not a bad report

Jumbo Corporation Ltd
ABN: 66 009 189 128
Level 19, Riverside Centre
123 Eagle Street
Brisbane QLD, 4000
Ph: +61 7 3831 3705
Fax: +61 7 3831 9720
Page 1 of 3
ASX RELEASE – Monday 12th September 2005
FY05 PRELIMINARY FINAL RESULTS - FULL YEAR
RECORD PROFIT
Jumbo Corporation Limited (ASX:JUM), a leader in online lotteries
and ecommerce services, today announced a profit of $630,371
and an EBITDA of $720,083. The FY05 result represents
significant improvement on last years figures.
This result includes 1 month of trading from TMS Global Services
Pty Ltd. which was fully acquired in May 2005. On a 12 month
trading basis, a combined Jumbo and TMS business would have
resulted in a FY05 profit of $1.5 million and a FY05 EBITDA of $1.8 million.
“Our 3rd straight record profit and the successful acquisition of TMS are the highlights of the most
successful year in Jumbo’s history”, said Mr Mike Veverka, CEO. “The addition of TMS improves
our profitability and brings many new opportunities due to its unique licenses to sell Australian
lotteries online.”
“The company’s financial position is strong with cash levels of $5.5 million, total assets of
$11.5 million and net assets of $3.9 million”, said Mr Veverka. “the strong financial position
gives Jumbo the ability to take advantage of its early mover advantage in the online lottery
industry which is expected to undergo substantial growth over the next 5 years.”
ASX Code: JUM
Shares on Issue: 321 million
Options on Issue: 6.75 million
Share price (12 Sep 2005): 6.9c
Market Cap: $22.1 mil
Annual Share Turnover: 570 million
Last Month Share Turnover 23 million
Top 20 hold: 67%
Jumbo Corporation Announcement - Page 2 of 3
12 month Trading Basis
During FY05, TMS traded 11 months as a separate private company and 1 month as a fully owned
subsidiary of Jumbo Corp. The combined Jumbo and TMS business on a 12 month trading basis would
have resulted in a FY05 EBITDA of $1.8 million and FY05 profit of $1.5 million.
Financial Performance
TMS was acquired towards the end of FY05 so only 1 month trading results were incorporated in the
final results. The following table summarizes the results as reported.
FY05 FY04 % Change
Revenue $7.2 million $7.7 million 6.5% decrease
EBITDA $720K $370K 94% increase
NPAT $630K $290K 117% increase
The small decrease in revenue is attributable to an intentional higher average sales price resulting in a
higher profit margin but a lower revenue.
Financial Position
The following table highlights the strengthening financial position over the last 3 years.
FY05 FY04 FY03
Cash $5.4 million $1.9 million $0.9 million
Total Assets $11.5 million $3.4 million $1.7 million
Total Liabilities $7.6 million $2.2 million $1.1 million
Net Assets $3.9 million $1.2 million $0.6 million
Jumbo Corporation Announcement - Page 3 of 3
ABOUT TMS
TMS Global Services Pty Ltd is a wholesaler and online retailer of Australian lottery products through
agreements with Tattersall’s (Victoria) and the NSW Lotteries Corporation. The company retails popular
lotteries such as Saturday Lotto, Powerball and OzLotto via its website at www.ozlotteries.com. As well
as the online lottery business TMS supports a private network of lottery outlets in various Pacific Islands
including Fiji, Cook Islands and Norfolk Island. This network was established in the 1990’s and allows
traditional retailers to sell Australian lottery products.
ABOUT JUMBO
Jumbo Corporation Limited is a successful online retailer and e-commerce provider. Profitable for the
last 3 years, the company retails a range of products such as pharmacy goods, software and luxury
items such as fragrances and cosmetics from its popular www.jumbomall.com web site. The company
has accumulated in excess of 300,000 online customers which form a base to promote new products
such as lotteries. Jumbo also provides a range of e-commerce services to customers worldwide from its
www.jumbostore.com web site.
For further information, please contact:
Mike Veverka, CEO
Email: [email protected]
Web: www.jumbocorporation.com
APPENDIX 4E
PRELIMINARY FINAL REPORT
Name of entity
Jumbo Corporation Limited
ABN or equivalent company reference Financial year ended (‘current period’)
RESULTS FOR ANNOUNCEMENT TO THE MARKET
$A’000
Revenues from ordinary activities
down 6.5% to $7,229
Net profit (loss) from ordinary activities after tax attributable to
members
up 117% to $630
Net profit (loss) for the period attributable to members up 117% to $630
Dividends (distributions)
Amount per
security
Franked amount per
security
Final dividend
Interim dividend
0c
0c
0c
0c
Record date for determining entitlements to the dividend
N/A
Note: The accounts are in the process of being audited or subject to review.
66 009 189 128
30 June 2005
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminary Financial Report
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005
Note Economic Entity Parent Entity
2005
$000
2004
$000
2005
$000
2004
$000
Revenues from ordinary activities 2 7,229 7,744 1,540 24
Cost of goods sold 3 (4,193) (5,141) - -
Depreciation expense 3 (28) (15) - -
Amortisation expense 3 (39) (68) (34) (80)
Borrowing costs expense 3 (22) - (22) -
Salaries and employee benefits
expense 3 (383) (313) - -
Directors Remuneration 3 (278) (199) - -
Consultancy fees 3 (164) (498) (6) (26)
Marketing costs 3 (255) (103) - -
Other expenses from ordinary
activities 3 (1,232) (1,094) (182) (148)
Carrying value of assets sold 3 (5) (23) (5) -
Profit from ordinary activities before
income tax expense 3 630 290 1,291 (230)
Income tax expense relating to
ordinary activities - - - -
Profit from ordinary activities after
related income tax expense 630 290 1,291 (230)
Profit (loss) from extraordinary item
after related income tax
expense/(revenue) - - - -
Net profit attributable to members of
Jumbo Corporation Limited
630 290 1,291 (230)
Basic earnings per share (cents per
share) 4 .24 .13
Diluted earnings per share (cents per
share) 4 .24 .13
The accompanying notes form part of these financial statements.
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005
Note Economic Entity Parent Entity
2005
$000
2004
$000
2005
$000
2004
$000
CURRENT ASSETS
Cash assets 5,484 1,928 419 114
Receivables 583 424 106 64
Inventories 10 5 - -
TOTAL CURRENT ASSETS 6,077 2,357 525 178
NON-CURRENT ASSETS
Other financial assets 1,500 62 1,500 62
Receivable from related party - - 367 -
Interests in controlled entities - - 3,887 -
Property, plant and equipment 407 32 - -
Intangible assets 2,825 270 236 270
Other assets 700 706 700 706
TOTAL NON-CURRENT ASSETS 5,432 1,070 6,690 1,038
TOTAL ASSETS 11,509 3,427 7,215 1,216
CURRENT LIABILITIES
Payables 4,506 2,171 28 282
Interest-bearing liabilities 1,023 - 1,027 -
Provisions 173 16 - -
TOTAL CURRENT LIABILITIES 5,702 2,187 1,055 282
NON-CURRENT LIABILITIES
Interest-bearing liabilities 1,848 - 1,848 -
TOTAL NON-CURRENT LIABILITIES 1,848 - 1,848 -
TOTAL LIABILITIES 7,550 2,187 2903 282
NET ASSETS 3,959 1,240 4,312 934
EQUITY
Contributed equity 5 23,182 21,094 23,182 21,094
Retained losses 6 (19,223) (19,854) (18,870) (20,161)
TOTAL EQUITY 3,959 1,240 4,312 934
The accompanying notes form part of these financial statements.
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005
Note Economic Entity Parent Entity
2005
$000
2004
$000
2005
$000
2004
$000
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers 7,272 7,577 - -
Payments to suppliers and employees (5,167) (6,576) (173) (34)
Interest received 45 10 14 9
Borrowing costs (43) - (72) -
Net cash provided by (used in)
operating activities 2,107 1,011 (231) (25)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant and
equipment (40) (4) - -
Purchase of investments - (556) (2,300) (556)
Cash acquired on acquisition of
subsidiary 132 - - -
Funds placed on deposit (1,438) (8) (1,438) (8)
Advances from related parties - - 1,489 -
Proceeds from sale of assets 35 - 35 -
Net cash provided by (used in)
investing activities (1,311) (567) (2,214) (564)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares 250 620 250 620
Proceeds from directors loan 14 - - -
Proceeds from borrowings 2,500 - 2,500 -
Advancement of loan (4) - - -
Net cash provided by (used in)
financing activities
2,760 620 2,750 620
Net increase in cash held 3,556 1,063 305 31
Cash at 1 July 2004 1,928 865 114 83
Cash at 30 June 2005 5,484 1,928 419 114
The accompanying notes form part of these financial statements.
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers the economic entity of Jumbo Corporation Limited and controlled entities, and
Jumbo Corporation Limited as an individual parent entity. Jumbo Corporation Limited is a listed public
company, incorporated and domiciled in Australia.
The financial report has been prepared on an accruals basis and is based on historical costs and does not
take into account changing money values or, except where stated, current valuations of non-current
assets. Cost is based on the fair values of the consideration given in exchange for assets.
The following is a summary of the material accounting policies adopted by the economic entity in the
preparation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
a. Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with
changes in presentation for the current financial year.
b. Rounding of Amounts
The parent entity has applied the relief available to it under ASIC Class Order 98/100 and
accordingly, amounts in the financial report and directors’ report have been rounded off to the
nearest $1,000.
Note Economic Entity Parent Entity
NOTE 2: REVENUE
2005
$000
2004
$000
2005
$000
2004
$000
Operating activities
— Jumbo mall commissions 2,170 4,035 - -
— Other commissions 449 359 - -
— Revenue from sale of goods 55 495 - -
— Licensing Income 3,485 2,456 - -
— Revenue from services 55 281 - -
— Revenue Online Lottery 930 - - -
7,144 7,626 - -
Non-operating activities
— Rental income - 8 - -
— Interest Received – other
persons/corporations 45 10 14 9
— Revenue from sale of shares 35 - 35 -
— Debts Forgiven - 83 - -
— Writeback of Provision for loss - - 1,491 -
— Other revenues 5 17 - 15
Total Revenue 7,229 7,744 1,540 24
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
Note Economic Entity Parent Entity
NOTE 3: PROFIT FROM ORDINARY
ACTIVITIES
2005
$000
2004
$000
2005
$000
2004
$000
Profit from ordinary activities before
income tax has been determined after
a. Expenses
Cost of sales
Sale of goods 1,508 472 - -
Sale of services 2,685 4,669 - -
Borrowing costs expensed
— Interest expense – other
persons/corporations
17 - 17 -
— Other borrowing costs 5 - 5 -
Depreciation of non-current assets:
— plant and equipment 28 15 - -
Amortisation of non-current assets:
— goodwill 39 68 34 80
Bad and doubtful debts:
— trade debtors - 22 - -
Rental expense on operating leases
— minimum lease payments 118 95 - -
Salaries and employee benefits expense
— Salaries 343 291 - -
— Superannuation contributions 27 23 - -
— Annual leave provision 13 (1) - -
Consultancy Fees
— Legal fees 27 28 4 26
— Corporate other 137 470 - -
Directors remuneration 278 199 - -
Marketing costs
— Commissions 39 73 - -
— Promotions 7 30 6 -
— Other 209 - - -
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
Note Economic Entity Parent Entity
NOTE 3: PROFIT FROM ORDINARY
ACTIVITIES
2005
$000
2004
$000
2005
$000
2004
$000
Other expenses from ordinary activities
— Auditors remuneration 29 63 29 63
— Accountancy fees 49 37 7 -
— Bank merchant fees 614 484 - -
— ASX fees 47 23 47 23
— Capital raising costs 15 18 15 18
— Software licensing 29 119 - -
— Other 421 206 85 44
Total costs: 6,599 7,431 249 254
b) Gain / (Loss) on sale of assets
Sale of shares (30) - (30) -
Sale of property, plant and equipment - 23 - -
(30) 23 (30) -
Economic Entity
NOTE 4: EARNINGS PER SHARE
2005
$000
2004
$000
a. Reconciliation of earnings to net profit or loss
Net profit 630 290
Net profit attributable to outside equity interest - -
Redeemable and converting preference share dividends - -
Earnings used in the calculation of basic EPS 630 290
Dividends on converting preference shares - -
Earnings used in the calculation of dilutive EPS 630 290
b. Weighted average number of ordinary shares outstanding during the
year used in calculation of basic EPS 258,601,189 218,929,161
Weighted average number of options outstanding - -
Weighted average number of converting preference shares on issue - -
Weighted average number of ordinary shares outstanding during the
year used in calculation of dilutive EPS 258,601,189 218,929,161
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
Note Number of shares $000
NOTE 5: CONTRIBUTED EQUITY 2005 2004 2005 2004
Fully paid ordinary shares 321,337,408 223,765,227 23,182 21,094
321,337,408 223,765,227 23,182 21,094
a. Ordinary shares
At the beginning of the reporting period 223,765,227 198,765,227 21,094 20,724
Shares issued during the year
— On 14 August 2003 as a private
placement -10,000,000 - 130
— On 26 September 2003 as a
private placement -15,000,000 - 240
— On 5 October 2004 as a private
placement 17,993,523 - 250 -
— On 22 October 2004 as a
private placement 17,993,523 - 250 -
— On 29 October 2004 as a
private placement 1,000,000 - 16 -
— On 13 May 2005 as a private
placement 135,135 - 5 -
— On 19 May 2005 as a private
placement 59,700,000 - 1,552 -
— On 3 June 2005 as a private
placement 750,000 - 30 -
Acquisition costs - - (15) -
321,337,408 223,765,227 23,182 21,094
NOTE 6: ACCUMULATED LOSSES
Accumulated losses at the beginning
of the financial year
(19,854) (20,032) (20,161) (19,931)
Outside equity interests purchased by
parent
- (112) - -
Net profit/(loss) attributable to the
members of the parent entity
630 290 1,291 (230)
Retained profits at the end of the
financial year (19,224) (19,854) (18,870) (20,161)
Jumbo Corporation Limited ABN 66 009 189 128 and Controlled Entities
Appendix 4E Preliminery Financial Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
NOTE 7: EMPLOYEE BENEFITS
Employees Share Option Arrangement
i. On 29 March 2002, 500,000 share options were granted to employees service under the Jumbo
Corporation Limited employee option plan to take up ordinary shares at an exercise price of 5 cents
each. The options are exercisable on or before 5 June 2006.
ii. On 13 May 2005, 1,250,000 share options were granted to employees service under the Jumbo
Corporation Limited employee option plan to take up ordinary shares at an exercise price of 5 cents
each. The options are exercisable on or before 5 June 2006.
iii. On 19 May 2005, 5,000,000 share options were granted to employees service under the Jumbo
Corporation Limited employee option plan to take up ordinary shares at an exercise price of 4 cents
each. The options are exercisable on or before 19 May 2007.
NOTE 8: DETAILS OF CONTROLLED ENTITIES
Control Gained Over Entities During the Period
Name of entity
TMS Global Services Pty Ltd and
controlled entities
Date control acquired, i.e. date from which profit(loss) has
been calculated
1 June 2005
Profit (loss) from ordinary activities after extraordinary items
and income tax of the controlled entity (or group of entities)
during the current period since the date on which control was
acquired
$40,402