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On 22 February 2019, Ardent Leisure Group Limited (ASX:ALG), a company from the Consumer Discretionary sector and the owner and operator of theme parks and family entertainment centres, announced its 1H FY2019 results from period 25 June 2018 to 25 December 2018.
During the period, the revenue from the continuing businesses increased by 19% to $226.7 million as compared to the previous corresponding period. There was an increase in the Main Event revenue by 14.3% to US$139.1 million and EBITDA increased by 24% to US$16 million, driven by a constant centre growth by 0.7% and approximately three new centres. There was an increase in the Theme Parks revenue by 9% on a like-for-like basis to $34.4 million. There was an improvement in yield by 16%. The company incurred a statutory net loss of $21.8 million as a result of Dreamworld incident costs due to the coronial investigation and other restructuring and non-recurring cost. There was a decline in the total groupâs revenue by $38.9 million as a result of the lost revenue contribution of $75.1 million from the Marinas and Bowling & Entertainment businesses in the previous period which got balanced by the increased revenue from the continuing operations through the main event. The main event contributed around 80% of the revenue during the period.
 The destapling and corporatization of the Group got completed in December 2018. The company extended the existing credit facility to February 2020 and has reached an advanced stage of establishing increased funding for execution of medium-term growth strategies for both Main Event as well as Theme Parks.
Over the medium term, the company is targeting an increase in the EBITDA margins excluding the pre-opening, restructuring and other nonrecurring items by more than 20%. In Q4 FY2019, Dreamworld aims to attain a break-even point.
As a result of re-investment for the growth in the business, the company did not declare any dividend during the period. By the end of the FY2019, the company will also announce the capital management policy.
The balance sheet of the company as at 25 December 2018 reported a net asset of $422.756 million. The decrease in the net asset was due to an increase in the total liabilities. The period reported an increase in the accumulated losses and a massive reduction in the reserves. The total shareholdersâ equity was worth $422.756 million.
The period reported a net cash outflow of $15.133 million from the operating activities where the primary source of cash outflow was through the payments to suppliers and employees, payment of the property expenses.
The company made payment for property, plant and equipment and intangible assets worth $40.564 million. The company generated revenue the sale of Bowling & Entertainment and through the insurance recovery of the damaged assets. As a result, the net cash outflow from the investing activities was $35.847 million.
There was a net cash inflow of $52.463 million through the financing activities driven by borrowings.
By the end of the period, Ardent Leisure Group Ltd had net cash and cash equivalent of $17.372 million.
The stock has generated a negative YTD return of 0.35% to date. By the end of trading session on 22 February 2019, the closing price of the stock was A$1.490, up by 4.196% as compared to the previous trading dayâs closing price. The company has a market capitalization of A$685.98 million and approximately 479.71 million outstanding shares.
