onlyuse Ardent Leisure Group Limited 1H22 Results Presentation

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onlyuse personal1H22 Group Overview r

1H22 - Key messages

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1H22 statutory results improved significantly despite the ongoing pandemic. Net loss after tax was $36.8 million compared to $82.3 million in the prior period1

Group revenue and EBITDA2 excluding Specific Items2 were up $137.9 million and $61.6 million on the prior period respectively, and have exceeded proforma 1H203 pre-COVID levels

Main Event revenue and EBITDA excluding Specific Items increased US$98.4 million and US$52.0 million on the prior period, respectively

  • Total and walk-in constant centre revenue performance exceeded 1H20 pre-COVID levels by 20.1% and 39.5%, respectively
  • Chesterfield, MO opened in September 2021 and has performed above expectations

Whilst Theme Parks & Attractions revenue increased by $5.4 million, EBITDA loss excluding Specific Items of $12.2 million exceeded 1H21 by $8.6 million. Current period included $2.0 million of government subsidies and grants compared to $8.0 million4 net benefits received in the prior period. During 1H22:

  • The new world class Steel Taipan rollercoaster was launched successfully in December 2021
  • Attendances were 17.0% higher than prior period
  • Annual Pass sales value5 up 40% on prior period due to 29% increase in volumes and yield improvements The Group's net debt as at 28 December 2021 was $119.4 million (29 June 2021: $81.6 million)

The prior period results have been restated for a change in accounting policy, to measure Theme Parks & Attractions' land, buildings and major rides & attractions at cost (previously fair value) as

disclosed in Note 9(a) to the Financial Statements

Refer defined terms

1H20 comprised 27 weeks of trading. Proforma 1H20 results exclude the impact of the extra week of trading to enable better comparison to the current period (26 weeks)

Comprises $12.4 million government subsidies and grants received, offset by $4.4 million incremental "top-up" payments to employees where earnings are less than JobKeeper subsidy. The Australian

Federal Government's JobKeeper wage subsidy ended on 28 March 2021

Sales value of tickets represents the upfront value of tickets sold. For annual/multi day passes, this differs from revenue reported under accounting standards which is recognised on a straight-line basis

over the period that the passes provide access to the parks.

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Current vs prior corresponding period

Positive trading momentum continues despite ongoing impact of COVID-19

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Reported

Restated2

Key factors driving half year results:

A$m

1H22

1H21

Variance

Revenue

increased $137.9 million (100.2%), driven by

Revenue

275.5

137.6

100.2%

US$98.4 million (109.1%) in Main Event and $5.4 million

Business unit EBITDA1

47.7

(1.7)

2973.9%

(41.0%) in Theme Parks & Attractions. In Australian dollar

Corporate

(4.1)

(3.2)

(27.0%)

terms,

Main Event revenue increased by 106.5% on prior

period,

reflecting the movement in foreign exchange rates

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EBITDA1

43.6

(4.9)

993.0%

EBITDA

excluding Specific Items of $41.8 million in 1H22

Depreciation and amortisation

(31.0)

(30.3)

(2.2%)

was up

$61.6 million, largely contributed by Main Event.

Amortisation of lease assets

(13.1)

(12.9)

(1.9%)

Corporate costs increased $0.9 million mainly due to

higher insurance premiums in the current period

EBIT1

(0.5)

(48.1)

98.9%

Net

borrowing costs decreased by $1.6 million in the

Borrowing costs (net)

(16.1)

(17.7)

9.3%

current

period due to lower drawn USD debt and the

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remission of $1.2 million interest payable to the ATO,

Lease liability interest expense

(18.8)

(17.5)

(7.5%)

partially

offset by higher interest in respect of RedBird

Loss before tax

(35.4)

(83.3)

57.5%

funding

and incremental borrowing costs related to the

QTC loan

I

come tax benefit/(expense)

(1.4)

1.0

(237.9%)

Current

period reported a tax expense of $1.4 million

Net loss after tax

(36.8)

(82.3)

55.3%

compared to a tax benefit of $1.0 million in the prior period

due to

improved trading results, partly offset by a

EBITDA1 excluding Specific Items

41.8

(19.8)

311.0%

reduction

in tax

losses and deductible temporary

differences not

recognised as deferred tax assets in the

EBIT1 excluding Specific Items

10.8

(50.1)

121.5%

current

period.

Refer slide 4 for further details

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Refer defined terms

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The prior period results have been restated for a change in accounting policy, to measure Theme Parks & Attractions' land, buildings and major rides & attractions at cost (previously fair value) as

disclosed in Note 9(a) to the Financial Statements

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Refer defined terms
The prior period results have been restated for a change in accounting policy, to measure Theme Parks & Attractions' land, buildings and major rides & attractions at cost (previously fair value) as disclosed in Note 9(a) to the Financial Statements
The change in lease accounting standard in FY20 resulted in rental expenses no longer being recognised as part of EBITDA. This was replaced with non-cashamortisation of newly recognised right-of-use assets and interest expense relating to new lease liabilities
Prior period restructuring and non-recurringitems largely relates to RedBird transaction costs, write-offof site exploration costs and penalties associated with a prior year data breach at Main Event (for which insurance reimbursement was recovered in 2H21)

Specific Items impacting results

Consolidated

Reported Restated2

A$m

1H22

1H21

Segment EBITDA has been impacted by the following Specific Items:

Lease payments no longer recognised in EBITDA under

25.1

24.5

AASB 16 Leases3

Impairment losses on assets

-

(4.1)

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-

(0.2)

Early termination of Main Event leases

Net loss on disposal of assets

-

(0.6)

Restructuring and other non-recurring items

(0.8)

(4.4)

Main Event LTI Plan valuation expense

(10.2)

-

RedBird option valuation expense

(10.8)

-

Dreamworld incident insurance recoveries, net of costs

0.4

0.1

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(1.9)

(0.4)

Pre-opening expenses

Total

1.8

14.9

The net loss after tax also impacted by the following Specific Items:

Lease asset amortisation and lease interest expense

(31.9)

(30.4)

recognised under AASB 16 Leases3

Tax losses for which DTA not recognised

(6.9)

(18.9)

Tax deductible temporary differences for which DTA not

(0.1)

(0.4)

recognised

Tax impact of Specific Items above

6.3

3.2

Total

(32.6)

(46.5)

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Specific Items1 impacting results:

  • Specific Items impacting the current and prior period results which are useful in understanding the Group's performance are set out in the table adjacent
  • The prior period was impacted by $4.1 million impairment of Main Event lease assets and $4.4 million restructuring and non-recurring items4
  • The Group incurred a $10.2 million Main Event LTI Plan valuation expense, reflecting an increase in equity value associated with the improved performance of the business
  • The result was also impacted by a $10.8 million non-cash RedBird option valuation expense which reflects the increased value of the option due to the improved performance of the Main Event business
  • Pre-openingexpenses were $1.5 million higher than prior period, with more centre openings in FY22
  • Tax expense includes $7.0 million relating to tax losses and deductible temporary differences not recognised as deferred tax assets in the period (1H21: $19.3 million)
  • A breakdown of Specific Items by business unit is provided in Appendix 1

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Ardent Leisure Group Ltd. published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 22:27:36 UTC.