Jan 21, 2021

NRC Group ASA: Update on estimated financial results

NRC Group ASA ("NRC Group" or the "Company") refers to the announcement of the financial results for the third quarter of 2020, where the Company communicated on the expected EBITA* margin for 2020.

Estimated revenues for 2020 is NOK 6,45 billion. Preliminary results for 2020 indicates that the EBITA* would end around NOK 50 million resulting in an EBITA margin for 2020 of 0.8%, which is lower than estimated in the release of the third quarter 2020 results. This is mainly due to weaker than expected results in the demolition- and recycling business in Norway including a significant write-down in one project related to a disputed change order. The weak result is partly compensated by an income of NOK 12 million due to an adjustment of the earn-out compensation. This is booked in other income and expenses, not included in EBITA*

The Company’s financial position is solid with a cash position per 31 December 2020 of NOK 610 million.

Independently of the expected result of the fourth quarter of 2020, the Company has renegotiated the leverage covenant (LTM Net Debt / EBITDA) with the bank in the fourth quarter. The new agreed trajectory is 5.25 in the fourth quarter 2020, 5.25 in first quarter 2021 to third quarter 2021, and 4.0 in the fourth quarter 2021. The Company is compliant with all its covenants per 31 December 2020.

For 2021, the Company expects an EBITA* margin between 1.75-2.5%. The adjustment is related to lower profitability than expected in the demolition- and recycling business, low order book in the Civil operation in Norway as well as low order intake in Sweden due to continued fierce competition.

The Company will release it’s financial results for the fourth quarter of 2020 on 17 February 2021.

For further information, please contact Dag Fladby, Chief Financial Officer, NRC Group ASA +47 90 89 19 35.

About NRC Group

NRC Group is the largest rail infrastructure entrepreneur in the Nordic region. NRC Group has experienced significant growth since its inception in 2011 and has regional offices throughout Norway, Sweden and Finland. The company is headquartered at Lysaker, nearby Oslo, in Norway. NRC Group is listed on the Oslo Stock Exchange under ticker "NRC".

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

www.nrcgroup.com

Alternative performance measures and definitions

EBITA

Operating profit plus amortisations on intangible assets, including intangible assets such as customer relations and order backlog accounted for as part of the purchase price allocation under business combinations.

EBITDA

EBITA plus depreciations on fixed assets and right-to-use assets

EBITA* or EBITDA*

EBITA or EBITDA plus other income and expenses.

OTHER INCOME AND EXPENSES

Other income and expenses consist of M&A expenses and including subsequent adjustment of contingent considerations in business combinations recognized in profit or loss.

NET DEBT

Cash and cash equivalents minus interest-bearing liability.

LTM

Last twelve months

Contact us

Henning Olsen

Henning Olsen

CEO

+47 91 74 15 92

henning.olsen[at]nrcgroup.com

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