Anek Lines SA announces the company's financial highlights for the period ending March 31st 2008:
1. FINANCIAL RESULTS REVIEW
Turnover
Turnover amounted to euro 40.3 million, compared to euro 44.0 million in the first quarter of 2007, decreased by 8.3%. This decrease for the 1st quarter of 2008 is due to the fact that the Company's vessels performed less trips by 10% compared to the corresponding period of 2007. The factors are:
Unusual bad weather conditions that resulted in more prohibited departures. 2007 Easter was at the beginning of April and this contributed to increased passenger volume after the middle of March of 2007 in comparison to March of 2008.
Less actual itineraries in Adriatic routes.
Cancellation of the established cruise to Venice.
Respectively, Group turnover for the 1st quarter of 2008 stood at euro 46.6 million against euro 49.8 million in the corresponding period of 2007, decreased by 6.3%.
Cost of sales
Cost of sales before depreciation for the 1st quarter of 2008, amounted to euro 37.6 million against euro 32.8 million, in the corresponding period increased by euro 4.8 million or 14.6%. This rise, which is mainly due to the remarkably high increase in fuel prices, that remain the ma-jor cost factor for the shipping business sector, affected significantly the financial results. In ab-solute figures the fuel cost increased by euro 5.0 million for the Company and euro 6.3 million for the Group. The fuel cost was 45% of the turnover for the 1st quarter of 2008, against 29% in the 1st quarter of the previous period. The Company considers ways to minimize the effect of in-creased fuel cost to the financial results. Additionally, the increase of repairs and maintenance costs amounted to euro 4.3 million versus euro 3.7 million, affected the cost of sales. The other cost factors remained at the similar levels to the comparable period.
EBITDA
The aforementioned factors contributed to a negative EBITDA of euro 4.2 million against profits of euro 4.9 million in the corresponding period of 2007. It is of high importance to mention that, due to sharp seasonality in the sector of passenger ferry shipping, the 1st quarter of the fiscal year is usually characterized by low traffic volume and lack of profitability.
Respectively, Group EBITDA for the 1st quarter of 2008 stood at euro 5.2 million losses compared to profit euro 5.5 million in the first quarter of 2007.
Results after taxes
Losses after taxes amounted to euro 10.4 million versus losses euro 2.7 million for the 1st quarter of 2007.
Finally, the Group losses after taxes and minority interest amounted to euro 11.0 million against losses of euro 2.2 million.
2. RECENT DEVELOPMENTS
New routes
F/B PREVELIS started to serve the route Piraeus - Paros - Naxos - Ios - Santorini from April 11th with favorable results.
F/B Elyros
The newly acquired vessel is in the final stages of refurbishment and is expected to reinforce ANEK's fleet from the later of June in Chania route. The capitalised expenditure for the 1st quarter concerning the Elyros reconstruction stood at euro 4.5 million.
Loan restructuring
During the 1st quarter of 2008 the procedure of company's long term loans restructuring completed successfully and this resulted in more favorable repayment terms and significant reduction of financing cost.
Dividends
On 18th May, 2008, the Annual General Meeting of Shareholders approved the distribution of profits and payment of dividend for the fiscal year 2007 amounting to euro 8.1 million or euro 0.05 per share.
Chania, May 27 2008