Pallet-Management-Services - AFM

| ANNUAL REPORT 2006 | IFCO SYSTEMS N.V. |
Segment information
RPC-Management-Services
US $ in thousands, except RPC data 2006 2005 % Change
Revenues 285,113 239,763 18.9%
Gross profit 70,762 61,879 14.4%
Gross profit margin 24.8% 25.8%
EBITDA 83,791 71,854 16.6%
EBITDA margin 29.4% 30.0%
EBIT 54,789 47,155 16.2%
EBIT margin 19.2% 19.7%
Operating cash flows 92,533 77,137 20.0%
Capital expenditures
- RPCs 70,981 73,280 (3.1%)
- Other 28,254 5,717 394.2%
54
99,235 78,997 25.6%
RPCs, net 288,105 214,442 34.4%
Other property, plant and equipment, net 17,145 12,366 38.6%
305,250 226,808 34.6%
Total RPC trips (in millions) 348.2 299.2 16.4%
RPC pool size (end of period, in millions, pro forma for 2005) 78.1 64.7 20.7%
Average RPC annualized turns (pro forma for 2006 and 2005) 4.88 5.00 (2.4%)
# of sanitation and service centers 44 45 (2.2%)
Headcount, end of year 505 526 (4.0%)
Currency Adjusted:
Revenues 285,113 243,295 17.2%
Gross profit 70,762 63,379 11.6%
EBITDA 83,791 73,628 13.8%
EBIT 54,789 48,822 12.2%
Revenues
RPC-Management-Services’ revenues in 2006 grew by 18.9%
to US $285.1 million compared to 2005.
Total trips increased 16.4% to 348.2 million in 2006, as a
result of:
In Europe, our traditionally strong markets in Germany,
Switzerland, Italy and Great Britain continued to perform in
line with expectations. In addition, we have been able to
signifi cantly increase trip volume in Spain primarily as a result
of higher trip volumes for the national market of this country.
Trip development in the United States nearly doubled during
2006, as a result of the acquisition of the CHEP USA RPC
assets at the end of Q1 2006 and the higher penetration of
our existing US customer base, which has resulted in our
US RPC-Management-Services business being the clear
leader of the US RPC services market.
In the United States, the rollout of the new generation
container was fi nalized in 2006. The improved quality of the
new RPCs provides considerable cost advantages for our
customers and system partners and have been met with
broad market acceptance.
Our worldwide average per trip pricing levels increased slightly
during 2006.
On a pro forma basis, the annualized turns of our global RPC
pool was 4.88 turns during 2006 compared to 5.00 in 2005.
We report the pool size for 2005 and turn rates for 2005 on
a pro forma basis in order to refl ect the effects of the 2006
Europe RPC pool adjustment (pool size 2005 is adjusted
for shrinkage in order to be comparable to 2006 pool size).
Furthermore, the CHEP USA RPC acquisition effects were
eliminated in order to calculate comparable turn rates for 2005
and 2006.