amagroupltd.com Page 1

Size: px

Start display at page:

Download "amagroupltd.com Page 1"

Merry Parks
5 years ago
Views:

1 amagroupltd.com Page 1

2 WORLD CLASS AUTOMOTIVE SOLUTIONS Page 2

3 Page 3 Contents. Highlights AMA Group Overview Financial Performance Vehicle Panel Repairs ACAD and Procurement Strategy and Outlook

4 HIGHLIGHTS Page 4

5 Page 5 Highlights. Revenue and profit trending in-line with market expectations despite a delay in the acquisition pipeline related to Blackstone process disruption ibodyshop and Oracle NetSuite systems rollout completed in Panel operations with significant operational benefits to flow On track for receipt of the next Market investment incentive installment of $30.9m (May 2019) Completed first acquisition in the Heavy Panel Repair Market - an attractive new growth market for AMA ASG acquisition integration completed with it driving significant growth in Manufacturing, Distribution and Workshop divisions

6 Page 6 Our Results. 64% TOTAL REVENUE $302.5m Underlying EBITDA* $28.1m NPAT $9.9m 32.4% 7.3% 29.8% 90% EPS 1.88 cps NEW PANEL FACILITIES 27.0% 6 ( 4 Existing / 2 Greenfield) *Underlying results after normalization refer slide 11.

7 AMA GROUP OVERVIEW Page 7

8 Page 8 AMA Group Overview Industry leader in 2 key automotive industry sectors Vehicle Panel Repairs Automotive products and accessories National footprint of 118 panel sites offering a unique service proposition to key insurance customers and their policy holders Automotive products and accessories business focussed on key growing market niches with unique products and long standing distribution partners Proven ability to grow both businesses by acquisition and greenfield developments with industry consolidation in both sectors at a very early stage

9 FINANCIAL PERFORMANCE Page 9

Page 10 Half Year Results to Dec 2018 Dec 18 Dec 17 3 CHANGE Revenue: Reported ($ 000) 302,453 228,356 32.4% EBITDA: Reported ($ 000) 24,288 20,623 17.8% EBITDA: Normalised 1 ( $ 000) 28,121 26,201 7.

10 Page 10 Half Year Results to Dec 2018 Dec 18 Dec 17 3 CHANGE Revenue: Reported ($ 000) 302, , % EBITDA: Reported ($ 000) 24,288 20, % EBITDA: Normalised 1 ( $ 000) 28,121 26, % EBIT: Reported ($ 000) 17,239 14, % NPAT: Reported ($ 000) 9,945 7, % Basic EPS - continuing operations : Reported (cents) % Current ratio (times) (16.4%) Gearing ratio 14.5% 12.2% 2.3% Net Debt / EBITDA (6.4%) Net Operating Cash Flows ($ 000) 13,769 11, % Cash Earnings ($ 000) 2 22,888 19, % Notes: 1. Normalised excludes effect of various items which are detailed on Slide Calculation of Cash Earnings is detailed on Slide Prior comparative period half year ended 31 December Net Debt includes Deferred Vendor Consideration. NB the next market incentive instalment due May 2019 in the amount of $30.9m

11 Page 11 Normalisation of EBITDA ($ 000) Dec 18 Dec 17 EBITDA Reported 24,288 20,623 Employee equity plan expense Business acquisition expenses Site Integrations Site closures and make good Reorganisation costs Litigation & Resolution costs Greenfield Start Ups 500 2,250 Blackstone Due Diligence costs Procurement business start up costs IT Roll Out Other Total Normalisations 3,833 5,578 EBITDA Normalised 28,121 26,201 Notes: 1. Includes reorganisation and redundancy costs associated within the ACAD group including ASG 2. Relates to wages and associated costs incurred in the establishment of the Procurement Division ref slide Relates to the rollout of ibodyshop and Oracle NetSuite 4. NB some normalisation amounts are based on estimates and have been rounded

Page 12 EBITDA to Operating Cash Flow ($ 000) Dec 18 Dec 17 EBITDA Reported 24,288 20,623 Interest Paid (1,472) (188) Equity Issued As Employment Condition 523 368 Other Non Cash Items (451) (913)

12 Page 12 EBITDA to Operating Cash Flow ($ 000) Dec 18 Dec 17 EBITDA Reported 24,288 20,623 Interest Paid (1,472) (188) Equity Issued As Employment Condition Other Non Cash Items (451) (913) Cash Earnings (Pre Tax and Deferred Income Amortisation) 22,888 19,890 Cash Earnings conversion % 94% 96% Deferred Income Amortisation 1 (4,403) (3,525) Income Tax Paid (4,540) (5,466) Other Working Capital Movement (176) 293 Net Cash Flow From Operations 13,769 11,192 Notes: 1. Relates to amortisation of Market Incentive

13 Page 13 Investment and Finance Cash Flows ($ 000) Dec 18 Dec 17 Net Cash Flow from Operations 13,769 11,192 Cashflow from Investing Activities Capital Expenditure Greenfields 1 (2,516) (2,646) Capital Expenditure - Other (Maintenance) 2 (205) (3,461) (2,721) (6,107) Acquisition of Existing Businesses (14,447) (9,528) Investment in Automotive Solutions Group Ltd 0 (1,140) Loan to Automotive Solutions Group 0 (2,901) Other 240 (1,228) Investment Cash Outflows (16,928) (20,904) Cashflow from Financing Activities Equity Raised 9,509 (32) Proceeds from borrowings 16,000 14,000 Repayment of borrowings (13,750) (3,655) Dividends paid to AMA Shareholders (10,595) (9,786) Financing Cash Inflow 1, Net (decrease) / increase in cash and cash equivalents (1,995) (9,185) Cash and cash equivalents at the beginning of the period 16,214 14,723 Effects of exchange 136 (14) Cash and cash equivalents at the end of the period 14,355 5,524 Notes: 1. Greenfields relates to capital expenditure on new facilities dedicated to a work provider supported by a long term contract. 2. Other (Maintenance) relates to capital expenditure on existing facilities.

14 Page 14 Balance Sheet. ($ 000) Dec 18 Dec 17 Change ($ 000) Change (%) Current Assets 82,367 93,999 (11,632) (12.4%) Non-Current Assets 291, ,855 22, % Total Assets 373, ,854 10, % Current Liabilities 103,698 98,964 4, % Non-Current Borrowings 54,989 52,521 2, % Other Non-Current Liabilities 1 31,341 40,292 (8,951) (22.2%) Total Liabilities 190, ,777 (1,749) (0.9%) Net Assets 183, ,077 12, % Comments Balance sheet in a solid position Market incentive payment of $30.9m expected in May 2019 Good capacity to take advantage of consolidation and acquisition opportunities Contributed equity 199, ,206 12, % Reserves 3,293 3, % Retained earnings (deficit) (20,079) (19,429) (650) (3.3%) Total parent entity interest 183, ,781 12, % Non-controlling entity % Total Equity 183, ,077 12, % Notes: 1. Includes unamortised Market Incentive payments

15 VEHICLE PANEL REPAIRS Page 15

16 Page 16 Vehicle Panel Repairs. Undisputed Industry Leader Largest operator site across all States and NZ Leading consolidator in a highly fragmented market Long term relationships with key insurers and prestige OEMs / Dealers Clear growth path Estimated 10% market share : significant runway Industry trends driving consolidation ( ageing owners, less competitive) Insurers / OEM / Dealers encouraging consolidation to realise cost savings and operation efficiency Market continues to consolidate and acquisition pipeline is strong

17 Page 17 Vehicle Panel Repair. Dec 18 Dec 17 Change ($ 000) Change (%) Sales ($'000) 1 257, ,543 56, % EBITDA Reported ($ 000) 20,705 19,283 1, % EBITDA Margin Reported (%) 8.0% 9.6% (1.6%) (17.1%) EBITDA normalised ($ 000) 2 22,669 23,226 (557) (2.4%) EBITDA Margin normalised (%) 8.8% 11.5% (2.7%) (23.7%) Strong YOY growth in Sales and EBITDA Gross Margins holding firm EBITDA margins tracking to expectations - some short term regional issues Notes: 1. Sales includes Market Incentive rebate. 2. Includes greenfield starts up costs: $500k for Dec 18 and $2,250k for Dec 17.

18 Page 18 Vehicle Panel Repairs. Strong year on year growth in Sales Normalised EBITDA margin tracking to expectations and historical ranges. Some short term regionals impacts on EBITDA margin during FY H1 Rollout of new IBodyshop roll system out completed significant operational benefits to flow Acquisition pipeline is strong actively in negotiations with 20+ opportunities with revenue in excess of $70m

19 ACAD AND PROCUREMENT Page 19

20 Page 20 ACAD. The leading vertically integrated player in automotive products and accessories Key product and service focus on the growing 4wd, SUV and commercial vehicle segments now 6 in 10 vehicles sold in Australia High technical value add and barriers to entry in Manufacturing and Remanufacturing Divisions Fragmented market significant opportunity to utilize AMA s expertise in consolidating large and fragmented segments

21 Page 21 ACAD. Dec-18 Dec-17 Change ($ 000) Change (%) Sales ($'000) 44,762 26,950 17, % EBITDA 1 ($ 000) 6,189 3,734 2, % EBITDA Margin (%) 13.8% 13.9% (0.1%) (0.9%) EBITDA 1 normalised ($ 000) 6,534 4,259 2, % EBITDA Margin normalised (%) 14.6% 15.8% (1.2%) (7.5%) Completed all major restructuring and integration relating to the acquisitions Strong YOY growth in Sales and EBITDA Increased awareness and penetration in key product brands 1. Inclusive of support centre costs

22 Page 22 ACAD. Completed all major restructuring and integration relating to acquisitions. ASG acquisition now integrated into existing divisions. Achieved significant year-on-year growth in Revenue and EBITDA in line with our accretive acquisitions and achieved underlying organic growth in line with managements expectations. Increased Brand awareness and strengthening of each of our brand positions within all key target sectors provided improved market penetration. Product range growth. OEM clients within the Vehicle Protection Products range. Specialised large fleet clients in the Service Bodies range. KT Solar gained traction as a brand itself and the range has successfully expanded through key channel partners in the Distribution range.

23 Page 23 Procurement. Exciting new growth avenue for AMA Management has established, over a number of years a globally competitive proprietary supply chain for consumables and parts for the panel repair industry AMA has the opportunity to leverage this input advantage by sourcing on behalf of leading international panel repair businesses generating margins on sales and potentially reducing unit costs for the panel operations as supplier volumes increase Large global market ( $>5bn) with no established market leader Staged approach to market entry targeting a small number of key distributors and repairer customers to minimise risk and initial working capital commitments. Partnering with global companies with established channels to market A detailed overview of the procurement division will be provided at the Full Year results releases

24 STRATEGY AND OUTLOOK Page 24

25 Page 25 Strategy/Outlook. AMA HAS MULTIPLE OPPORTUNITIES TO CONTINUE ITS GROWTH BY BOTH ORGANIC AND ACQUISITION MEANS Continue to lead the Panel Industry consolidation in Australia Progressively execute further Greenfield opportunities in Vehicle Panel Repair division working with our business partners Expansion of our strategic partnership agreements with key customers and suppliers Potential significant Procurement opportunities Identify and execute strategic acquisitions in the Automotive Components and Accessories Divisions On-track to reach $1 billion in Revenue by FY2021 AMA CONFIRMS ITS PREVIOUS GUIDANCE OF FULL YEAR NORMALISED EBITDA IN THE RANGE OF $58M TO $60M

FY2018 Half Year Results Presentation 1 March 2018

FY2018 Half Year Results Presentation Brands AMA Group Overview Vehicle Panel Repair Vehicle Protection Products & Accessories Automotive Electrical & Cable Accessories Automotive Component Remanufacturing