| 07/08/31 . |
GAM sets its EBITDA during first half up to €53.59 million, a 73.4% increase compared to same period last year.. |
• Results confirmed not only Company objectives but analyst expectations. These objectives were reviewed by the Company upward after Vilatel and Viasolo acquisitions made during second quarter of the year.
• Net sales increased by 51% up to €127.305 million mainly due to internal growth.
• Net profit reached €14.17 million, representing an increase of 138.1% compared to first half 2006.
•Margins improved despite the strong growth: EBITDA margin over sales increased from 36.7% to 42.1%
GAM, the Spanish equipment rental leading Company in Spain and Portugal, keeps its trend of constant growth since it was born in 2003 as confirmed by 2007 first half results.
Net sales during this first half of the year reached €127.31 million, which represents 51% growth compared to last year’s figures for the same period. From April to June, that is second quarter of 2007, net sales reached €70.9 million, 55% increased compared to second quarter of 2006.
Sales increase has been determined by organic growth, driven by an intense demand of equipment. Despite the fact the two acquisitions made by GAM occurred during first half of the year (Vilatel and Viasolo, a Portuguese company, for €114 million and €8 million respectively) solely last month results from those two entities have been consolidated in the accounts for 2007 first half results.
GAM EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased 73.4% during first half, and reached €53.59 million (54.4% excluding transactional fees incurred by the Company in 2006). New acquisitions contributed by 18% (22% excluding mentioned transactional fees). Should consolidation of the accounts from the two acquisitions (Vilatel and Viasolo) would have been done from first of January 2007, Company total net sales would have reached €157.685 million, with an EBITDA of €73.160 million (a 45.8% margin over sales).
Net profit for the first half of 2007 reached €14.17 million, which represents a growth of 138.1% compared to same period in 2006 (68.1% excluding 2006 transactional fees).
Just like last periods, the growth experimented by GAM has not jeopardized margins. As such, EBITDA margin over net sales reached 42.1% compared to 36.7% for the same period in 2006. (41.2% if results for 2006 were to be adjusted) Margin over net profit amounted 11.1% which represents, percentage wise, four points above same period of 2006 (more than one point if results for 2006 were to be adjusted).
Up to date GAM has 88 depots, versus 68 at the end of the first quarter of present year. The two acquisitions, Vilatel and Viasolo have contributed with 14 and 5 each, which have allowed expanding the presence of GAM in both the Mediterranean arena and the Portuguese market.
| Thousand of euros |
1S07 |
1S06 |
DIF (%) |
| Net Sales |
127.305 |
84.285 |
51,0% |
| EBITDA |
53.590 |
30.901 |
73,4% |
| Adjusted EBITDA * |
53.590 |
34.709 |
54,4% |
| EBITDA margin (%) |
42,1% |
36,7% |
|
| Adjusted EBITDA margin (%)* |
42,1% |
41,2% |
|
| Net result |
14.170 |
5.952 |
138,1% |
| Adjusted Net result* |
14.170 |
8.427 |
68,1% |
| Net margin result (%) |
11,1% |
10,0% |
|
| Adjusted Net result margin (%)* |
11,1% |
7,1% |
|
* 2006 figures excluding transaction costs accounted for during first half of 2006
ESTIMATES
Results confirmed Company sales objectives that were reviewed upward after the two acquisitions made in June. In that sense, sales are expected to exceed €300 million for the year. Margins are expected to be maintained in similar ratios as of first half 2007.
On the other hand, the Company has recently launched a convertible bond for an amount of €125 million. The operation that was successfully concluded last August 20th reinforces once more the growth and acquisition strategies established by the Company since its creation.
Among Company objectives for the coming periods it is to mention the focus on diversification with specialised Divisions as GAM Industrial, GAM Verde, GAM Estructuras and GAM Energia. In line with the strategy, GAM has recently launched a new business, known as Servigam in order to rent all type of equipment to the individuals and mid size professionals, in an effort to extent the rental option of equipment to end consumers.
GAM leads Spain’s highly fragmented equipment rental market, being a global and integrated operator thanks to its wide capillarity. After recent acquisitions of Vilatel and Viasolo, the Company has a total number of 88 in Spain and Portugal and a fleet of nearly 56.000 pieces of equipment, produced by the best manufacturers in the market. Among its fleet there are dumpers, power equipment, air equipment, aerial platforms, mobile cranes, transport vehicles, compaction equipment, auxiliary equipment, light equipment, etc.
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