Financial Results : MESC reports a net loss of SAR 17.5m for the first nine months of 2014

MESC reports a net loss of SAR 17.5m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Middle East Specialized Cables Company reported a net loss of SAR 17.5m for the nine months ended September 30, 2014, compared to a net profit of SAR 28.7m for the same period last year.

A net loss of SAR 19.8m was reported for Q3-2014.



Financials (M)

Item 9m 2013 9m 2014 Change‬
Revenues 694.22 661.92 (4.7 %)
Gross Income 112.10 80.72 (28.0 %)
Operating Income 40.44 1.09 (97.3 %)
Net Income 28.71 (17.48) (160.9 %)
Average Shares 30.99 40.00 29.1 %
EPS (Riyals) 0.93 (0.44) (147.2 %)

The company attributed the losses of the first nine months of 2014’s, compared to a net profit for the same period last year, to:
1- The decrease of instrumentation cables sales volume due to the postponement of some orders from EPC customers which was partially offset by an increase in power cables sales that has less profit margins.
2- Recording additional doubtful debt provision during the current period.
3- Recording a capital gain from sale of land during the same period of last year.

Reporting a net loss for Q3-2014’s compared to a net profit for the same period last year was attributed to:


1- The decrease of sales volume because of the delay in some deliveries from EPC customers during the current quarter.
2- Recording additional doubtful debt provision during the current quarter.
3- Recording a capital gain from sale of land during the same quarter of last year.

Reporting a net loss for Q3-2014’s compared to a net loss for the previous period (Q2-2014) was attributed to :

 

1- The decrease of sales volume because of the delay in some deliveries from EPC customers during the current quarter.
2- Recording additional doubtful debt provision during the current quarter.



Current Quarter Comparison (M)

Compared With The
Item Q3 2013 Q3 2014 Change‬
Revenues 238.76 182.59 (23.5 %)
Gross Income 33.42 17.70 (47.1 %)
Operating Income 11.33 (14.89) (231.4 %)
Net Income 15.32 (19.83) (229.5 %)
Average Shares 30.99 40.00 29.1 %
EPS (Riyals) 0.49 (0.50) (200.3 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 - - - - - -
Q4 2005 - - - - - -
Q1 2006 - - - - - -
Q2 2006 - - - - - -
Q3 2006 - - - - - -
Q4 2006 - - - - - -
Q1 2007 268.17 - 61.98 - 49.69 -
Q2 2007 273.80 - 72.11 - 54.40 -
Q3 2007 293.12 - 76.40 - 61.68 -
Q4 2007 268.20 - 60.87 - 45.18 -
Q1 2008 357.08 33.2 % 81.84 32.0 % 63.65 28.1 %
Q2 2008 360.99 31.8 % 90.84 26.0 % 68.96 26.7 %
Q3 2008 371.57 26.8 % 76.22 (0.2 %) 35.40 (42.6 %)
Q4 2008 218.80 (18.4 %) 41.85 (31.2 %) 43.81 (3.0 %)
Q1 2009 237.97 (33.4 %) 49.26 (39.8 %) 34.35 (46.0 %)
Q2 2009 245.59 (32.0 %) 66.17 (27.2 %) 55.63 (19.3 %)
Q3 2009 231.19 (37.8 %) 39.08 (48.7 %) 24.11 (31.9 %)
Q4 2009 319.17 45.9 % 23.31 (44.3 %) 2.18 (95.0 %)
Q1 2010 288.81 21.4 % 34.67 (29.6 %) 9.52 (72.3 %)
Q2 2010 272.04 10.8 % 39.88 (39.7 %) 13.58 (75.6 %)
Q3 2010 232.69 0.6 % 20.90 (46.5 %) (1.40) (105.8 %)
Q4 2010 235.71 (26.1 %) 19.41 (16.7 %) (16.00) (835.1 %)
Q1 2011 227.36 (21.3 %) 11.24 (67.6 %) (14.58) (253.2 %)
Q2 2011 331.40 21.8 % 24.93 (37.5 %) (1.23) (109.1 %)
Q3 2011 288.33 23.9 % 33.87 62.0 % 8.41 699.1 %
Q4 2011 292.30 24.0 % 25.59 31.9 % (13.02) 18.6 %
Q1 2012 296.38 30.4 % 51.82 361.1 % 23.57 261.7 %
Q2 2012 270.85 (18.3 %) 37.48 50.4 % 15.38 1346.0 %
Q3 2012 193.87 (32.8 %) 40.37 19.2 % 14.92 77.5 %
Q4 2012 229.48 (21.5 %) 31.49 23.0 % (0.33) 97.5 %
Q1 2013 227.41 (23.3 %) 46.73 (9.8 %) 21.42 (9.1 %)
Q2 2013 228.05 (15.8 %) 31.96 (14.7 %) 7.69 (50.0 %)
Q3 2013 238.76 23.2 % 33.42 (17.2 %) 11.33 (24.0 %)
Q4 2013 236.51 3.1 % 33.80 7.3 % 9.12 2897.9 %
Q1 2014 209.55 (7.9 %) 22.30 (52.3 %) (1.87) (108.7 %)
Q2 2014 269.78 18.3 % 40.73 27.5 % 17.85 132.1 %
Q3 2014 182.59 (23.5 %) 17.70 (47.1 %) (14.89) (231.4 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 - - - - - -
Q4 2005 - - - - - -
Q1 2006 - - - - - -
Q2 2006 - - - - - -
Q3 2006 - - - - - -
Q4 2006 - - - - - -
Q1 2007 34.53 - 1.11 - 34.53 1.11
Q2 2007 34.87 - 1.13 - 34.87 1.13
Q3 2007 44.18 - 1.43 - 44.18 1.43
Q4 2007 36.55 - 1.18 - 36.55 1.18
Q1 2008 49.25 42.6 % 1.59 - 49.25 1.59
Q2 2008 51.05 46.4 % 1.65 - 51.05 1.65
Q3 2008 21.39 (51.6 %) 0.69 - 21.39 0.69
Q4 2008 (33.27) (191.0 %) (1.07) - (33.27) (1.07)
Q1 2009 25.99 (47.2 %) 0.84 - 25.99 0.84
Q2 2009 30.13 (41.0 %) 0.97 - 30.13 0.97
Q3 2009 13.23 (38.1 %) 0.43 - 13.23 0.43
Q4 2009 (18.03) 45.8 % (0.58) - (18.03) (0.58)
Q1 2010 3.12 (88.0 %) 0.10 - 3.12 0.10
Q2 2010 4.70 (84.4 %) 0.15 - 4.70 0.15
Q3 2010 (3.51) (126.5 %) (0.11) - (3.51) (0.11)
Q4 2010 (99.26) (450.4 %) (3.20) (77.00) (22.26) (0.72)
Q1 2011 (20.97) (771.4 %) (0.68) - (20.97) (0.68)
Q2 2011 1.35 (71.3 %) 0.04 - 1.35 0.04
Q3 2011 (6.52) (85.8 %) (0.21) - (6.52) (0.21)
Q4 2011 (93.99) 5.3 % (3.03) (70.57) (23.42) (0.76)
Q1 2012 10.72 151.1 % 0.35 - 10.72 0.35
Q2 2012 14.33 962.1 % 0.46 - 14.33 0.46
Q3 2012 9.22 241.3 % 0.30 - 9.22 0.30
Q4 2012 (3.17) 96.6 % (0.10) - (3.17) (0.10)
Q1 2013 13.38 24.8 % 0.43 - 13.38 0.43
Q2 2013 0.01 (99.9 %) 0.00 - 0.01 0.00
Q3 2013 15.32 66.2 % 0.49 - 15.32 0.49
Q4 2013 1.69 153.4 % 0.04 12.73 (11.03) (0.28)
Q1 2014 (7.83) (158.6 %) (0.20) - (7.83) (0.20)
Q2 2014 10.19 72678.6 % 0.25 - 10.19 0.25
Q3 2014 (19.83) (229.5 %) (0.50) - (19.83) (0.50)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 24.60 % 21.06 % 13.61 %
Q1 2008 24.43 % 20.72 % 13.83 %
Q2 2008 24.23 % 20.75 % 14.15 %
Q3 2008 22.81 % 17.72 % 11.65 %
Q4 2008 22.22 % 18.31 % 6.76 %
Q1 2009 21.71 % 17.89 % 5.48 %
Q2 2009 21.74 % 18.58 % 4.12 %
Q3 2009 21.03 % 20.45 % 3.86 %
Q4 2009 17.20 % 14.70 % 4.96 %
Q1 2010 15.05 % 11.90 % 2.62 %
Q2 2010 12.32 % 7.95 % 0.27 %
Q3 2010 10.67 % 5.86 % (1.23 %)
Q4 2010 11.16 % 4.89 % (1.74 %)
Q1 2011 9.45 % 2.90 % (4.34 %)
Q2 2011 7.45 % 1.59 % (4.42 %)
Q3 2011 8.26 % 2.60 % (4.47 %)
Q4 2011 8.39 % 2.69 % (4.35 %)
Q1 2012 11.27 % 5.74 % (1.48 %)
Q2 2012 12.96 % 7.29 % (0.43 %)
Q3 2012 14.74 % 8.34 % 1.03 %
Q4 2012 16.27 % 10.03 % 3.14 %
Q1 2013 16.93 % 10.35 % 3.66 %
Q2 2013 17.13 % 10.00 % 2.21 %
Q3 2013 15.54 % 9.11 % 2.77 %
Q4 2013 15.68 % 10.17 % 1.90 %
Q1 2014 13.31 % 7.84 % (0.39 %)
Q2 2014 13.64 % 8.53 % 0.70 %
Q3 2014 12.75 % 6.14 % (3.17 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 - - - -
Q2 2005 - - - -
Q3 2005 - - - -
Q4 2005 - - - -
Q1 2006 - - - -
Q2 2006 - - - -
Q3 2006 - - - -
Q4 2006 - - - -
Q1 2007 30.99 - - 11.60
Q2 2007 30.99 - - 12.72
Q3 2007 30.99 - - 12.83
Q4 2007 30.99 4.84 4.84 14.02
Q1 2008 30.99 5.32 5.32 15.62
Q2 2008 30.99 5.84 5.84 17.27
Q3 2008 30.99 5.11 5.11 17.44
Q4 2008 30.99 2.85 2.85 16.35
Q1 2009 30.99 2.10 2.10 15.58
Q2 2009 30.99 1.43 1.43 16.54
Q3 2009 30.99 1.16 1.16 16.95
Q4 2009 30.99 1.66 1.66 16.27
Q1 2010 30.99 0.92 0.92 15.08
Q2 2010 30.99 0.10 0.10 15.41
Q3 2010 30.99 (0.44) (0.44) 15.03
Q4 2010 30.99 (3.06) (0.58) 11.85
Q1 2011 30.99 (3.84) (1.36) 11.26
Q2 2011 30.99 (3.95) (1.46) 11.44
Q3 2011 30.99 (4.05) (1.56) 10.41
Q4 2011 30.99 (3.88) (1.60) 7.83
Q1 2012 30.99 (2.85) (0.58) 8.43
Q2 2012 30.99 (2.43) (0.16) 8.89
Q3 2012 30.99 (1.93) 0.35 9.19
Q4 2012 30.99 1.00 1.00 9.08
Q1 2013 30.99 1.09 1.09 9.52
Q2 2013 30.99 0.63 0.63 9.52
Q3 2013 30.99 0.82 0.82 10.02
Q4 2013 40.00 0.76 0.44 12.60
Q1 2014 40.00 0.23 (0.09) 12.42
Q2 2014 40.00 0.48 0.17 12.67
Q3 2014 40.00 (0.39) (0.71) 12.17

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 23.04 23.04 7.96
Q1 2008 22.11 22.11 7.53
Q2 2008 30.80 30.80 10.42
Q3 2008 27.40 27.40 8.03
Q4 2008 21.66 21.66 3.78
Q1 2009 22.10 22.10 2.98
Q2 2009 49.25 49.25 4.25
Q3 2009 61.67 61.67 4.23
Q4 2009 35.41 35.41 3.60
Q1 2010 58.07 58.07 3.53
Q2 2010 More than 100 More than 100 2.20
Q3 2010 NEG NEG 2.06
Q4 2010 NEG NEG 2.58
Q1 2011 NEG NEG 2.41
Q2 2011 NEG NEG 2.49
Q3 2011 NEG NEG 2.43
Q4 2011 NEG NEG 3.45
Q1 2012 NEG NEG 4.36
Q2 2012 NEG NEG 3.37
Q3 2012 NEG More than 100 4.06
Q4 2012 29.79 29.79 3.29
Q1 2013 28.30 28.30 3.24
Q2 2013 50.98 50.98 3.36
Q3 2013 31.71 31.71 2.61
Q4 2013 27.14 46.68 1.64
Q1 2014 96.95 NEG 1.79
Q2 2014 47.09 More than 100 1.80
Q3 2014 NEG NEG 2.35

Current
Market Cap (M Riyal) 1,548.00
Enterprise Value (EV) (M) 1,568.75
Shares Outstanding ((M)) 40.00
EPS ( Riyal) (TTM) 1.98
Book Value (BV) ( Riyal) 11.16
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 19.55
P/E (TTM) 19.55
Price/book 3.47
Return on Average Assets (%) (TTM) 9.7
Return on Average Equity (%) (TTM) 19.5

Share Price

Middle East Specialized Cables Co. (MESC)


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