Service Stream Limited · ASX:SSM
Service Stream — H1 2010 Earnings Presentation
20 slides from Service Stream's earnings presentation, Feb 26, 2010
Slide 1: HY2010 Results Presentation
For personal use only HY2010 Results Presentation
Slide 2: Corporate snapshot
Corporate snapshot For personal use only Service Stream is a field services organisation, delivering technical services and small projects predominantly to the telecommunications and utilities sector. It is a niche provider of value added services & applications to government, utilities and public c
Slide 3: Financial summary
Financial summary For personal use only $266.4M •$27.2m increase in service revenues Revenue down from $277.4M •$37.4m decline in project revenues $13.7M •AMRS earnings up 124.1% on 1H FY09 •Project volumes & margins declined Underlying EBITDA down from $15.3M ($5.1M) •$15.8m provision for GCDA Clai
Slide 4: Operational summary
Operational summary For personal use only • Consolidation of core operations • Solid operational performance particularly from the AMRS and Communications businesses • New contracts secured and existing contracts renewed including: • Telstra • Western Power • CitiPower / Powercor • Contact Centre So
Slide 5: Financial results
Financial results For personal use only 31 Dec 31 Dec % change A$ million 2009 2008 Revenue $266.4 $277.4 ‐3.9% Underlying EBITDA $13.7 $15.3 ‐10.4% Underlying EBITDA from operations $10.7 $15.3 ‐30.0% Reported EBITDA ($5.1) $15.3 n/a EBIT ($8.6) $11.7 n/a NPAT ($8.6) $6.6 n/a EPS (cents per share)
Slide 6: Balance Sheet strengthened
Balance Sheet strengthened For personal use only 31 December 30 June $ Million 2009 2009 Receivables and WIP 110.6 137.8 Plant and equipment – WDV 17.2 20.2 Inventory 13.6 13.5 Other 6.9 2.6 Goodwill 205.4 205.4 Total assets 353.7 379.5 Payables 35.7 64.2 Net debt (including cash $0.5M / $9.0M) 77.6
Slide 7: Borrowings trending downwards
Borrowings trending downwards For personal use only $M 100 95.0 31.5 90 80 70 1.5 7.5 60 57.5 50 40 Borrowing June 09 Equity Raising Other Movements 1H FY10 February 2010 Repayment Current Borrowings 7
Slide 8: Reduction in overdue debts
Reduction in overdue debts For personal use only Receivables and WIP trend1 •Group‐wide focus on debtor $m 135 management, especially in high‐ volume communications space 130 •Group Credit function restructured – staff with strong 125 telco experience brought on‐ 120 board •Improved integration of 1
Slide 9: Improvement in operating activities
Improvement in operating activities For personal use only 31 Dec 31 Dec A$ million 2009 2008 Receipts from customers 293.3 270.0 Payments to suppliers and employees (288.2) (277.9) Interest and other finance costs (3.5) (4.2) Income tax paid (2.5) (3.4) Net cash used in operating activities (0.9) (1
Slide 10: Building synergies across the business
Building synergies across the business For personal use only Business CONTACT CENTRE SPECIALIST FIELD SERVICES Segment SOLUTIONS CONTACT CENTRE INFRASTRUCTURE COMMUNICATIONS TCI AMRS SOLUTIONS SERVICES Revenue split $42.3M $149.7M $29.9M $11.4M $33.1M (31 Dec 2009) Business Provides call centre Prim
Slide 11: Business unit performance overview
Business unit performance overview For personal use only REVENUE UNDERLYING EBITDA 31 Dec 31 Dec 31 Dec 31 Dec 2009 2008 % change 2009 2008 % change A$ million SPECIALIST FIELD SERVICES ‐ Communications 149.7 153.5 ‐2.4% 7.6 11.0 ‐31.1% ‐ AMRS 33.1 21.2 55.9% 3.8 1.7 124.2% ‐ TCI 29.9 33.5 ‐10.8% 3.
Slide 12: Strategic direction
Strategic direction For personal use only • Renewed focus on core activities • Our field services model is flexible and low cost. We continue to succeed with this model and we will maintain a strong focus on this business activity • Continue to deliver projects and programs to the telecommunications
Slide 13: Outlook - reasons for cautious optimism
Outlook - reasons for cautious optimism For personal use only • Market demand for Service Stream core services strengthening • Environmental services • Mobile Infrastructure market set for investment upturn • NBN trials to commence this calendar year. Field service and distribution network demand FY
Slide 14: Outlook - reasons for cautious optimism (contd)
Outlook - reasons for cautious optimism (contd) For personal use only • Legacy risks recognised & dealt with • McCourt Dando issue now behind us. Parts of claim to be pursued • Other write downs being managed appropriately going forward • However some risks remain.. • AAS Contract renewal (advice ex
Slide 15: Appendices
For personal use only Appendices 15
Slide 16: Reconciliation of Underlying EBITDA to Reported Results
Reconciliation of Underlying EBITDA to Reported Results For personal use only $M 16 13.7 1.9 14 1.1 12 14.8 10 8 6 4 2 0 ‐2 1.0 ‐4 ‐6 (5.1) 1H FY10 Underlying Contract KPIs CEO Transition Costs McCourt Dando Claim McCourt Dando 1H FY10 Reported EBITDA Provision EBITDA 16
Slide 17: Revenue movement by business unit
Revenue movement by business unit For personal use only CONTACT CENTRE SPECIALIST FIELD SERVICES SOLUTIONS $M 290 11.9 3.6 23.1 280 277.4 3.8 270 8.3 0.7 266.4 260 250 1H FY09 Communications AMRS TCI Infrastrructure Contact Centre Other 1H FY10 Services Solutions 17
Slide 18: Underlying EBITDA movement by business unit
Underlying EBITDA movement by business unit For personal use only $M 18 CONTACT CENTRE SPECIALIST FIELD SERVICES SOLUTIONS 16 15.3 3.4 2.1 4.2 13.7 3.6 0.0 0.2 14 12 10 8 6 4 2 0 1H FY09 Communications AMRS TCI Infrastructure Contact Centre Corporate 1H FY10 Services Solutions 18
Slide 19: Important Notice - Disclaimer
HY2010 Results Presentation For personal use only 19 Important Notice - Disclaimer This presentation has been prepared by the management of Service Stream Limited (the ‘Company’) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. Neither
Slide 20: Graeme Sumner, Chief Executive Officer
For personal use only 20 Graeme Sumner Chief Executive Officer Phone: +61 3 9677 8888 Email: graeme.sumner@servicestream.com.au