- 2021 outlook confirmed, including improved activity and
recurring margin in H2 2021 excluding the positive impact of the
acquisition of TAC
- First half 2021 results still impacted by the effects of the
crisis, but we expect the first quarter to be the low
point
- Reported financials include the Bombardier's electrical
wiring business in Querétaro (Mexico) from February 1, 2021,
onwards, and Technical Airborne Components (TAC) as of May 1,
20211
Major post-closing events
Strengthening of the Group's balance sheet: capital increase
of €222.4 million completed on August 4, 2021 and obtention of €130
million in French State backed loans (PGE); these resources will
enable the Group to pursue its external growth strategy and secure
its liquidity.
Regulatory News:
Latécoère (Paris:LAT), a tier 1 partner to major international
aircraft manufacturers, today announced that its Board of Directors
under the Chairmanship of Pierre Gadonneix, at their meeting on
September 13, 2021, adopted Latécoère’s financial statements for
the six-month period ended June 30, 2021.
Thierry Mootz, Group Chief Executive Officer, stated:
“The recapitalization of Latécoère was a success giving us the
means of our growth ambitions. H1 results have been impacted by the
Covid-19 crisis and it seems that the lowest level of activity has
been reached during this period.”
Adjusted results for the first half of 2021
Preamble
In order to better monitor and compare its operating and
financial performance, the Group has decided to disclose adjusted
financial statements alongside the consolidated financial
statements. The explanation of the restatements is presented in the
appendix to this press release.
All figures are expressed in adjusted figures, unless otherwise
stated.
(Adjusted data - € thousand)
Jun, 30 2021
Jun 30, 2020 Revenue
181.1
231.9
Reported growth
-21.9
%
-37.6
%
On like-for-like and constant exchange rate basis
-31.7
%
-36.8
%
Recurring EBITDA *
(23.0
)
(14.1
)
Recurring EBITDA margin on revenue
-12.7
%
-6.1
%
Recurring operating income
(36.5
)
(30.8
)
Recurring EBIT margin on revenue
-20.2
%
-13.3
%
Non recurring items
(2.8
)
(34.6
)
Impairment depreciation
(28.2
)
Other non recurring items
(2.8
)
(6.4
)
Operating income
(39.3
)
(65.4
)
Net Cost of debt
(1.4
)
(1.6
)
Other financial income/(expense)
(14.2
)
(10.7
)
Financial result
(15.6
)
(12.3
)
Income tax
(1.7
)
(12.1
)
Net result
(56.6
)
(89.8
)
Operating free cash flows
(16.7
)
(5.2
)
* Adjusted recurring EBITDA corresponds to recurring operating
income before recurring amortization, depreciation and impairment
losses. Details of non-recurring items are presented in the Group's
accounting principles from consolidation financial statements.
Latécoère's half-year financial results for 2021 reflect the low
level of production in the aeronautical sector as a whole. As
previously indicated, the crisis continued into the first half of
2021, reaching its low point in the period. Overall, in the first
half of 2021, the Group's revenue decreased by (21.9)% to €181.1
million on a reported basis or (31.7)% on a like-for-like basis,
with all business segments being affected. It should be noted that
the 2020 business activity included a pre-covid 1st quarter
2020.
Recurring EBITDA in the first half of 2021 amounted to €(23.0)
million, representing a margin of (12.7)%, in decline from the
first half of 2020. Latécoère's current operating income in the
first half of 2021 amounted to €(36.5) million, compared to €(30.8)
million for the same period in 2020.
Latécoère's net financial result amounted to €(15.6) million in
the first half of 2021 compared to €(12.3) million in the first
half of 2020. Other financial income and expenses include the
impact of the amortisation of the shareholder loan for an amount of
€(16.4) million following the early repayment of the shareholder
loan in August 2021 for an amount of €52.5 million in accordance
with the conciliation protocol approved on July 2, 2021.
The Group's net result amounted to €(56.6) million in the first
half of 2021 compared to a loss of €(89.9) million which included
notably an asset impairment of the Aerostructures division of
€(28.2) million.
Free cash flow from operations for the period was €(16.7)
million compared to €(5.2) million a year ago.
Net debt increased by €64.4 million (€40.6 million excluding
IFRS 16) and includes the impact of the accelerated amortisation of
the shareholder loan of €16.4 million, the change in lease
liabilities of €23.4 million (mainly related to the lease of the
Group's new headquarters) and a deterioration in cash and cash
equivalents of €22.1 million. The cash position at June 30, 2021
amounts to €55.6 million.
Adaptation plan
Following previous announcements made, Latécoère has continued
to further adjust its cost base and industrial footprint to ensure
its long-term sustainability in the post Covid-19 reality.
Aerostructures
Revenue in Latécoère's Aerostructures Division declined by
(36.5)% at constant exchange rates and scope of consolidation, or
by (32.9)% on a reported basis for the first half of 2021.
The division's activity was penalised by low production rates
and the temporary stoppage of production by one of the Group's
customers.
In this context, the division's activity reached a low point in
the first quarter of 2021 and amounted to €82.8 million in the
first half of 2021 compared to €123.5 million for the same period
in 2020.
The division's recurring EBITDA amounted to €(13.5) million
compared to €(6.6) million in H1 2020, with lower production rates
partially offset by a reduction in operating costs in response to
the Covid-19 crisis.
It should be noted that the division's results take into account
the activity of Technical Airborne Components (TAC) since the end
of April 2021.
Aerostructures(Adjusted data - € thousand) Jun 30, 2021
Jun 30, 2020 Consolidated revenue
82.8
123.5
On like-for-like and constant exchange rate basis
-36.5
%
-41.7
%
Inter-segment revenue
10.2
11.1
Revenue
93.1
134.6
Recurring EBITDA *
(13.5
)
(6.6
)
Recurring EBITDA margin on revenue
-14.5
%
-4.9
%
Recurring operating income
(21.0
)
(15.1
)
Recurring EBIT margin on revenue
-22.6
%
-11.2
%
* Recurring EBITDA corresponds to recurring operating income
before recurring amortization, depreciation and impairment losses.
Details of non-recurring items are presented in the Group's
accounting principles from consolidation financial statements.
Interconnection Systems
The revenue of €98.3 million was down (26.3)% at constant
exchange rates and perimeter and (9.4)% on a reported basis,
compared to €108.5 million in the first half of 2020. This decrease
is attributable to the base effect between the pre-covid first
quarter of 2020 and the first quarter of 2021. The change in
revenue on a reported basis is due to lower production rates,
particularly on the A350 and ATR programs, partially offset by the
integration of the Bombardier activity for €18.9 million in the
first half of 2021.
Recurring EBITDA for the Interconnection Systems reached €(9.5)
million, compared to €(7.5) million in H1 2020, affected similarly
by the decline in production rates.
Interconnection Systems(Adjusted - € thousand) Jun 30, 2021
Jun 30, 2020 Consolidated revenue
98.3
108.5
On like-for-like and constant exchange rate basis
-26.3
%
-30.2
%
Inter-segment revenue
0.5
0.5
Revenue
98.8
108.9
Recurring EBITDA *
(9.5
)
(7.5
)
Recurring EBITDA margin on revenue
-9.6
%
-6.9
%
Recurring operating income
(15.6
)
(15.7
)
Recurring EBIT margin on revenue
-15.7
%
-14.5
%
* Recurring EBITDA corresponds to recurring operating income
before recurring amortization, depreciation and impairment losses.
Details of non-recurring items are presented in the Group's
accounting principles from consolidation financial statements.
Confirmation of 2021 outlook
Following the Company’s FY 2020 results press release published
on March 16, 2021, and the amendment to the Latécoère 2020
Universal Registration Document filed on July 13, 2021, Latécoère
is confirming the guidance previously published excluding the
impact of acquisitions.
As a reminder, the Group's outlook for 2021 is as follows:
- Revenue will be around 25% lower than in 2020 on an organic
basis. On a reported basis, the decline is expected to be around
(10)%;
- Recurring EBITDA will improve by around 20% from FY 2020
levels, demonstrating the Group's strong fundamentals as it
completes its adaptation plan; however, it will remain
negative;
- Free Cash Flow from operations will remain negative partly due
to the roll-out of the adaptation plan.
Post-closing events
Recapitalisation and strengthening of the Group's
liquidity
In accordance with the terms of the conciliation protocol
approved on July 7, 2021, the Group conducted recapitalization
operations, the main measures of which are as follows:
- Capital increase completed at the beginning of August for an
amount of €222.4 million, resulting in the issue of 436,165,182 new
shares at a unit subscription price of €0.51;
- Obtention of new state guaranteed loans (PGE) in the amount of
€130 million;
- Rescheduling of the repayment schedules of existing PGE and
postponement of the maturity of loans contracted with the European
Investment Bank (EIB) to 2027.
The proceeds from this recapitalisation were used to repay the
shareholder loan for an amount of €52.5 million on September 6,
2021, and to finance the acquisition of Technical Airborne
Components Industries (TAC) closed on August 31, 2021. The balance
of the proceeds will be used to achieve external growth operations
and more generally to finance the general needs of the Group, in
the short and medium term.
Acquisition of Technical Airborne Components (TAC)
On August 31, 2021, the Group definitively acquired Technical
Airborne Components (TAC), based in Belgium (Liège), from
Searchlight Capital Partners. The investment company had acquired
TAC from TransDigm Group Incorporated in April of this year and the
Group held an option to purchase the company from Searchlight
Capital Partners since that date. With a turnover of approximately
€25 million and nearly 150 employees, TAC supplies parts for
commercial aircraft, regional and business jets, helicopters, as
well as for several military and space programmes.
About Latécoère
As a "Tier 1" international partner of the world's major
aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault,
Embraer and Mitsubishi Aircraft), Latécoère is active in all
segments of the aeronautics industry (commercial, regional,
business and military aircraft), in two areas of activity:
- Aerostructures (55% of turnover): fuselage sections and
doors,
- Interconnection Systems (45% of turnover): wiring, electrical
furniture and on-board equipment.
As of December 31, 2020, the Group employed 4,172 people in 13
different countries. As of August 31, 2021, Latécoère, a French
limited company capitalised at €132,745,925 divided into
530,983,700 shares with a par value of €0.25, is listed on Euronext
Paris - Compartment B, ISIN Codes: FR0000032278 - Reuters: LAEP.PA
- Bloomberg: LAT.FP.
Appendix – Table of content
Reconciliation of the consolidated financial statements to
the adjusted financial statements
In order to better monitor and compare its operating and
financial performance, the Group presents, in parallel with the
consolidated financial statements, adjusted financial
statements:
- for the foreign exchange result of instruments not eligible
for hedge accounting under IFRS. This result, presented as
financial result in the consolidated financial statements, is
reclassified as revenue (operating result) in the adjusted
financial statements, - for changes in fair value, which include
all changes in the fair value of derivatives not eligible for hedge
accounting and relating to flows in future periods and the
revaluation at the hedged rate of balance sheet positions (trade
receivables and trade payables denominated in USD), the amount of
which is presented in operating income. - changes in deferred taxes
resulting from these items are also adjusted if necessary.
Income statement for the 1st half of 2021
('000 EURO) Hedging
ConsolidatedincomestatementJune 30, 2021 Exchangerate
result Change infair value
Adjusted
incomestatementJune 30, 2021
Revenue
178 476
2 590
181 066
Other operating revenue
460
460
Change in inventory : work-in-progress & finished goods
-7 997
-7 997
Raw material, Other Purchases & external charges
-118 519
-118 519
Personnel expenses
-78 758
-78 758
Taxes
-2 431
-2 431
Amortization
-13 554
-13 554
Net operating provisions charge
-3 609
-3 609
Net depreciation of current assets
819
819
Other operating income
6 308
220
6 528
Other operating expenses
-543
-543
RECURRING OPERATING INCOME
-39 348
2 590
220
-36 538
Operating Income / Sales
-22.05%
-20.18%
Other non-recurring operating
income and expenses
-2 753
-2 753
OPERATING INCOME
-42 101
2 590
220
-39 291
Net Cost of debt
-1 428
-1 428
Foreign Exchange gains / losses
5 730
-2 590
-438
2 702
Change in fair value of financial derivative instruments
2 784
-2 784
0
Other financial incomes and expenses
-16 903
-16 903
FINANCIAL RESULT
-9 816
-2 590
-3 222
-15 628
Income tax
-1700
-1 700
NET RESULT FOR THE PERIOD
-53 617
0
-3 002
-56 619
• Of which, Owners of the parent
-53 617
0
-3 002
-56 619
• Of which, non controlling interests
0
0
0
0
Income statement for the 1st half of 2020
('000 EURO) Hedging
ConsolidatedincomestatementJune 30, 2020 Exchangerate
result Change infair value
Adjusted
incomestatementJune 30, 2020
Revenue
231 917
231 917
Other operating revenue
306
306
Change in inventory : work-in-progress & finished goods
-6 751
-6 751
Raw material, Other Purchases & external charges
-148 475
-148 475
Personnel expenses
-90,395
-90,395
Taxes
-3 927
-3 927
Amortization
-16 727
-16 727
Net operating provisions charge
870
870
Net depreciation of current assets
-4 519
-4 519
Other operating income
6,648
3,190
9,838
Other operating expenses
-2 915
-2,915
RECURRING OPERATING INCOME
-33 967
2,590
3 190
-30 777
Operating Income / Sales
-14.65%
-13,27%
Other non-recurring operating
income and expenses
-34 627
-34 627
OPERATING INCOME
-68,594
0
3,190
-65,404
Net Cost of debt
-1,599
-1,599
Foreign Exchange gains / losses
-9,830
282
-9,549
Change in fair value of financial derivative instruments
-755
755
0
Other financial incomes and expenses
-1,111
-1,111
FINANCIAL RESULT
-13,295
0
1,037
-12,258
Income tax
-12,128
-12,128
NET RESULT FOR THE PERIOD
-94,016
0
4,227
-89,789
• Of which, Owners of the parent
-94,016
0
4,227
-89,789
• Of which, non controlling interests
0
0
0
0
Half-Year Consolidated financial statements (IFRS)
Consolidated Income statement
('000 EURO)
Jun 30, 2021 Jun 30, 2020
Revenue
178 476
231 917
Other operating revenue
460
306
Change in inventory: work-in-progress & finished goods
-7 997
-6 751
Raw material, Other Purchases & external charges
-118 519
-148 475
Personnel expenses (*)
-78 758
-90 395
Taxes
-2 431
-3 927
Amortization
-13 554
-16 727
Net operating provisions charge
-3 609
870
Net depreciation of current assets
819
-4 519
Other operating income (*)
6 308
6 648
Other operating expenses
-543
-2 915
RECURRING OPERATING INCOME
-39 348
-33 967
Other non-recurring operating income and
expenses
-2 753
-34 627
OPERATING INCOME
-42 101
-68 594
Net Cost of debt
-1 428
-1 599
Foreign Exchange gains/losses
5 730
-9 830
Change in fair value of financial derivative instruments
2 784
-755
Other financial incomes and expenses
-16 903
-1 111
FINANCIAL RESULT
-9 816
-13 295
Income tax
-1 700
-12 128
NET RESULT FOR THE PERIOD
-53 617
-94 016
• Of which, Owners of the parent
-53 617
-94 016
• Of which, Non-controlling interests
0
0
(*) At June 30, 2020, a reclassification was made from "Other
operating income" to "Personnel expenses" for €3.9 million
following the reallocation of a part of operating expenses
transfer.
Half-Year Consolidated Balance sheet
('000 EURO)
Jun 30, 2021 Dec 30, 2021
Goodwill
23 177
0
Intangible assets
60 994
56 022
Tangible assets
152 037
154 155
Other financial assets
4 800
4 291
Deferred tax assets
547
684
Financial derivative instruments
0
0
Other non-current assets
422
129
TOTAL NON-CURRENT ASSETS
241 977
215 282
Inventories
127 150
115 122
Accounts receivable
82 354
65 269
Tax receivable
11 821
11 509
Financial derivative instruments
4 371
3 347
Other current assets
2 722
1 816
Cash & Cash Equivalents
55 561
77 614
TOTAL CURRENT ASSETS
283 979
274 676
TOTAL ASSETS
525 956
489 957
('000 EURO)
Jun 30, 2021 Dec 31, 2020
Share capital
23 705
189 637
Share premium
213 658
213 658
Treasury stock
-459
-455
Other reserves
-198 809
-177 595
Derivatives future cash flow hedges
370
509
Group net result
-53 617
-189 566
EQUITY ATTRIBUTABLE TO PARENT OWNERS
-15 153
36 188
NON-CONTROLLING INTERESTS
0
0
TOTAL EQUITY
-15 153
36 188
Loans and bank borrowings
204 525
215 546
Refundable Advances
21 724
22 359
Employee benefits
17 403
17 770
Non-current provisions
25 510
26 445
Deferred tax liabilities
51
29
Financial derivative instruments
0
0
Other non-current liabilities
5 062
3 650
TOTAL NON-CURRENT LIABILITIES
270 276
285 799
Loans and bank borrowings (less than 1 year)
63 043
9 707
Refundable Advances
2 254
2 254
Current provisions
24 577
18 096
Accounts payable
140 801
89 480
Income tax liabilities
1 222
2 745
Contracts liabilities
35 736
38 982
Other current liabilities
1 974
3 844
Financial derivative instruments
1 226
2 863
TOTAL CURRENT LIABILITIES
270 832
167 970
TOTAL LIABILITIES
541 108
453 769
TOTAL EQUITY & LIABILITIES
525 956
489 957
Half-Year Consolidated cash flow statement
('000 EURO)
Jun 30, 2021 Jun 30, 2020
Net result for the period
-53 617
-94 016
Adjustments related to non-cash activities
: Depreciation and provisions
15 571
46 445
Fair value gains/losses
-2 784
755
Net (gains)/losses on disposal of assets
290
71
Other non-cash items
16 528
1 874
CASH FLOWS AFTER COST OF DEBT AND INCOME TAXES
-24 011
-44 871
Income taxes
1 700
12 128
Net Cost of debt
1 435
1 593
CASH FLOWS BEFORE COST OF DEBT AND INCOME TAXES
-20 876
-31 150
Changes in inventories net of provisions
10 999
-3 841
Changes in client and other receivables net of provisions
-7 585
69 795
Changes in suppliers and other payables
7 671
-33 579
Income tax paid
-3 095
-1 248
CASH FLOWS FROM OPERATING ACTIVITIES
-12 887
-23
Effect of changes in group structure (*)
3 973
0
Purchase of tangible and intangible assets (including changes in
payables to fixed asset suppliers)
-10 449
-6 494
Purchase of financial assets
0
0
Increase (decrease) in loans and advances made
-504
57
Proceeds from sale of tangible and intangible assets
92
1
Dividends received
0
0
CASH FLOWS FROM INVESTING ACTIVITIES
-6 888
-6 436
Purchase or disposal of treasury shares
-4
1 296
Proceeds from borrowings
1 562
60 000
Repayments of borrowings
0
0
Repayments of lease liabilities
-2 815
-2 816
Financial interest paid
-1 516
-1 448
Dividends paid
0
0
Flows from refundable advances
-635
-594
Other flows from financing operation
811
-38 538
CASH FLOW FROM FINANCING ACTIVITIES
-2 596
17 900
Of which financing flows provided / (used) by discontinued
operations* Effects of exchange
rate changes
270
-777
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
-22 102
10 664
Opening cash and cash equivalents position
77 589
33 762
Closing cash and cash equivalents position
55 487
44 426
(*) Composed of opening cash of Technical Airborne Components
(TAC) and put option on this company paid in April 2021
____________________ 1 In accordance with IFRS 10, the Group has
controlled Technical Airborne Components (TAC) since the date of
acquisition of the company's call option.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210913005926/en/
Taddeo Antoine Denry / Investor Relations +33 (0)6 18 07
83 27
Marie Gesquière / Media Relations +33 (0)6 26 48 97 98
teamlatecoere@taddeo.fr
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