Reporting Season EOFY 2014- Part 3

This is the business end of the reporting season, as far as I am concerned. Interesting season so far.

25 August 2014

MTU results out. $85m OCF, $100m OCF before interest. MC $1.2b, EV $1.5b.

SDI results out. $2.6m in FCF.  $7.6m OCF. $80m MC. Continued capex required for growth.

26 August 2014

SRV results out. FCF $40m. Cash in bank $108m. 120 mature floors, 16 immature floors, total floors 136. Like for like floors revenue increased 34%.  Occupancy of like for like floors at 79%, falling short of target set last year. However, number of offices has increased and margins have improved. 17% increase in revenue half on half translated into 22% increase in NPAT and OCF. Opening 9 new floors and expanding 5 floors in 2015 to add another 10% capacity.  Australia is under pressure, and USA not yet profitable. Guidance on 15% NPBT improvement in 2015. Balance sheet remains solid. Expenses ratio remained consistent. Revenue per floor is still very low at $1.7m, yet to even reach levels achieved prior to 2010. Net cashflow per floor is still low at $290k, half the levels prior to GFC. Possibility that OCF will reach near all time highs in 2015.

GNG results out. Revenue $114m, NPAT $14m, cashflow $18.8m. Locked in revenue is $110m for 2015. 14 studies as at June 2014. Total cash on hand $37.4m, AR $34.6m AP $21.6m. 4c dividend ff. MC $120m= 6.5x cashflow, 4.5x casflow after backing out cash, PE 8.5, PE 6.5 after backing out cash. Everyone is scared witless with mining services. Now, what did that old geezer said again about fearful and greedy?

VEI results out. Revenue up, but EBIT down, showing continual erosion of margins. FCF $17m, debt at $38m. EBITDA=$26m. MC=$120m, EV=$160m. EV/EBITDA=6, but EV/FCF=$9.4m.

VRT results out. FCF $44m, debt $140m, MC $620m, EV $760m. Required CAGR 7 to 8%.

HSN results out. FCF $18m. MC $250m.

REF results out. Revenue $9.7m, NPAT $1.5m with Contacts and TriTel making losses of over $500k. Cash on hand is $5.1m. OCF is $2.2m, FCF is $2.2m. No dividend, management wants to make acquisitions. MC $16m. EV $11m. EV/FCF=5.

TGA MD address. Focus on Return on Equity. Logical coherent plan executed consistently and communicated clearly. Looking to enter into telco market (note competition in this sector). Continued good performance at Rentals with opportunities being actively investigated. TEF continues to grow loan book to $73m, aiming for target of $100m. Rent-Drive-Buy concluded and closed.  Reaffirmed NPAT above $30m. Emphasis on culture. Ticks all boxes.

27 August 2014

LYL results out. Outlook okay, pressure in MS continuing.

AMA- $5.6m NPAT, $6m FCF. EBIT $8.8m, revenue $64m. Balance sheet is debt free with excess working capital. Very positive outlook. 1.6c ff dividend. Still a bet on Malone to deliver on the smash repairs industry consolidation.

FPS results out. Revenue $22m, PBT $6m, NPAT $4m, dividend 5c ff.  Cash in hand $11.1m. Receipts $24.5m, OCF $7m (Q4 took in $3m), OCF after tax $5.8m. Expenses down 6.7%, revenue up 3.6%. Positive outlook, using cashflow to pay dividends and surplus for acquisitions. The cashflow run rate is now over $10m pa before tax payment.

ICS- $2m in cash, but note working capital. $1.1m in OCF. Slightly disappointing but understood in light of money spent on premise relocation and fitout. MBC continues growth. MC $10m, trading at less than PE 10 and less than 10x cashflow. 0.1c dividend nf.

TTI- outlook positive, especially in LED street lighting, but balance sheet is too precarious, with heavy debt load and low free cashflow. Prefer to avoid solvency risk.

CGO- Revenue up, NPAT up. OCF at $2.7m. Undemanding price ATM.

UOS HY out. Book value essentially stayed flat. Still trading at substantial discount to book.

TWD results out. Revenue down, NPAT flat. FCF $6m. Leveraged to housing market, on the improve for 2015, plus franchising becoming capex light. Solid balance sheet, high dividends maintained.

28 August 2014

VOC results out. Revenue is $92.3m, up 37%, beating expectations. Underlying EBITDA $33m. Cashflow this half is $17.5m versus $13m last half, given total cashflow of $30m, which matches up with EBITDA. Core Capex at $18m. Capex efficiency reduced to 0.58. Internet division result is staggering, and appears that growth with continue and largely offset $4m of EBITDA loss on the Vodafone contract renewal. Buildings connected over 1000, fibre kms is 585, utilisation up at 13% despite expanded base. Prior to FX Networks acquisition, looking at $40m to $50m of cashflow for 2015, placing it on 10x to 12.5x multiple at current MC. Market wants reducing capex and increasing dividends. I want increasing growth capex and no dividends.

TCN results out. FCF $2.3m. Solid balance sheet, no debt. $3.6m in cash plus $1m receivables from associate. MC $21m is not expensive.

CTE results out. Revenue increased to $9.1m from $8.7m.  NPAT is $500k. Cash on hand is $6.2m, unearned income is also up. Operating cashflow is $1.5m, FCF is over $1m. Watch the cash next year once the capex is removed. MC justified even at current run rates.

RHT results out. HepaFat sales have started. Revenue $2.28m, cash in hand $2m. Ferriscan revenue is $2,284,565 with 5596 scans, clinical use volumes up 32%.

RHC results out. Need to find time for deep dive.

29 August 2014

SCD results out. Slight negative cashflow. Before tax payment of $1.6m, actually OCF positive. No balance sheet deterioration, cash in hand is $6.2m. Orders on hand smaller than during GFC days. Service continues to buffer. Cash plus net property is $7.5m, plus franking credits of at least $1.6m. MC is slight over $8m at last traded price.  The benefits of downside protection is apparent with plays like SCD. Heads I win, tails I dont lose much.

ONT results out. OTC revenue dropped. OCF $8m, FCF $5.5m. Results actually an improvement, and weird accounting treatment stripped out $800k from NPAT. Normalised FCF is over $6m due to stamp duty issue on acquisition. CEO communication is excellent.

SBB HY out. COGS skewed. Interest rates checked out at savings rate of 0.35%. If the accounts are to be believed, this is trading at 1x OCF after backing out cash, and 2.5x OCF before backing out cash. Why is there no dividend? They obviously do not need the cash hoard, given that they are OCF positive to the tune of $10m per half, and capex is less than $2m. Something NQR.


That's it folks. Enjoy and Prosper, and drop some comments.

Yours One Legged