Ardent Leisure Group (ASX:ADD) released its full FY15 results this morning. Overall core earnings were down however significant gains were made in several aspects of the firm
The outstanding performance came from Main Event, with EBITDA coming in at US$36.7 million, up 64 per cent on the previous year. The performance was attributed to both constant and new centres, with six Main Event centres opening in FY15, seven planned for FY16 and eight centres planned for FY17.
Ardent’s bowling centres recorded positive results with EBITDA coming in at $13.9 million, up 1.6 per cent on last year. The results were driven by a combination of modest constant centre growth and new centre contributions. The newly opened Kingpin Darwin Centre has performed well and follows the comany's strategy to transition bowling to multi attraction family entertainment centres.
The group’s Theme Park’s came in with EBITDA of $32 million, down 2.45 per cent on last year. The company puts this down to unprecedented rainfall and cyclone impact during the peak trading period in Q3.
Marina’s recorded EBITDA of $10.2 million, down 2.4 per cent on last year. This was mainly due to reduced occupancy at The Spit Marina during its $5 million redevelopment.
To fund Main Event’s expansion during FY16 and FY17, Ardent extended its Australian and US dollar debt facilities and increased it US dollar facility by US$120 million.
The Group also completed sale and leaseback of three Main Event centres in June, yielding US$32 million, with the successful real estate institutional investor agreeing to fund up to US$100 million of new centre developments.
Group’s Health Clubs performed the worst with EBITDA of $28.15 million, down 17 per cent on last year. Health Club memberships have recently shown signs of growth and the company has reduced its member attrition rate.
Overall the Group reported EBITDA of 130 million, up 12.4 per cent on the previous year, however core earnings came in $56.2 million, down 3.3 per cent on the previous year. The company will pay a final dividend of 5.5c, bringing the total distribution 12.5c, which is down on the prior year's 13c payout.
Going forward, the Group is confident Main Event will continue to grow . The company’s share price has gained over 7 per cent in the first hour of trading this morning as investors share the same optimism.
Author: Ben Visser
Aug 19, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.