Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 FY2014 Earnings Presentation
18 slides from Gale Pacific's earnings presentation, Feb 26, 2014
Slide 1: Results for Half Year Ended 31 December 2013
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 13
Slide 2: Half Year FY14 Summary
Half Year FY14 Summary For personal use only Half Year Half Year Half Year Dec ‘13 Dec ‘12 Dec ‘11 A$M’S A$M’S % Variance A$M’S Sales 60.9 55.0 11% 55.1 EBITDA 7.3 8.9 (18%) 9.3 EBIT 4.6 6.4 (28%) 6.2 NPAT 3.5 4.5 (22%) 4.1 Earnings per share ‐ cents 1.16 1.51 (23%) 1.39 Dividends per share ‐ cents
Slide 3: Half Year Results – Key Points
Half Year Results – Key Points For personal use only • Sales increased by 11% compared to previous corresponding period to $60.9 million. − Sales revenues grew by 7% in Australasia, 6% in the USA and 17% in the Middle East. Sales by the International business decreased by 20% mainly as a result of a
Slide 4: Half Year to December 2013 Results – Key Points
Half Year to December 2013 Results – Key Points For personal use only • Diluted earnings per share decrease of 23% to 1.16 cents per share. Return on shareholder funds (NPAT / shareholders funds ) reduced to an annualised 8.3% in half year Dec’13 from an annualised 12.2% in half year Dec’12. • Net D
Slide 5: Half Year Dividend
Half Year Dividend For personal use only • The Directors have declared a half year dividend of 1.30 cents per share in line with the interim dividend payment declared and paid for half year to December 2012. • The dividend of 1.30 cents per share will be franked at 75%.
Slide 6: Regional Business Unit Results
Regional Business Unit Results For personal use only Australasia Americas Middle East International China (A$’s) (US$’s) (US$’s) (US$’s) (US$’s) HYDec’13 Sales 43.8M 8.9M 5.4M 1.2M 18.0M* Up 7% Up 6% Up 17% Down 20% Up 11% HYDec’13 EBITDA 2.4M (0.3M) 1.1M Included in China 3.8M** Down 47% Up 25% Up
Slide 7: Australasia
Australasia For personal use only • Sales increased 7% to $43.8 million, EBITDA reduced by 47% to $2.4 million. − The decline in profitability of the Australasian business has been recognised and a new senior management team was introduced at the beginning of FY14. − As a result, a significant organ
Slide 8: Australasia
Australasia For personal use only − The closure of the Riva business was completed during the first half within expected costs. − An investment of $1.2 million was made during the half on new IT systems, both in Australasia and globally. Implementation issues created operational inefficiencies and a
Slide 9: Americas
Americas For personal use only • Sales increased 6% to US$8.9 million. − Strong growth in the sales of Coolaroo branded retail products due to increased seasonal purchase volumes. − Invested in additional product management resources to drive product range expansion and future sales growth. − Strong
Slide 10: Middle East
Middle East For personal use only • Sales increased 17% to US$5.4 million. − Construction activity in the region remains strong. − Increased sales in key markets of Saudi Arabia and United Arab Emirates with strong growth in Kuwait. − Increased sales and demand for Synthesis Commercial 95 and Waterp
Slide 11: International Markets
International Markets For personal use only • Sales reduced by US$0.3 million to US$1.2 million. − Lower sales to the Japanese market compared to the December 2012 half year due to a delay of shipments into the second half. − Further business development resource added in the December 2013 half year
Slide 12: China
China For personal use only • EBITDA reduced by US$0.5 million to US$3.8 million due to increased costs not passed on to the regional businesses. • The plant continues to achieve a high manufacturing performance that contributed to another strong result from the China operation despite a significant
Slide 13: Operating Cash Flow
Operating Cash Flow For personal use only • Cash used in operations was $4.0 million for the half compared to $1.0 million cash generated in the previous corresponding period. • The reduction was driven by working capital increases as follows: − Higher inventory and debtors levels to support sales g
Slide 14: Operating Cash Flow
Operating Cash Flow For personal use only • Working capital improvement initiatives are in place and operating cash flow is expected to be strongly positive in the second half as in previous years. • Operating cash flow generation remains a key focus for the business.
Slide 15: Debt Position
Debt Position For personal use only • Net debt at 31 December 2013 was $14.4 million, an increase of $4.5 million from the previous corresponding period. • Net debt increased due to funding increased levels of working capital, capital expenditure of $2.1 million including investing $1.2 million in I
Slide 16: Outlook
Outlook For personal use only • The second half for the Group is expected to be stronger than the second half last year. • Performance of the Australasian business will improve as the actions taken by the new management team start to take effect. The full impact of these will not be realised until F
Slide 17: Outlook
Outlook For personal use only • Gale expects that earnings per share for the full year FY14 will be approximately in line with the prior year and management remain confident in the future growth and profitability of the business. • Ongoing balance sheet strength provides flexibility in relation to f
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