ADDRESS CONTACT DETAILS UNIT REGISTRY
Level 16 Telephone +61 2 9409 3670 c/- Link Market Services Limited 61 Lavender Street Investor Services 1800 ARDENT Level 12, 680 George Street Milsons Point NSW 2061 Fax +61 2 9409 3679 Sydney NSW 2000 AUSTRALIA www.ardentleisure.com Locked Bag A14 Sydney South NSW 1235 Telephone 1300 720 560 [email protected]
ASX RELEASE
13 June 2012
The Manager Company Notices Section ASX Limited 20 Bridge Street SYDNEY NSW 2000
Dear Sir/Madam
MORGAN STANLEY CONFERENCE PRESENTATION
Please find attached for release to the market a presentation to be given by Mr Greg Shaw today at the Morgan Stanley Emerging Companies Conference.
Yours faithfully
Alan Shedden Company Secretary
Ardent Leisure Group is a specialist operator of leisure and entertainment assets across Australia, New Zealand and the United States. The Group operates Dreamworld, WhiteWater World, SkyPoint, d’Albora Marinas, AMF and Kingpin bowling centres and Goodlife fitness centres across Australia and New Zealand. The Group also operates the Main Event family entertainment centres in the United States. For further information on the Group’s activities please visit our website at www.ardentleisure.com.au
For personal use only use personal For
Ardent Leisure Group Comprising Ardent Leisure Trust ARSN 093 193 438 (Manager: Ardent Leisure Management Limited ABN 36 079 630 676, AFS Licence No. 247010) and Ardent Leisure Limited ABN 22 104 529 106 Morgan Stanley 2012 Emerging
Companies Conference For personal use only use personal For Ardent Leisure Profile ― Ardent Leisure is one of Australia’s largest specialist operators of leisure and entertainment assets. ― Occupies dominant positions in a range of affordable leisure sectors: Sector Businesses Number
Theme parks Dreamworld, WhiteWater World, and SkyPoint 3
Bowling AMF and Kingpin 49
Health Clubs Goodlife Health Clubs 45 Family Entertainment Centres Main Event USA 10 Marinas D’Albora Marinas 7 ― Resilient earning streams from diverse affordable leisure product range which For personal use only use personal For appeals to price conscious consumer. ― Strong organic growth potential through the Main Event, Health Club and Bowling platforms. 2 9 Months Ending 31 March 2012 Performance Update(1) ― Continuation of the strong momentum at the half year in the Main Event and Health Club divisions, similar trends in Marinas, a significant improvement in Bowling and improved trends in Theme Parks as shown below:
21.6% HY 31 Dec 2011 EBITDA 19.6% 18.9% 9 mths ending 31 Mar 2012 EBITDA 19.3%
6.8% 11.6% 1.8% 0.0% 0.1%
Main Event (2)(3) Health Clubs Marinas Bowling Theme Parks
-6.2% For personal use only use personal For -8.6%
(1) Based on 9 month unaudited trading (2) US$ EBITDA growth (3) Main Event achieved a 19.3% EBITDA growth rate for the 9 months ending 31 March 2012 if the impact of increased property rentals from the sale and leaseback of the Main Event properties in Webster (in September 2011); and Frisco and Lubbock (in January 2012) are excluded. A growth rate of 11.6% was achieved with the inclusion of the increased rentals. 3
Main Event half year results
Delivered outstanding 19.6% like for like EBITDA growth
US$’000 HY12 HY11 % Change Total revenue 26,067 24,006 8.6% EBRITDA 8,316 7,254 14.6% Operating margin 31.9% 30.2% Property costs (3,161)1 (2,943) 7.4%
For personal use only use personal For EBITDA 5,155 4,311 19.6%
(1) Includes $182,000 in incremental sale and leaseback rental for Webster site 4 Main Event 9 months ending 31 March 2012 Update(1)
― Year to date revenues of US$41.46m, up 8.5% on revenues of US$38.2m recorded in the prior corresponding period.
― Year to date EBITDA of US$9.23m, up 11.6% on EBITDA of US$8.27m recorded in the prior corresponding period.
Up 19.3% excluding the impact of increased property rentals from the sale and leaseback of the Main Event properties in Webster (in September 2011); and Frisco and Lubbock (in January 2012)).
― New site in San Antonio opened for trade on 26 April 2012. Strong opening performance.
only use personal For
(1) Based on 9 months unaudited trading 5
Main Event Outlook
― Exceptional trading has continued in April 2012, with revenues of US$3.8m up 7.6% on April 2011.
― Positioned to continue performing strongly:
Quality locations in highly populated metropolitan Texas markets
Broad market appeal catering to a wide range of ages and demographics
No direct competition
One of least expensive forms of out-of-home entertainment
2012 average person spend was $14.29, compared to average out-of-home ticket
For personal use only use personal For price of $45.83*
All inclusive “value” messaging has strong appeal in current economic environment
*MPAA research. Average out-of-home ticket price includes football game, basketball game, hockey game, baseball game and theme park 6 Main Event Outlook ― One stop leisure destination, with strong recreational appeal for young socials, families, children and Groups. Not just bowling.
9 months ending 31 March 2012 revenue by venue
Laser Tag/ Mini Climbing/ Misc, Golf, 11.8% 1.3%
Beverage, Games, 33.6% 10.3%
only use personal For Food, 19.7%
Bowling, 23.4% 7
Main Event Outlook ― Texas has an attractive economic climate which is expected to strongly support future growth:
Population of 24 million (22 million live in Australia)
13th highest GDP in the world, if it was a country (Australia would be 16th)*.
No state income tax
Low cost of living
Affordable housing
Low unemployment relative to broader US market
― Similar market dynamics exist across US Sunbelt states For personal use only use personal For
*These figures are based on the International Monetary Fund list of countries by GDP (nominal) for world GDP 8 Main Event Outlook
― Strong growth potential through new site development:
Capable development team in place
Potential trade areas identified
Leasehold developments expected to contribute EBITDA of US$1.6m to US$1.8m on an investment of circa US$6m.
Target is to double size of portfolio within 3 years
New site in Houston has been secured
Negotiations well advanced to secure a further Houston site For personal use only use personal For Potential for Main Event to expand into adjoining Sunbelt states
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Health Clubs half year results
Strong like for like performance boosted by success of bolt-on acquisitions
$’000 HY12 HY11 % Change Total revenue 50,806 43,447 16.9 EBRITDA (ex pre-opening cost) 19,877 16,537 20.2 Operating margin 39.1% 38.1% Property costs (ex straight line (9,851) (8,102) (21.6)
rent) For personal use only use personal For EBITDA1 10,026 8,435 18.9
(1) Excluding pre-opening costs and straight line rent 10 Health Clubs 9 months ending 31 March 2012 Update(1)
― Year to date revenues of $76.48m up 16.4% on revenues of $65.72m recorded in the prior corresponding period.
― Year to date EBITDA of $15.14m up 21.6% on EBITDA of $12.45m recorded in the prior corresponding period, improving on the 18.9% trend at the half year.
― The 31 March 2012 quarter was Goodlife’s strongest trading period with revenues for the quarter up 15.3% and EBITDA up 27.4%, driven by:
a 1.7% increase in constant centre revenues and 7.5% increase in constant centre EBRITDA(2).
the acquisition of 3 clubs in Melbourne at Waverley Park (December 2011), Caroline
For personal use only use personal For Springs and Prahran (March 2012).
(1) Based on 9 months unaudited trading (2) Earnings before property costs, interest, tax, deprecation and amortisation 11 Health Clubs Outlook ― Melbourne club acquisitions will deliver first full year earnings contribution in FY 2013. ― New development clubs at Dernancourt (SA) and Maroochydore (QLD), due to open in Q2 FY 2013. ― Additional site secured at Westlakes Shopping Centre in Adelaide, which is due to open in FY 2014.
― Refurbishments completed at Carseldine, Bardon, Balwyn and Chermside expected to drive incremental earnings.
― Will seek to make 2 bolt on acquisitions per year delivering $0.5m to $0.8m
of EBITDA at EBITDA multiples of 3.5 to 4.0x. For personal use only use personal For ― Targeting to open 2 to 3 new clubs per year. Expect each to deliver $0.6m to $0.7m of EBITDA once fully ramped up, on an investment of circa $2.4m to $2.6m. 12
Marinas half year results
Quality locations delivered consistently high occupancies with growth in berthing rates
$’000 HY12 HY11 % Change
Total revenue 11,393 11,159 2.1
EBRITDA 6,426 6,385 0.6
Operating margin 56.4% 57.2%
For personal use only use personal For Property costs (1,096) (1,149) 4.6
EBITDA 5,330 5,236 1.8
13 Marinas 9 months ending 31 March 2012 Update(1) ― Year to date revenues of $18.1m and EBITDA of $8.57m in line with the prior corresponding period.
― Continues to enjoy consistently high occupancy levels and strong operating margins of 56.7%.
Outlook
― Strong demand and supply fundamentals, with material barriers to entry,
expected to underpin future performance. For personal use only use personal For
(1) Based on 9 montths unaudited trading 14 Bowling half year results
Revenue performance underpinned by product innovation and value offerings
$’000 HY12 HY11 % Change Total revenue 59,415 57,354 3.6 EBRITDA (ex pre-opening costs) 20,457 20,316 0.7 Operating margin 34.4% 35.4% Property costs (ex straight line rent) (10,742) (10,613) 1.2
EBITDA1 9,715 9,703 0.1 For personal use only use personal For
(1) Excluding pre-opening costs and straight line rent 15 Bowling 9 months ending 31 March 2012 Update(1) ― Trading trends have improved significantly since the half year:
Year to date revenues of $86.17m up 5.3% on revenues of $81.83m recorded in the prior corresponding period (up 3.6% at the half year).
Year to date EBITDA of $12.15m up 6.8% on EBITDA of $11.38m recorded in the prior corresponding period (up 0.1% at the half year).
― Improved trends underpinned by:
Constant centre revenues growing by 1.6% compared to 0.8% at the half year.
the success of the new Kingpin site at Townsville, which opened in October 2011.
―only use personal For Improved constant centre performance assisted by new initiatives to achieve greater local area marketing focus at the centre level.
(1) Based on 9 months unaudited trading 16 Bowling Outlook
― April 2012 revenues of $9.8m, up 2.7% on April 2011.
― Constant centre revenue growth to be driven by product innovation, value offerings and greater focus on marketing activity within local catchments.
― AMF Macarthur in NSW will be converted to the Kingpin brand in Q1 FY 2013 to maximise corporate and young social revenue opportunities.
― Two new sites have been secured in Liverpool (opening Q2 FY 2013) and Penrith (opening Q2 FY 2013) to dominate Western Sydney market.
― New AMF centres will incorporate more contemporary food and beverage offer to drive young social market. Liverpool site will operate under the Kingpin brand.
―only use personal For Negotiations well advanced for potential Kingpin site in Darwin.
― Will seek to open 2 to 4 new sites per year. Expect each to deliver EBITDA of $0.8m to $0.9m on an investment of circa $3.2m to $3.5m. 17 Theme Parks half year results
Improved yield and strong product releases anticipated to enhance second half result
$’000 HY12 HY11 % Change Total revenue 52,989 57,914 (8.5) EBRITDA 20,520 22,714 (9.7) Operating margin 38.7% 39.2% Property costs (743) (1,077) (31.0)
EBITDA 19,777 21,637 (8.6) For personal use only use personal For Attendance1 1,189,739 1,492,776 (20.3) Per capita spend ($) 44.54 38.80 14.8
(1) World Pass treated as two entries 18 Theme Parks 9 months ending 31 March 2012 Update(1) ― Third quarter earnings matched the prior year, after declines were recorded in the first half.
― Year to date revenues of $76.63m were down 7.5% on revenues of $82.82m recorded in the prior corresponding period (down 8.5% at the half year).
― Year to date EBITDA of $27.81m was down 6.2% on EBITDA of $29.66m recorded in the prior corresponding period (down 8.6% at the half year).
― Despite the decline in revenue, year to date operating margins of 37.8% were higher than the 37.6% recorded in the prior corresponding period.
― Very strong trading conditions in early January helped offset the impact of consistent rainfall throughout the third quarter (668mm vs 447mm).
―only use personal For SkyPoint Climb, Australia’s highest external building adventure, opened in mid January. Received very positive guest feedback since opening.
― DreamWorks Animation precinct opened at Dreamworld for the Easter holidays. (1) Based on 9 months unaudited trading 19 Theme Parks Outlook ― April 2012 revenues of $7.7m (April 2011: $8.5m) were impacted by significant wet weather (318mm of rainfall in April 2012 vs 205mm in April 2011).
― New partnership with Dreamworks will provide ongoing access to new animated content.
― Dreamworld will be the home of Big Brother, to be broadcast on the Nine Network in 2012. Expected to generate strong brand awareness and a unique point of difference.
― Ongoing investment in web and e-commerce capability to improve purchase
and entry experience. Web sales now over 30% of entry sales. For personal use only use personal For
20 Group Outlook
― Earnings expected to remain resilient due to a diversity of affordable product offerings that appeal to a price conscious consumer.
― Main Event, Health Club and Bowling businesses to drive organic growth through new developments and bolt on acquisitions.
― Retail landlords increasingly seeking leisure based businesses to drive traffic flow. Ardent Leisure well placed to secure more attractive rental and landlord contributions for Bowling, Health Clubs and Main Event divisions.
― Bolt-on acquisitions at attractive EBITDA multiples expected to be available.
―only use personal For Experienced management team will continue to drive ongoing product innovation and margin improvement.
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Disclaimer
This information has been prepared for general information purposes only, is not general financial product advice and has been prepared by Ardent Leisure Management Limited ABN 36 079 630 676 (ALML), without taking into account any potential investors’ personal objectives, financial situation or needs.
Past performance information provided in this presentation may not be a reliable indication of future performance.
Due care and attention has been exercised in the preparation of forecast information, however, forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of ALML and Ardent Leisure Limited (ALL). Actual results may vary from forecasts and any variation may be materially positive or negative.
ALML provides a limited $5 million guarantee to the Australian Securities and Investments Commission in respect of ALML's Corporations Act obligations as a responsible entity of a managed investment scheme. Neither ALML nor any other Ardent Leisure Group entity otherwise provides assurances in respect of the obligations of any entity within Ardent Leisure Group.
The information contained herein is current as at the date of this presentation unless specified otherwise. For personal use only use personal For
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