Boart Longyear — FY2019 Earnings Presentation
24 slides from Boart Longyear's earnings presentation, Feb 28, 2020
Slide 1: ASX Announcement: Full-Year 2019 Results Investor Presentation
ASX ANNOUNCEMENT (ASX:BLY) 28 February 2020 ASX Markets Announcement Office Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT Full-Year 2019 Results Investor Presentation Please find attached for release to the market, Boart Longyear Limited’s Full-Year 2019 Results Investor P
Slide 2: FY 2019 Results
LF™160 Rig & FREEDOM™ Loader FY 2019 Results February 2020 Jeff Olsen – Chief Executive Officer
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer • This presentation has been prepared by Boart Longyear Limited, ABN 49 123 052 728 (Boart Longyear or the Company). It contains general information about the Company’s activities as at the date of the presentation. It is information given in summary form and does not
Slide 4: Boart Longyear is
Boart Longyear is The world’s leading provider of drilling services An expert in providing valuable orebody knowledge A pioneer in drilling equipment and performance tooling FY 2019 Results – See page 23 for footnote descriptions 3
Slide 5: Full Year 2019 Highlights
FULL YEAR 2019 HIGHLIGHTS - Return to meaningful operating cash generation FINANCIAL STRATEGIC SAFETY PERFORMANCE OBJECTIVES REVENUE 3 1.3% GEOLOGICAL DATA LTIR SERVICES REVENUE GROWTH 0.02 NET PROFIT AFTER TAX >60% (2018 – 0.10) 1 Neg US$ 45M OVER 14 MILLION HOURS (2018 – Neg US$44M) WORKED LTI FRE
Slide 6: Leading innovation in the industry
Leading innovation in the industry - Improving drill productivity and data collection Geological Data Services Product Offering Drilling Services Offering TruScan™ Longyear™ Bits MDR500™ (On-site Assay) (Diamond Coring) (Diamond Coring) In Market ™ XQ Rods In Market TruShot™ (Next Generation Thread
Slide 7: Drilling Services: 2019 Operations
Drilling Services: 2019 Operations Change Revenue by Commodity Key Financials (US $M): FY 2019 FY 2018 Fav / (Unfav) Revenue 516 534 (3%) COGS 432 448 4% SG&A 21 26 20% EBITDA 90 83 9% EBITDA as % of Revenue 17% 16% 2019 Financial Highlights 2019 Operating Highlights REVENUE 3 – (1.2%) lower after
Slide 8: Global Products: 2019 Operations
Global Products: 2019 Operations Change Key Financials (US $M): FY 2019 FY 2018 Fav / (Unfav) Revenue by Product Category Revenue 229 237 (3%) COGS 175 180 3% SG&A 31 31 1% EBITDA 31 31 1% EBITDA as % of Revenue 14% 13% 4 Change Pro Forma Revenue (US $M) FY 2019 FY 2018 Fav / (Unfav) Sales to BLY Dr
Slide 9: FY 2019 Results – Chief Financial Officer
LRTM90H Horizontal Drilling Rig FY 2019 Results February 2020 Miguel Desdin– Chief Financial Officer
Slide 10: FY19 – Financial Metrics
FY19 – FINANCIAL METRICS - Improvement across financial performance metrics REVENUE PROFITABILITY OPERATING CASH FLOW NET WORKING CAPITAL US$ 87M 35M 30% +1.3% (2018 – US$81M) US$ Adjusted EBITDA2 (2018 – $4M) of SALES After eliminating impacts of Continued improvement in FX, discontinued operations
Slide 11: Consolidated Results Summary: FY19
Consolidated Results Summary: FY19 Volumes impacted by Major Miner M&A Activities (US $M) Consolidated Revenue Bridge • Excluding FX, discontinued operations and slow moving inventory sales, revenue increased $9M (1.3%) • Mining Industry M&A activities delayed mineral exploration projects and reduce
Slide 12: Consolidated Results Summary: FY19
Consolidated Results Summary: FY19 Continued operational improvements (US $M) Consolidated Adjusted EBITDA2 Bridge • Excluding FX, discontinued operations, impacts of inflation and AASB 16 accounting change, EBITDA increased $14M (19.2%) • Price improvement (3.5%) benefit over Inflationary pressures
Slide 13: Balance Sheet Improvement
Balance Sheet Improvement Net Debt leverage stabilised, Next facility maturity of July 2022 (US $M) Net Debt Leverage • Net Debt increasing with adoption of AASB 16 Accounting for Leases (US$27M) • Net Debt/Adj EBITDA stabilised 8.8x • Next maturing Debt Facility – July 2022 FY 2019 Results – See pa
Slide 14: Balance Sheet Improvement
Balance Sheet Improvement Meeting objectives to improve Liquidity (US $M) Liquidity Management • 2019 Cash generation from operations improvement of $31M over full year 2018 • Asset Back Lending Revolver (ABL) and Backstop Term Loan Facilities increased by $25M and extended through to 2022 ($10M acc
Slide 15: FY 2019 Results – Business Overview
MDR700™ ScraLF MobileCoring TM500 Surface Underground Rig and Coring Rig Operator FY 2019 Results February 2020 Jeff Olsen – Business Overview
Slide 16: Commodity Price Outlook Continues to Improve
Commodity Price Outlook Continues to Improve REVENUE SPLIT BY COMMODITY Significant exposure to Gold & Copper BLY WEIGHTED AVERAGE COMMODITY PRICE5 125 120 115 Gold Price History5 Gold (Au) 110 1,600 105 US$/oz. 1,400 1,200 100 Copper Price History5 95 $3.50 90 US$/lb $2.50 FY 2019 Results – See pag
Slide 17: Summary
Delivering on Strategic Objectives We build our customers’ orebody knowledge Demonstrating strong improvement Summary Over 14.5 million hours worked Lost Time Free Adjusted EBITDA up 8% on comparable revenue over 2019 Reinvested in business to capitalise on 2020 market growth by adding 35 tech
Slide 18: Questions?
Questions? 17 17
Slide 19: Appendix
LRTM500 Surface Coring Rig and Operator FY 2019 Results February 2020 Appendix
Slide 20: Safety & Environment
Safety & Environment Leading safety performance focused on continuous improvement Leading safety performance KPI’s • LTIR – 0.02 • TCIR – 1.37 Safety Performance 2019 Lost time incidents – 1 (vs 5 in 2018) “Our goal is to add value with Over 14.5 Million hours worked Lost Time Free zero harm – lea
Slide 21: Year-Over-Year Comparison
Year-Over-Year Comparison Strong focus on productivity and cost control in improving market Statutory Adjusted2 Change Change (US $M except EPS) FY 2019 FY 2018 (US $M) FY 2019 FY 2018 Fav / (Unfav) Fav / (Unfav) Revenue 745 770 (3%) Revenue 745 770 (3%) Gross Margin 139 131 6% Adjusted Gross Margin
Slide 22: Key Performance Indicators by Quarter
Key Performance Indicators by Quarter Quarters ended 2019 Quarters ended 2018 Quarters ended 2017 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total Com pany Revenue (US$ millions) 166.0 191.1 198.0 189.9 180.1 196.4 206.4 187.8 183.7 199.2 192.5 163.7 EBITDA (US$ millions) (13.5) 26.3 34.2 19.5 5.1 20.7 15.
Slide 23: Diversified End-Market Exposure
Diversified End-Market Exposure Revenue by Type – Products & Services Revenue by Region – Products & Services Drilling Services Revenue by Stage FY 2019 Results – See page 23 for footnote descriptions 22
Slide 24: Footnote Disclosures
Footnote Disclosures • Footnote 1: Per 200,000 work hours. • Footnote 2: Loss from Trading Activities, Adjusted Gross Margin, Adjusted Operating Loss, Adjusted SG&A, Adjusted EBITDA and Earnings are non-IFRS measures and are used internally by management to assess the underlying performance of the b