Friday, November 15, 2013

Service Point Solutions - Q3 Financial Results (and Service Point USA is mentioned in this post)

Today, Service Point Solutions, the public-company (and parent of several SP subsidiaries in other countries) filed its Q3 2013 Financial Results Report(s) with the Spanish Stock Exchange.

The financial-results document filed contains a narrative, graphs and numbers.

Here’s a link to the financial results document that contains the narrative (and it is in Spanish. Well, the text is in Spanish, but the numbers aren’t!)

I was able to use Google-Translate to translate, to English, the document referenced above, but, for some unknown reason, I was unable to print that document to a pdf file.  So, if you want to translate the document, access the doc in my Google-Docs library (using the link I provided), go to Google-Translate, then upload the document and select “Spanish” to “English”. (Keep in mind that these translations are far from perfect and that Google-Translate does a horrible job with graphs, charts and tables),

Evidently, the Q3 financial-results report was finalized on Nov 6th, and was then filed with the Spanish stock exchange today.  The report does not make any mention of the “shut down” of SP USA’s operations.

But, on the last page of the Q3 financial-results report, it does contain some information about SP’s debt and its discussions with lenders.  Here’s what’s said on that page, and, again, keep in mind that what you see below is a Google-Translate translation from Spanish to English:

“As has been reported in several Relevant (filings), over recent months company has been working on solutions syndicated debt restructuring. After analyze different alternatives, the company has sent two proposed banks buyback of debt. The offers provided to recapitalize the company would aimed to repurchase 100% of the debt on favorable terms for the company (Between € 15M and € 20M), entities providing the complete and final separation from the 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 Service Point Solutions have rejected the bids submitted by that date and have reported the acceleration and early maturity of the loans and the implementation of the execution of securities for a significant portion of the Group's businesses (subsidiaries operating in United Kingdom, United States, Norway and Sweden). The Board of Directors SPS adopted February 24, 2013 the decision to enroll in pre-contest (Article 5a of the Bankruptcy Act) in order to defend the interests of its shareholders, creditors and their employees. (Blog Publisher’s note:  I think they meant to say “October 24th, not February 24th). The Company has filed this week a new offer with the aim of close to the positions of the banks, that is, greater amount, less conditions and with a shorter implementation schedule, we consider improving clearly the current alternative of banks to sell assets. A meeting is planned between banks and the Company in the next week to discuss the terms of the offer and / or negotiate alternatives.

On November 6, 2013, the SPS Board of Directors approved the Third quarter results prepared in accordance with the facts that the company known until that date, not reflecting the Group's accounts the possible impact for the company if you do not find a solution reached to restructure the syndicated debt. The effect on the balance sheet and income statement of the situation is unquantifiable today.”

Blog Publisher’s comments about the above narrative:  It “sounds like” the lenders are moving (or have moved) to acquire the securities (the stock) of the SP subsidiaries mentioned above. 

Service Point Solutions filed a second document with the Spanish stock exchange today, but I’m not going to post that second document.  If you want to get it, go to the web-site of the Spanish stock exchange.   Select “registration files”, then select “companies search”, then enter “Service Point”, then select “significant events” and that will bring up a page that shows SPS’ filings.

About SP USA – the report says this about SP USA’s Sales revenues, “Estados Unidos (8% de los ingresos totales del grupo): Las ventas han estado un 11% por debajo respecto al año anterior debido a una lenta recuperación tras el impacto del huracán Sandy a finales de 2012.  Per Google-Translate, that translates to, “United States (8% of total group revenues): Sales have been below 11% over the previous year due to a slow recovery from the impact of Hurricane Sandy in late 2012.”

Through the first nine months of 2013, SPS reported total Sales of 131,963,000; at today’s exchange rate, that’s Sales of around $177,886,000 million.  If SP USA’s sales were 8% of that, SP USA’s sales were equivalent to $14,231,000 (prox).

For the three months ended September 30, 2013, SPS reported total Sales of 39,609,000; at today’s exchange rate, that’s Sales of around $53,394,000. If SP USA’s sales were 8% of that, SP USA’s sales were equivalent to $4,272,000 (prox).

Can you imagine any company walking away from an operation that generates sales of well over $1 million per month???!!!

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