Ardent Leisure Group Third Quarter Release
Ardent Leisure Group (ASX: AAD) today announces unaudited revenue and earnings results, by division,
for the nine month period ended 31 March 2011.
Ardent Leisure Group Chairman, Mr Neil Balnaves, advised: “The third quarter has continued the positive trading trends delivered in the first half with revenue and earnings growth achieved across all divisions. Group operating revenue for the nine months ended 31 March 2011 totalled $288.75 million representing an 8.4% increase on the prior corresponding period. This result is particularly pleasing given unprecedented wet weather and flooding in south-east Queensland and its direct impact on leisure travelers to the Gold Coast. During the period the Group has also strengthened the Bowling and Health Club development pipeline which will contribute to earnings growth in future years”.
Theme Park Division
Revenue for the Theme Park division for the nine months ended 31 March 2011 totalled $82.82 million representing a 4.1% increase over revenues of $79.57 million recorded in the prior corresponding period. The division recorded EBITDA of $29.66 million representing an increase of 4.8% on EBITDA of $28.31 million recorded in the prior corresponding period. Operating margins of 37.6% remained consistent with the prior corresponding period.
Theme parks included a revenue contribution from Skypoint of $4.93 million compared with a $1.7 million revenue contribution in the prior corresponding period with Skypoint contributing $1.56 millionof EBITDA for the period against $0.66 million recorded in the prior year
Group CEO Mr Greg Shaw also confirmed that despite significant wet weather in early April, strongschool holiday trading saw April revenues of $8.46 million exceed April 2010 revenues of $8.1 million by 4.6%.
d’Albora Marinas recorded total revenues of $18.11 million for the nine months to 31 March 2011 representing a 5.5% increase on revenues of $17.17 million recorded in the prior corresponding period. Strong cost management saw an EBITDA of $8.57 million being recorded representing a 17.2% increase on EBITDA of $7.31 million recorded in the prior corresponding period. Strong occupancy levels helped the business achieve operating margins of 56.9% compared to 53.8% achieved in the prior corresponding period.
The Bowling division recorded total revenues of $81.83 million for the nine months to 31 March 2011 representing a 7.3% increase on revenues of $76.23 million recorded in the prior corresponding period. An EBITDA of $11.38 million was recorded representing a 5.7% increase on EBITDA of $10.77 million recorded in the prior corresponding period. The positive contribution from new centres saw operating margins grow to 33.5% against 32.0% achieved in the prior corresponding period.
On a constant centre basis, revenues grew by 1.2% to $68.58 million whilst earnings before property costs increased by 1.5% to $32.1 million.
The Bowling division also recorded positive trading trends through the April school holiday period with April revenues totaling $9.60 million representing 12.6% growth on revenues of $8.53 million recorded in April 2010.
Mr Shaw noted that: “Ongoing emphasis continues to be placed upon building the development pipeline for the Bowling division. As recently announced, a new Kingpin site has been secured in Townsville for opening in the second quarter of FY12 and a new Penrith AMF Bowling site has been secured for opening in the final quarter of FY12. Negotiations are continuing in relation to a number of additional sites in western Sydney.
The Main Event family entertainment portfolio recorded total revenues of US$38.2 million for the nine month period ended 31 March representing a 12% increase on revenues of US$34.1 million recorded in the prior corresponding period. An EBITDA of US$8.27 million was recorded for the nine month periodrepresenting an increase of 24.2% on an EBITDA of $6.66 million recorded in the prior corresponding period.
For the year ending 30 June 2011 the Group’s US$ earnings are approximately 60% hedged at a rate of A$1.00: US$0.76. Accordingly, recent exchange rate movements have had a minimal impact on Group earnings with each US$ cent of movement in the exchange rate equating to an impact on Group earnings of approximately A$15, 000. Mr Shaw noted that the US business had continued to deliver solid revenue growth through the strongerthird quarter trading period and negotiations were well advanced in relation to a potential new Main Event site in San Antonio, Texas.
Health Club Division
Goodlife Health Clubs recorded total revenues of $65.72 million for the nine months ended 31 March representing a 23.4% increase on revenues of $53.27 million recorded in the prior corresponding period. An EBITDA of $12.45 million was recorded representing an increase of 25.3% on an EBITDA of $9.94million recorded in the prior corresponding period. Following strong membership growth achieved inthe first half, third quarter results reflect a strengthening in constant centre performance with totalrevenues up 5.2% to $54.31 million and earnings before property costs up 6.9% to $24.76 million.
During the quarter the new Goodlife health clubs in Cross Roads Adelaide opened on 7 February 2011 and the acquisition of the three Re-creation health clubs in Melbourne was completed on 7 March 2011. These new facilities have traded strongly since settlement and will provide significant earnings contributions moving forward. More recently an additional club at Cottesloe Beach WA was purchased on 18 April 2011.
As previously announced, Goodlife has also recently secured a new development site in Maroochydore on the Sunshine Coast due for open in the fourth quarter of FY12.
Balance sheet and gearing
As at 31 March 2011 Group gearing equated to 34%. Gearing is expected to reduce upon completion of the sale of the excess land adjacent to Dreamworld. Settlement of this land parcel will occur soon after issuance of the new title which is currently in the process of registration. At this point we anticipate that the transaction will complete in the fourth quarter with $11.5 million to be paid on settlement and $5 million deferred for 12 months.
For further information please contact:
Greg Shaw Richard Johnson
Chief Executive Officer Chief Financial Officer
Phone: +61 (0)2 9409 3671 Phone: +61 (0)2 9409 3672
Mobile: +61 (0)419 727 152 Mobile: +61 (0)407 880 181