Agility announces financial results for Q3 2012

"The third quarter demonstrated that our efforts to transform the company into a more lean and efficient organization are paying off," said Tarek Sultan, Chairman and Managing Director of Agility. "Even during these tough economic times, we managed to grow revenue and net profit. The company will continue to stay focused and disciplined in order to complete the transformation that we will leverage for future growth."

Global Integrated Logistics (GIL)

Revenue in Agility's core commercial logistics business, Global Integrated Logistics (GIL), increased by 4% in Q3 2012 relative to the same quarter last year.

"Our industry is inextricably linked to world trade flows, therefore the global economy remains the key driver behind GIL's performance," Sultan said. "The continuing Eurozone crisis and slow recovery in the Americas, as well as a relative slowdown in China, impacts our business. That said, we continue to make strong gains in emerging markets more generally, and are seeing continued progress with our efforts to contain costs, achieve productivity gains through technological transformation, and realize profitable sales growth."

Infrastructure Performance

Agility's Infrastructure group, a portfolio of investments in niche markets with presence in the Middle East, Asia, and Africa, continues to perform strongly.

Agility's Infrastructure companies contributed KD66.9m to total revenue in Q3 2012 compared with KD42.7m during the same period in 2011.

Included in Agility's results for the first time is the new acquisition of UPAC, a transaction completed during Q3 2012. UPAC manages real estate at Kuwait International Airport and provides ground handling, maintenance and facilities maintenance services for the private terminal at the airport. UPAC also provides facilities management services at a leading shopping mall in Kuwait.

Agility's Infrastructure entities are expected to continue to show healthy growth in the coming years.

Recapping Financial Performance

· Net profit was KD9.75m for Q3 2012, vs. KD8.05m for Q3 2011. EPS was 9.81 fils, vs. 8.04 fils in Q3 2011.

· EBITDA for Q3 2012 was KD21.6m. Excluding one-off impacts, EBITDA grew by 65% from the same period last year.

· Staff and administrative costs decreased 10% to KD71.5m in Q3 2012 from KD79.8m in Q3 2011.

· Agility's revenue in Q3 2012 stands at KD363.4m, a 10% increase from Q3 2011.

· Agility GIL revenue in Q3 2012 was KD296.5m, a 4% increase from Q3 2011.

· Agility's Infrastructure group contributed KD66.9m to total revenue in Q3 2012, a 57% increase from Q3 2011.

· Operating cash flow was KD21m for the quarter.

Forward View

"Our reinvigorated sales focus, strong presence in growing emerging markets, and track record of outstanding performance in complex and challenging environments, are strong contributors to the positive momentum we have seen in 2012," Sultan said. "We have worked hard to restructure the business over the last two years, and are beginning to reap the benefits."

"Although the global economic outlook is likely to continue to be uncertain for the rest of the year, I am confident Agility is moving in the right general direction. We have shown our ability to adjust, adapt, reinvent, and address problem areas head on, living up to our name Agility," Sultan concluded.