Return to growth in second half and strong momentum into FY2022
24 August 2021 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leading SaaS platform provider in parts, service, e-commerce, data and analytics solutions to the global automotive industry, today announced its full-year financial results for the 12 months to 30 June 2021 (FY21).
- Steady performance in a challenging environment
⎯ Revenue of $97.4 million up 3% pcp1; up 7% in constant currency
⎯ EBITDA of $47.6 million up 3% pcp
⎯ Cash EBITDA $20.4 million down 4% pcp due to platform roll-out and acquisition costs
⎯ Reported statutory NPAT of $15.969 million down 14% pcp. NPAT before earnouts from acquisitions2 was $20.0 million, up 8% from $18.6 million
- Completed transition from legacy software to Next Gen integrated core parts and service platform
- Signed $35 million of new, multi-year TCV3 from top 20 contracts: $13 million related to Infodrive
- Completed the acquisition of US-based aftersales e-commerce platform, SimplePart
Infomedia reported revenue of $97.4 million for FY21, compared to $94.6 million pcp. Cash EBITDA was $20.4 million down 4% from $21.3 million pcp. Cash EBITDA is a key internal metric used to identify the cash impact of capitalised development costs in reported NPAT. The decline was due to costs incurred to deliver the NextGen platform and acquisition costs associated with the SimplePart transaction.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) was $47.6 million, up 3% pcp.
|Development costs capitalised||(24,965)||(21,910)||14%|
|Reported statutory NPAT||15,969||18,556||(14%)|
|NPAT before earnouts from acquisitions2||20,035||18,556||8%|
|Earnings per share (cents)||4.26||5.69||(25%)|
|Final dividend per share (cents)||2.30||2.15||7%|
|Total annual dividend per share (cents)||4.45||4.30||3%|
The net current assets were $67.2 million at 30 June 2021 compared to $98.0 million at 30 June 2020. Cash and cash equivalents were $66.8 million, down 36% pcp, reflecting the cash cost of investment in the Next Gen SaaS platform and costs associated with the acquisition of SimplePart which was funded from existing cash reserves.
Infomedia continues to generate strong operating cash flows. The company remains free of debt.
Infomedia Ltd CEO, Mr Jonathan Rubinsztein said: “Pandemic related restrictions delayed installations, which impacted the conversion of sales to revenue during the year. However, new opportunities emerged as evidenced by the total of our TCV that closed during the period. Further, innovation and product integration in the core parts and service platform including Infodrive contributed to good sales and revenue momentum in the second half. Global sales and the addition of SimplePart, underpins strong growth into FY22.
“Our customers are looking for ways to drive efficiencies by using digital solutions to replace manual processes. During the pandemic, automakers expanded their digital solutions to meet the needs of their customers as more people globally were working remotely, driving less and shopping online in all segments including automotive.
“We are in a very strong position to leverage global trends; we are global; we are one of a few providers of end-to-end aftersales solutions; and we manufacture and leverage VIN4 specific data across all our solutions,” Mr Rubinsztein said.
Infomedia is well placed to deliver revenue in the range of $117 million to $123 million in FY22, an increase of more than 20% year on year. FY22 revenue outlook assumes no adverse movements in foreign exchange rates and no further negative consequences from COVID 19.
The Board is confident 2022 can provide a welcome return to double digit growth fuelled by momentum in the core business as well as a full year of revenues from SimplePart. Opportunities continue to emerge as a result of structural shifts in the global automotive industry. Fundamental market and technology changes will see automotive data far more abundant and more critical than ever before, and Infomedia is well placed to capitalise on that opportunity.
We will continue to invest in our products to improve functionality and data efficiency and meet changing customer needs.
Infomedia Ltd declared a partially franked (70%), final dividend of 2.30 cents per share. The total annual dividend was 4.45 cents per share, a 3% increase pcp. Infomedia’s dividend record date will be 31 August 2021 and the payment date will be 16 September 2021.
2021 Annual General Meeting
Infomedia will hold its Annual General Meeting on Tuesday 16 November 2021. The meeting will take place virtually due to the ongoing Covid-19 restrictions. A formal Notice of Meeting will be released in October. Director nominations close at 5pm on 27 September 2021.
1 pcp: previous corresponding period
2 Earnouts treated as remuneration from acquisitions due to a condition that the seller remains employed during the earnout period, in accordance with AASB 3 Reported statutory NPAT of $15.969 million includes amounts expensed in relation to earnouts from acquisitions as detailed in note 4 ($2.7 million) and note 17 (b) ($1.4 million) to the financial statements. NPAT before earnouts from acquisitions, net of tax, is $20.035 million. The company considers this measure to be useful to the users of the financial statements in understanding the core operating performance of the business without the impact of the earnouts from acquisitions.
3 TCV: New multi-year contracts closed in FY21 (small portion of revenue recognised in FY21)
4 VIN: vehicle identification number