Excluding the impairment charge, total operating expenses for the quarter amounted to €142 million, an increase of €6.7 million, or 5% compared to the same quarter last year (Q2 2010: €135 million). Compared to the first quarter, operating expenses increased by €19 million or 16% (Q1 2011: €123 million).
The increase in operating expenses was the result of higher marketing expenses. Marketing expenses increased by €6 million year on year to €30 million (Q2 2010: €24 million) and by €20 million sequentially (Q1 2011: €10 million). In the quarter we launched our Break Free marketing campaign in advance of the summer driving season. As a percentage of revenue, operating expenses (excluding the impairment charge) for the quarter were 45% compared to 37% in Q2 2010 and 46% in Q1 2011.
The total interest charge for the quarter was €6.1 million (Q2 2010: €9.0 million, Q1 2011: €6.0 million). The interest expense on the loan facilities for the quarter amounted to €5.0 million. The amortisation of the transaction costs related to the facility amounted to €1.6 million. The interest expense was partially offset by interest income of €0.5 million on cash balances.
The other financial result for the quarter of €2.2 million was comprised of a foreign exchange gain mainly attributed to USD rate fluctuations during the quarter.
On 30 June 2011, the carrying value of our borrowings amounted to €591 million, an increase of €1.6 million compared to the previous quarter which results from amortised transaction costs which are added back to the borrowings over the life time of the borrowings (Q1 2011: €589 million). Excluding transaction costs, which are netted against the borrowings, our outstanding borrowings amounted to €598 million (Q1 2011: €598 million).
Net debt as of 30 June 2011 was €366 million compared to €309 million at the end of the previous quarter. Net debt is the sum of the borrowings (€598 million), minus cash and cash equivalents at the end of the period (€232 million) plus our financial lease commitments (€0.7 million).
As at the end of Q2 2011, accounts receivable plus other receivables amounted to €248 million. Our accounts receivable balance is driven by our revenues which explains the decrease of €43 million year on year and the increase of €71 million sequentially. The inventory level was €102 million, an increase of €39 million year on year and an increase of €2.9 million compared to the previous quarter. Cash and cash equivalents at the end of the quarter were €232 million.
Current liabilities were €627 million compared to €697 million at the end of the same quarter last year and €635 million in the previous quarter. The year on year decrease was mainly caused by a decrease of €55 million in trade payables and €17 million in other liabilities and accruals. Our equity was impacted by the €512 million impairment charge and decreased by €477 million to €665 million compared to 31 December 2010.
During the quarter, we recorded a cash outflow from operations of €23 million which was mainly driven by the €74 million increase in working capital.
The cash flow used in investing activities during the quarter increased to €25 million from €17 million in the previous quarter (Q2 2010: €12 million), mainly due to increased investment in product development in Automotive.
- END -
INTERIM FINANCIAL REPORT
30 JUNE 2011
|Consolidated statement of income|
|Consolidated statement of comprehensive income|
|Consolidated balance sheet|
|Consolidated statements of cash flows|
|Consolidated statement of changes in stockholders’ equity|
|Notes to the consolidated interim financial statements|