Edu Holdings Limited · ASX:EDU
Edu — FY2018 Earnings Presentation
23 slides from Edu's earnings presentation, Aug 31, 2018
Slide 1: FY18 Results
LCW LIMITED FY18 RESULTS
Slide 2: FY18 Highlights
FY18 HIGHLIGHTS n Revenue of $12.5m, up 26.6%* n 4Life acquisition integrated into ALG and performing strongly n National rollout of Community Services n Underlying EBITDA pre corporate costs (4Life) courses of $1,564k (FY17: $1,161k) n New Melbourne campus (launched July 2018) n Underlying EBITDA o
Slide 3: Overview
OVERVIEW ABOUT UCW INVESTMENT HIGHLIGHTS n Private education provider, with a current focus on n Strong organic growth - 28.1% YOY Health and Community Services fields of education and 30.4% 3-year CAGR in UCW’s international student enrolments n Multi-sector provider across the Vocational (VET), n
Slide 4: Our Businesses
OUR BUSINESSES Acquired Mar-16 (100%) Acquired Jan-17 (100%) Acquired Jul-17 (24.6%) Acquired Jul-18 (100%) International VET provider International VET Professional Education Domestic focused HE in Sport, Fitness and provider in Childcare, provider offering the provider in Community Remedial Massag
Slide 5: Financial Results
FINANCIAL RESULTS 55
Slide 6: Profit and Loss
PROFIT AND LOSS FY18 FY17 Var Var n Broadening of course offering and national $’000 $’000 $’000 % rollout delivered growth in international ALG/4LIFE student enrolments - up 28.1% to 5,495 Revenue 12,519 9,887 2,632 26.6% n Average revenue per international student Cost of sales (6,455) (4,690) (1,
Slide 7: Balance Sheet
BALANCE SHEET 30 Jun-18 30 Jun-17 Drawn Limit Corporate debt facilities ($’000) $’000 $’000 Jun-18 Jun-18 Cash and cash equivalents 6,595 7,328 Acquisition facility 1,275 1,275 Trade and other receivables 2,082 1,530 Working capital facility - 500 Total current assets 8,677 8,858 Bank guarantee 390
Slide 8: Cash Flow
CASH FLOW Group Group cash cash movements: movements: FY18 ($’000) FY18 ($’000) Increase Increase Decrease Decrease Total Total 8,000 245 7,328 4,000 7,000 (331) 6,595 (500) 6,000 5,000 4,000 1,275 3,000 (4,264) 2,000 (1,158) 1,000 0 Cash on Net cash flows Investment in Investment Increase in Procee
Slide 9: Operating Review
OPERATING REVIEW 99
Slide 10: International vs Domestic
INTERNATIONAL VS DOMESTIC Tuition Tuitionrevenue revenueby by student market student market1 ($’000) ($’000) 14,000 n International student revenue accounted for 88.2% 88.7% of student revenue in FY18, driven 12,000 by continued growth in international student 88.7% enrolments 10,000 n Domestic stud
Slide 11: International Student Enrolments
INTERNATIONAL STUDENT ENROLMENTS International student enrolments by term (number) International student enrolments by term n Broadening of course offering and 1,400 national rollout continues to deliver 1,200 growth in international student enrolments 1,000 n FY19 growth expected to be underpinned
Slide 12: Course Mix
COURSE MIX International student enrolments by course (%) 4% 5% 5% 18% 10% 9% Community Services Community Services Fitness Fitness FY17 Remedial Massage FY18 Remedial Massage 22% 59% 24%Sport and Recreation 44% Sport and Recreation Management Management Dance Teaching Dance Teaching 4,288 Enrolment
Slide 13: Campus Performance
CAMPUS PERFORMANCE Enrolments by campus (number) Campus FY17 enrolments FY18 enrolments Growth Sydney 2,282 3,105 36.1% Melbourne 964 1,118 16.0% Perth 781 863 10.5% Brisbane 261 409 56.7% Total 4,288 5,495 28.1% n Current CRICOS capacity of 2,727 (per term) against 4Q18 enrolments of 1,456 n Melbou
Slide 14: Student Diversity
Brazil, 14% Italy, 6% STUDENT DIVERSITY South Korea, Lithuania, 2% Poland, 2% 2% Spain, 3% Germany, Indonesia, China, United Kingdom, 9% France, 6% Chile, 3% Estonia, 2% 2% 1% 1% International student enrolments by source region (Top 20)1 n International students Europe 42% Latin Americas 29% Asia 2
Slide 15: Outlook
OUTLOOK FY17 FY18 Var (%) FY19 Outlook (ALG/4Life) International student enrolments 4,288 5,495 28.1% Continued growth in ALG/4Life anticipated, supported by national rollout of Community Services course offering Average revenue per international enrolment Expected to increase slightly with calendar
Slide 16: IKON Institute
IKON INSTITUTE Acquired 4 July 2018 (post year-end) n >10 year operating history with strong compliance n Immediate and longer term integration opportunities record and student outcomes with ALG/4Life n Extended UCW’s reach in to the HE sector n HE offer comprises 2 x 3-year Degree programs with n A
Slide 17: Acquisition Rationale
ACQUISITION RATIONALE Domestic student market International student market Funding model VET HE VET HE FFS* VSL** FEE-HELP ALG/4LIFE ✓ ✓✓ ✓✓ IKON ✓✓ ✓✓ ✓ ✓✓ ✓✓ COMBINED ✓✓ ✓✓ ✓✓ ✓ ✓✓ ✓✓ ✓✓ ✓ = limited existing operations ✓ ✓ = current organisational strength *Fee for service **VET Student Loans n Ac
Slide 18: Appendices
APPENDICES 18
Slide 19: Snapshot
SNAPSHOT Capital structure Register analysis** 50.3% Others Number % Diluted Ordinary shares 110,154,583 99.3% 49.7% Board and Management Options* 800,000 0.7% ORDINARY Fully diluted 110,954,583 100.0% SHARES $’000 Market capitalisation at $0.16 17,753 l 387 shareholders per share** l Top 20 own 74.
Slide 20: Board and Executives
BOARD AND EXECUTIVES Adam Davis Gary Burg Chief Executive Officer and Managing Director Non-Executive Chairman Adam has extensive experience in the education sector as founder Gary has been involved with Global Capital Group since 1995 in South Africa and CEO of formerly ASX-listed Tribeca Learning
Slide 21: Contacts
CONTACTS Adam Davis Lyndon Catzel Chief Executive Officer Chief Financial Officer E: adam@ucw.com.au E: lyndon@ucw.com.au P: +61 2 9112 4541 P: +61 2 9112 4540 M: 0408 400 888 M: 0414 907 384 21
Slide 22: Disclaimer
DISCLAIMER This presentation, dated 31 August 2018, provides additional commentary on the Annual Report for the year ended 30 June 2018 for UCW Limited (UCW or the Company) and accompanying information provided to ASX on the same date. As such, it should be read in conjunction with those documents.
Slide 23: XXXXX
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