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CEVA's revenue increases in first quarter 2017

Published 03 May 2017

CEVA Holdings, one of the world’s leading non‐asset based supply chain management companies, reported results for the first quarter of the year ended 31 March, 2017.

CEVA Holdings LLC - Results for the Quarter One ended 31 March 2017

  • Good growth with revenue up 5% YoY in constant currency, both in Freight Management and Contract Logistics
  • Continued profitability improvement: Adjusted EBITDA of $54 million, up $2 million in constant currency, despite volatile market conditions and comparative
  • Delivering cost savings through Operational Excellence Program
  • Operating cash flow improved by $13 million reflecting continued focus on cash
  • ANJI-CEVA joint venture renewed for 15 years
  • Refinancing of key 2018 maturities successfully completed

“2017 has begun positively, with volume, revenue and profit growth” said Xavier Urbain, CEO of CEVA. “Our top-line performance demonstrates the strength of our service offerings and solutions, of our relationships and the confidence customers place in us. We have recently achieved a number of important new business wins, notably in Contract Logistics, which we expect to have positive effects in the coming months.”

“Our Operational Excellence Program to simplify and standardize our processes is having a visible impact and is delivering significant cost savings. We are also making good progress in improving our key contracts and markets, in particular the US. The renewal of the ANJI-CEVA joint venture in China and recent refinancing transactions are equally strong endorsements of CEVA’s direction.  We are well on track for a stronger year.”

Freight Management

Freight Management volumes have once again shown strong growth: Air Freight was up 9% YoY and Ocean Freight was up 6% YoY, resulting in a revenue growth of 5% YoY in constant currency.

Net revenue margins were under pressure from transportation rate increases in line with the market, however we were able to maintain our EBITDA as those pressures were offset through productivity improvements and cost savings generated by our Operational Excellence Program.

Contract Logistics

Revenue in Contract Logistics was up 5% in constant currency in the first quarter, reflecting implementation of new business wins as well as growth in existing contracts.

Contract Logistics EBITDA increased $1m YoY in the first quarter in constant currency despite a strong comparative. This was driven by volume increases as well as efficiency improvements and cost savings, notably on some of our larger contracts.

Financial results

First Quarter gross revenues were $1.6 billion, up 5% in constant currency and up 2% in actual currency.

Adjusted EBITDA came in at $54 million, up $2 million in constant currency versus the prior year.

Operating cash flow in the first quarter improved $13 million YoY reflecting the continued focus on working capital and cash.

Source: Company Press Release