Hoofddorp, the Netherlands, 3 May, 2017 – CEVA Holdings LLC (“CEVA” or the “Company”), one of the world’s leading non‐asset based supply chain management companies, today reported results for the first quarter of the year ended 31 March, 2017.

 ^(a)  Adjusted EBITDA includes the proportional contribution of the ANJI-CEVA joint venture and excludes specific items and share-based compensation cost

“2017 has begun positively, with volume, revenue and profit growth” said Xavier Urbain, CEO of CEVA. “Our top-line performance demonstrates the strength of our service offerings and solutions, of our relationships and the confidence customers place in us. We have recently achieved a number of important new business wins, notably in Contract Logistics, which we expect to have positive effects in the coming months.”

“Our Operational Excellence Program to simplify and standardize our processes is having a visible impact and is delivering significant cost savings. We are also making good progress in improving our key contracts and markets, in particular the US. The renewal of the ANJI-CEVA joint venture in China and recent refinancing transactions are equally strong endorsements of CEVA’s direction.  We are well on track for a stronger year.”

Freight Management

Freight Management volumes have once again shown strong growth: Air Freight was up 9% YoY and Ocean Freight was up 6% YoY, resulting in a revenue growth of 5% YoY in constant currency.

Net revenue margins were under pressure from transportation rate increases in line with the market, however we were able to maintain our EBITDA as those pressures were offset through productivity improvements and cost savings generated by our Operational Excellence Program.

Contract Logistics

Revenue in Contract Logistics was up 5% in constant currency in the first quarter, reflecting implementation of new business wins as well as growth in existing contracts.

Contract Logistics EBITDA increased $1m YoY in the first quarter in constant currency despite a strong comparative. This was driven by volume increases as well as efficiency improvements and cost savings, notably on some of our larger contracts.

Financial results

First Quarter gross revenues were $1.6 billion, up 5% in constant currency and up 2% in actual currency.

Adjusted EBITDA came in at $54 million, up $2 million in constant currency versus the prior year.

Operating cash flow in the first quarter improved $13 million YoY reflecting the continued focus on working capital and cash.

Refinancing and Joint Venture

CEVA successfully completed a private offer to exchange approximately 90% of its 4% First Lien Notes due May 2018 for new Notes due 2020 that pay 6% cash and 3% PIK interest per annum.

In addition, CEVA extended the maturity of its European securitization facility for an additional two years until March 2020 and has increased the facility capacity by €80 million to €250 million.

At the end of March, CEVA and ANJI Automotive Logistics signed definitive agreements to extend their 50/50 joint venture partnership ANJI-CEVA until 2032.  CEVA looks forward to the continued growth of this strong long-term partnership.