13 November 2008.- Despite the difficulties of the current economic environment, GAM has demonstrated its capacity for growth for the twenty-first consecutive quarter. The machine rental sector is becoming stronger in the current context as the most ideal alternative to purchasing equipment. Within this context, GAM is positioning itself as leader in order to exploit the numerous opportunities that exist in the market.
Thus, GAM turnover in the first nine months of the year increased 30%, reaching 282.3 million euros.
This growth has been sustained by GAM's leadership in Spain and Portugal, the strong growth that the diversified businesses are registering (wind energy where GAM holds a unique leadership status, Rails, Green, Industrial, Energy, Events…etc.) and the international activity which represents 5.2% of the business and it will continue growing at significant rates as GAM’s position consolidates as a rental reference in the Eastern European markets (Romania, Poland and Bulgaria), Mexico and, soon, Brazil.
Accumulated EBITDA reached 120.9 million euros, which means growth of 29% over the January-September 2007 period. The EBITDA margin remained stable at 43%. To this regard, a few months ago GAM implemented a cost management plan that has strengthened the efficiencies identified by the Company and allows it to maintain margins.
Despite the adverse scenario, GAM's net profit rose 1.8% to 19.6 million euros in the first nine months of the year, up from the 19.2 million euros in the first nine months of 2007.
Millions of euros. 9M08 9M07 Diff. (%)
Turnover 282.3 217.1 30%
EBITDA 120.8 93.7 29%
EBITDA Margin(%) 43% 43% -
Net Result 19.6 19.2 1.8%
Debt: downward trend
Throughout the third quarter, GAM debt entered a downward trend which will continue in the next few periods. Given the fact that the average age of the GAM fleet is less than 3 years, the Company does not need to make any additional replacement or general investment in the next few years which translates into savings in CAPEX.
With the structure of the existing debt and the forecasted activity, the Company does not require any type of additional financing.
GAM maintains a treasury position and available cash resources at a total amount of 97 million euros, which means it is not necessary to seek new sources of liquidity.
GAM is the leading company in the Iberian machine rental market- a very fragmented sector and in which GAM is a global and integrated operator thanks to its extensive network of offices. The company already has some one hundred offices throughout Spain and Portugal and a fleet of more than 70,000 machines made by the best manufacturers on the market. This equipment includes electrogen groups, platforms and cranes for the assembly and maintenance of wind parks, industrial fork-lifts, machines with diploris for roads, heavy and compacting machinery, transport vehicles, equipment for events, garden and road maintenance and cleaning, etc. GAM is also present in the Romanian, Polish, Bulgarian and Mexican markets. It will soon begin activities in Brazil.
Covadonga Coto
GAM
Director, Corporate Development
ccoto@gamalquiler.com
Tel. (+34) 985 73 22 73
Ignacio Cadahía
GAM
Investor Relations
icadahia@gamalquiler.com
Tel. (+34) 985 73 22 73
Gonzalo Torres / José Luis González
Gavin Anderson & Co.
gtorres@gavinanderson.es
Tel. (+34) 91 702 71 70
(+34) 610 275 845 |
