Shine Justice Ltd. · ASX:SHJ
Shine Justice — Shine Corporate — FY2015 Earnings Presentation
24 slides from Shine Justice's earnings presentation, Aug 28, 2015
Slide 1: Shine Corporate Ltd 2015 Full Year Annual Results
For personal use only SHINE CORPORATE LTD 2015 Full Year Annual Results 28 August 2015 Simon Morrison – Managing Director Courtney Petersen – CEO Shine Lawyers Daniel Wilkie – Chief Financial Officer
Slide 2: Agenda
For personal use only AGENDA • Introduction & executive appointments • Key highlights and revenue • Financial results • Revenue & EBITDA bridge • Operating cash flow • Balance sheet • Operating performance by area • Business transformation • Acquisition strategy • Reform update • FY16 priorities & g
Slide 3: Executive Appointments
For personal use only EXECUTIVE APPOINTMENTS • Key executive management appointments during FY15: • CEO Courtney Petersen Qualified lawyer and proven leader Wealth of management and strategic experience Held key senior roles in Telstra, Tabcorp, Queensland Rail and more recently Aurizon Know
Slide 4: Key Highlights
For personal use only KEY HIGHLIGHTS Strategy • Continued focus on inch-wide, mile-deep growth in plaintiff-based litigation • Continued diversification of geographic spread of core PI business and enhancement of capability across emerging practice areas • Measured approach to acquisitions – consist
Slide 5: Revenue Diversification
REVENUE DIVERSIFICATION For personal use only Emerging practice areas have increased to 22% of total group revenue while the group now derives over half its revenue from outside its core QLD PI base. 5
Slide 6: Financial Results
For personal use only FINANCIAL RESULTS Measure FY15 FY14 % change to PCP Revenue1 $150.6m $115.5m ↑ 30.4% Statutory EBITDA $44.0m $34.2m ↑ 28.7% Normalised EBITDA2 $45.4m $34.2m ↑ 32.7% Normalised EBITDA margin2 30.1% 29.6% ↑ Normalised NPAT3 $30.6m $22.2m ↑ 37.8% Normalised Net Operating Cash Flow
Slide 7: Revenue and EBITDA Bridge
For personal use only REVENUE AND EBITDA BRIDGE Revenue $M EBITDA $M 160.0 50.0 150.0 45.0 0.5 6.9 0.8 16.0 140.0 40.0 3.8 130.0 35.0 18.6 150.6 44.0 120.0 30.0 34.2 110.0 25.0 115.5 100.0 20.0 FY14ACT Increase in Increase in Increase in Other FY15ACT FY14ACT Increase inPersonal Increase inEmerging
Slide 8: Operating Cash Flow
For personal use only OPERATING CASH FLOW • Gross operating cash flow for FY15 was $13.0M (2014: $10.5M) • Normalised net operating cash flow2 was $11.5M (2014: $11.4M) – 37.6% of normalised NPAT1 • Net WIP grew by 39.3% or $53.7M to $190.7M in FY15 • Typical PI cases involve an 18 month timeframe w
Slide 9: Balance Sheet
For personal use only BALANCE SHEET As at ($M) 30 Jun 15 30 Jun 14 Strong balance sheet: Cash and receivables 29.9 20.1 • Net WIP and disbursements increased by $67.3M reflecting both organic growth ($36.0M) and WIP and disbursements 239.3 172.0 acquisitions during the year ($31.3M at 30 Jun) PP&E a
Slide 10: Operating Performance by Area
For personal use only OPERATING PERFORMANCE BY AREA Personal Injury Emerging Practice Areas Revenue $116.4M Revenue $33.7M EBITDA $32.7M EBITDA $11.2M EBITDA Margin 28.1% EBITDA Margin 33.2% • Strong performance for the year • Strong performance whilst continuing to deliver on • Three ne
Slide 11: Business Transformation Underway
For personal use only BUSINESS TRANSFORMATION UNDERWAY SHORT TERM MEDIUM TERM Continue focus on improving Deliver best-practice, agile recoverability and optimising company-wide platform to support business model growth and achievement of business objectives Underpinned by Our core purpose and value
Slide 12: Acquisition Strategy
For personal use only ACQUISITION STRATEGY • Acquisition of Bradley Bayly effective 1 June 2015 (completed 14 August 2015) significantly strengthens presence in WA • Increasing diversity of practice areas and revenue sources • More prospects in the pipeline • Continue to focus on damages-based loss
Slide 13: Reform Update
For personal use only REFORM UPDATE Workcover Queensland • Legislation to overturn previous changes has been introduced to Parliament • Passing of legislation would have a positive impact on NPAT in FY16 • Change in legislation is expected to be retrospectively effective 1st February 2015 13
Slide 14: FY16 Priorities and Guidance
For personal use only FY16 PRIORITIES AND GUIDANCE • Internal focus on improving recoverability • Anticipate more growth through acquisitions • Improvement in operating cash flows through disbursement funding • Continued rollout of transformation project • EBITDA guidance – $52.0M to $56.0M 14
Slide 15: Questions?
For personal use only QUESTIONS? FOR MORE INFORMATION PLEASE VISIT: WWW.SHINE.COM.AU
Slide 16: Disclaimer
For personal use only DISCLAIMER This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Limited and certain plans and objectives of the management of Shine Corporate Limited. Such forward-looking st
Slide 17: Supporting Information
For personal use only SUPPORTING INFORMATION 17
Slide 18: Five Year Financial Metrics
FIVE YEAR FINANCIAL METRICS For personal use only Revenue ($M) FY10 – FY15 EBITDA ($M) FY10 – FY15 160 150.6 50 44.0 140 45 115.5 40 120 105.2 34.2 35 100 85.5 30 27.6 71.2 23.6 80 25 21 60 20 15 40 10 20 5 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 The figures for FY10, FY11 and FY12 sho
Slide 19: Shine Corporate
For personal use only SHINE CORPORATE Group Holding Company • 5 law firms and other interests • Ongoing growth – organic and acquisitions • Diversification into emerging practice litigation SHINE NZ 1 BB • Continued clear vision and systems to grow BB BRADLEY BAYLY LEGAL – PERTH & ALBANY 1 Membe
Slide 20: Shine Subsidiaries
For personal use only SHINE SUBSIDIARIES • Values driven business – “Right Wrong” • National operation • Top three plaintiff litigation firm founded in 1976 • Customised case selection and case management processes 20
Slide 21: Acquisitions
For personal use only ACQUISITIONS Emanate Legal and Stephen Browne Personal Injury Lawyers • Acquisitions announced in June 2014 • Completed in July 2014 • Capital raising of $29.5M via a 1 for 10 entitlement offer completed in July 2014 • Contributing to earnings and cash flow from 1 July 2014 Sci
Slide 22: Other Interests
For personal use only OTHER INTERESTS • RWWNZ - NZ joint venture specialising in disaster recovery claims • Partnership with Erin Brockovich in the United States managing enquiries and assisting claimants seeking legal remedy where appropriate STRICTLY CONFIDENTIAL 22
Slide 23: Practice Areas
For personal use only PRACTICE AREAS KEY PRACTICE AREAS Personal Workers’ compensation Injury Motor vehicle accidents Litigation Medical negligence Public liability Product liability Professional negligence Environmental Emerging Disability insurance & superannuation Practice Class actions Litigatio
Slide 24: Key Accounting Policies
For personal use only KEY ACCOUNTING POLICIES Revenue Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable that economic benefits will flow to the Group and the revenue can be reliably measured. The following specific reco