Statement to Australian Securities Exchange - August 27, 2014
FLIGHT CENTRE TRAVEL GROUP RELEASES AUDITED 2013/14 ACCOUNTS
Result summary
30 June 2014
30 June 2013
Growth
TTV
$16.0b
$14.3b b 12.6%
Revenue
$2.2b
$2.0b b 13.0%
Income Margin
14.0%
13.9%
%
10bps
Net Margin (underlying)
2.35%
2.41%
%
(6bps)
Underlying Profit Before Tax
$376.5m
$343.1m m 9.7%
Non-recurring Items*
($52.7m)
$6.1m
6.1m
Statutory Profit Before Tax
$323.8m
$349.2m m (7.3%)
Underlying Net Profit After Tax
$263.6m
$240.0m m 9.8%
Statutory Net Profit After Tax
$206.9m
$246.1m m (15.9%)
Interim Dividend
55.0c
46.0c
19.6%
Final Dividend
97.0c
91.0c
6.6%
Sales & Margin
Profit
Dividends
* As illustrated above, underlying results are before non-recurring items and statutory results are after non-recurring items
Result overview
THE Flight Centre Travel Group (FLT) today announced record results for 2013/14. t The company traded solidly during the year to June 30, 2014 and achieved new sales an and underlying profit milestones, while continuing to expand its global network.
,
Result highlights included:
12.6% TTV growth to $16billion. In dollar terms, TTV increased by $1.7billion yearon-year without any significant acquisitions
13% revenue growth to $2.2billion
9.7% underlying profit before tax (PBT) growth to $376.5million; and
9.8% growth in underlying net profit after tax (NPAT) to $263.6million
FLT's underlying profit results were within the range that the company initially targeted
($370million-$385million).
Statutory PBT and NPAT were, however, lower than underlying results because of the impacts of some significant non-recurring items.
As announced previously, these items were:
The $61.3million non-cash write-downs to goodwill and brand names (announced
July 2014)
$11million in fines imposed after the ACCC's competition law test case. FLT has appealed both the judgment and the fines that were subsequently imposed and has been advised that both appeals are likely to be heard in November 2014; and
A one-off $19.6million gain within the Flight Centre Global Product (FCGP) business that was initially flagged at the half year in February 2014
Including these items, FLT achieved a statutory PBT of $323.8million and a statutory NPAT of $206.9million.
Income margin (revenue as a percentage of TTV) increased slightly to 14%.
Net margin (underlying PBT as a percentage of TTV) was 2.35%, a slight decrease on the prior year. This decrease was expected, given that FLT returned its sales and marketing investment to normal levels, following a reduced spend during 2012/13.
Cash and cash flow
General cash (company funds) increased about 10% to $476million at June 30, 2014.
Debt was just under $45million at year-end, giving the company a $431.2million positive net debt position (FY2013: $387.6million).
FLTís operating cash flow during 2013/14 followed traditional patterns, with funds accumulating during peak second half booking periods for payment to suppliers after peak travel periods during the first half of 2014/15.
A full year $227.1million operating cash inflow was recorded, compared to a $370.3million inflow during 2012/13.
The year-on-year movement was largely brought about by:
Timing factors related to the BSP (airline) payment cycle: In simple terms, this meant that FLT had four fewer days of BSP payments accumulated during 2013/14; and
Tax-related changes: From January 2014, FLT was required to pay tax instalments monthly, rather than quarterly. As a result, some payments that would normally have been made during future periods were paid during 2013/14
In terms of costs, wages increased as the company expanded its sales network.
Payments to Key Management Personnel (KMP), however, decreased
