INTERNATIONAL Container Terminal Services, Inc (ICTSI) recently reported an 83% hike in net income to $42.4 million for the first half of the year from $23.2 million in the same period last year.
The company attributed the rise to an upsurge in revenues, a modest increase in cash operating expense and lower effective tax rate.
Consolidated unaudited financial results for the period also grew 31% to $246.9 million from $188.8 million reported last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) of $118.7 million were 49% higher than $79.9 million in 2009.
For the second quarter of 2010, revenue from port operations shot up 32% from $96 million to $126.3 million.
EBITDA was up 50% from $41.5 million to $62.1 million.
Net income attributable to equity holders grew 61% from $12.2 million to $19.6 million, and included an acceleration of $2.9 million of unamortized debt issue cost associated with loans prepaid during the quarter. Excluding the accelerated debt issue cost charge, net income should have increased to $21.6 million, up 78% from 2009.
“The strong recovery in throughput volumes we experienced in the first quarter has continued and, combined with our continued focus on cost control, resulted in record financial results for the first half of the year. We also took further steps to secure long term funding to facilitate further expansion of our worldwide portfolio,” ICTSI chair Enrique Razon said.
ICTSI handled consolidated volume of 2.009 million twenty-foot equivalent units (TEUs) in the first half of 2010, 26% more than the 1.590 million TEUs handled in the same period in 2009. The increase in volume was mainly due to the continued upturn in international trade, particularly in markets where ICTSI’s ports are located.
Total consolidated cash operating expenses for the first six months grew 12% to $92.6 million, from $82.8 million in the same period in 2009 due principally to the rise in equipment and facilities-related expenses related to the significant upswing in volume. Compared to the same period of 2008, consolidated cash operating expenses was lower by 5% despite the higher volume handled in 2010. This $5.3 million reduction in cash operating expenses was mainly due to the continued cost saving measures that were implemented throughout the Group in 2009.
In the first half of 2010, ICTSI’s capital expenditure amounted to $48.7 million mainly resulting from TSSA’s acquisition of container handling equipment, Contecon Guayaquil S.A.’s civil works in order to expand handling capacity and improve operating efficiency and MICT’s spending on Berth 6. For 2010, the total estimated consolidated capital expenditures is approximately $123 million.
