Report for the six months ended 31 December 2004
Jan 02, 2016
Report for thesix months ended 31 December 2004
This presentation relates to the Freightways Limited NZX announcement and media release of 7 February 2005.
As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.
Financial HighlightsDec-04 Dec-03 variance$000 $000 %
Operating revenue 117,226 106,358 10%
EBITDA 28,212 22,791 24%
EBITA 26,000 20,355 28%
NPAT 11,238 7,696 46%
ROFE 26% 21%
NB: The above results are drawn from unaudited management accounts.External auditors have performed a half year review in respect of Dec-04.
• 10% revenue growth to Dec 2004
• 5 year compound average annual revenue growth of 7%
Operating Revenue
2nd Half
1st Half
-
50
100
150
200
250
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05
Year Ended
$M
Where Revenue Growth Has Come From
100
105
110
115
120
2003 O rganic Pricing Market share Acquisition 2004
Growth drivers
$M 106
5%2%
2%1% 117
EBITA
• 28% EBITA growth to Dec 2004
• 5 year compound average annual EBITA growth of 18%
2nd Half
1st Half
-
5
10
15
20
25
30
35
40
45
Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05
Year Ended
$M
Drivers of EBITA Growth
• Leverage gained by adding revenue to established
national infrastructure
• Disciplined margin focus relating to new business
• Favourable business mix
• Good cost control
Cash Flows
• Operational cash flows of $28m reflect strong EBITA result
• Capital expenditure below budgeted expectation at this stage of the year
• Borrowings reduced by $3m during the half year ending 31 December 2004
Balance Sheet
• Continuation of strong negative working capital position
• Increase in fixed assets of $1m (net of depreciation)
• Reduction in bank borrowings of $3m
• Goodwill amortised over 20 years (charge of $5m p.a.)
Interim Dividend
Dec-04 Jun-04 Dec-03
Dividend declared $9.45m $8.55m $7.25mFully imputed yes yes yes
Cents per share 7.50 6.90 5.85
Record date 18 March - -Payment date 31 March 30 Sept 31 March
Finance Facilities
• Refinancing completed December 2004 to replace subordinated debt with core bank debt
• Additional headroom negotiated of $22m
• Interest savings of approximately $500k p.a. will flow from 1 July 2005
• New finance facility leverages existing documentation and covenants
Business Strategy
Strategy
• Continued development of growth opportunities in Freightways’ existing three core markets
• Positioning, People, Performance, Profit
• Explore complementary growth opportunities
• Invest in IT and infrastructure
The Next Six Months
The Next Six Months
• Economy favourable from Freightways’ perspective
• Characteristics of competitive environment expected to remain unchanged despite competitors ownership change
• Consistent application of proven market strategies
• Expect to deliver a strong full year result
• Business as usual
Summary
• Strong successful business
• Positioned to deliver continuing earnings growth
• Delivering an attractive dividend yield