As a consequence of NRC Group ASA's (the Group) acquisition of VR Track, the
Group has established a new management for its total Swedish operation to
optimise its strategies, realising synergies and improve operational execution.
Further to the above, the Group has resolved to reorganise its Swedish
operations, including termination of approximately 90 employees, that has
incurred significant expenses. The expenses and loss related to the business
being reorganised, negatively affect the Group's EBITDA in Sweden amounting to
approximately NOK 60 million in Q4 2018. In addition, the Group incurred M&A
expenses of NOK 14 million for the quarter.
The business outlook for Sweden looks strong. The Swedish National Budget for
2019 confirms a 26% increase in investments and a 6% increase in operations and
maintenance spending for 2019. With the acquisition of VR Track, broadening the
Group's operational scope and combining the extensive construction and
maintenance expertise of the two companies, the Group will be in a favourable
position to capitalize on these positive market trends.
The Group had, as of 31 December 2018, a cash position of NOK 396 million, and
an estimated net debt of NOK -219 million. The pro forma order book as of 31
December 2018 is NOK 6,745 million including VR Track.
The Group has previously announced that VR Track is estimated to generate
approximately EUR 300 million in revenues and EUR 28 million in EBITDA for 2018.
The actual revenues and EBITDA for VR Track in 2018 amounted to EUR 305 million
and EUR 28.6 million, respectively. The proforma revenue for the Group,
including the acquired VR Track, for 2018 was NOK 6,476 million with an EBITDA
of NOK 446 million after restructuring and M&A costs.
For 2019, the Group expects total revenues of approximately NOK 7 billion.
Key financial information:
Proforma inkl VR Track
(Amounts in NOK million) Q4 2018 2018
Revenue 1 896 6 472
M&A expenses 14 28
EBITDA (ex M&A) 65 475
EBITDA 51 446
EBITDA % (ex M&A) 3,4 % 7,3 %
* VR Track incorporated based on management accounts with estimated IFRS
adjustments on depreciations.
NRC Group - reported
(Amounts in NOK million)
Q4 2018 2018
Revenue 971 3 176
M&A expenses 14 28
EBITDA (ex M&A) -7 132
EBITDA -21 104
EBITDA % (ex M&A) -0,7 % 4,2 %
The quarterly report for fourth quarter will be published on 12 February 2019.
A telephone conference for analysts and investors will be held tomorrow at 08:00
CET. CEO Øivind Horpestad and CFO Dag Fladby will provide a brief status and
answer questions.
Conference call details:
Norway: 07017
International: +47 915 07017
Meeting code: 739715#
For more information, please contact:
Øivind Horpestad, CEO, (+47) 910 00 626
Dag Fladby, CFO, (+47) 908 91 935
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.