The Netherlands-based logistics provider posted a 27 percent year-over-year increase in EBITDA despite a 13.1 percent decline in revenues for the third quarter of 2015.
CEVA Holdings LLC reported third quarter revenues of $1.7 billion for the third quarter ended Sept. 30, 2015, a 13.1 percent decline from the third quarter of 2014. In constant currency, third quarter revenues fell 2.4 percent year-over-year, according to CEVA’s most recent financial statements.
Adjusted earnings before interest, taxes, debt and amortization (EBITDA) increased 27 percent from last year’s third quarter to $80 million. In constant currency, EBITDA was up 38.1 percent from the third quarter of 2014.
CEVA’s freight management sector’s EBITDA for the third quarter jumped 125 percent year-over-year in constant currency, but headwinds from the air and ocean freight markets resulted in airfreight volumes and ocean freight volumes falling 4 percent and 5.7 percent year-over-year, respectively.
Despite a drop in air freight and ocean freight volumes, net revenues for air freight rose 6 percent from the third quarter of 2014, which CEVA attributed to an improved procurement setup in a declining rate environment, while ocean freight “delivered sustainable net revenue.”
“CEVA’s focus on specific trade lanes and those where we have a strong presence, such as selected Trans-Pacific and Asia-Europe routes, allowed us to gain share,” the logistics provider said. “Air and ocean productivity gains were achieved through CEVA’s focus on system enhancements, process improvements as well as cost control.”
The contract logistics sector maintained adjusted EBITDA margins of 6.2 percent, up from the 5.5 percent in the second quarter of 2015. CEVA attributed the increase to effective space management and improved productivity. The sector’s revenues remained flat year-over-year in constant currency.
“CEVA’s overall business pipeline continued to be strong in the third quarter, with a 9 percent increase over the previous year,” said CEVA. “CEVA continues to proactively invest in its field sales team, which has grown by some 20 percent compared to the same period last year, with a solid focus on increasing sales to small and medium-sized enterprises as well as multinational companies.”
CEVA revenues drop, EBITDA increases in Q3
