Brunswick Rail Announces 2012 Results

MOSCOW, April 3, 2013 /PRNewswire/ --

Brunswick Rail Limited, ("Brunswick Rail", the "Company" or the "Group"), Russia's leading privately owned freight railcar operating lessor, announces its operational and audited consolidated IFRS financial results for the full year ended 31 December 2012.

Financial highlights

• Gross Revenue increased by 67% year-on-year (y-o-y) to US$306.2 million in 2012, up from US$183.9 million in 2011
• Adjusted EBITDA^[1] increased by 73% y-o-y in 2012 reaching US$240.9 million, up from US$139.6 million in 2011
• Adjusted EBITDA margin increased to 78.7% in 2012, up from 75.9% in 2011
• Net Profit for the period was US$20.1 million, compared to a loss of US$18.8 million in 2011
• Adjusted Net Profit^[2]increased to US$53.9 million in 2012, up from US$23.0 million in 2011
• Net Cash from operating activities increased to US$241.7 million in 2012, up from US$166.1 million in 2011
• Debt to Adjusted EBITDA ratio was 3.1x as at 31 December 2012, down from 5.0x as at 31 December 2011
• The Group's capital expenditure in 2012 was US$160.4 million for the acquisition and prepayment of new railcars

Operational highlights

• Continued steady growth of the Group's Total Fleet reaching 24,189^[3] railcars as at 31 December 2012, up from 21,759 as of 31 December 2011
• All new fleet growth was organic with 87% of purchases focused on specialized railcars and 13% on gondolas
• Successful integration of all assets acquired in 2011, including of the Group's in-house transport operator Proftrans
• 100% fleet Utilization Rate maintained throughout 2012
• All newly acquired railcars were successfully placed with clients on long-term contracts

Commenting on the 2012 results, Brunswick Rail CEO and Chairman of the Board's Strategy Committee Vladimir Lelekov said:

"2012 was a year of many accomplishments for Brunswick Rail. Not only did we grow our fleet and achieve record revenues and profitability, but we also laid down a firm foundation for the Company's development going forward.

"Our goal is to be one of the best performing companies in our industry in terms of growth rate, profitability and cost efficiency. In 2012 we maintained our leading position in each of these areas. Additionally, thanks to our prudent fleet expansion, we kept our market share at 11% of the Russian operating lease market and 2.1% of the total freight railcar fleet in Russia.

"In our business it is critical to maintain high utilization rates. In 2012, we successfully deployed all additions to our fleet with our clients on long-term contracts, resulting in an ongoing fleet utilization rate of 100%. At the same time, we managed to diversify our client portfolio by winning several new clients, thereby reducing the concentration of our customer base.

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1.     Adjusted EBITDA is defined as the profit/(loss) before tax of the Group before taking into account finance costs, finance income, net foreign exchange translation gains and losses, depreciation and amortization, impairment gains and losses on revaluation of railcars, share-based compensation, gain on acquisition of subsidiary, fair value losses on embedded derivatives and hedging with non-derivatives effect.

2.     Adjusted Net Profit is defined as the profit/(loss) after tax before taking into account items management believes are non-recurring and non-operating items

3.     Includes railcars contracted for but not yet delivered.

"Our well balanced modern fleet, solid diversified client base, strong relations with core clients as well as improved cost efficiency all had a positive impact on our financial performance during the year. We are confident that these factors, combined with our experienced management team position us well for another successful year in 2013."

Nicolas Pascault, CFO of Brunswick Rail added:

"In 2012 the Group delivered a solid financial performance with adjusted net profit reaching US$53.9 million and net cash from operating activities increasing by 46% to US$241.7 million. This was driven primarily by the full utilization of railcars acquired during the previous year, increases in daily operating lease rates at contract renewals, and the further growth of our railcar fleet.

"A key focus in 2012 was to enhance our capital structure, thereby placing us in a stronger position to pursue growth opportunities going forward. Our debut Eurobond issue did precisely that, raising a total of US$ 600 million, improving our capital structure and liquidity position.

"The success that we achieved in 2012 put Brunswick Rail in a strong financial position to take advantage of various opportunities in our market during 2013."

About Brunswick Rail

Brunswick Rail is a private railcar operating lessor providing freight railcars to large corporate clients in Russia. Established in 2004, Brunswick Rail currently owns a fleet of over 24,000 railcars (as at 31-Dec-2012), which represents approximately 2% of the total Russian railcar fleet. For the 12 months ended 31 December 2012, the Company generated Gross Revenues of US$306.2 million and Adjusted EBITDA of US$240.9 million.

http://www.brunswickrail.com

Investor Contacts
George Kogan, Brunswick Rail
+7(495)783-6700
GKogan@brunswickrail.com
 
Media contacts
Lilia Lavrova, Brunswick Rail
+7(495)783-6700
LLavrova@brunswickrail.com

Tom Blackwell, M: Communications
+7(495)363-2841 
Blackwell@mcomgroup.com

SOURCE Brunswick Rail