Apollo Tourism & Leisure Ltd. Results Presentation HALF 1 FY17 February 2017

Transcription

1 Apll Turism & Leisure Ltd Results Presentatin HALF 1 FY17 February 2017

2 Disclaimer This dcument has been prepared by Apll Turism & Leisure Ltd (ATL) and cmprises written materials/slides fr a presentatin cncerning ATL. This presentatin is fr infrmatin purpses nly and des nt cnstitute r frm part f any ffer r invitatin t acquire, sell r therwise dispse f, r issue, r any slicitatin f any ffer t sell r therwise dispse f, purchase r subscribe fr, any securities, nr des it cnstitute investment advice, nr shall it r any part f it nr the fact f its distributin frm the basis f, r be relied n in cnnectin with, any r cntract r investment decisin. Certain statements in this presentatin are frward lking statements. Yu can identify these statements by the fact that they use wrds such as anticipate, estimate, expect, prject, intend, plan, believe, target, may, assume and wrds f similar imprt. These frward lking statements speak nly as at the date f this presentatin. These statements are based n current expectatins and beliefs and, by their nature, are subject t a number f knwn and unknwn risks and uncertainties that culd cause the actual results, perfrmances and achievements t differ materially frm any expected future results, perfrmance r achievements expressed r implied by such frward lking statements. N representatin, warranty r assurance (express r implied) is given r made by ATL that the frward lking statements cntained in this presentatin are accurate, cmplete, reliable r adequate r that they will be achieved r prve t be crrect. Except fr any statutry liability which cannt be excluded, ATL and its respective fficers, emplyees and advisers expressly disclaim any respnsibility fr the accuracy r cmpleteness f the frward lking statements and exclude all liability whatsever (including negligence) fr any direct r indirect lss r damage which may be suffered by any persn as a cnsequence f any infrmatin in this presentatin r any errr r missin therefrm. Subject t any cntinuing bligatin under applicable law r relevant listing rules f the ASX, ATL disclaims any bligatin r undertaking t disseminate any updates r revisins t any frward lking statements in these materials t reflect any change in expectatins in relatin t any frward lking statements r any change in events, cnditins r circumstances n which any statement is based. Nthing in these materials shall under any circumstances create an implicatin that there has been n change in the affairs f ATL since the date f the presentatin.

3 Agenda 1. BUSINESS OVERVIEW 2. H1 FY17 RESULTS OVERVIEW 3. H1 FY17 RESULTS 4. PRO FORMA SEGMENT RESULTS 5. OPERATIONAL HIGHLIGHTS 6. FLEET SALES 7. PRO FORMA ADJUSTMENTS 8. BALANCE SHEET 9. CASH FLOW 10. STRATEGIC GROWTH INITIATIVES 11. SYDNEY RV 12. CAMPLIFY 13. SUMMARY

4 Leaders in self-drive experiences Apll Turism & Leisure Ltd (ASX: ATL) is a multi-natinal, vertically integrated manufacturer, rental fleet peratr, whlesaler and retailer f a brad range f recreatinal vehicles including mtrhmes, campervans and caravans. LOCATION MANUFACTURING RENTAL OPERATIONS RV SALES Australia * New Zealand ** USA ** Canada ** * New and ex-rental RV sales ** Ex-rental RV sales nly Nte: Apll s interests in Canada are via a strategic investment in CanaDream Crpratin (TSXV:CDN) Apll is a well-recgnised internatinal brand and rents RVs under fur different brands aimed at differing custmer segments: StarRV, Apll, Cheapa Campa and Hippie. Apll was funded by the Truchet family in 1985 and has been wned and managed by Luke Truchet and Karl Truchet since 2001, until Apll s listing n the ASX in Nvember

5 Business mdel 5

6 H1 FY17 results verview Successful IPO Nvember First half revenue, EBITDA and NPAT in line with pr frma frecast. Outlk mving int secnd half is psitive. Recent capital investments in Sydney RV and Camplify made t facilitate grwth. Strategic gals utlined in prspectus are n track. Directrs reaffirm full year prspectus frecast pr frma net prfit after tax. Interim dividend f 0.5 cents per share, fully franked, declared fr the perid between listing and 31 December

7 H1 results AUD$M H1 FY16 H1 FY17 $ MOVEMENT % MOVEMENT Revenue % Pr frma EBITDA (i) (ii) Pr frma EBITDA margin (i) (ii) Pr frma net prfit after tax (ii) Statutry net prfit after tax (iii) Pr frma cash flw frm perating activities (ii) % 27% 30% 3% 11% % % % Cash % Pr frma earnings per share N/A 6.7 cps N/A N/A Interim dividend N/A 0.5 cps N/A N/A Ntes: (i) Earnings Befre Interest, Tax, Depreciatin and Amrtisatin ( EBITDA ) is a nn-ifrs term which has nt been subject t audit r review but has been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber (ii) Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber (iii) Statutry results d nt include the first three mnths f peratinal perfrmance f Apll Mtrhmes LLC and Apll Finance Pty Ltd, and, as well, the IPO csts are included in the statutry results t 31 December

8 Pr Frma segment results Six mnths ended 31 Dec 2016 Six mnths ended 31 Dec 2015 Grwth $ Grwth % AUD$M REVENUE EBIT REVENUE EBIT REVENUE EBIT REVENUE EBIT Australia % 11% New Zealand % 93% USA % 61% Other/ Eliminatins (1.161) Ttal % 72% Ntes: The turism industry is subject t seasnal fluctuatins with peak demand fr turism attractins and transprt ccurring in summer mnths. Prfits in Australia and New Zealand are typically generated ver the suthern hemisphere summer mnths, while prfits in the USA are generated ver the nrthern hemisphere summer. Other/Eliminatins include Apll s 20% investment in CanaDream. Similar t the USA, results are heavily skewed t the first half and CanaDream nrmally prduces perating lsses in the 2H due t seasnality. H1 FY17 EBIT is in line with prspectus pr frma frecast. Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber

9 Pr Frma segment results Ntes: H1 FY17 EBIT is in line with prspectus pr frma frecast. Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber

10 Operatinal highlights Australia Rental Operatins Revenue and prfit are up n budget. Strng ancillary revenue and cst cntrl has cuntered yields that are tracking slightly behind prspectus frecasts. Frward bkings are in line with expectatins. The Easter perid cntinues t strengthen. Fleet size has remained stable at apprximately 1,700. RV Sales Ttal RV sales are tracking satisfactrily. Experiencing slid demand fr mtrhmes in bth retail utlets and industry shws with new mdels n display. Ex-rental RV sales perfrming in line with expectatins. New RV sales centres pened in Melburne, at Campbellfield and in Sydney, at Taren Pint, as well as recently in Adelaide and Perth frm the existing Apll rental utlets. Manufacturing Demand fr new mtrhmes has seen a rebalance between manufacturing fr retail and rental fleet. Fcus n manufacturing efficiencies and managing increasing scale. 10

11 Operatinal highlights New Zealand Rental Operatins Experiencing strng rental demand. Yield and utilisatin ahead f frecast YTD. Skt, a third party prduct that ffers Wi-Fi, satellite navigatin, audi tur guides and travel deals, has been rlled ut in New Zealand. Fleet size expected t remain stable at apprximately 700. Lins Tur is driving higher than usual June demand. RV Sales RV sales are tracking satisfactrily. Manufacturing Manufacturing perfrming well. 11

12 Operatinal highlights USA & Canada USA 2016 summer peak seasn was in line with prspectus frecasts. Sale f used RVs in H1 is slightly behind prspectus frecasts with the decisin t push mre sales int the peak seasn in the H2 t achieve higher margins. Frward bkings int USA summer are strng. East Cast expansin is underway with New Yrk and Orland branches pening in May ready fr the 2017 summer seasn. RV purchase rders have been placed fr delivery ahead f 2017 summer peak seasn, with fleet expanding t 700, including a new B van prduct. Canada Annunced a 7% increase in H1 FY17 results (May t Octber 2016) f C$8.4M and a 17% increase in revenue t C$34.8M. CanaDream s rental peratins are seasnal, with the majrity f revenue earned during H1 (May t Octber) and the cmpany nrmally prduces perating lsses in H2. 12

13 RV sales revenue Ntes: H1 FY17 fleet sales revenue has increased frm H1 FY16 revenue in Australia and New Zealand. H1 FY17 fleet sales revenue in the USA is slightly dwn n prir year due t a slightly smaller fleet size, exchange rate variatin and a fcus n achieving margin ver vlume. 13

14 H1 FY17 Pr Frma adjustments AUD$M ADJUSTMENTS H1 FY17 Pr frma net perating prfit after tax IPO Csts (2.001) USA Lan interest t 30 September 2016 (0.343) Incme tax effect n IPO csts and USA lan interest USA/ Finance Prfit July t 30 September 2016 (4.513) Statutry net perating prfit after tax Ntes: Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber

15 Balance sheet AUD$M 30 June 16 pr frma (i) 31 December 2016 ASSETS Current Assets Cash and cash equivalents Other Current Assets Ttal Current Assets Nn-current Assets Prperty, plant and equipment Other Nn-current Assets Ttal Nn-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Interest-bearing lans and brrwings Other Current Liabilities Ttal Current Liabilities Nn-current Liabilities Interest-bearing lans and brrwings Other Nn-current Liabilities Ttal Nn-current Liabilities TOTAL LIABILITIES NET ASSETS Ntes: (i) Prspectus dated 6 Octber 2016 Net current liability psitin reflects liabilities under finance lease and hire purchase cntracts f $45M and unearned incme f $9M being classified as current liabilities. Directrs cnsider that the grup will generate sufficient cash flws frm peratins t finance nging peratins and meet financial bligatins. Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber

16 H1 FY17 cash flw AUD$M DECEMBER 2016 PRO FORMA (i) DECEMBER 2016 STATUTORY Net prfit/ (lss) after tax Nn-cash items Changes in wrking capital (4.543) (1.309) Prceeds frm sale f assets Repayment f brrwings/ finance lease principal (62.031) (57.888) Capital expenditure (0.765 ) (0.765 ) Cash acquired frm acquisitins Related party transactins Prceeds frm Offer (net f capitalised transactin csts) Payment t Funding Sharehlder (30.000) (30.000) Net Cash Mvement Ntes: Pr frma figures have nt been subject t audit r review but have been determined using infrmatin presented in the Cmpany s interim financial statements and the prspectus dated 06 Octber

17 Strategic grwth initiatives Expansin f USA ftprint New RV sales Rental fleet diversity Tw new rental ffices are pening in May 2017 n the East Cast f the USA. Recent acquisitin f Sydney RV aligns with Apll s strategy t grw the business thrugh establishing retail sales centres thrughut Australia. Retail sales centres have started in Adelaide and Perth frm existing rental lcatins. New rental prducts are currently being investigated t launch in FY18. Retail prduct diversity Winnebag has extended its range t include an ff rad caravan. Develpment cntinues n ther new prducts. Onging Business Imprvement Initiatives Apll plans t maintain a cnsistent fleet size in Australia and New Zealand t cater fr rental demand. Fleet size in the USA is grwing in line with prspectus frecasts. Fcus n manufacturing efficiencies and managing increasing scale. Implement Asian Initiative Sales grwth frm the Asian market is shwing psitive mvement frm a small base. There is a lt f pprtunity in this market that Apll is wrking t capitalise n. Gegraphic Expansin & Strategic Acquisitins Apll has entered the peer t peer space with its investment in 25% f Camplify, an nline caravan and RV sharing cmmunity that cnnects caravan and RV wners with peple lking t rent these vehicles. Recent acquisitin f Sydney RV aligns with Apll s strategy t grw the business thrugh establishing retail sales centres thrughut Australia. 17

18 Acquired 100% f Sydney RV Grup Pty Limited (Sydney RV) in early February 2017 fr apprximately 1.75M cash ($1.53M) and shares ($0.22M). A successful, established and grwing retailer f new and used caravans and mtrhmes lcated in Penrith NSW, gegraphically cmplementary t Apll s new Taren Pint NSW retail utlet. Sydney RV s experienced mtrhme and RV General Manager, Nrman Re, wned 25% f the business and received 50% in Apll shares in cnsideratin. He cntinues t manage the business. The acquisitin f Sydney RV accelerates Apll's strategic gal f becming a leading Australian RV retailer, adding the Apll brands Winnebag, Adria, Talvr, and ex-rental used vehicles t Sydney RV s new and used mtrhme and caravan ffering t grw grup sales thrugh Sydney RV s existing ftprint and client relatinship. The current intentin is t maintain the Sydney RV branding. The acquisitin f Sydney RV n a stand alne basis will be EPS accretive t the FY17 prspectus frecasts. 18

19 Subscribed t a 25% stake in nline peer t peer caravan and RV sharing cmmunity, Camplify C (Australia) Pty Ltd (Camplify) fr $1.75m. Campliy will use Apll's investment t assist fund market grwth and prduct develpment. There are 586,585 RVs registered in Australia in Camplify estimated that these RVs are being used n average fr nly 6 weeks f the year. Camplify's peer t peer marketplace prvides an pprtunity fr RV wners t earn incme n their vehicles when they are nt using them. Thrugh a partnership with sharehlder NRMA, Camplify ffers services including radside assistance, and special deals n travel and hliday park bkings. Apll s investment in Camplify als allws Apll t quickly enter the peer t peer space and expand the range f prducts and services ffered t retail custmers, as well as prviding crss-prmtin pprtunities. Karl Truchet has jined the Camplify bard. Camplify is in start-up phase and has aggressive grwth plans. Apll's five mnths 25% share f Camplify's expected FY17 lss will be included under Share f prfit/lss in assciates in the FY17 financial statements. 19

20 Summary First half revenue, EBITDA and NPAT in line with pr frma frecast. Outlk mving int secnd half is psitive. On track t meet its FY17 pr frma frecast f AUD$12.4M NPAT and statutry frecast f AUD$6.2M as set ut in the prspectus. The cmbined impact f recent investments in Sydney RV and Camplify are nt expected t have any material impact n pr frma and statutry frecasts fr FY17. 20

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