COMMANDER EXCEEDS EBITDA PROFIT GUIDANCE FOR FY2006-- Commander...

COMMANDER EXCEEDS EBITDA PROFIT GUIDANCE FOR FY2006
-- Commander gives guidance of $1.1 - $1.2 billion in Revenue and
underlying EBITDA of $95 - $101 million in FY2007--
FY2006 Highlights (including Volante Group)
> Profit: Underlying EBITDA of $60.1 million, exceeding guidance of $55-$59 million, up 24 per cent over FY2005. Reported EBITDA of $56.2 million within guidance, up 21 per cent over FY2005
> Revenue: Revenue of $790 million and strong cash flow
> Margin: Margin of $229 million, up 29 per cent over last year
> Volante: Volante integrated into the Commander business, enabling Commander to offer enhanced managed services capabilities as part of its 360° solutions suite
28 August 2006 – Commander Communications Limited (ASX: CDR) today announced an underlying EBITDA of $60.1 million for the full year ended 30 June 2006, which exceeds market guidance of $55 million to $59 million and is 24 per cent higher than FY2005.
The results include Volante which was acquired by Commander in April this year. Both companies achieved their individual profit objectives.
The combined results also show a consistent year for Commander where the majority of earnings were realised in the second half. Total reported revenue was $790 million. Gross margin was $229 million, or 29 per cent more than last year.
The Commander Board has declared a final dividend of 4 cents and a special dividend of 2 cents, both fully franked and payable on 4 October 2006. The special dividend was declared as no interim dividend was paid for FY2006 given the takeover activity involving Volante.
Based on Commander’s performance, Commander’s Managing Director, Adrian Coote, gives guidance for FY2007 of $1.1 - $1.2 billion in Revenue and underlying EBITDA of $95 - $101 million.
Coote said “FY2006 was a foundation year for Commander, necessary to deliver the significant benefits of its second horizon goals. We invested towards creating the network and back office platforms necessary to achieve our growth objectives and we were also able to fast track a strategically important managed services business by acquiring Volante. Commander was able to deliver strong results and at the same time execute and integrate a major acquisition”.
During FY2006, Commander:
> increased revenue and gross margins across every line of business and market segment;
> grew network margins through high quality contracted revenue streams;