Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — H1 FY2010 Earnings Presentation
10 slides from Southern Cross Electrical Engineering's earnings presentation, Feb 22, 2010
Slide 1: Half Year Earnings Presentation
For personal use only December 2009 Half Year Earnings Presentation Monday, 22 February 2010
Slide 2: Group Highlights
Group Highlights For personal use only • 0 lost time injuries. • Won the NECA Industrial Project Excellence Award and the Occupational Health & Safety (“OH&S”) Excellence Award for the Electrical and Installation works at the Cape Lambert 80Mtpa port upgrade. • All projects are profitable with gross
Slide 3: Financial Results
Financial Results For personal use only $ millions Dec 09 Dec 08 Revenue 39.2 57.7 Gross Profit 13.7 18.6 Foreign exchange losses & other income (0.2) (3.1) Overheads (6.1) (5.2) EBITDA 7.4 10.3 Depreciation (0.7) (0.5) Net interest 0.2 0.6 Tax (2.1) (3.2) NPAT before business acquisition costs 4.8
Slide 4: Key Financial Metrics
Key Financial Metrics EBITDA margin For personal use only Gross margin Gross margin EBITDA margin 40.0% 20.0% 30.0% 15.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% Dec 09 Dec 08 Dec 09 Dec 08 NPAT margin due to O/heads from lower interest revenue acquired businesses NPAT margin Overhead cost comparison
Slide 5: Balance Sheet
Balance Sheet For personal use only The key balance sheet items are: • Net cash $16.1m. • Receivables are lower as contracts are either just commencing or completing. Tier 1 clients mean no bad debts. • Intangible assets and goodwill - due to acquisition on Hindles and K.J. Johnson & Co. • Creditors
Slide 6: Cash Flow
Cash Flow For personal use only $m Dec 09 NPAT 3.3 • Build of WIP in advance of Pluto mobilisation Non - cash items 1.7 • Operating cash flow includes Working capital movement $816k of business acquisition costs Receivables 4.3 Payables (4.3) WIP/Provisions/other (2.1) Operating cash flow 2.9 Capex
Slide 7: Strategic Objectives
Strategic Objectives Strategic Objectives Status For personal use only • Expand our capability • Hindles and Oceanic increases oil & gas capability Grow Electrical Engineering • KJJ increases power line capability Business • Enter new market segments and • Re-entry into east coast market and entry i
Slide 8: FY10 Outlook
FY10 Outlook For personal use only No substantial international work in FY10 Revenue Comparison $120m $100m $80m $60m $40m $20m $0m FY10 FY09 Australia International Acquisitions • FY10 second half revenue expected to be approximately $11 million greater than first half • Gross profit margins are ex
Slide 9: FY11 Outlook & Beyond
FY11 Outlook & Beyond For personal use only Australian International Oil & Gas Infrastructure Mining Mining Oceanic creates Tenders for Gorgon KJJ increases power Several large gold east coast presence received line capacity projects imminent Activity increasing Iron ore expansion Oceanic & Hindles
Slide 10: Conclusion
Conclusion For personal use only • Outstanding reputation again recognised at national NECA awards • Key financial metrics being maintained • Strong cash position and robust balance sheet • Planned and anticipated projects provide strong organic pipeline • Successfully building capability and capaci
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