An update on the unaudited trading performance of Freightways Limited
(Freightways) for the three months ended 30 September 2017 is provided below.
Freightways'' 1st quarter result (unaudited):
Quarter ended:
Sep-17 $000; Sep-16 $000; Variance
Operating revenue 143,236; 133,868; 7.0%
EBITDA* (i): 26,938; 24,917; 8.1%
EBITA* (ii): 23,561; 22,137; 6.4%
NPATA* (iii): 15,515; 14,566; 6.5%
NPAT* (iv): 15,051; 14,148; 6.4%
Notes:
(i) Operating profit before interest, tax, depreciation and amortisation.
(ii) Operating profit before interest, tax and amortisation.
(iii) Net profit after tax (NPAT), before amortisation.
(iv) Profit for the period attributable to shareholders.
* To enable an accurate comparison of the underlying operating performance of
the company, the 2016 EBITDA and EBITA results are presented exclusive of a
net $542k benefit, being the difference between a $934k non-cash benefit
relating to earn-out payments not required to be paid and $392k of one-off
costs relating to the relocation of our Sydney businesses. The net benefit
after tax excluded from the 2016 NPATA and NPAT is $660k.
This first quarter result represents a sound start to the financial year, the
highlights being; the strong revenue growth in the express package & business
mail division, the completion of our transition to new premises in
Christchurch and the stepped earnings improvement in the information
management division.
Express Package & Business Mail division
This division''s unaudited result is as follows:
Quarter ended:
Sep-17 $000; Sep-16 $000; Variance
Operating revenue 105,340; 98,218; 7.3%
EBITDA 18,185; 17,317; 5.0%
EBITA 16,537; 16,159; 2.3%
EBITA Margin 15.7%; 16.5%
Revenue growth in this first quarter has increased above the positive growth
experienced throughout the prior comparative period (pcp). Operating costs
include the higher cost of recent investment in additional airfreight
capacity and premises, including related one-off transition costs during the
quarter to complete the merger of the operations of four of our businesses in
Christchurch into a single operating team. When compared to the pcp, there
has been an increase of approximately $0.3m in depreciation relating to our
newly-commissioned automation equipment and related IT. The EBITDA and EBITA
increases above the pcp reflect a sound first quarter start to the 2018
financial year.
Information Management division
This division''s unaudited result is as follows:
Quarter ended:
Sep-17 $000; Sep-16 $000; Variance
Operating revenue 38,379; 35,937; 6.8%
EBITDA* 9,245; 7,995; 15.6%
EBITA* 7,923; 6,783; 16.8%
EBITA Margin* 20.6%; 18.9%
* The 2016 earnings results above have been adjusted, as discussed in the
aforementioned consolidated result.
Sound revenue growth and improved performance at TIMG AU, including from its
subsidiary business of LitSupport, contributed to this strong earnings
result. Also included in this quarter''s result is the first month''s trading
from our new Medical Waste business that was acquired effective from 1
September and which is trading to expectation.
Corporate
Corporate costs continue to be well-contained and first quarter capital
expenditure is within budgeted expectations.
Outlook
The markets in which Freightways operates in both New Zealand and Australia
remain positive. The increased volume and activity, compared to the pcp,
that is evident in this trading update has provided a sound start to the 2018
financial year. Accordingly, Freightways continues to target year-on-year
earnings growth.
Within the express package & business mail division, investment has been made
in capacity for both airfreight and larger premises on Auckland''s North
Shore. New Zealand Couriers will relocate there during October 2017, followed
by Post Haste and Castle Parcels in July 2018. This capacity, which is
initially not fully-utilised, comes at some cost, but enables us to better
service current volumes and projected growth. Within the information
management division, the better results currently being achieved at TIMG
Australia, compared to the pcp, are expected to continue to contribute to the
overall positive performance of this division.
Overall capital expenditure for the 2018 financial year is now expected to be
approximately $14 million. Operating cash flows are expected to remain strong
throughout the 2018 financial year.
Strategic growth opportunities, including acquisitions and alliances that
complement existing capabilities, will be executed where they make commercial
sense.
ENDS
For further information please contact
Dean Bracewell
Managing Director
Freightways Limited
+64 274 528 327
End CA:00309255 For:FRE Type:MKTUPDTE Time:2017-10-26 09:57:08