 million from the previous year’s record for the same period of $64.37 million (excluding foreign exchange effects, this represents a decrease of 3.1%). 

Total revenue (sales) increased 4.9% or $43.47 million to $936.37 million (excluding foreign exchange effects, this represents an increase of 6.9%).

For comparison purposes, results for the period excluding the European division saw sales revenue improve 9.8% to $742.49 million, and EBITDA improve 15.0% to $52.73 million, an increase of $6.87 million over the same period last year.  These increases highlight the continuing strength across the balance of the Mainfreight global network, and of course reflect the poor trading performance from our European operations.

The trading performance from Europe is indicative of ongoing economic weakness in the region, coupled with the European summer holiday period.  The loss of warehousing customers post-acquisition, as previously mentioned, has also contributed.

Trading in New Zealand, Australia, Asia and the United States has continued the trends of the first quarter, with revenue and EBITDA showing positive growth and reflecting Mainfreight’s improved performance across all four regions.

Similarly, the third quarter has started strongly and includes better weekly trading results from Europe compared to the same period last year.

United States of America (US$) 

Revenues in the USA have improved 10.2% to US$182.04 million and EBITDA is up 18.7% to US$8.12 million, with the primary contribution coming from Mainfreight USA.

Growth in the Mainfreight operations has been dominated by international Air & Ocean sales growth and gross margin improvement.  Domestic sales, while ahead, are up only marginally by 2.4%. Revenues within this division are now nearly equally split between Air & Ocean and Domestic freight.  Our first branch in Canada is now operational in Toronto, and our Mexico City branch is expected to open in early December.

Dividend

The Directors of Mainfreight have approved an interim dividend of 12.0 cents per share (remaining at the same level as that declared for the 2012 year).  

This dividend will be fully imputed and will be paid on 14 December 2012, with books closing on 7 December 2012.  A supplementary dividend will be paid to non-resident shareholders.

Appointment to Board of Directors

We are pleased to announce the appointment of Simon Cotter as a Director of Mainfreight Limited.  

Simon (45) has had a long association with Mainfreight as a director of Grant Samuel & Associates and has personally assisted in Mainfreight’s mergers and acquisitions activity since 2003.  In addition to a comprehensive understanding of the company and the industry, Simon brings strong financial and analytical skills which will be of significant value and will complement the mix of skills and experience of the existing board members.

Simon’s appointment will take place effective 1 January 2013.  He will stand for election at the Company’s Annual Meeting of Shareholders on 31 July 2013.

Outlook

Whilst the half-year result has been negatively impacted by our poor European contribution, the performance of all our other divisions remains satisfactory and all continue to find improved sales growth and profitability.

We are confident of maintaining this growth and profitability, and expect to see improving returns from our European interests.

As previously indicated to the market, Mainfreight has moved to half-yearly reporting.  Our full year results to 31 March 2013 will be reported on 29 May 2013.

For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. 

NZX 2012 Full Year Release

Download the full 2012 Mainfreight Annual Report.

Mainfreight Results for 12 Months to March 2012
United States of America (US$)

Our two USA business units have provided modest results for this past year. Combined revenues increased 7.8% to US$332.30 million and EBITDA improved 42.9% to US$15.32 million, predominately as a result of improving performance within Mainfreight.

Mainfreight USA has lifted its operational and service levels with a corresponding improvement in financial performance. Revenue increased 14.2% to US$198.94 million and EBITDA improved 333.2% to US$6.14 million from US$1.42 million.

During the year we took the opportunity to split the Mainfreight US business into two profit centres, Domestic and International – as we do elsewhere in the world. This has allowed us to bring more focus to each sector, placing responsibility and resources where needed by creating specialist divisions. Financial results for these sectors will be reported separately in future.

Domestic freight sales will concentrate on the FMCG sector and, while we see volumes increasing, we are operating in a very large market and have much to do to realise the full potential available.

The international division is finding momentum and has a significant focus on growing the trade lanes between the USA and our Asian and European operations. We expect to open International branches in Mexico City, Mexico and Toronto, Canada later this year.

Full Mainfreight Results for 12 Months to March 2012

Download the full 2012 Mainfreight Annual Report.

For further information, please contact Don Braid, Group Managing Director, by telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com