CEVA Logistics AG (“CEVA” or the “Group”), one of the world’s leading asset-light third-party logistics companies, announced today preliminary results for the second quarter 2018 in the context of its ongoing refinancing. These preliminary results are based on internal management accounts and reflect CEVA’s preliminary expectations for its results for the period. The preliminary results have not been reviewed or audited by CEVA’s independent auditor.
Our business has continued to perform well in the second quarter ended 30 June 2018.
We expect revenue growth of approximately 7.3% versus the prior year comparable period for the Group, with revenue increasing approximately 5.1% in constant currency. Freight Management revenue growth is estimated at approximately 5.4% while revenue growth in Contract Logistics has accelerated to approximately 4.7%, both in constant currency. Major industry sectors, including automotive, continue to exhibit good growth.
We anticipate Adjusted EBITDA1 for the second quarter to be approximately $77 million, an increase of approximately $7 million over the prior year comparable period. This represents an EBITDA margin2 of approximately 3.6%, up approximately 30 bps year on year in constant currency. We have made progress in our productivity, cost reduction and other margin improvement initiatives.
For the first six months of 2018, Adjusted EBITDA is expected to be approximately $143 million, $19 million higher year on year, with revenue growth of approximately 5.2% in constant currency.
We expect net capex3 to be approximately $47 million for the first six months of 2018 compared to $48 million in the prior year comparable period. We anticipate net debt as of 30 June 2018 to be approximately $1,132 million compared to $2,228 million as of 31 March 2018.
We have experienced limited impact on volumes from tariffs to date. Actually, we have seen an acceleration of air volume growth in recent weeks. Our ongoing cost reduction initiatives, we believe, will help us minimise any potential impact from tariffs.
As part of its previously announced refinancing of the majority of its existing debt facilites, CEVA has today also announced the launch of a private offering of EUR300 million of senior secured notes due 2025 (the “Notes”). More details regarding the private offering of the Notes can be found in a separate release. This follows the prior launch of a private offering of $400 million of secured term loan due 2025 and a $600 million new Revolving Credit and Ancillary Facility due 2023. Subject to market conditions, the refinancing is expected to complete early August.
In view of the ongoing refinancing, the publication of full financial results for the second quarter 2018 has been brought forward; results will now be released on 27 July 2018. A conference call will be held at 12pm CET.
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