Adjusted EBITDA of US$80 million in the three months ended June 30, 2013 was double the $40 million that the company generated in the previous quarter, reflecting the impact of recent cost control measures, operating improvements, and seasonal volume increases, the Netherlands-based supply chain company said in a statement.
The company registered an adjusted EBITDA of $82 million in the second quarter of 2012.
Revenue decreased by 6.2 percent to $2.15 billion for the second quarter of 2013 compared to $2.29 billion for the same period a year earlier, driven by lower freight volumes.
In contract logistics, adjusted EBITDA increased 34.9 percent, where higher margins in the Americas and Europe offset lower volumes in some Asian markets. Revenues declined by 1.4 percent as a strong performance in the U.S. was offset by contracts terminated under the company’s cost-reduction program.
“In addition we experienced lower volumes in several markets, notably in parts of Europe,” said the company.
In freight management, adjusted EBITDA declined 43.6 percent year-on-year, and revenue fell 11.7 percent, mainly due to lower airfreight volumes “as market conditions remained challenging,” said the company.
“I am pleased to report that the steps we are taking to restructure the company’s balance sheet and address its cost base are already delivering strong results,” said Ceva CEO Marvin O. Schlanger. “In the face of executing our recapitalization and relatively difficult market conditions, we were able to double Adjusted EBITDA sequentially and approach our results from last year.”
On May 2, 2013 CEVA completed the successful recapitalization of its balance sheet, eliminating about 50 percent of consolidated net debt and cutting its annual cash interest costs roughly by half.