Austco Healthcare Ltd · ASX:AHC
Austco Healthcare — Investor Presentation (September 2018)
15 slides from Austco Healthcare's investor presentation, Sep 3, 2018
Slide 1: 2018 Full Year Results Presentation
2018 FULL YEAR RESULTS PRESENTATION 3 September 2018
Slide 2: FY18 Summary
FY18 SUMMARY • NPAT of $1.19M compared with ($6.41M) in FY17 • Decrease in overhead of 17% to $12.88M - lowest level since 2014 Financial • Increase in recurring revenue from $1.75M in FY17 to $3.14M (10.9% of sales), exceeding previous guidance performance • Increase in gross profit margin from 46.
Slide 3: FY2018 Financial Snapshot
FY2018 FINANCIAL SNAPSHOT A$000 2018 2017* VARIANCE NOTES NPAT 1,194 (1,588) 2,832 NPBT 1,254 (1,557) 2,811 Increased earnings driven by lower costs EBIT 1,313 (1,449) 2,762 $0.74M dev costs capitalised in 2018, previously Overhead expenses (12,880) (15,534) 2,645 expensed Gross profit 14,134 13,517
Slide 4: Earnings
EARNINGS Earnings* 2015 – 2018 2018 marks a solid return to ($A000s) positive earnings: EBITDA 1,577 EBIT NPBT NPAT 1,313 1,254 1,194 1,093 • EBITDA, EBIT, NPBT & NPAT 689 200 positive for first time since 2016 120 -928 • EBITDA, EBIT, NPBT & NPAT at highest level since 2015 • earnings per share (EP
Slide 5: Revenue
REVENUE Sales revenue arrests decline of previous 3 Revenue from 31,570 years with: activities 28,919 28,940 • strong growth in recurring revenue (software) of 79% $A000s to $3.1M over 2017 • segmental breakdown of sales* is: 2016 2017 2018 – North America – 43% – Australia/NZ – 37% 10.9% Recurring
Slide 6: Gross Profit
GROSS PROFIT 48.8% Centralised manufacturing in Texas has Gross Profit / 48.9% Margin FY reduced manufacturing costs with: Comparison 46.3% $A000s • gross margin increasing to 48.8%, 2.5 percentage 15,654 13,517 14,134 points above 2017 2016 2017 2018 • full year gross margin increasing by $0.62M Gr
Slide 7: Overhead Expenses
OVERHEAD EXPENSES 19,529 Annual overhead now at lowest level since Overhead expenses 15,534 2014 with: 12,880 • a 17% decrease over 2017, with savings made across $A000s entire business 2016 2017 2018 • cash savings of $1.65M, 10.6% reduction from 2017 (in addition to CoGS savings outlined above) 15
Slide 8: Cash Flow & Debt
CASH FLOW & DEBT Operating Operations continue to be cash positive with: and Net Net 84 Ops 2,031 Net 656 Cashflows Net $A000s • positive operating and net cash flows of $2.03M and -1,707 Ops Ops $0.66, compared with ($2.55M) and $0.08M -2,212 -2,552 2016 2017 2018 respectively in 2017 Cash Debt and
Slide 9: New Contracts
NEW CONTRACTS 2018 strategic objectives outlined new approaches to revenue growth: • target national accounts • establish key strategic partnerships CONTRACT DETAILS CLIENT COUNTRY $M DATE TIMEFRAME Ongoing Tacera Nurse Call System Magnet Group (GPO) USA February 2018 3 years partnership Tacera Nurs
Slide 10: Turnaround Complete
TURNAROUND COMPLETE ACTIVITY COMMENCED COMPLETED BENEFITS • Average wage 21% lower Relocated Manufacturing to USA February 2016 December 2017 • Factory overhead 54% lower • Break even point 3.5 times less • More efficient product management and Rationalised product lines (900 down to 300) January 20
Slide 11: FY2018 Strategic Objectives
FY2018 STRATEGIC OBJECTIVES STRATEGIC OBJECTIVE ACHIEVEMENT Streamline manufacturing and reduce COM ü Reduced cost of goods sold by 4.4% from $15.7M in FY17 down to $14.8M in FY18 Target national accounts ü Secured 2 national accounts Improve inventory management and turnaround time ü Reduced invent
Slide 12: Outlook
OUTLOOK External Internal Global Nurse Call market is expected to see • Pursue large contracts – several currently under negotiation strong year on year growth (estimated CAGR of • Continue pursuing strategic partnerships with GPOs, such as 11% between 2018 and 2025 to USD$2.67B*) Magnet and Ideacom
Slide 13: Appendices
AZURE APPENDICES
Slide 14: 5 Year Earnings
5 YEAR EARNINGS A$000 2014 2015* 2016 2017 2018 Notes Sales revenue 31,308 33,497 31,570 28,919 28,940 Total revenue 31,319 34,962 32,028 29,191 28,948 Gross profit 17,649 18,298 15,654 13,517 14,134 Asset sale - - 460 - CellGuard divestment Overhead (13,758) (17,604) (18,803) (14,905) (12,557) Incl
Slide 15: 5 Year Balance Sheet & Cash Flow
5 YEAR BALANCE SHEET & CASH FLOW A$000 2014 2015* 2016 2017 2018 Notes Current assets 15,884 17,002 16,125 16,735 15,491 Non-current assets 5,414 5,967 5,858 617 1,323 Total assets 21,298 22,969 21,983 17,375 16,814 Current liabilities 6,569 7,320 9,733 9,047 7,195 Non-current liabilities 355 112 80
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