Boom Logistics Ltd · ASX:BOL
Boom Logistics — H1 FY2008 Earnings Presentation
21 slides from Boom Logistics's earnings presentation, Feb 6, 2008
Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation 31 December 2007
Slide 2: Business model overview
Business model overview For personal use only Boom’s position in the supply chain Nature and timing of revenue streams Service provision vs asset utilisation
Slide 3: Accounting adjustments
Accounting adjustments For personal use only Prior Current Total Sherrin fixed asset impacts 12.2 1.2 13.4 Other fixed asset impacts 0.3 1.7 2.0 Other - 1.2 1.2 Total 12.5m 4.1m 16.6m
Slide 4: H108 Financial Performance
H108 Financial Performance For personal use only $ million 1H07 1H08 (Trading) % change 1H08 (Final) Revenue 170.4 202.4 19% 202.4 EBITDA 48.2 51.0 6% 49.4 EBITDA % 28.3% 25.2% (3.1%) 24.4% EBIT 33.8 31.2 (8%) 27.2 EBIT % 19.8% 15.4% (4.4%) 13.4% NPAT 19.6 15.3 (22%) 12.4 NPAT % 11.5% 7.5% (3.9%) 6.
Slide 5: Revenue performing well
Revenue performing well For personal use only • Revenue growth of 19% influenced by: – +ve • Strong demand for Crane Hire in WA, Vic and South East QLD • Growth in new and used equipment sales • Cross selling into contracted customers – -ve • Price competition in the access equipment hire market • S
Slide 6: Sales focus on long term contracts
Sales focus on long term contracts For personal use only 1H08 1H07 Business Activity $M $M Unit BOOM Logistics Crane Services 118.0 108.1 + 9.2% BOOM Sherrin Equipment Hire 50.8 44.8 + 13.4% James Equipment Equipment Sales 33.6 17.5 + 92.0% Total 202.4 170.4 +18.8% • 42% of crane services and equipm
Slide 7: Blue chip customer base
Blue chip customer base For personal use only • Term service contracts renewed or extended during the period: – BMA (2 years) – Rio Tinto East Coast (3 years) – Bluescope Port Kembla (1 year) – Alcoa WA (3 years) – Iluka (3 years)
Slide 8: Margins pressured
Margins pressured For personal use only • 1H08 EBITDA margin erosion due to: – Service provision vs asset utilisation • need for improved focus on contract cost recovery – Labour supply and labour cost pressures, particularly in remote areas – Increased requirement for equipment cross hire, due to:
Slide 9: Financial Position
Financial Position For personal use only Half Year Ended 31 December 2007 1H08 1H07 ($m) Actual Actual Cash 5.9 9.8 Receivables 71.0 66.2 • $2.27m borrowings at an Inventories 16.8 21.4 average interest rate of 7.6% Plant & equipment 399.7 376.5 • Debt / Equity = 90% Intangibles 107.0 107.7 Other cu
Slide 10: Cash Flow
Cash Flow For personal use only Half Year Ended 31 December 1H08 ($m) Actual EBITDA 49.4 Net interest (9.2) • Trading cash flow still strong to Income tax paid (5.4) service finance obligations Working capital / other (4.1) • Dividends forecast to be distributed in line Net operating cash flow 30.7
Slide 11: FY08 Capital Expenditure
FY08 Capital Expenditure For personal use only 1H08 2H08 Actual Forecast Category $ $ Million Million Replacement 16.3 15.3 Organic growth 26.8 5.5 10 year rebuilds – Cranes 0.8 1.2 10 year rebuilds – Sherrin 2.8 2.0 Total 46.7 24.0
Slide 12: Management Structure
For personal use only Management Structure
Slide 13: Management structure
Management structure For personal use only Board of Directors Chief Executive Officer J. Carr A. Watson P. O’Shannessy Iona MacPherson Exec GM Sales & Exec GM Strategic Marketing Development Chief Operating Officer Chief Financial Officer C. Donaldson M. Aylward G. Wright (Acting) M. Apthorpe T. Wit
Slide 14: Outlook
For personal use only Outlook
Slide 15: Outlook
Outlook For personal use only • Full year NPAT in the range of $29m - $30m (before accounting adjustments) • WA and Victoria forecast to continue solid performance • Bowen Basin (9% of group revenue) negatively impacting QLD performance • Continued solid demand from major maintenance and infrastruct
Slide 16: Outlook: Key management focus
Outlook For personal use only Key management focus on: – reducing fixed costs across the business – cost recovery under existing service contracts – consolidating core processes and business systems – improved equipment deployment to optimise utilisation – a review of overall fleet mix
Slide 17: Questions
For personal use only Questions
Slide 18: Contact Details
Contact Details For personal use only John Robinson Iona MacPherson Chairman CFO/ Company Secretary Address: Level 12, 390 St Kilda Road MELBOURNE VIC 3004 Phone: (03) 9864 0200 Fax: (03) 9864 0222
Slide 19: Appendix: Revenue Segmentation
Appendix For personal use only Revenue Segmentation
Slide 20: Revenue Segmentation – 1HY08
Appendix Revenue Segmentation – 1HY08 For personal use only Market Segmentation Geographic Segmentation Residential 1% Engineering/ Civil Construction VIC NSW 11% Industrial NSW 18% 19% Maintenance 23% 35% Non Residential 24% QLD WA Resources 32% 28% Maintenance 28% Government/ Defence 1% TAS 1% SA
Slide 21: Revenue Segmentation – 1HY08
Appendix Revenue Segmentation – 1HY08 For personal use only Segmentation by Equipment Wet Hire/ Dry Hire Other Equipment 4% Crane Sales Crane Sales & & Service Service 20% 19% Cranes 41% Wet Hire Travel Tower 54% Dry Hire 11% 27% Access Equipment Heavy 12% Haulage 7% Rigging 5%