Coast Entertainment Holdings Ltd · ASX:CEH
Coast Entertainment — H1 2020 Earnings Presentation
35 slides from Coast Entertainment's earnings presentation, Feb 21, 2020
Slide 1: Ardent Leisure Group Limited 1H20 Results Presentation
Ardent Leisure Group Limited 1H20 Results Presentation 21 February 2020
Slide 2: Chairman's opening message: key events and milestones
Chairman’s opening message Key events and milestones April 2018: December 2018: August 2019: August 2019: December 2019: Completion of sale Completion of Sky Voyager was Opened Main Event WhiteWater World of Bowling and destapling and opened; plan to invest centre in Baton refurbishment Entertainmen
Slide 3: Chairman's opening message: achievements and strategic direction
Chairman’s opening message Achievements and strategic direction Main Event ▪ First-class management team in place ▪ Roll out continuing with three new centres opened in FY20 solid development pipeline established ▪ New centre openings performing well ▪ Strong prospects with an aim to put the busines
Slide 4: 1H20 Group Overview
1H20 Group Overview — ARDENT S
Slide 5: 1H20 – Key messages
1H20 – Key messages ▪ 1H20 statutory results were impacted by a change in lease accounting standard (AASB 16 Leases) and an extra week of trading with FY20 being a 53 week year ▪ 1H20 Group EBITDA2 excluding Specific Items2 was $19.0 million on a like-for-like 26 weeks basis, up $5.3 million or 39.0
Slide 6: 1H20 – Key messages: snapshot of Group performance
1H20 – Key messages A snapshot of Group performance Revenue Reported vs Pro Forma2 EBITDA 50.0 300.0 263.2 • On a 26 weeks like- • 1H20 EBITDA was 0.2 247.2 for-like basis, Group 45.0 impacted by a change in 250.0 0.2 revenue of $247.2 lease accounting 38.7 226.7 40.0 36.1 million grew $20.5 standar
Slide 7: 1H20 results: Reported vs pro forma
1H20 results: Reported vs pro forma 1H20 statutory results were adjusted to enable like-for-like comparison with prior period Consolidated Reported AASB 16 Impact of Pro Forma Pro forma results: 1H20 Leases week 27 1H20 ▪ Current year results were impacted by: A$m (27 weeks) adjustment results (26 w
Slide 8: Current vs prior corresponding period
Current vs prior corresponding period Consolidated Reported Pro forma Reported Key factors driving pro forma results: 2 1H20 1H20 1H19 Variance A$m (27 weeks) (26 weeks) (26 weeks) (26 weeks) ▪ Revenue grew 9.0% driven by positive trading Revenue 263.2 247.2 226.7 9.0% performances in both Main Even
Slide 9: Specific Items impacting results
Specific Items impacting results Consolidated A$m 1H20 1H19 Specific Items impacting results: Specific Items impacting segment EBITDA: ▪ Specific Items which are useful in understanding the Net valuation gain on assets 0.2 - statutory results are set out on this slide (as per statutory Pre-opening e
Slide 10: Main Event Entertainment
Zz” =—T . Main Event Entertainment ARDENT a
Slide 11: Main Event
Main Event Revenue growth of 4.0% and EBITDA excluding Specific Items up 2.5% Reported Pro forma Reported US$m 1H20 1H202 1H19 Variance Main Event performance: Revenue 154.0 144.6 139.1 4.0% ▪ Sales growth of 4.0% reflects a 1.0% growth in constant centre revenue as well as full period contributions
Slide 12: Revenue performance
Revenue performance Constant centre¹ sales up 1.0% for 1H20; revenue trend remains positive in 2H20 Constant Constant Centre¹ Centre revenue 1 Sales Trend -up 1H20 2 Like-for-like 1.6% Constant centre performance: 1.0% ▪ 1.0% increase in 1H20 constant centre revenue primarily driven primarily by str
Slide 13: Key accomplishments
Key accomplishments Significant progress made in 1H20 with focus on 2H20 and FY21 growth priorities 1H20 Key Accomplishments 2H20 Focus ▪ Launched new brand identity supported by refreshed creative and ▪ Birthday party reinvention rollout enhanced media strategy ▪ Implement daypart strategies to dri
Slide 14: New centre growth and portfolio management
New centre growth and portfolio management Four new centres to be added during FY20; progress with previously impaired centres National Footprint ▪ One new centre opening in 1H20 in Baton Rouge is performing well ▪ Two more have recently opened during first part of 2H20, both under-budget and ahead
Slide 15: Main Event outlook
Main Event outlook ▪ Raising full year constant centre revenue growth guidance to 1.5% - 2.5%, from 1.0% - 2.0% previously ▪ Four new centres in FY20 adding approximately 85 operating weeks ▪ Anticipate five new centres in FY21; 8+ centres annually thereafter 14
Slide 16: Theme Parks
Theme Parks ARDENT a
Slide 17: Key results overview
Key results overview Positive trend – solid growth in attendance and revenue Reported Pro forma Reported A$m 1H20 1H202 1H19 Variance Theme Parks performance: Revenue 38.7 36.1 34.4 4.9% ▪ Attendance and revenue growth of 2.9% and 4.9% respectively when compared to prior period were driven Expenses
Slide 18: Key achievements 1H20
Key achievements 1H20 Delivering on key turnaround plan projects and objectives ▪ Sky Voyager opened on 23 August 2019 and is currently the most popular attraction at Dreamworld ▪ Substantially completed the transformation of WhiteWater World prior to Christmas which included: − refurbishment of ico
Slide 19: Coronial Inquest
Coronial Inquest Coroner’s report date confirmed – Best practice safety systems Coroner’s Report ▪ To be released on 24 February 2020 ▪ The Board remains committed to implementing the Coroner’s recommendations in consultation with Workplace Health and Safety Queensland and the theme park industry Co
Slide 20: Outlook
Outlook ▪ Trading during Christmas holiday was the strongest it has been for many years ▪ However, the prolonged period of severe wet weather, Coronavirus and the possible impact on attendances from the Coroner’s Report means that it is unlikely that Dreamworld will break even in 2H20 ▪ We believe t
Slide 21: Corporate Costs & Capital Management
Corporate Costs & Capital Management
Slide 22: Net debt and cash flow
Net debt and cash flow Reported A$m 1H20 As at 25 June 2019 A$m Net debt at 25 June 2019 (87.3) Debt (179.6) Operating cash inflows 48.6 Cash 92.3 Capital expenditure (cash outflow) (60.4) Net debt (87.3) Borrowing costs (11.3) Repayment of lease liabilities (25.2) Foreign exchange translation 2.2 (
Slide 23: Capital structure and funding
Capital structure and funding ▪ As at 31 December 2019, the Group has the following debt facilities: Initial Limit Available Limit Drawn Margin on Undrawn Amortisation (US$'m) (US$'m) (US$'m) Maturity drawn amount commitment fees of term loan Funded term debt 125.0 124.0 124.0 4 April 2025 6.50% 3.2
Slide 24: Corporate costs
Corporate costs ▪ Following the divestment of businesses, the Group has implemented significant restructuring to streamline its structure and reduce corporate costs ▪ This has resulted in a steady reduction in recurring and non-recurring corporate costs Corporate Costs 20.0 19.2 2.7 15.1 15.5 15.1 1
Slide 25: Appendices
Appendices ARDENT SS
Slide 26: Appendix 1: Impact of adoption of AASB 16 Leases
Appendix 1: Impact of adoption of AASB 16 Leases ▪ On adoption of AASB 16 Leases, the impact on the balance sheet is as follows: Increase/(decrease) in A$m Main Event Theme Parks Corporate Total Assets Right-of-use (ROU) assets 311.4 0.2 0.2 311.8 Total assets 311.4 0.2 0.2 311.8 Liabilities Payable
Slide 27: Appendix 2: Specific Items by business unit – 1H20
Appendix 2: Specific Items by business unit – 1H20 Consolidated Continuing Discontinued A$m Main Event Theme Parks Corporate Operations Operations Total Specific Items impacting segment EBITDA: Valuation gain/(loss) on assets 1.7 (1.9) 0.4 0.2 - 0.2 Pre-opening expenses (1.7) - - (1.7) - (1.7) Dream
Slide 28: Appendix 2: Specific Items by business unit – 1H19
Appendix 2: Specific Items by business unit – 1H19 Consolidated Continuing Discontinued A$m Main Event Theme Parks Corporate Operations Operations Total Specific Items impacting segment EBITDA: Pre-opening expenses (1.5) - - (1.5) - (1.5) Dreamworld incident costs, net of insurance recoveries - (5.3
Slide 29: Appendix 3: Reported vs Pro forma 1H20 – Main Event
Appendix 3: Reported vs Pro forma 1H20 – Main Event Consolidated Reported AASB 16 Impact of Pro Forma 1H20 Leases week 27 1H20 US$m (27 weeks) adjustment results (26 weeks) Revenue 154.0 - (9.4) 144.6 EBRITDA 43.1 - (3.3) 39.8 Property costs (7.0) (16.0) - (23.0) EBITDA1 36.1 (16.0) (3.3) 16.8 Depre
Slide 30: Appendix 3: Reported vs Pro forma 1H20 – Theme Parks
Appendix 3: Reported vs Pro forma 1H20 – Theme Parks Consolidated Reported AASB 16 Impact of Pro Forma 1H20 Leases week 27 1H20 A$m (27 weeks) adjustment results (26 weeks) Revenue 38.7 - (2.6) 36.1 Expenses (42.9) (0.1) 1.5 (41.5) EBITDA1 (4.2) (0.1) (1.1) (5.4) Depreciation and amortisation (4.9)
Slide 31: Appendix 4: 1H20 capital expenditure and pre-opening expenses
Appendix 4: 1H20 capital expenditure and pre-opening expenses Routine Other Special Development Pre-opening A$m Capex Projects 1Capex Expenses Main Event 1.6 14.1 34.2 1.7 Theme Parks 6.3 - 8.8 - Total 7.9 14.1 43.0 1.7 1 Net of developer proceeds 30
Slide 32: Defined Terms
Defined Terms — ARDENT S
Slide 33: Defined terms
Defined terms Defined Terms Description bps Basis points Discontinued Operations Comprised of Bowling & Entertainment, Marinas and Health Clubs EBITDA Earnings before Interest, Tax, Depreciation and Amortisation EBITDAR Earnings before Interest, Tax, Depreciation, Amortisation and Rent Expense EBRIT
Slide 34: Defined terms
Defined terms Defined Terms Description NPS Net promoter score PP&E Property, plant and equipment Pre-opening costs Costs that are expensed as incurred prior to a centre opening for business Significant non-trading income or expense items which are non-cash or non-recurring in nature. These are Spec
Slide 35: Disclaimer
Disclaimer This information has been prepared for general information purposes only, is not general financial product advice and has been prepared by Ardent Leisure Group Limited (ABN 51 628 881 603) (ALG), without taking into account any potential investors’ personal objectives, financial situation
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