Saudi Research & Marketing reports 2014 net loss of SAR 38.9 mln

Saudi Research & Marketing reports 2014 net loss of SAR 38.9 mln

21/01/2015 Argaam Exclusive

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Saudi Research and Marketing Group, a publishing, printing and distribution company, reported 2014’s losses of SAR 38.9 million, compared to SAR 30.2 million for the same period in 2013.

 

A net loss of SAR 19.9 million was reported for Q4-2014 compared to a net profit of SAR 2.4 million for Q3



Financials (M)

Item 2013 2014 Change‬
Revenues 1,726.06 1,743.27 1.0 %
Gross Income 420.13 393.44 (6.4 %)
Operating Income 63.30 11.11 (82.4 %)
Net Income (30.21) (39.31) (30.1 %)
Average Shares 80.00 80.00 -
EPS (Riyals) (0.38) (0.49) (30.1 %)

 

The company attributed the increase of 2014’s losses, compared to the same period in 2013 to forming provisions of SAR 40.2 million and the payment of the contractual amount of SAR 10.7m upon terminating the contracts with the managing director (CEO) and the financial manager.

 

The losses were partially offset by the capital gain realized on selling a plot of land owned by the company.

 

The decline of Q4-2014’s net profit compared to the same period last year was attributed to the inclusion the following provisions in the corresponding period in 2013:

  • Provision for slow-moving inventory of SAR 18.6 million.
  • Allowances for doubtful debts of SAR 6.2 million.
  • Provision for probable loss from affiliates of SAR 8 million.

While Q4-2014 cotained the following provisions:

  1. Forming a slow-moving inventory provision of SAR 3.5 m.
  2. Forming a provision for doubtful debts of SAR 4.1 million.
  3.  Forming a provision for doubtful receivables of SAR 10.8 million.
  4. Forming a provision for probable loss from affiliates of SAR 2 million.
  5. Forming a provision for fire losses of SAR 15.9 million.

The period also included a capital gain of SAR 20.9 million from the sale of land.



Current Quarter Comparison (M)

Compared With The
Item Q4 2013 Q4 2014 Change‬
Revenues 440.14 427.15 (3.0 %)
Gross Income 74.60 90.30 21.1 %
Operating Income (28.32) (14.26) 49.7 %
Net Income (43.56) (20.35) 53.3 %
Average Shares 80.00 80.00 -
EPS (Riyals) (0.54) (0.25) 53.3 %


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2005 229.73 15.2 % 92.83 139.7 % 26.56 411.0 %
Q2 2005 291.95 26.0 % 117.85 35.9 % 53.95 115.5 %
Q3 2005 267.62 29.7 % 108.55 93.3 % 55.28 9969.8 %
Q4 2005 273.67 (12.3 %) 79.83 (9.5 %) 72.05 (11.9 %)
Q1 2006 257.59 12.1 % 119.72 29.0 % 54.56 105.4 %
Q2 2006 324.03 11.0 % 157.51 33.6 % 99.39 84.2 %
Q3 2006 231.24 (13.6 %) 89.90 (17.2 %) 30.21 (45.4 %)
Q4 2006 264.35 (3.4 %) 108.53 36.0 % 67.41 (6.4 %)
Q1 2007 245.46 (4.7 %) 107.47 (10.2 %) 42.04 (22.9 %)
Q2 2007 300.43 (7.3 %) 142.93 (9.3 %) 89.39 (10.1 %)
Q3 2007 237.78 2.8 % 80.14 (10.9 %) 18.99 (37.2 %)
Q4 2007 329.63 24.7 % 129.71 19.5 % 75.36 11.8 %
Q1 2008 272.17 10.9 % 99.32 (7.6 %) 53.45 27.1 %
Q2 2008 325.69 8.4 % 154.01 7.7 % 90.68 1.4 %
Q3 2008 261.35 9.9 % 96.23 20.1 % 34.19 80.1 %
Q4 2008 483.02 46.5 % 153.77 18.6 % 63.12 (16.2 %)
Q1 2009 259.97 (4.5 %) 80.13 (19.3 %) 24.90 (53.4 %)
Q2 2009 245.20 (24.7 %) 89.79 (41.7 %) 17.05 (81.2 %)
Q3 2009 248.26 (5.0 %) 77.66 (19.3 %) 14.33 (58.1 %)
Q4 2009 215.11 (55.5 %) 45.63 (70.3 %) (5.41) (108.6 %)
Q1 2010 255.97 (1.5 %) 77.42 (3.4 %) 20.46 (17.9 %)
Q2 2010 279.52 14.0 % 96.90 7.9 % 38.15 123.7 %
Q3 2010 275.27 10.9 % 78.71 1.4 % 18.19 27.0 %
Q4 2010 256.07 19.0 % 79.08 73.3 % 26.75 594.6 %
Q1 2011 250.37 (2.2 %) 80.08 3.4 % 21.29 4.1 %
Q2 2011 277.25 (0.8 %) 93.11 (3.9 %) 35.06 (8.1 %)
Q3 2011 276.95 0.6 % 79.20 0.6 % 16.20 (10.9 %)
Q4 2011 284.38 11.1 % 100.25 26.8 % 33.22 24.2 %
Q1 2012 241.66 (3.5 %) 66.12 (17.4 %) 7.21 (66.2 %)
Q2 2012 272.33 (1.8 %) 98.06 5.3 % 32.09 (8.5 %)
Q3 2012 465.18 68.0 % 121.60 53.5 % 38.21 135.9 %
Q4 2012 422.02 48.4 % 110.13 9.8 % 24.96 (24.9 %)
Q1 2013 400.45 65.7 % 101.26 53.1 % 19.77 174.4 %
Q2 2013 418.02 53.5 % 129.11 31.7 % 49.76 55.1 %
Q3 2013 467.45 0.5 % 115.17 (5.3 %) 22.08 (42.2 %)
Q4 2013 440.14 4.3 % 74.60 (32.3 %) (28.32) (213.5 %)
Q1 2014 414.02 3.4 % 98.79 (2.4 %) (8.75) (144.2 %)
Q2 2014 463.96 11.0 % 113.33 (12.2 %) 23.64 (52.5 %)
Q3 2014 438.13 (6.3 %) 93.71 (18.6 %) 12.21 (44.7 %)
Q4 2014 427.15 (3.0 %) 90.30 21.1 % (14.26) 49.7 %
2014 1,743.27 1.0 % 393.44 (6.4 %) 11.11 (82.4 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2005 27.78 428.8 % 0.35 (1.45) 29.23 0.37
Q2 2005 56.59 95.4 % 0.71 - 56.59 0.71
Q3 2005 53.81 3527.2 % 0.67 - 53.81 0.67
Q4 2005 43.26 56.5 % 0.54 (9.05) 52.31 0.65
Q1 2006 61.16 120.1 % 0.76 - 61.16 0.76
Q2 2006 90.49 59.9 % 1.13 (9.48) 99.97 1.25
Q3 2006 41.65 (22.6 %) 0.52 (0.12) 41.76 0.52
Q4 2006 68.29 57.9 % 0.85 (6.26) 74.55 0.93
Q1 2007 55.94 (8.5 %) 0.70 - 55.94 0.70
Q2 2007 231.51 155.8 % 2.89 134.78 96.73 1.21
Q3 2007 27.20 (34.7 %) 0.34 - 27.20 0.34
Q4 2007 51.89 (24.0 %) 0.65 - 51.89 0.65
Q1 2008 58.00 3.7 % 0.73 - 58.00 0.73
Q2 2008 87.70 (62.1 %) 1.10 - 87.70 1.10
Q3 2008 35.97 32.3 % 0.45 - 35.97 0.45
Q4 2008 42.78 (17.6 %) 0.53 - 42.78 0.53
Q1 2009 20.50 (64.7 %) 0.26 3.21 17.29 0.22
Q2 2009 10.73 (87.8 %) 0.13 (0.95) 11.67 0.15
Q3 2009 3.26 (90.9 %) 0.04 4.87 (1.61) (0.02)
Q4 2009 10.87 (74.6 %) 0.14 28.68 (17.81) (0.22)
Q1 2010 14.79 (27.8 %) 0.18 - 14.79 0.18
Q2 2010 35.30 229.1 % 0.44 - 35.30 0.44
Q3 2010 10.80 231.0 % 0.13 - 10.80 0.13
Q4 2010 23.54 116.5 % 0.29 - 23.54 0.29
Q1 2011 15.05 1.8 % 0.19 - 15.05 0.19
Q2 2011 33.60 (4.8 %) 0.42 - 33.60 0.42
Q3 2011 8.77 (18.8 %) 0.11 - 8.77 0.11
Q4 2011 42.89 82.2 % 0.54 13.48 29.41 0.37
Q1 2012 5.87 (61.0 %) 0.07 - 5.87 0.07
Q2 2012 24.83 (26.1 %) 0.31 - 24.83 0.31
Q3 2012 21.24 142.3 % 0.27 - 21.24 0.27
Q4 2012 66.30 54.6 % 0.83 - 66.30 0.83
Q1 2013 (17.80) (403.1 %) (0.22) (19.70) 1.90 0.02
Q2 2013 30.00 20.8 % 0.38 2.41 27.59 0.34
Q3 2013 1.14 (94.6 %) 0.01 0.19 0.95 0.01
Q4 2013 (43.56) (165.7 %) (0.54) (0.28) (43.28) (0.54)
Q1 2014 (27.56) (54.8 %) (0.34) 0.10 (27.66) (0.35)
Q2 2014 6.22 (79.3 %) 0.08 (0.04) 6.25 0.08
Q3 2014 2.38 108.0 % 0.03 9.04 (6.66) (0.08)
Q4 2014 (20.35) 53.3 % (0.25) 25.64 (45.98) (0.57)
2014 (39.31) (30.1 %) (0.49) 34.74 (74.06) (0.93)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 33.06 % 19.15 % 12.61 %
Q2 2005 34.14 % 21.59 % 14.60 %
Q3 2005 37.00 % 26.23 % 18.51 %
Q4 2005 37.54 % 23.21 % 18.06 %
Q1 2006 39.05 % 25.17 % 20.52 %
Q2 2006 41.46 % 28.59 % 23.80 %
Q3 2006 41.14 % 27.18 % 23.49 %
Q4 2006 44.16 % 27.55 % 25.76 %
Q1 2007 43.51 % 26.68 % 25.56 %
Q2 2007 43.10 % 26.25 % 25.83 %
Q3 2007 41.89 % 25.03 % 24.28 %
Q4 2007 41.34 % 23.90 % 20.82 %
Q1 2008 39.66 % 24.45 % 20.51 %
Q2 2008 39.75 % 24.23 % 19.29 %
Q3 2008 40.31 % 25.19 % 19.65 %
Q4 2008 37.50 % 21.54 % 16.72 %
Q1 2009 36.40 % 19.64 % 13.81 %
Q2 2009 33.61 % 15.17 % 8.62 %
Q3 2009 32.46 % 13.77 % 5.67 %
Q4 2009 30.27 % 10.09 % 0.98 %
Q1 2010 30.12 % 9.79 % 0.73 %
Q2 2010 29.79 % 11.72 % 3.07 %
Q3 2010 29.11 % 12.00 % 4.20 %
Q4 2010 31.13 % 14.76 % 7.91 %
Q1 2011 31.55 % 15.05 % 7.98 %
Q2 2011 31.26 % 14.75 % 7.84 %
Q3 2011 31.25 % 14.55 % 7.63 %
Q4 2011 32.38 % 14.67 % 7.97 %
Q1 2012 31.35 % 13.42 % 7.19 %
Q2 2012 31.96 % 13.21 % 6.41 %
Q3 2012 30.55 % 13.56 % 6.44 %
Q4 2012 28.25 % 12.27 % 8.44 %
Q1 2013 27.63 % 12.36 % 7.32 %
Q2 2013 27.09 % 12.81 % 6.86 %
Q3 2013 26.68 % 11.88 % 5.66 %
Q4 2013 24.34 % 8.70 % (0.74 %)
Q1 2014 24.01 % 7.06 % (2.44 %)
Q2 2014 22.51 % 5.50 % (3.57 %)
Q3 2014 21.66 % 5.15 % (4.06 %)
Q4 2014 22.72 % 6.09 % (4.25 %)
2014 22.57 % 5.99 % (4.25 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 80.00 1.04 1.54 10.24
Q2 2005 80.00 1.38 1.90 10.42
Q3 2005 80.00 2.07 2.55 11.08
Q4 2005 80.00 2.27 2.40 11.57
Q1 2006 80.00 2.69 2.80 12.32
Q2 2006 80.00 3.11 3.34 13.49
Q3 2006 80.00 2.96 3.19 14.04
Q4 2006 80.00 3.27 3.47 14.94
Q1 2007 80.00 3.20 3.40 13.63
Q2 2007 80.00 4.97 3.36 16.54
Q3 2007 80.00 4.79 3.18 16.92
Q4 2007 80.00 4.58 2.90 17.51
Q1 2008 80.00 4.61 2.92 15.22
Q2 2008 80.00 2.81 2.81 16.32
Q3 2008 80.00 2.92 2.92 16.71
Q4 2008 80.00 2.81 2.81 17.20
Q1 2009 80.00 2.34 2.30 15.41
Q2 2009 80.00 1.37 1.35 15.65
Q3 2009 80.00 0.97 0.88 15.66
Q4 2009 80.00 0.57 0.12 15.79
Q1 2010 80.00 0.50 0.09 15.89
Q2 2010 80.00 0.80 0.38 15.77
Q3 2010 80.00 0.90 0.54 15.98
Q4 2010 80.00 1.06 1.06 15.82
Q1 2011 80.00 1.06 1.06 16.51
Q2 2011 80.00 1.04 1.04 15.90
Q3 2011 80.00 1.01 1.01 16.00
Q4 2011 80.00 1.25 1.09 16.05
Q1 2012 80.00 1.14 0.97 15.11
Q2 2012 80.00 1.03 0.86 15.40
Q3 2012 80.00 1.19 1.02 15.68
Q4 2012 80.00 1.48 1.48 16.10
Q1 2013 80.00 1.18 1.43 14.74
Q2 2013 80.00 1.25 1.46 15.12
Q3 2013 80.00 1.00 1.21 15.18
Q4 2013 80.00 (0.38) (0.16) 14.63
Q1 2014 80.00 (0.50) (0.53) 14.28
Q2 2014 80.00 (0.80) (0.80) 14.37
Q3 2014 80.00 (0.78) (0.89) 14.35
Q4 2014 80.00 (0.49) (0.93) 14.04

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 25.17 23.42 5.80
Q3 2006 28.24 26.18 5.95
Q4 2006 22.78 21.48 4.99
Q1 2007 18.72 17.63 4.40
Q2 2007 10.47 15.47 3.14
Q3 2007 10.45 15.72 2.96
Q4 2007 12.82 20.28 3.35
Q1 2008 10.15 15.99 3.07
Q2 2008 15.12 15.12 2.60
Q3 2008 11.65 11.65 2.04
Q4 2008 10.55 10.55 1.72
Q1 2009 13.27 13.50 2.01
Q2 2009 22.62 23.10 1.99
Q3 2009 31.27 34.45 1.93
Q4 2009 49.39 More than 100 1.77
Q1 2010 53.67 More than 100 1.67
Q2 2010 22.61 47.36 1.15
Q3 2010 22.13 36.87 1.24
Q4 2010 17.77 17.77 1.19
Q1 2011 17.00 17.00 1.09
Q2 2011 17.35 17.35 1.13
Q3 2011 16.60 16.60 1.05
Q4 2011 15.51 17.92 1.21
Q1 2012 21.81 25.60 1.64
Q2 2012 26.42 31.59 1.77
Q3 2012 19.45 22.67 1.47
Q4 2012 16.20 16.20 1.49
Q1 2013 18.61 15.40 1.49
Q2 2013 16.28 13.88 1.34
Q3 2013 20.19 16.62 1.32
Q4 2013 NEG NEG 1.47
Q1 2014 NEG NEG 1.39
Q2 2014 NEG NEG 1.45
Q3 2014 NEG NEG 1.47
Q4 2014 NEG NEG 1.18

Business Segments (Million)

Compared With The
Period Publishing and visual and digital content Public relations and advertising sector Printing & packaging sector Others Disposals
Q1 2005 194.88 116.40 55.59 77.57 (214.72)
Q2 2005 225.32 141.88 69.54 107.35 (252.33)
Q3 2005 201.51 119.96 71.94 93.91 (219.69)
Q4 2005 229.27 139.69 65.17 94.61 (255.07)
Q1 2006 119.96 39.80 92.49 49.07 (43.73)
Q2 2006 364.69 61.16 102.48 43.35 (247.65)
Q3 2006 204.95 40.71 60.54 64.63 (139.60)
Q4 2006 241.11 49.35 69.34 36.59 (132.05)
Q1 2007 212.40 42.03 82.36 37.91 (129.25)
Q2 2007 286.48 60.06 82.43 38.84 (167.38)
Q3 2007 201.18 45.23 74.64 41.41 (124.67)
Q4 2007 246.18 56.02 130.60 48.03 (151.19)
Q1 2008 219.12 48.30 96.26 47.18 (138.70)
Q2 2008 288.15 67.61 95.81 54.90 (180.78)
Q3 2008 217.62 49.17 80.10 48.21 (133.76)
Q4 2008 332.91 48.71 196.09 46.34 (141.03)
Q1 2009 203.41 31.67 100.38 44.73 (120.21)
Q2 2009 214.68 37.04 79.51 45.18 (131.22)
Q3 2009 201.93 31.92 84.01 46.06 (115.65)
Q4 2009 155.15 31.62 93.42 62.49 (127.57)
Q1 2010 183.92 30.10 102.60 50.30 (110.95)
Q2 2010 212.96 35.93 112.17 45.47 (127.00)
Q3 2010 185.47 32.52 102.21 64.66 (109.59)
Q4 2010 199.38 32.94 85.42 34.85 (119.81)
Q1 2011 193.44 29.22 98.16 41.77 (112.22)
Q2 2011 210.12 35.46 118.84 34.64 (121.81)
Q3 2011 173.86 27.49 92.80 73.11 (98.86)
Q4 2011 216.91 355.70 91.18 65.90 (445.31)
Q1 2012 160.84 27.34 102.59 44.53 (93.64)
Q2 2012 228.64 33.85 111.50 27.78 (129.43)
Q3 2012 160.09 26.32 277.42 93.49 (92.13)
Q4 2012 175.83 329.87 274.38 23.20 (399.71)
Q1 2013 162.30 24.87 272.94 32.69 (92.35)
Q2 2013 185.38 34.01 279.63 18.93 (99.94)
Q3 2013 145.77 25.85 293.68 80.86 (78.72)
Q4 2013 163.39 303.84 295.51 34.14 (356.74)
Q1 2014 150.75 21.47 285.53 34.41 (78.14)
Q2 2014 164.20 40.38 327.40 19.25 (87.27)
Q3 2014 128.41 26.79 316.65 38.73 (72.46)
Q4 2014 148.57 280.72 302.73 26.41 (331.28)

Current
Market Cap (M Riyal) 20,544.00
Enterprise Value (EV) (M) 20,704.40
Shares Outstanding ((M)) 80.00
EPS ( Riyal) (TTM) 4.06
Book Value (BV) ( Riyal) 41.73
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 6.15
Return on Average Assets (%) (TTM) 5.5
Return on Average Equity (%) (TTM) 10.0

Share Price

Saudi Research and Media Group (SRMG)


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