Alliance Aviation Services Limited · ASX:AQZ
Alliance Aviation Services — FY2020 Earnings Presentation
23 slides from Alliance Aviation Services's earnings presentation, Aug 5, 2020
Slide 1: Alliance Aviation Services Limited Results Presentation
Alliance Aviation Services Limited Results Presentation 5 August 2020
Slide 2: Contents
Contents 03. KEY MESSAGES 04. FIVE REVENUE STREAMS 05. COVID-19 RESPONSE & IMPACT 09. FINANCIAL SUMMARY 16. STABLE CONTRACT CLIENT BASE 17. COMMODITY/SECTOR EXPOSURE 18. FOOTPRINT 19. OPERATIONAL EXCELLENCE 20. FLEET EXPANSION 21. OUTLOOK 22. DISCLAIMER Alliance Aviation Services Limited 2020 Full Y
Slide 3: Key Messages
Key Messages CASH $40.7m profit Net cash position of Alliance Aviation Services Limited announces a before tax, up Revenue from operations $44.0 m full year result which includes: 24.1% of $298.6m, up 7.7% • Strong revenue growth; • Another record profit; • Stable flight hours; DEBT • The introducti
Slide 4: Five Revenue Streams
Five Contract Wet Revenue Lease Revenue RPT Charter Aviation Streams Revenue Revenue Services 1 2 3 4 5 Contract and charter revenue experience Contract Revenue Wet Lease RPT Revenue Charter Revenue Aviation Services substantial growth in Long-term contract Operating Alliance aircraft Regular public
Slide 5: COVID-19 Response
COVID-19 Response Alliance reacted quickly and effectively in response to the unprecedented year due to the COVID-19 pandemic, thus avoiding downturn seen elsewhere in the aviation industry. Health & Wellbeing PPE & Safe Work Understanding Client Implemented health and wellbeing Procedures Requireme
Slide 6: COVID-19 Response (cont.)
COVID-19 Response (cont.) COVID-19 Response Embraced Technology Financial Extensions Team Accelerated implementation of digital Extended bank facilities for Established an internal COVID-19 technologies such as video twelve months. response team that could effectively conferencing and collaboration
Slide 7: COVID-19 Impact on Reported Results
Social Distancing Increase in flights for existing customers due to social distancing COVID-19 requirements. Impact on New Charter Clients Reported Results The addition of ten new resource sector charter clients. RPT & Wet Lease Suspended Wet lease services were suspended and RPT schedules initially
Slide 8: COVID-19 Impact on Reported Results (cont.)
Dividend Cancelled Due to the uncertainty of the COVID-19 impacts of COVID-19, the interim dividend was cancelled to ensure maximum flexibility in managing Impact on capital requirements. Reported Results Government Rebates Aviation assistance rebates of (cont.) $2 million received in FY2020. No job
Slide 9: Financial Summary
FINANCIAL SUMMARY For the year ended 30 June 2020 9
Slide 10: Financial Statements
Financial Detail 30 June 2020 30 June 2019 Aircraft in service* 42 38 Statements Flight Hours – contracted 23,733 19,660 Alliance consistently delivers Flight Hours – wet lease 6,297 11,555 strong operational and financial Flight Hours – RPT 4,612 5,158 metrics. Flight Hours – charter 2,453 1,095 Fl
Slide 11: Income Statement
FY2020 FY2019 % PCP ($ in millions) Actual Actual Change Revenue Income Contract revenue Wet lease revenue 202.5 24.4 165.3 45.4 22.5% (46.3%) Statement Charter revenue RPT revenue 26.4 34.6 13.4 41.2 98.5% (16.0%) Observations: Aviation services 10.0 10.9 (8.1%) • Contract revenue has increased due
Slide 12: Statement of Financial Position
30 June 2020 30 June 19 % PCP ($ in millions) Actual Actual Change Cash 98.8 9.6 929.2% Receivables 54.4 40.0 36.0% Statement of Inventory Total current assets 57.4 210.6 49.0 98.6 17.1% 113.6% Financial Position PP&E & Intangibles Right of use assets 217.3 8.0 203.0 - 7.1% - Observations: Total non
Slide 13: Cash Flow Statement
30 June 2020 30 June 2019 ($ in millions) Actual Actual Receipts from customers (inclusive of GST) 315.9 294.4 Payments to suppliers (inclusive of GST) (269.5) (254.8) Cash Flow Net interest paid (2.4) (2.5) Statement Income tax paid Net cash inflow from operating activities 0.0 44.0 (0.1) 37.0 Obse
Slide 14: Capital Expenditure
FY2020 FY2021 ($ in millions) Actual Forecast Existing fleet maintenance Cash outflows Capital Base maintenance providers Engine care program 7.9 15.0 9.5 15.2 Expenditure Other miscellaneous Operating costs capitalised 0.7 2.5 1.0 1.9 Fokker Fleet Total cash outflows 26.1 27.6 Observations: Non-cas
Slide 15: Other Information
OTHER INFORMATON For the year ended 30 June 2020 15
Slide 16: Stable Contract Client Base
Stable Contract Client Base Previous Contract Contract Client Terms Current Contract Alliance Aviation Services Limited 2020 Full Year Results Presentation 16
Slide 17: Commodity / Sector Exposure
Commodity / Sector Exposure Forecast major commodity/sector exposure by the top 15 contracts. Alliance Aviation Services Limited 2020 Full Year Results Presentation 17
Slide 18: Footprint
Darwin - Crew - Line Maintenance Footprint - Operational base - Offices Cairns - Crew - Line Maintenance - Operational base - Offices Townsville - Hangar - Crew - Line Maintenance - Operational base - Offices Rockhampton - Crew - Line Maintenance - Operational base - Offices Brisbane - Hangar - Majo
Slide 19: Operational Excellence
Forecast Fokker Fleet Safety FY 2021 Certifications Operational Excellence F100 – 100 Seat Jet Aircraft No. in fleet – 24 Wyvern Wingman certification (2 in storage) 95% O T Renewed IOSA F70 – 80 Seat Jet Aircraft P 1 certification in FY20 No. in fleet - 14 Alliance Airlines consistently achieved 95
Slide 20: Fleet Expansion - E190 Acquisition
14 x Embraer E190s With seating for between 94 and 114 passengers. Fleet Expansion Delivered in Australia over 8 months with Alliance livery E190 Acquisition Commencing September 2020 with payments aligned to delivery timeframes. Spares packages, tooling, GSE Including 6 spare GE CF34 engines. Price
Slide 21: Outlook
Alliance retains a positive outlook for the 2021 financial year based on the continued demand for its services from an increased client base. Outlook Alliance’s robust and diverse business model has proven to be resilient in these challenging times. The charter sector is forecast to perform strongly
Slide 22: Disclaimer
Disclaimer Reliance on third party information This presentation was prepared by Alliance Aviation Services Limited (ACN 153 361 525) (“Alliance”). Certain market and industry data used in this presentation may have been obtained from research, surveys or studies conducted by third parties, includin
Slide 23: Disclaimer (cont.)
Disclaimer (cont.) Future performance and forward looking statements This Presentation contains certain “forward-looking statements”. The words “expect”, “anticipate”, “estimate”, “intend”, “believe”, “guidance”, “should”, “could”, “may”, “will”, “predict”, “plan” and other similar expressions are i
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