IQE
26/02/2015 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Intueri Education Group Limited
FLLYR: IQE: IQE - FY 2014 Preliminary Results Announcement
Intueri Education Group releases its preliminary results for the 12 months
ended 31 December 2014
Included in the preliminary results announcement are the following;
1. Media announcement in relation to the FY 2014 results
2. Preliminary results presentation
3. Preliminary financial statements for the 12 months ended 31 December 2014
4. NZX Appendix 1
5. NZX Appendix 7
Media Announcement
Intueri Education Group announces FY 2014 preliminary results, maiden
dividend of 7.7cps declared
- Preliminary statutory net profit after tax (IFRS) of NZ$5.0m for the 12
months ended 31 December 2014, up from NZ$0.0m for the prior comparable
period, 6 months ended 31 December 2013
- Fully imputed dividend of NZ 7.7cps declared, in line with prospectus
guidance
- Strong growth in pro forma revenue NZ$77.5m and gross profit NZ$65.0m, up
16% and 13% on FY 2013 respectively, and ahead of pro forma guidance
- Pro forma EBITA of NZ$24.1m, up 12.4% on FY 2013, margins maintained above
30% with additional investment in quality and growth initiatives
- Australian Online and New Zealand International segments grew strongly,
ahead of expectations
- New Zealand Domestic segment softer than anticipated, impacted by a slower
rebound in Christchurch and Dive school related issues
- Strategic acquisitions of Online Courses Australia Group, Quantum Education
and Academy Group NZ Limited completed
- Intueri expects 2015 EBITA to be in the range of NZ$30m-NZ$33m
Financial Performance
Intueri Education Group ("Intueri") today announces preliminary financial
results for the 12 months to 31 December 2014 delivering strong growth on FY
2013 and exceeding FY 2014 statutory and pro forma revenue and gross profit
financial forecasts outlined in the Initial Public Offering ("IPO")
prospectus dated 6 May 2014. FY 2014 Statutory EBITA of NZ$17.9 million was
considerably ahead of the NZ$2.5 million EBITA in the prior comparable
period. Pro forma EBITA of NZ$ 24.1 million was 5.1% below prospectus,
impacted by revenue mix and higher operating costs whilst margins were
maintained above 30%. Net debt reduced from the IPO debt level of NZ$17.5
million to NZ$11.3 million.
Mr Rob Facer, Chief Executive Officer, commented: "Our inaugural year as a
listed company has delivered a result that is in line with our expectations
and we are pleased with our revenue growth and successfully completing the
acquisitions. We have made a conscious decision to invest in both quality and
growth, and while this investment has impacted our cost base, it will
underpin our future growth strategy. The establishment of our shared services
platform and our Quality and Compliance activities has been a significant
part of the quality picture."
Statutory Result
On a statutory basis, OCA has been included from 1 April 2014, while Quantum
was included from 23 May 2014. Academy Group is not included in the Group
earnings for 2014, as it was acquired on 23 December 2014, but its
acquisition balance sheet is included within the 31 December 2014 Group
balance sheet.
Preliminary statutory profit after tax (IFRS basis) for the 12 months ended
31 December 2014 was NZ$5.0 million, up from NZ$0.0 million for the six
months ended 31 December 2013. The FY 2014 financial statements are currently
being audited and the Directors anticipate receiving an unqualified opinion
from the auditors in respect of them. The FY 2014 result included NZ$1.3
million relating to a goodwill impairment allowance at the Design & Arts
College ("D&A") taken to reflect a slower than anticipated recovery post the
Christchurch earthquake. In addition, a NZ$0.2 million provision relating to
the charges laid by WorkSafe against the Dive School is included in the
result. This process is ongoing, with a court hearing scheduled for 14 April
2015.
Revenue growth from FY 2013 to FY 2014 was 290% which reflects the
comparative period being six months, combined with the acquisitions of a 50%
shareholding in OCA and 100% of Quantum during the period.
Net assets as at 31 December 2014 were NZ$87.7 million. Net debt reduced from
the IPO debt level of NZ$17.5 million to NZ$11.3 million and Intueri remains
in a negative working capital position.
Pro forma Result
The pro forma results assume the combination of Intueri, OCA and Quantum were
owned throughout 2014 in order to show the performance of the combined
business on a comparable basis. On a pro forma basis for the 12 months ended
31 December 2014, revenues were ahead of growth expectations at NZ$77.5
million, 16.5% higher than FY 2013 and 0.8% above pro forma guidance. The
Australian Online and the New Zealand International segments performed
strongly, however the New Zealand Domestic segment was softer than
anticipated and was impacted by a slower rebound in Christchurch and the Dive
school related issues.
Whilst operating costs were above pro forma guidance, Intueri is deploying
additional resources to drive ongoing growth in Australian operations,
investing in enhanced Quality & Compliance capabilities to ensure sustainable
quality focussed outcomes, and establishing a group shared services platform.
As a result, pro forma EBITA of NZ$24.1 million was up 12.4% on FY 2013 but
5.1% behind pro forma guidance due to revenue mix and operating costs.
Pro forma net profit after taxation attributable to Intueri shareholders was
NZ$7.2 million and was NZ$15.1 million when adjusted for acquired
amortisation costs and the D&A goodwill impairment.
Dividend
Intueri has declared a NZD 7.7cps dividend for the period ending 31 December
2014. This dividend is fully imputed for New Zealand investors, and also
carries a supplementary dividend of NZD 1.359cps for non-resident investors
whose holdings in Intueri are less than 10%. The record date is 16 March
2015, with payment on 30 March 2015.
Operational Review
Intueri successfully completed three acquisitions during the period, OCA (50%
initially acquired in March 2014), Quantum and Academy Group, bolstering both
course offering and types of provision. The acquisition of the remaining 50%
shareholding of OCA Group in January 2015 was particularly pleasing given the
performance of OCA in 2014. A further acquisition was announced in early
2015, the Information Technology Training Institute (ITTI), and a number of
further potential acquisition discussions are currently underway.
In 2014 Intueri increased its investment and focus on quality and compliance,
most notably with the creation of a Group Academic and Quality Assurance
function. In addition, The Elite School undertook an NZQA External Evaluation
Review (EER) resulting in a classification upgrade from Category 3 to 2. All
Intueri schools are now either Category 1 or 2. In 2014 Intueri established
group shared service functions, including Finance & IT, Marketing and Human
Resources to support future growth and facilitate additional acquisitions.
An independent investigation relating to pre Intueri record keeping
inconsistencies at the Dive School is underway and is expected to be
completed by the end of March 2015.
Outlook for FY 2015
Given the recently announced acquisitions and the outperformance of the
Australian Online and New Zealand International segments, Intueri expects to
exceed the FY 2015 EBITA guidance outlined in the prospectus, with EBITA
forecast to be in the range of NZ$30-NZ$33 million.
"While trading was softer than anticipated in the New Zealand Domestic
market, the fundamentals of the business in this important sector remain
sound, and we are also encouraged by the ongoing momentum and strong progress
being made in our Australian Online and New Zealand International segments.
Intueri is well progressed with its integration plans and the future benefits
of these will be realised in the 2015 financial year and beyond. Our focus is
on strengthening existing operations and realising the benefits from our
acquisition program. Additional growth opportunities that can make a positive
contribution to earnings are also being reviewed and a number of discussions
are underway." Mr Facer said.
--Ends--
For queries, please contact:
Rob Facer, CEO +64 (0) 27 675 3538
[email protected]
About Intueri:
The Intueri Education Group (IQE) is a publicly listed vocational education
group on both the New Zealand and Australian stock exchanges. Our
internationally recognised schools specialise in providing industry relevant
training across a number of exciting and diverse industries where there is
strong demand for skilled people. We work closely with those industries to
ensure our graduates find employment in the field they are most passionate
about. These fields include Design and Arts, Beauty and Spa Therapy, Culinary
Design and Hospitality Management, Business and Computing, Hotel & Tourism
Management, Professional Counselling, Hairdressing, Make-Up Artistry,
Commercial Diver Training, Information Technology, Floristry and Pharmacy.
End CA:00261141 For:IQE Type:FLLYR Time:2015-02-26 08:30:03
