Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 2013 Earnings Presentation
18 slides from Gale Pacific's earnings presentation, Feb 22, 2013
Slide 1: Results for Half Year Ended 31 December 2012
For personal use only GALE PACIFIC LIMITED R E S U LTS F O R H A L F Y E A R E N D E D 3 1 D E C E M B E R 20 1 2
Slide 2: Half Year to December 2012 Results – Key Points
Half Year to December 2012 Results – Key Points For personal use only • NPAT up 9.5% to $4.5 million. • Earnings per share increase of 9% to 1.51 cents per share. Return on shareholder funds (NPAT / shareholders funds ) improved to an annualised 12% in half year Dec’12 from an annualised 11.2% in ha
Slide 3: Half Year Results – Key Points
Half Year Results – Key Points For personal use only • Acquired the business assets of Highgrove (Victoria) Pty Ltd. − Highgrove markets and distributes branded home improvement products including glass and stainless steel fencing and balustrade, frameless shower screens, glass safety mirrors, kitch
Slide 4: Half Year Results – Key Points
Half Year Results – Key Points For personal use only • Sales were in line with last year at $55 million. − Sales revenues grew by 15% in the USA and 16% in the Middle East. Australia sales revenues were 3% less than the prior year due to price deflation, subdued consumer demand and dry conditions wh
Slide 5: Earnings per Share and Dividends per Share
Earnings per Share and Dividends per Share For personal use only Cents Half Year ‐ Dec '12 Half Year ‐ Dec '11 Half Year ‐ Dec '10 1.60 1.40 1.51 1.38 1.20 1.30 1.20 1.24 1.00 1.00 0.80 0.60 0.40 0.20 0.00 EPS Dividends
Slide 6: EBITDA / EBIT / NPAT (A$ Million)
EBITDA / EBIT / NPAT (A$ Million) For personal use only A$M Half Year ‐ Dec '12 Half Year ‐ Dec '11 Half Year ‐ Dec '10 10.0 9.0 9.3 8.0 8.9 7.0 7.9 6.0 6.4 6.2 5.0 4.0 4.5 4.8 4.1 3.0 3.6 2.0 1.0 0.0 EBITDA EBIT NPAT
Slide 7: FY12 Review
FY12 Review For personal use only Half Year Half Year Half Year Dec ‘12 Dec ‘11 Dec ‘10 A$M’S A$M’S % Variance A$M’S Sales 55.0 55.1 0% 46.6 EBITDA 8.9 9.3 (4%) 7.9 EBIT 6.4 6.2 3% 4.8 NPAT 4.5 4.1 10% 3.6 Earnings per share ‐ cents 1.51 1.39 9% 1.24 Dividends per share ‐ cents 1.30 1.20 8% 1.00 Net
Slide 8: Operating Cash Flow
Operating Cash Flow For personal use only • Operating cash generated of $1 million for half year Dec ‘12 compared to $5.5 million in PCP. • Operating cash flow down in half year Dec ‘12 due to higher inventory levels to support sales growth. • Low capital expenditure requirements due to plant capaci
Slide 9: Changes in Net Debt (A$ Million)
Changes in Net Debt (A$ Million) For personal use only A$M 5 0 ‐0.4 ‐4.1 3.4 ‐2.1 ‐0.7 ‐9.9 ‐5 ‐2.3 ‐3.7 ‐10 Net Debt Gross Cash Net Interest Tax Paid Net Capex Acquisition Dividends Net Debt Jun'12 Flow Paid Paid Dec'12
Slide 10: Debt Position
Debt Position For personal use only • Net debt at 31 December 2012 of $9.9 million. This low net debt position was after investing $2.3 million in acquiring the business assets of Highgrove and after paying out $3.7 million to shareholders in dividend payments. • Net debt to equity at 13.4%. • Inter
Slide 11: Regional Business Unit Results
Regional Business Unit Results For personal use only Australasia Americas Middle East International China (A$’s) (A$’s) (A$’s) (A$’s) (A$’s) HYDec’12 Sales 40.9M 8.2M 4.4M 1.5M 16.0M* Down 3% Up 15% Up 16% Down 42% Up 45% HYDec’12 EBITDA 4.5M (0.4M) 0.8M Included in China 4.2M** Down 30% 0% Up 14% I
Slide 12: Australasia
Australasia For personal use only • Sales decreased 3% over the prior year to $40.9 million. − One month contribution from the Highgrove businesses acquired 30 November 2012. − Sales declined in Gale’s traditional Australian markets due to price deflation, weak consumer demand and tight inventory ma
Slide 13: Americas
Americas For personal use only • Sales increased 15% to $8.2 million. − Invested in additional retail sales and marketing resources to drive product range expansion and future sales growth. − Strong sales growth and ranging achieved with most major accounts. − Late hot summer conditions aided the sa
Slide 14: Middle East
Middle East For personal use only • Sales increased 16% to $4.4 million. − Increased sales in key markets of Saudi Arabia and United Arab Emirates. − Increased sales and demand for Synthesis Commercial 95 and Waterproof Commercial 95 architectural fabrics. • EBITDA increased 14% to $0.8 million.
Slide 15: International Markets
International Markets For personal use only • Sales reduced by 42% to $1.5 million. − Slower sales to the Japanese market due to some carry over of inventory from last season by our major distributor. − Expanded ranging secured for second half sales to the Japanese and South African markets. − Expan
Slide 16: China
China For personal use only • Strong, stable management and technical support teams. • Record volumes, increased efficiencies, improved yields and reduced waste levels contributed to our strongest result from the China operation to date. These efficiency gains have all helped offset higher wage rate
Slide 17: Outlook
Outlook For personal use only • Some improvement expected in global market conditions but ongoing weak consumer demand in the Australasian region. • Second half to include the sales and profits from the recently acquired Highgrove business. • Gale will continue to implement our growth strategy by ex
Slide 18: Disclaimer
Disclaimer For personal use only Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such stat