26 Apr 2012 07:00
For Immediate Release | April 26, 2012 |
THE QUARTO GROUP, INC
Q1 INTERIM MANAGEMENT STATEMENT
Quarto (Full List: QRT.L), one of the largest international co-edition book publishers based in London, announces its Q1 Interim Management Statement which includes unaudited revenues and profits for the 3 months ended March 31, 2012. The Group is on track to meet expectations.
The first quarter of the year typically accounts for no more than about one sixth of annual revenues. The performance for the period continued to be solid. Overall, the operating profit was ahead by 35% at $666,000 (2011: $494,000). Bank debt was successfully refinanced, giving rise to a 5% increase in interest costs. EBITDA increased by 6% to $5.6 million.
The Book Publishing segment, based entirely in the English-language markets, helped by improved results in the US, and the UK, increased operating profit by 9%. Digital revenues increased threefold during the period, accounting for almost 3.5% of the segments revenue. The International Co-Edition segment continues to encounter some softness in major markets. Revenues grew by 1% and the normal seasonal operating loss was trimmed by 7%.
For the Trailing Twelve Months to March 31, 2012, revenues rose by 5% to $187.4 million and pretax profit was up by 4.6% at $12.2 million.
As part of its succession planning, the board welcomes Mr Marcus Leaver, 42, who joins the group in the second quarter as Chief Operating Officer. He is expected to take over as Chief Executive Officer next year, when Mr Laurence Orbach will relinquish the role. Mr Leaver, a British native, has extensive book publishing experience on both sides of the Atlantic, and was President of Sterling Publishing,in New York, the publishing arm of Barnes & Noble. He has relocated, with his family, to London.
A summarized trading statement to March 31, 2012 (before amortization of non-current intangibles and exceptional items) is set out below:
Three months ended March 31
| 12 months ended March 31 | Year ended December 31 | |||||||
2012 | 2011 | 2012 | 2011 | 2011 | |||||
$000 | $000 | $000 | $000 | $000 | |||||
Revenue | 33,932 | 32,618 | 187,440 | 178,015 | 186,126 | ||||
Gross profit | 12,047 | 11,128 | 64,184 | 59,077 | 63,265 | ||||
Overheads | (11,381) | (10,634) | (47,277) | (42,655) | (46,530) | ||||
Operating Profit | 666 | 494 | 16,907 | 16,422 | 16,735 | ||||
Interest | (1,181) | (1,120) | (4,690) | (4,745) | (4,629) | ||||
Pre-tax result | (515) | (626) | 12,217 | 11,677 | 12,106 | ||||
EBITDA | 5,588 | 5,284 | 37,620 | 36,259 | 37,316 | ||||
There has been no material change in the financial position of the Group since December 31, 2011.
For further information please contact:
The Quarto Group Inc | 0207 700 9004 |
Laurence Orbach, Chairman and CEO, Mick Mousley, CFO
| |
Buchanan | 0207 466 5000 |
Mark Edwards, Suzanne Brocks, Louise Hadcocks |
About Quarto:
Quarto is one of the largest international co-edition book publishers with two principal strands of activity: its Publishing segment publishes books, under imprints owned by the Group; and its Co-Edition Publishing segment creates books that are licensed to third party publishers for publication under their own imprints in many languages around the world.