Boom Logistics Ltd · ASX:BOL

Boom Logistics — FY2009 Earnings Presentation

16 slides from Boom Logistics's earnings presentation, Aug 19, 2009

  1. Slide 1: Full Year Results June 2009

    June 2009 Full Year Results 19 August 2009

  2. Slide 2: FY09 Overview

    FY09 Overview Trading NPAT of $12.0m. • 2% revenue growth on FY08 across hire divisions. • Solid business and project activity resulted in a favourable performance in 1H09 particularly in the Crane Hire division, demonstrating the turnaround potential. Profit • 2H09 downturn in key sectors of resour

  3. Slide 3: FY09 initiatives and response to downturn

    FY09 initiatives and response to downturn Initiative Outcome • Consolidated major contracts, re-established relationships and won new long term contracts Customer • New, strategic approach to relationship management • Boom’s top Crane Hire customer (BMA) signed to a contract Focus extension in Augus

  4. Slide 4: FY09 Group Results

    FY09 Group Results $m 1H08 2H08 FY08 1H09 2H09 FY091 Revenue 202.3 207.6 409.9 223.5 173.5 397.0 EBITDA 48.9 40.8 89.7 47.8 21.5 69.3 EBITDA margin 24% 20% 22% 21% 12% 17% Depreciation (19.6) (18.5) (38.1) (17.0) (17.2) (34.2) EBITA 29.3 22.2 51.5 30.8 4.7 35.5 EBITA margin 14% 11% 13% 14% 3% 9% Amo

  5. Slide 5: FY09 Divisional Results

    FY09 Divisional Results $m 1H08 2H08 FY08 1H09 2H09 FY091 Revenue Crane Hire 118.3 125.7 244.0 146.3 116.3 262.6 Boom Sherrin 50.4 46.4 96.8 47.3 37.6 84.9 James Equipment 33.6 35.5 69.1 29.9 19.6 49.5 Group Total 202.3 207.6 409.9 223.5 173.5 397.0 EBIT Crane Hire 16.8 14.9 31.7 27.5 10.9 38.4 Boom

  6. Slide 6: Divisional Results – Crane Hire

    FY09 Divisional Results – Crane Hire James, • 8% revenue growth from FY08. 49.5 • Solid business and project activity resulted in the performance of 1H09, demonstrating the turnaround potential of this business. Cranes, Sherrin, 84.9 262.6 • 2H09 reduction in asset utilisation from 84% to 72% follow

  7. Slide 7: Divisional Results – Boom Sherrin

    FY09 Divisional Results – Boom Sherrin James, 49.5 • Finalisation of project activity in 1H09 led to market oversupply, particularly in Queensland and Victoria. Cranes, • Competitive environment has pressured Sherrin, 262.6 margins. 84.9 • Continued strong demand for high end Travel Towers. • “Phase

  8. Slide 8: Divisional Results – James Group

    FY09 Divisional Results – James Group James, 49.5 • Challenging market conditions in relation to: o unfavourable Yen and Euro currency positions; and Cranes, Sherrin, 84.9 262.6 o low local demand for new and used cranes in the prevailing economic environment. • Notwithstanding market factors, the f

  9. Slide 9: Financial Position – Further debt reduction

    FY09 Financial Position – Further debt reduction June June Mvmt • Continued management focus on 2008 2009 working capital and capital mix to Cash 1.8 10.6 8.8 enable further debt reduction. Trade Receivables 77.1 52.0 (25.1) • Working capital improvement Other Receivables - 13.0 13.0 achieved throug

  10. Slide 10: Cash Flow – Still sound

    FY09 Cash Flow – Still sound June June Mvmt • Solid cash flows whilst still investing in 2008 2009 capital and paying down debt, Net receipts / (payments) 93.8 84.6 (9.2) demonstrate operational resilience Net interest received / (paid) (19.2) (16.8) 2.4 even in tough economic times. Income tax paid

  11. Slide 11: Cash Flow, Debt and Gearing

    Cash Flow, Debt and Gearing • FY09 cash flows enabled a reduction in Net Debt of $17.7m (to $235.4m) during the year, whilst investing $38.0m in capital expenditure. • Through operating cash flows and the $21m tax refund, Net Debt is forecast to reduce from $235m at June 2009 to $200m by October 200

  12. Slide 12: Strategic Review – Assessing alternatives

    Strategic Review – Assessing alternatives • Boom’s strategic review is continuing. • Harbrew’s merger proposal continues to be assessed in conjunction with several other strategic opportunities, with a view to maximising value for all shareholders. • As previously announced, Boom’s original equity r

  13. Slide 13: FY10 initiatives – Revenue and Return On Assets focus

    FY10 initiatives – Revenue and Return On Assets focus Initiatives Expected Outcomes • Renewable energy – relationships established with significant incremental revenue opportunities emerging • LNG projects – alliances in place and business positioned • Renewable energy for major projects • LNG proje

  14. Slide 14: Market Outlook – Positioned for opportunities

    Market Outlook – Positioned for opportunities • There is $183 billion in major projects forecast over the next 3 years with crane and lifting equipment hire opportunities. • Boom is well positioned operationally and geographically to capitalise on opportunities, with available utilisation capacity f

  15. Slide 15: Shareholder enquiries

    Shareholder enquiries: Brenden Mitchell Iona MacPherson Managing Director Chief Financial Officer 03 9207 2500 03 9207 2500 14

  16. Slide 16: Appendix 1: Summary of FY09 One Off Items

    Appendix 1: Summary of FY09 One Off Items $ million Gross impact Tax impact Net impact Trading NPAT 16.9 (4.9) 12.0 Intangible asset impairments 1 James Equipment goodwill (18.8) – (18.8) Tangible asset impairments 2 Property, plant and equipment (including assets held for sale) (18.3) 5.5 (12.8) 3

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