Boom Logistics Ltd · ASX:BOL
Boom Logistics — FY2006 Earnings Presentation
25 slides from Boom Logistics's earnings presentation, Aug 9, 2006
Slide 1: Full Year Results Presentation
Full Year Results Presentation 30 June 2006
Slide 2: FY2006 Highlights
FY2006 Highlights • Strong full year result Actual Revenue $253.8m EBITDA $76.4m EBITDA % 30.1% NPAT $33.1m NPAT% 13.1% EPS 21.8c DPS 10.4c • Underlying full year organic growth rate of 13% • Acquisition of Sherrin Hire for $130m – August 2005 • Entry into ASX 200 – March 2006 • Acquisition of Camil
Slide 3: Statutory Financial Performance
Statutory Financial Performance % • Organic revenue growth of 13%: $ million FY06 FY05 Change 4% Rate Revenue 253.8 132.5 Ï 92% 9% Volume EBITDA 76.4 32.3 Ï 137% • YOY EBITDA % increase is due to the EBITDA % 30.1% 24.4% Ï 5.7% addition of Sherrin Hire equipment EBIT 56.1 25.0 Ï 124% EBIT % 22.1% 18
Slide 4: Financial Position
Financial Position FY06 FY05 • Receivables reflect Ï revenues from Year Ended 30 June 2006 Actual Actual acquisitions and organic growth. Cash 29.9 6.0 • Intangibles – goodwill on acquisition of Receivables 49.2 28.1 Sherrin Hire ($27m) and Camilleri, Qld Plant & equipment 292.7 125.7 ($8m) Intangib
Slide 5: Cash Flow
Cash Flow FY06 Strong operating cashflow of $45.8m. Y/End 30 June ($m) Actual EBITDA 76.4 Total capex $65.6m. Cash funded portion = $50.1m Net interest (7.9) Business acquisitions – cash contribution: Income tax paid (7.9) ¾ $54.6m – Sherrin Hire - Aug 2005 Working capital / other (14.8) ¾ $21
Slide 6: Capital Commitments for year ended June 2006
Capital Commitments for year ended 30 June 2006 $ Category Million Replacement 20.3m Organic growth (*) 45.3m Sub total 65.6m Acquisition – Sherrin Hire $130m, Camilleri $27.5m 157.5m Total 223.1m (*) Achievement of 15.7% after tax IRR on organic capital invested FY06. 6 of 25
Slide 7: Market Capitalisation/ EPS
Market Capitalisation/ EPS Market Capitalisation ($M) EPS (cents/ share) 800 760 700 22 21.8 600 500 499 Ï 46% 19 400 396 300 16 229 Ï 26% 14.9 200 139 157 13 100 74 11.8 0 10 IPO Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Jun-04 Jun-05 Jun-06 Oct-03 EPS 7 of 25
Slide 8: Revenue Segmentation – FY06
Revenue Segmentation – FY06 Market Segmentation Geographic Segmentation “Diverse and balanced revenue streams” Residential TAS SA 1% 1% 2% Engineering/ Civil Construction 13% NSW WA Industrial Non Residential 26% Maintenance 28% 15% 39% Resources Maintenance QLD VIC 31% 31% 12% Government/ Defence 1
Slide 9: Revenue Segmentation – FY06
Revenue Segmentation – FY06 Segmentation by Equipment Wet Hire/ Dry Hire Other Equipment 3% Travel Tower DryHire Dry Hire Access 11% 24% 22% Equipment 11% Wet Hire Rigging Cranes 6% Wet Hire78% 60% Heavy 76% Haulage 9% • Unique bundled service offering • Capital and labour barriers to entry • Tailor
Slide 10: Market Share – Proforma FY06
Market Share – Proforma FY06 Crane Hire Market Broader Lifting Services Market Opportunity exists to continue growth 19% Boom 9% Boom EST. Aust. Market Size – 1.0bn EST. Aust. Market Size – 3.0bn 10 of 25
Slide 11: Boom Logistics depots, employees and equipment
Boom Logistics Sherrin Hire James Group Nebo Middlemount Banjo Canningvale Altona North 1,204 Employees 551 Cranes 2,000 Other Equipment 53 Depots 11 of 25
Slide 12: Sherrin Hire Integration
Sherrin Hire Integration The integration of Sherrin Hire has gone to plan. Achievements: • Strong financial performance – has exceeded expectations • Amalgamation of Boom/ Sherrin Toowoomba & Kalgoorlie depots • Cross Selling • Joint servicing of Port Waratah Coal terminal • Developed cross promotio
Slide 13: Camilleri Integration
Camilleri Integration The integration of Camilleri has gone to plan. Achievements: • Solid financial performance • Seamless integration with existing Central Queensland (CQ) operations Opportunities: • Ready made access to additional fleet and labour to continue growth • Strong forward outlook for C
Slide 14: James Group
BOOf ctatedet- &* BOOM Providers of Lifting Solutions to Australia , ae James Group 14 of 25
Slide 15: James Group
James Group Background • Formed in 1954 • Services provided: • 70 dry hire cranes – 7 tonne to 70 tonne (avg age – 9 years) • Crane sales – new Tadano cranes and used cranes • FY06 Revenue $44m ($7m dry hire, $37m crane sales) • FY06 EBITDA $12.4m • Operates nationally from bases in Vic, Qld & WA •
Slide 16: James Group – Business Model Benefits
James Group – Business Model Benefits Acquisition of new Sale of old cranes : Tadano Cranes and • Overseas used cranes • Local Sales Sale of old cranes Sale of old cranes Acquisition of new & Acquisition of new & used cranes used cranes Wet Hire Dry Hire Transfer of cranes to optimise returns DELIVE
Slide 17: James Group – Acquisition details
James Group Acquisition details • Purchase price $60m • EV/ EBITDA Î 4.8 times • Settlement date – 1st August 2006 • Purchase price $60m • Consideration: • $54m cash/ debt • $6m BOL shares issued at $4.30 ($5m of $6m shares escrowed for min 6 months) • Brendan James (principal) will be retained on a
Slide 18: James Group – Strategic rationale
James Group Strategic rationale Dry Hire • Boom will be the largest Australian mobile crane dry hire provider/ dry hire cranes from 88 to 158. • Whilst only 6% of Boom’s total revenue, it provides strategic access to new customers for additional services. • Extension of dry hire services further com
Slide 19: James Group – Strategic rationale (cont'd)
James Group Strategic rationale (cont’d) Crane Sales • Securing the sole Australian distribution agency for Tadano cranes. • Tadano manufacture and distribute quality cranes on a world wide basis. • Tadano have recently introduced a new widely sought after ‘all-terrain’ cranes series. • Boom will be
Slide 20: Market Outlook
BOOM a vt & 2 BOOM Providers of Lifting Solutions to Australia , ae Market Outlook 20 of 25
Slide 21: Market Outlook
Market Outlook • Sector analysis – overall positive outlook • Industrial sector - strong • Resources sector - strong • Engineering construction - strong • Non residential - solid • Residential sector - slowed • FY07 organic growth prospects – circa 10%. • Further acquisitions expected this financial
Slide 22: Market Outlook
Market Outlook Key macro drivers: • Strong demand to continue for key sectors for the next 2-3 years. • Resources demand will continue to be stimulated by China’s ongoing requirement for commodity and infrastructure inputs. • Engineering/ construction demand will be fuelled by a pipeline of Australi
Slide 23: Management
Management New Positions Board Managing Director Rod Harmon Finance GM Business National Mgr, GM Fleet Director Development Quality, Management Safety & Risk Mark James Carr Brendan Lawrence Frank Legena James GM VIC GM WA GM QLD GM NSW Sherrin Hire Brenton Brian Alex Mark Steven Salleh Praetz Pagon
Slide 24: Questions
BOOf ctatedet- &* BOOM Providers of Lifting Solutions to Australia , ae Questions 24 of 25
Slide 25: Contact Details
Contact Details Rod Harmon Mark Lawrence Managing Director Finance Director Address: Level 12, 390 St Kilda Road MELBOURNE VIC 3004 Phone: (03) 9864 0200 Fax: (03) 9864 0222 25 of 25