AMA : Correction to 3Q22 Quarterly Cash Flow and Activities Report

ASX Announcement

29 April 2022

Correction to 3Q22 Quarterly Cash Flow and Activities Report

AMA Group Limited (ASX: AMA) (AMA Group) advises that the Appendix 4C Quarterly Cash Flow and Activities Report for the quarter ended 31 March 2022 (3Q22) (unaudited), released to the ASX on 29 April 2022 contained an error on page 3.

Total cash outflows were misstated at $27.7 million, and instead should have read $22.9 million as noted on page 1 under "Highlights".

A corrected version of the 3Q22 Quarterly Cash Flow and Activities Report and accompanying attachments has been provided to the ASX, noting that the only change is to correct the stated total cash outflows on page 3.

This announcement has been authorised by the Board of AMA Group Limited.

ENDS.

Investors and Media:

Alexandra Holston, Director Investor Relations and Corporate Affairs E:alexandra.holston@amagroupltd.com M: +61 418 312 837

ASX Announcement 29 April 2022

3Q22 Quarterly Cash Flow and Activities Report

AMA Group Limited (ASX: AMA) (AMA Group) today provides its Appendix 4C Quarterly Cash Flow and Activities Report for the quarter ended 31 March 2022 (3Q22) (unaudited).

Highlights

•  Repair volumes continuing to increase; however, business continues to be impacted by COVID-19, including a slower than expected return of volumes, customer no-shows and isolation-related employee absenteeism

•  Total cash used in operating activities over the quarter of $15.3 million, total cash used in the quarter of $22.9 million

•  Positive operating cash flows in February and March 2022

•  Total available funding of $63.6 million at 31 March 2022

Business update

As previously noted, AMA Group had hoped the six months ending 30 June 2022 would bring a more "normal" set of operating conditions. However, the impacts of COVID-19 on the Australian and New Zealand economies continued to challenge all labour dependent businesses, including AMA Group, in 3Q22.

Throughout the quarter, the Group was significantly impacted by COVID-19 related isolation for team members who tested positive for COVID-19 and/or those deemed "close contacts". With approximately 100 full time equivalent absences per day on average across the three-month period, the Group estimates that the subsequent reduced volume resulted in a negative revenue impact of approximately $10 - 15 million across 3Q22.

January repair volumes remained significantly COVID-19 affected, with repair volume recovery slower than anticipated. However, AMA Group repair volumes have continued to increase across the quarter. Improved net cash from operating activities from January to March is reflective of the ongoing improvement in trading conditions and increase in repair volumes, with positive operating cash flows in both February and March 2022.

AMA Group Australian Repair Volumes (7 day rolling average rebased to 100): 12 January 2019 - 13 April 2022

140

120

100 100

80

60

40

Auusstrtaralialiawide lockdown

20

Victorr ia ia/ NSW lockdownsSOAther Australian lockdowns

Group Repair Volume (rolling 7 day ave.)

0

1Jan19

1Apr19

1Jul19

1Oct19

1Jan20

1Apr20

1Jul20

1Oct20

1Jan21

1Apr21

1Jul21

1Oct21

1Jan22

Source: AMA Group data

Note: Summer and Easter holiday periods excluded.

3Q22 volumes were up approximately 13% on 2Q22, and trending upwards month on month. However, 3Q22 volumes remain significantly down (27%) on the comparable calendar year 2019 period.

ACM Parts' New Victorian Distribution Centre

In January, ACM Parts executed a lease for a nearly 20,000 square metre facility in Somerton, Victoria. This will see consolidation of the two existing Victorian sites around mid-year 2022 and will facilitate a significant expansion of ACM Parts' national distribution network capacity, a key element of AMA Group's supply chain enhancement initiatives.

Employee Share Plan

As part of AMA Group's commitment to "building better" for its employees, the Group launched its inaugural offer of the Group's General Employee Share Plan in March. This initiative is part of the Group's commitment to addressing the nationwide skills shortage, impacting labour-intensive businesses across a broad range of industries. A total of 9.22 million new shares issued to eligible employees, tangibly acknowledging and rewarding the significant contribution each team member makes to AMA Group.

Quarterly cash flows

As part of the preparation of the Appendix 4C for 3Q22, the breakdown of operating cash flows has been refined, in particular relating to the presentation of 'payments to suppliers and employees'. There has been no change to the headline cash flow numbers, however the Supplementary cash flow report includes a restatement of 1Q22 and 2Q22 is included in to allow a like-for-like comparison.

Operating cash flow was lower in 3Q22 compared to 2Q22, largely driven by slower than anticipated repair volumes, repair mix and an increase in staff payments as more employees returned to work to support the expected volume recovery.

Payments to related parties

There were no payments to related parties during 3Q22.

Summary of cash position

AMA Group ended 3Q22 with a cash balance of approximately $58.3 million and unused available finance facilities of approximately $5.3 million. Based on the approximately $15.3 million net cash used in operating activities in 3Q22, the total available funding of $63.6 million provides an estimated 4 (four) quarters of funding available at the March period end under item 8.5 in the attached Appendix 4C.

The Group recognises, however that this does not consider total cash outflows of $22.9 million during the quarter, largely driven by soft operating cash flows in January 2022 and the $5.3 million in unused available finance facilities relates to unused bank guarantees which are not available to fund operations. Calculated using total cash outflows and excluding the unused bank guarantees from available funding, there are less than 3 (three) quarters of funding available.

The estimates above are based on the continuation of challenging conditions experienced in 3Q22. However, positive cash flows in February and March 2022 reflect the ongoing improvement in operating conditions and the Group expects this trend to continue as conditions normalise.

AMA Group CEO, Carl Bizon said, "Like many businesses that rely on labour for revenue generation we have continued to be impacted by COVID-19. It is pleasing to see returning repair volumes, despite these factors. I am heartened by the trend we have seen and the return to positive operating cash flows. Recently announced changes to isolation rules in Victoria and New South Wales should support ongoing volume recovery as the impact of staff absenteeism is expected to reduce."

Other than these matters there were no other material developments or material changes in business activities during the 3Q22.

This announcement has been authorised by the Board of AMA Group Limited. ENDS.

Investors and Media:

Alexandra Holston, Director Investor Relations and Corporate Affairs E:alexandra.holston@amagroupltd.com M: +61 418 312 837

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

AMA GROUP LIMITEDABN 50 113 883 560

Consolidated statement of cash flows

1 Cash flows from operating activities

• 1.1 Receipts from customers (inclusive of GST)

• 1.2 Payments to suppliers and employees (inclusive of GST)

  • (a) research and development

  • (b) product manufacturing and operating costs

  • (c) advertising and marketing

  • (d) leased assets

  • (e) staff costs

  • (f) administration and corporate costs

• 1.3 Dividends received (see note 3)

• 1.4 Interest received

• 1.5 Interest and other costs of finance paid

• 1.6 Income taxes paid

• 1.7 Government grants and tax incentives

• 1.8 Other (provide details if material)

• 1.9 Net cash from / (used in) operating activities

2 Cash flows from investing activities

• 2.1 Payments to acquire or for:

  • (a) entities

  • (b) businesses

  • (c) property, plant and equipment

  • (d) investments

  • (e) intellectual property

  • (f) other non-current assets

• 2.2 Proceeds from disposal of:

  • (a) entities

  • (b) businesses

  • (c) property, plant and equipment

  • (d) investments

  • (e) intellectual property

  • (f) other non-current assets

• 2.3 Cash flows from loans to other entities

• 2.4 Dividends received (see note 3)

• 2.5 Other (provide details if material)

• 2.6 Net cash from / (used in) investing activities

3 Cash flows from financing activities

• 3.1 Proceeds from issues of equity securities (excluding convertible debt securities)

• 3.2 Proceeds from issue of convertible debt securities

• 3.3 Proceeds from exercise of options

• 3.4 Transaction costs related to issues of equity securities or convertible debt securities

• 3.5 Proceeds from borrowings

• 3.6 Repayment of borrowings

• 3.7 Transaction costs related to loans and borrowings

• 3.8 Dividends paid

• 3.9 Other (provide details if material)

• 3.1 Net cash from / (used in) financing activities

  4 Net increase / (decrease) in cash and cash equivalents for the period

• 4.1 Cash and cash equivalents at beginning of period

• 4.2 Net cash from / (used in) operating activities (item 1.9 above)

• 4.3 Net cash from / (used in) investing activities (item 2.6 above)

• 4.4 Net cash from / (used in) financing activities (item 3.10 above)

• 4.5 Effect of movement in exchange rates on cash held

• 4.6 Cash and cash equivalents at end of period

Interest elements of lease paymentsPrincipal elements of lease payments

Quarter ended ("current quarter") 31-Mar-22

Current quarterYear to date (9 months)

$A'000

$A'000

217,000

719,485

(227,964)

(738,422)

0

0

(123,560)

(435,490)

(269)

(853)

(7,730) (21,225)

(86,265) (252,857)

(10,140) (27,997)

0 0

23 101

(4,723) (18,430)

333 (1,158)

0 501

0 0

(15,332) (37,923)

0 (6,476)

(127) (4,230)

0 0

(60) (60)

0 0

0 0

0 0

0 0

60 227

0 0

0 (0)

0 0

0 0

0 0

0 0

(127) (10,539)

0 95,285

0 50,000

0 (11)

0 (6,004)

0 0

0 (72,500)

0 0

0 0

(7,447) (24,162)

(7,459) 42,620

81,301 64,203

(15,332) (37,923)

(127) (10,539)

(7,459) 42,620

(48) (25)

58,336 58,336

5 Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

• 5.1 Bank balances

• 5.2 Call deposits

• 5.3 Bank overdrafts

• 5.4 Other (provide details)

• 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

Current quarter Previous quarter

$A'000 58,336

$A'000 81,301

0 0

0 0

0 0

58,336

81,301

This is an excerpt of the original content. To continue reading it, access the original document here.