SOURCE: M.J. Maillis

M.J. Maillis

November 17, 2010 12:49 ET

M.J. Maillis Group: 3rd Quarter 2010 Financial Results (for the Period 01.01.2010 - 30.09.2010)

ATHENS, GREECE--(Marketwire - November 17, 2010) - The M.J. Maillis Group, a global leader in the field in secondary packaging listed on the Athens Exchange (ATHENS: MAIK), announces its results for the period from 1 January to 30 September 2010.

Highlights:

The Group's performance in the 3rd quarter of 2010 confirms the recent constant improvement compared with the results from the corresponding period in 2009. The key aspects of this performance were a significant increase in sales, improved gross profit margins and a positive EBITDA.

  • Sales during nine months of 2010 increased by 22.4% Vs. the corresponding nine months period in 2009, thereby confirming the Group's upward trend, which is a result of the partial economic recovery taking place on Global markets.

  • Total ΕΒΙΤDA amounted to EUR 4.53 million, an increase of 146.7% over 2009.

 

Key figures for Nine Months 2010:      
  3rd quarter 2010 3rd quarter 2009 Nine Months 2010 Nine Months 2009 Nine Months difference
Sales 63.713 53.851 192.523 157.264 22.4%
Gross Profit* 14.528 13.662 45.268 35.009 29.3%
Operating EBITDA** 1.428 398 4.786 -5,413 188.4%
EBITDA 283 -1,328 4.535 -9.705 146.7%
* Gross Profit is for management reporting purposes and takes no account of depreciation and amortization, grants/subsidies, foreign exchange differences and service costs.
**Operating EBITDA does not include non-recurring expenses, FX differences and restructuring costs.

Comparison of 3rd quarter performance 2009-2010

Maintaining the upward trend that began in late 2009, Group sales in the 3rd quarter of 2010 rose by 18.3% and gross profit by 6.3% compared with the 3rd quarter of the previous year. Earnings before interest, taxes and depreciation (EBITDA) was positive EUR 0.283 million Vs. a negative result of 2009 EUR -1.33 million.

Financial Performance:

Turnover for the M. J. Maillis Group during the nine months of 2010 reached EUR 192.5 million -- a 22.4% increase compared with 2009, which was the result of the gradual economic recovery that is taking place globally.

The 23.5% gross profit margin increased by 1.3 percentage points in comparison to the previous year. The upward trend was not in the same pace as the previous quarters due to the reduced availability of working capital that affected procurement of raw materials to levels that would satisfy the increased demand completely.

Excluding extraordinary income and expenditure principally arising from foreign exchange differences, provisions for stock depreciation, write downs of receivables as well as re-structuring expenditure, operating EBITDA for the nine month of 2010 amounted to EUR 4.84 million (compared with EUR -5.8 million in 2009).

Total EBITDA amounted to EUR 4.53 million (compared with EUR -9.705 million for 2009). The Group expects EBITDA to be affected negatively in the FY results of 2010 by non-recurring expenses reflecting the final debt restructuring agreement with the Group's creditors, expenses for the operation cost reduction plan and increased provisions of stock and receivables.

As a result of improved revenue and profitability losses before tax stood at EUR -17.0 million compared with a loss of EUR -29.55 million for the corresponding period of 2009. Losses after tax amounted to EUR -18.51 million compared with losses of EUR -28.49 million for the corresponding period of 2009.

For the last quarter we expect to adjust the net book value in order to reflect the new business model of the Group.

Restructuring:

Renegotiation of loan terms:

The Board of Directors of M.J.MAILLIS SA at its meeting on 06.10.2010 discussed and in principle approved the agreement that will include all restructuring issues of debt liabilities of the Maillis Group totalling approximately EUR 239.2 million, out of total outstanding Group loans amounting to approximately EUR 250 million, providing the necessary authorisations, for the finalization and signing.

The basic points are the following:

  • Capitalization of outstanding loans: For an amount of EUR 74.9 million with issuance of new common shares of the listed parent company to the Group's creditors.

  • For the re-financing of the remaining outstanding loans:

    • A syndicated loan of EUR 116.8 million

    • A bond loan, of EUR 50 million, with capitalizable (Pay-In-Kind) rate, convertible to new common shares of the listed parent company.

  • New working capital line: Bond Facility Agreement for an amount of EUR 16 million for the financing of the Group's growth, according to Law 3156/2003 and codified Law 2190/1920.

  • And for working capital needs issue a Bridge loan facility for an amount of EUR 8 million, according to Law 3156/2003 and codified Law 2190/1920, that will be repaid by the above new working capital line.

The Board of Directors of M.J.MAILLIS SA at its meeting on 09.11.2010 approved an additional condition concerning the debt restructuring that includes capitalization of EUR 74.9 million of debt in the share capital of the parent company, with which the banks will cover EUR 1.9 million additional shares in the place of the note holders. The Company will credit additional liabilities of EUR 0.5 million. M.J.MAILLIS SA expects signature of the agreement in the immediate future.

Outlook:

In the last quarter of 2010 and given the extent of its global presence, the Group expects to take greater advantage of the recovery in global economic activity. It also expects to benefit from the restructuring of its cost basis as well as its balance sheet following the agreement with its creditors.

The availability of working capital with the addition of the EUR 16 million working capital will improve the Group's negotiating potential for the procurement of raw materials as well as its productivity.

The operational restructuring of the Group continues in parallel having entered its second phase, it is expected to result in the further reduction of costs.

Corporate Profile of the M.J. Maillis Group

The M.J. Maillis Group is a leader in secondary packaging, providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group employs 1,540 people and maintains physical presence in 18 countries in Europe, North America and Asia, while its products are sold in more than 80 countries worldwide. The Group's customer base extends to the food and beverage, aluminium, steel, construction and timber and bailing industries. The Group is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestle, Coca Cola, P&G, Henkel, Pepsi, Mars, Lafarge, Alcoa, ArcelorMittal, Corus, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Stock Exchange under the ticker symbol "MAIK."

Contact Information

  • For more information please contact:

    Company Contact:
    Group's Investor Relations Department
    Tel. +30-210-6285-000
    E-mail investor.relations@maillis.gr

    Investor Relations Advisors
    Capital Link
    Athens
    Eftychia Yiagou
    Tel. +30-210-6109-800

    London
    Annie Evangeli
    Tel. +44-203-206-1320

    New York
    Matthew Abenante
    Tel. +1-212-661-7566
    E-mail: maillis@capitallink.com