To start off this morning's blog-post, here’s a
link to the Spanish-language Press Release Service Point Solutions released on November 15th.
Unfortunately,
I did not find an English-language version of the Press Release. Below, you will see a “Google-Translate” Spanish-to-English
translation of just the text that was in the Press Release. As always, keep in mind that Google-Translate
does not produce perfect translations. This
translation is not only difficult to read, it may have mis-translated some of
the text. The only “official version”
of the Press Release is the Spanish-language version. (For those who want to look at the numbers in
the Press Release, go back to yesterday’s post or open up the Spanish-language
version of this Press Release.)
If you care
to read my comments, see far below.
Barcelona,
November 15, 2013. - Results for the
third quarter of Service Point Solutions (SPS.MC), show a clear improvement
over the previous year due to the significant reduction operating costs by
18.7% over the same period in 2012, and the implementation of specific projects
to reduce expenses by more than five million euros, which will be visible in
the accounts in the coming months and especially from next year.
Service Point
Solutions, October 24 pre-contest hosted in order to defend the interests of
its shareholders, creditors and employees, presented this week a new offer
banks with the aim of approaching their positions. This offer by a greater
amount, less constraints and an implementation schedule smaller, clearly
improves the current alternative banks to sell assets. Another meeting is
planned between banks and enterprises in the next week to discuss the terms of
the offer.
Sales in the
third quarter amounted to 39.6 M €, 19% lower than those obtained in the same
period last year, mainly due to changes in scope of consolidation (out of
France) and changes to the billing terms of certain contracts with customers in
the Netherlands (no impact on margins). Without them, up to September sales
would have fallen by 9.5%.
However, thanks
to reinforcement in the business, the solid foundation of pipeline
projects and selective investments to enhance strategic services, the company
expects that the next quarter sales performance is in line with the
corresponding last year, excluding impacts of France and Holland.
The gross margin
has improved to 64.5% of turnover, which reflects a good return on sales
despite price competition that exists in the market. Namely result of the
group's growing focus towards segments of higher value- added services;
especially print on demand, online photos, facility management contracts
(managed services, etc.)
EBITDA for the
quarter was € 0.7M, which contrasts with a loss of-0.1M € for the same period
of 2012. At the end of this quarter
EBITDA is 4% higher than 2012.
The net result
is recorded accumulated losses amounting to 3.7 M €, much lower than the
previous year. The significant improvement in cumulative net income over the
same period year 2012 is due in part to record an exceptional income in 2013
corresponding to the output of France subsidiary amounting to 2.9 M €, the
negative impact in 2012 of certain costs balance sanitation level that impacted
net income by 3.5 M € (1.8 M € EBIT level) and the € 2M reduction in interest
expenses after financial restructuring in late October signed, 2012.
For markets in
Central Europe (Spain, Belgium, Holland and Germany), which represents 37% of
the Group revenue, sales have had a negative trend with a fall of over 26%
(excluding output has France in 2012 and the changes made to the billing terms
of some contracts with customers in the Netherlands, this impact was 11%, and
Scandinavia (28% of revenues group) has started to regain profitability.
However, in the United Kingdom (25% of revenues group) the results have
improved over the same period last year and is properly positioned to achieve a
very satisfactory result for the whole year. U.S., which represents 8%, sales
have been 11% below the same period in 2012.
As has been
reported in several Relevant, over recent months the company has been working
on solutions syndicated debt restructuring. After analyzing different
alternatives, the company has told the banks two proposed buyback of debt.
These deals to recapitalize the company were directed to repurchase 100% of
debt favorable conditions for the company (between € 15M and € 20M),
facilitating their complete entities and decoupling final project, leaving no
structural debt SPS.
On October 23,
2013, financial institutions (Lloyds Bank, GE Capital, IKB, Calyon, KBC,
Deutsche Bank and Banco Sabadell) syndicated loan holders have rejected Service
Point Solutions the bids submitted by that date and have reported acceleration
and acceleration of any credits and start the execution of securities for a
significant part of the group's business (subsidiaries operating in the UK,
USA, Norway and Sweden). As Consequently, the SPS Board of Directors adopted
October 24, 2013 the decision of eligible for pre-contest (article 5a of the
Companies Act) in order to defend the interests of their shareholders,
creditors and employees.
Blog
Publisher’s comments:
Based on
previous SPS fillings I’ve read and on articles published in the Boston
Business Journal, on IRgA Today, and on this blog, I did not find any “new”
news in SPS’s Press Release.
Based on
everything we’ve read, so far, we think this is a fairly good summary of
Service Point Solutions’ situation:
v SPS has, for
several months, been conducting discussions with its lending group regarding
the refinancing (or payoff) of its substantial debt.
v SPS has presented
at least two proposals to its lenders, but both were unacceptable to SPS’s lenders.
v SPS is continuing
its discussions with its lenders regarding the refinancing (or payoff) of its
debt.
v In September, Mr.
Holmberg, a reprographics / imaging industry veteran who sold his company to
SPS not too long ago, resigned from the CEO position in September and from the
SPS Board of Directors in October.
Within the past 30 days, two other SPS directors have resigned from SPS’s
board.
v In September, SPS
appointed a new CEO, someone who is not a veteran of the reprographics /
imaging industry.
v In October, SPS
filed for “protection from its creditors” (sounds like some form of Chapter
11).
v SPS’s lenders are,
apparently, moving to take control of SPS assets that secured their loans to
SPS. This may or may not have an effect
on SPS’s continuing operations.
v SP USA shut down on
Friday, November 7th, per orders given, that day, by Kevin Eyers,
COO and Managing Director of SP USA.
Employees had no advance notice.
Customers were not given any advance notice. It is believed that Mr. Eyers is no longer
employed by SP USA.
v We have yet to find
any evidence of SP USA filing Chapter 7.
v SP USA’s vendors
have no idea what’s going on regarding the possible resolution of SP USA’s
debts. (We encourage SPS to reach out to
SP USA’s vendors to let them know what’s going on!)
v The most remarkable ABSENCE of information is
that there is absolutely no mention, at all, in the November 15th Press
Release that Service Point USA has been shut down.
v Excluding SP USA,
we believe that all other SP subsidiaries are continuing in operation. It is rumored that CFI, SPS’s financial
printing business, closed down its operations in the U.S., but that has not
been confirmed.
If anyone
knows further information about SPS or SP USA, please let me know, via e-mail
to joel.salus@mac.com
Finally, the
Press Release provides this information (but, if you do send an e-mail inquiry
to Luis, don’t hold your breath waiting for a response!)
Para más información: (which means, FOR MORE INFORMATION, CONTACT): Luis G. Canomanuel
LUCA
Comunicación Corporativa Tel.: +34 91 435 17 12 lgcanomanuel@lucacom.com
Posts
No comments:
Post a Comment