Coast Entertainment Holdings Ltd · ASX:CEH
Coast Entertainment — FY2022 Earnings Presentation
43 slides from Coast Entertainment's earnings presentation, Aug 25, 2022
Slide 1: Ardent Leisure Group Limited FY22 Results Presentation
ARDENT LEISURE GROUP LIMITED FY22 RESULTS PRESENTATION 25 August 2022
Slide 2: Group Overview
S ARDENT LEISURE GROUP OVERVIEW
Slide 3: Key Messages
Strong trading performance despite ongoing disruption from COVID KEY MESSAGES FY22 Group operating results significantly outperformed prior year and FY19 pre-COVID levels despite the ongoing pandemic Revenue EBITDA excluding Specific Items 700.0 160.0 123.6 Pre-COVID 637.6 Pre-COVID 140.0 600.0 49
Slide 4: Key Messages (Cont'd)
Strong trading performance despite ongoing disruption from COVID KEY MESSAGES (CONT’D) Main Event revenue of US$426.2 million and EBITDA1 excluding Specific Items1 of US$106.5 million, were up 59.7% and 174.7% on prior year, respectively. During FY22: Constant centre revenue was up 41.0% on prio
Slide 5: Current vs Prior Corresponding Period
Key factors driving FY22 results CURRENT VS PRIOR CORRESPONDING PERIOD A$m Revenue FY22 637.6 FY21 390.7 Variance 63.2% Solid top line growth of $246.9 million (63.2%) despite ongoing Business unit EBITDA1 184.7 73.2 152.4% impact of COVID-19, with increases of US$159.3 million (59.7%) Corporate (
Slide 6: Specific Items Impacting Results
Specific Items1 impacting results SPECIFIC ITEMS IMPACTING RESULTS A$m FY22 FY21 Segment EBITDA has been impacted by the following Specific Items: Specific Items impacting current and prior year results which are Lease payments no longer recognised in EBITDA under 50.4 48.0 useful in understanding t
Slide 7: Successful Sale of Main Event
SUCCESSFUL SALE OF MAIN EVENT On 30 June 2022, Ardent completed the sale of Main Event to Dave & Buster’s for US$835 million on a cash-free debt-free basis, plus up to US$14.8 million deferred and contingent consideration Attractive transaction multiple: 8.9x Main Event’s LTM Dec-21 Adjusted EBITD
Slide 8: Ardent Moving Forward
Solid financial position post sale of Main Event ARDENT MOVING FORWARD The sale of Main Event completed on 30 June 2022 for US$835 million on a cash-free debt-free basis. Ardent now has a strengthened financial position moving forward: Key points to note: As reported Pro Forma A$m 28 June 2022 Adjus
Slide 9: Main Event Entertainment
FY22 MAIN EVENT ENTERTAINMENT 9
Slide 10: Main Event
FY22 revenue and EBITDA exceeded FY19 pre-COVID levels MAIN EVENT Main Event performance: US$m FY22 FY21 Variance Revenue 426.2 266.9 59.7% Revenue increased US$159.3 million (59.7%) driven by: EBRITDA1 154.8 76.8 101.5% significant growth in constant centres revenue (exceeding pre- COVID levels
Slide 11: Revenue Performance
Consistently strong walk-in performance since March 2021 REVENUE PERFORMANCE Constant centre revenue2 trend for reopened centres Constant centre1 performance: Corporate events Since March 2021, constant centre revenue 40% 40% holiday 40% performance significantly exceeded pre-COVID 38% mismatch le
Slide 12: Theme Parks & Attractions
FY22 THEME PARKS & ATTRACTIONS 12
Slide 13: FY22 - Successes
Results Overview FY22 - SUCCESSES STEEL TAIPAN AQUATIC SAFETY LOVED EVENTS ALL NEW EVENTS LEGO WEB STORE Regulator approved 3rd party audited Record Winterfest Spring County Fair $1.5M incremental Opened on time Highest rating possible Record Happy Street Food Festival revenue in first 12 Great revi
Slide 14: Financial Highlights
Results Overview FINANCIAL Ticket Sales1 Attendance Revenue2 HIGHLIGHTS +18% +37% The impact of government grants including JobKeeper +51% does not reflect performance of the business on a YOY basis. Underlying performance excluding these impacts is a more accurate reflection of trading activity. FY
Slide 15: Theme Parks and Attractions
Disrupted by lockdowns and restrictions in 1H22 but recovered strongly during 2H22 THEME PARKS AND A$m FY22 FY21 Variance ATTRACTIONS Revenue 49.5 36.0 37.3% Government subsidies and grants2 2.0 10.5 (81.0%) Revenue grew $13.4 million, with total attendances Expenses (66.0) (57.6) (14.3%) up 18.4%
Slide 16: 2H Recovery
Significant change in trajectory through 2H and into FY23 2H RECOVERY 2H Recovery Trends July Recovery Trends 1.0 $'m - 0.5 (2.0) $'m - (4.0) (0.5) (6.0) (1.0) TRRR ACCIDENT (8.0) (1.5) (10.0) (2.0) 2H17 2H18 2H19 2H20 2H21 2H22 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 EBITDA excl Specific Items & Govt Su
Slide 17: Dreamworld Recovery: Per Capita Yield
Per capita yield significant improvement since FY171 Admissions Per Cap DREAMWORLD RECOVERY Admissions Per Capita up 29% on FY17 +29% Stratified pricing architecture Disciplined promotional strategy FY17 FY22 Channel rationalisation Average ticket price up 59% on FY17 In Park Per Cap In
Slide 18: Dreamworld Recovery: Weather Impact
2H results had latent upside given poor weather DREAMWORLD RECOVERY One of SE Qld’s wettest periods in history – almost 60% of days rain affected, twice the mean seen between 1992 and 2022 Sustained reduced visitation from feeder markets i.e. Northern NSW Impacted attendance and length of stay
Slide 19: Dreamworld Recovery: International Visitation
International visitation yet to be realised DREAMWORLD International Visitation % RECOVERY FY17 FY18 International visits historically between 17% and 19% of total visitation FY19 FY20 FY22 International visits less than 0.1% FY21 Upside to come as visits return FY22 Opportunity to reconside
Slide 20: Strategic Initiatives
Pillars for success established and underway STRATEGIC INITIATIVES 20
Slide 21: Safety
Strategic Initiatives SAFETY Dealing with immediate priorities Leading the business through COVID and out the other side into recovery Completion of the Safety Case works in anticipation of being issued Major Amusement Park licenses for Dreamworld and WhiteWater World Achievements Attractions
Slide 22: Business Transformation
Strategic Initiatives BUSINESS TRANSFORMATION Expenses* A$m A right sized cost base and a cultural aversion to waste Safety considerations will always override cost pressures COVID-19 Efficiency despite record ride and safety system investments IMPACTED $6m reduction Data driven approach to de
Slide 23: Growing Revenue
Strategic Initiatives GROWING REVENUE Attraction availability and reliability F&B offer substantially improved Park presentation and amenity investment Best at busy – capacity planning, peak period staffing Dreamworld Difference is driving NPS growth Sales culture gaining traction New
Slide 24: Guest Experience
Strategic Initiatives GUEST EXPERIENCE Being Brilliant at Basics is key to the Dreamworld Difference Meaningful Net Promoter Score (NPS) improvement up 31 points on FY21 According to the Global Review Index (GRI), Ardent properties have provided the Gold Coast's best rated holiday experience sin
Slide 25: Major Events
Strategic Initiatives MA JOR EVENTS TENTPOLE EVENTS Annual calendar of seasonal events About Us throughout peak periods ALWAYS GIVE THE BEST CONTRIBUTION HOLIDAY VALUE-ADDS Added activations and events to improve guest experience and add 573 90% ticketing value Completed Project Total Profit 25
Slide 26: Dreamworld
Dreamworids
Slide 27: Holiday Activations
HOLIDAY ACTIVATIONS
Slide 28: Growing Revenue: New Attractions
Strategic Initiatives GROWING REVENUE New attractions Attraction refurbishment program to revitalise iconic product Steel Taipan successfully opened in Dec-21 Robust procurement methodology Cadence gives new ‘news’ in FY23, FY24 and FY25 Project pipeline well advanced with contracts executed for sig
Slide 29: Growing Revenue: Complementary Development
Strategic Initiatives GROWING REVENUE LEGO ONLINE STORE Complementary, ancillary development Developing surplus land Moonlight Night Markets Lego online store generating more than $1.5m in revenue in first 12 months Other opportunities continue to be considered MOONLIGHT NIGHT MARKET 29
Slide 30: People
Strategic Initiatives PEOPLE World class team established High performance culture instituted Three-year diversity, equality and inclusion strategy to be launched in coming months Corporate social responsibility initiatives renewed and are appropriate for this stage of the recovery The fun
Slide 31: Recovery Gaining Momentum
RECOVERY GAINING SOLID BALANCE SHEET MOMENTUM Best 2H EBITDA OWNED LAND result since FY17 TICKET SALES GROWTH Best 2H ticket sales since FY17 ICONIC ASSETS SOLID YIELD GROWTH 31% up since FY17 WORLD CLASS TEAM POSITIVE OUTLOOK July results similarly positive 31
Slide 32: Capital Management & Corporate Costs
FY22 CAPITAL MANAGEMENT & CORPORATE COSTS 32
Slide 33: Net Debt and Cash Flow
NET DEBT AND CASH FLOW A$m FY22 As at 29 June 2021 A$m 1 Net debt at 29 June 2021 (81.6) US Debt (182.8) 1 Operating cash flows 167.8 AU Debt (13.8) Capital expenditure (cash outflow) (117.2) Cash available to US2 96.9 Payment for purchase of Summit business net of (28.7) Cash available to AU2 18.1
Slide 34: Capital Structure and Funding
CAPITAL STRUCTURE AND FUNDING Corporate costs increased by $2.2 million to $8.1 million in FY22 mainly due to an increase in insurance costs Following the completion of the Main Event sale, insurance costs are expected to decrease by approximately $1.0 million in FY23 Management continues to f
Slide 35: Appendices
S ARDENT LEISURE APPENDICES
Slide 36: Segmented Results – FY22
APPENDIX 1 Segmented Results – FY22 Discontinued Theme Parks & Continuing Operation A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 49.5 - 49.5 588.1 637.6 Operating EBITDA (14.5) (8.1) (22.6) 199.2 176.6 Costs associated with the sale of Main Event - (32.9) (32.9) (98.2
Slide 37: Segmented Results – FY21
APPENDIX 1 Segmented Results – FY21 Discontinued Theme Parks & Continuing Operation A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 36.0 - 36.0 354.7 390.7 Segment EBITDA (11.1) (5.9) (17.0) 84.3 67.3 Depreciation and amortisation (7.7) (0.3) (8.0) (52.7) (60.7) Amortisa
Slide 38: Specific Items by business unit – FY22
APPENDIX 2 Specific Items by business unit – FY22 Discontinued Theme Parks & Continuing Operation A$m Attractions Corporate Operations Main Event Consolidated Segment EBITDA has been impacted by the following Specific Items: Lease payments no longer recognised in EBITDA under AASB 16 Leases 0.1 0.1
Slide 39: Specific Items by business unit – FY21
APPENDIX 2 Specific Items by business unit – FY21 Discontinued Theme Parks & Continuing Operation A$m Attractions Corporate Operations Main Event Consolidated Segment EBITDA has been impacted by the following Specific Items: Lease payments no longer recognised in EBITDA under AASB 16 Leases 0.1 0.2
Slide 40: FY22 capital expenditure and pre-opening expenses
APPENDIX 3 FY22 capital expenditure and pre-opening expenses Routine Other Special Development Pre-opening A$m Capex Projects Capex Expenses Main Event 7.6 35.6 59.6 6.3 Theme Parks & Attractions 4.9 - 6.0 - Total 12.5 35.6 65.6 6.3 In addition to routine capital expenditure and new centre develop
Slide 41: Defined Terms
ARDENT DEFINED TERMS
Slide 42: Defined Terms
DEFINED TERMS Defined Terms Description ATO Australian Taxation Office DTA Deferred tax asset EBITDA Earnings before Interest, Tax, Depreciation and Amortisation EBRITDA Earnings before Property Costs, Interest, Tax, Depreciation and Amortisation EBIT Earnings before Interest and Tax F&B Food and be
Slide 43: Disclaimer
DISCLAIMER This information has been prepared for general information purposes only, is not general financial product advice and has been prepared by Ardent Leisure Group Limited (ABN 51 628 881 603) (ALG), without taking into account any potential investors’ personal objectives, financial situation
Coast Entertainment Holdings — FY2022 Earnings Presentation on 6ix