Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — FY2016 Earnings Presentation
19 slides from Alliance Aviation Services's earnings presentation, Aug 11, 2016
Slide 1: Results Presentation
Results Presentation Year ended 30 June 2016 Released 11 August 2016 Scott McMillan, Managing Director Lee Schofield, Chief Executive Officer Matt Dyer, Chief Financial Officer A PROVEN PERFORMER
Slide 2: Key Messages
Key Messages “Alliance remains focussed on ongoing improvements to free cash flow, expanding the revenue base, and lowering debt.” Transitioned into a broad based aviation business. Diversified its revenue, retained long term contracts and won new business. Statutory Profit before tax of $13.5millio
Slide 3: The Transition
The Transition Record year for Alliance with increasing utilisation through wet lease 2013 Focus on Balance Sheet enhancement and restructuring the 2015 2014 engineering and maintenance divisions. Focus on Revenue operational Diversification excellence to retain 2016 Broad based aviation existing se
Slide 4: FY16 Achievements
FY16 Achievements Diversified revenue, Established the European retained all contracts, operation for the Fokker renewed three and won fleet project. Committed a new contract. fleet sales for FY17 Completed the Improved free cash flow, restructure of reduced capex, engineering and maintained costs a
Slide 5: Outcomes
Outcomes Capex 47% Free Cash 1 39% Debt 7% Flying 3.7% Revenue 2 Headcount 8% OTP3 95% 1. Free cash flow from operations and capital expenditure. 2. Net of fuel expenses. 3. On Time Performance A PROVEN PERFORMER 5
Slide 6: The Financial Numbers
The Financial Numbers Year ended 30 June 2016
Slide 7: Profit and Loss
Profit and Loss 2015/16 2014/15 • Contract revenue reduced by ($ in millions) Actual Actual fuel price. Net of fuel, flying Revenue revenue increased by 3.7% Contract Revenue 150.2 173.5 Charter / ACMI 28.5 18.2 • Flying hours stable Other 3.9 7.7 • Charter and Wet Lease Total revenue 182.6 199.5 in
Slide 8: Balance Sheet
Balance Sheet ($ in millions) 2015/16 2014/15 Cash 2.1 0.6 Receivables 28.7 24.5 Inventory 37.0 24.7 • Total Debt reduced. Total current assets 67.9 49.8 • Lower PPE balance reflects PP&E 168.5 170.7 Other assets capital expenditure less than Deferred tax asset – – depreciation. Total non-current as
Slide 9: Cash Flow
Cash Flow 2016 2015 $'000 $'000 Cash flows from operating activities • Cash flow / liquidity Receipts from customers (inclusive of goods and services tax) 208.6 213.8 improved. Payments to suppliers (inclusive of goods and services tax) (178.3) (196.7) Interest received and paid (4.8) (5.2) • PPE ca
Slide 10: Operational Statistics
Operational Statistics Detail FY 2016 FY 2015 FY 2014 Aircraft in Service 27 25 27 Flight Hours - Contract 23,485 23,395 22,811 Flight Hours – Ad hoc and Wet Lease 831 890 2,351 Total Flights 18,774 18,786 19,294 Average Staff Numbers 426 492 512 EBITDA* per aircraft $1.6M $1.6M $1.5M Revenue per em
Slide 11: Flying Contracts
Flying Contracts
Slide 12: Customer Relationships
Customer Relationships • Excellent track record in renewing contracts maintained • Won the Santos contract • High level of safety and best in class on time performance record (95%) A PROVEN PERFORMER 12
Slide 13: Contracts - Commodity Exposure
Contracts - Commodity Exposure Freight, 3% Phosphate, 3% N/A, 6% Manganese, 5% Iron Ore, 29% Oil / Gas, 7% Silver / Lead / Zinc, 7% Copper / Gold, Nickel, 9% 10% Copper/ Gold /Uranium, 8% Gold, 15% A PROVEN PERFORMER 13
Slide 14: Footprint
Offices Footprint (engineering support & crew) Line maintenance Offices Hangar Line maintenance Head Office Hangar & Line Maintenance Offices Alliance T2 facility Hangar (largest and FIFO Lounge at airport) Maintenance Line facility plus Maintenance large spares inventory Major crew base Operational
Slide 15: Operational Excellence
Operational Excellence • Australia’s most experienced and resourced F100/70 operator • Substantial holdings of spare parts enhances aircraft reliability • A low cost base • Fleet owned outright • Industry leading on time performance record = an invaluable asset A PROVEN PERFORMER 15
Slide 16: Operational Excellence
Operational Operational Excellence Excellence IOSA BARS Gold Wyvern Certification Recognition "Wingman" Fully compliant with all Regulatory, Manufacturer and Resource Industry safety standards. Alliance has First airline in Received during Continual received IOSA Australia to the 2015 financial exce
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook • The financial outlook for • Positive cash flows to 2017 is one of opportunity continue • Contracted flying • Substantial opportunities revenues remain stable from the Austrian Airlines transaction • Opportunities in tourism, wet and dry leases • Expansion of spare parts sales and fleet sup
Slide 19: Disclaimer
Disclaimer Reliance on third party information This presentation was prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance”). This presentation may contain information that has been derived from publicly available sources that have not been independently verified. No representa
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