This is seven percent higher than the US$490.9 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$225.7 million, an increase of five percent over the US$215.2 million generated in 2011; and net income attributable to equity holders of US$105.8 million, up four percent over the US$101.4 million earned in the same period last year. Recurring net income attributable to equity holders increased 11 percent for the first nine months of 2012 after adjusting the previous period’s net income attributable to equity holders to US$95.3 million from the one-time net gain of US$6.1 million from the sale of ICTSI’s 16.79 percent ownership stake in Portek International Limited and a one-time equity tax charge imposed by the Colombian tax authorities on all legal entities and individuals in Colombia.
For the quarter ending 30 September 2012, revenue from port operations was five percent higher at US$179.7 million, from US$171.8 million in 2011. EBITDA increased seven percent, from US$71.9 million to US$76.6 million. Net income attributable to equity holders declined 14 percent, from US$41.4 million to US$35.5 million. Net income attributable to equity holders in the third quarter of 2011 included a non-recurring income related to the sale of ICTSI’s 16.79 percent ownership stake in Portek International Limited. Adjusting the net income in the third quarter of 2011 lower to US$33.0 million after removing the effect of the one-time gain of US$8.4 million, recurring net income attributable to equity holders for the third quarter 2012 would have increased eight percent.
ICTSI handled consolidated volume of 4,083,842 twenty-foot equivalent units (TEU) in the first nine months of 2012, six percent more than the 3,844,040 TEUs handled in the same period in 2011. The increase in volume was mainly due to the growth in international and domestic trade, new shipping line customers and routes, continuous containerization of breakbulk cargoes and the full period contribution of the Company’s new ports in Portland, Oregon, USA and Rijeka, Croatia as well as the consolidation of the volume generated by the Company’s new container terminal operations in Jakarta, Indonesia. Excluding the volume from the three recent port acquisitions, organic volume growth was four percent. Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74 percent of the Group’s consolidated volume for the first nine months of 2012, increased seven percent, from 2,845,894 TEUs to 3,039,898 TEUs.
For the quarter ending 30 September 2012, total TEUs handled was two percent higher at 1,386,107 TEUs compared to 1,360,063 TEUs in 2011. The increase in volume was mainly due to the new port in Jakarta, Indonesia, which contributed 40,343 TEUs. Excluding the throughput from the newly acquired port, third quarter 2012 volume was slightly lower by one percent compared to 2011.
Gross revenues from port operations for the first nine months of 2012 increased seven percent to US$524.7 million, from the US$490.9 million reported in the same period in 2011. The increase in revenues for the first nine months of 2012 was mainly due to the volume growth across all geographic segments of the Group, higher storage revenues and ancillary services, favorable volume mix, and the inclusion of the new terminals in Portland, Oregon, USA, Rijeka, Croatia, Katupalli, India and Jakarta, Indonesia. Excluding the revenues from the newly acquired terminals, organic revenue growth was five percent. Revenue contribution from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 84 percent of the Group’s consolidated revenues for the first nine months of 2012, increased six percent, from US$418.9 million to US$442.6 million.
For the quarter ending 30 September 2012, revenues were US$179.7 million, five percent greater than the US$171.8 million generated in 2011 due to slightly higher volume, tariff rate increases in certain key terminals, favorable volume mix, new shipping line customers, higher revenues from storage and ancillary services, and the additional contribution of PT OJA and ICTSI India, the Company’s newly acquired terminal operations in Jakarta, Indonesia and Katupalli, India, respectively. Excluding the revenues from PT OJA and ICTSI India, consolidated gross revenues would have increased three percent in the third quarter of 2012.
Consolidated cash operating expenses for the first nine months in 2012 grew eight percent to US$225.5 million, from US$209.3 million in the same period in 2011. The increase was mainly driven by higher volume-related expenses (i.e. on-call labor, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher concession fees in the Company’s operations in Recife, Brazil, the full period consolidation of the expenses of the terminals in Portland, Oregon and Rijeka, Croatia and the inclusion of the expenses of the new terminals in Jakarta, Indonesia and Kattupalli, India. Excluding the cash operating expenses of the new terminals, total cash operating expenses would have increased by only five percent.
Consolidated EBITDA for the first nine months of 2012 increased five percent to US$225.7 million, from US$215.2 million in 2011 mainly due to the volume growth across all geographic segments of the Group, stronger revenues from storage and ancillary services and tariff increases in selected terminals. Consolidated EBITDA margin, however, slightly declined in the first three quarter of 2012 by one percentage point to 43 percent from 44 percent in the same period in 2011 due to higher concession fees in the operations in Recife, Brazil, and the drag from the new port in Portland, Oregon.
Consolidated financing charges and other expenses for the first nine months of 2012 was 41 percent lower at US$21.6 million compared to the previous year¹s US$36.8 million. The lower consolidated financing charges and other expenses was mainly due to the higher capitalized borrowing cost registered in the first nine months of 2012 as the Company continued to expand existing terminals in Manila, Brazil and Ecuador as well as develop new projects in Mexico and Argentina.
ICTSI’s capital expenditure in the first nine months of 2012 amounted to US$319 million against a full year capital expenditure budget of US$550 million. The capital expenditure for the period was mainly attributed to the construction of a new berth, additional yard space and acquisition of major cargo handling equipment in the Group’s container terminal in Manila, capacity expansions in its operations in Ecuador and Brazil, and development of new container terminals in Argentina and Mexico.
ICTSI is a leading port management company involved in the operations and development of 25 marine terminals and port projects in 18 countries worldwide. The company was among the first international terminal operators to take its expertise overseas.