Fixed Cost Coverage ratio (FCCR): FY2023 Perspective (Attempt 1)
Quote:
Originally Posted by
Snoopy
Another ten years on update
FCCR= [EBITDA+Lease Expenses] / [Total Interest(less interest income in cash)+Lease Expenses]
= [$30m + $21.904m] / [$3.826m + $21.904m] = 2.0 > 2.0
The fixed cost coverage ratio just passes but with nothing to spare. More evidence that PGW is 'mortgaged to the max'
The above quote is a 'forecasted value' for FY2020. This was before the implementation of IFRS16, which changed the definition of EBITDA (lease expenses are now included in EBITDA). Nevertheless it will be necessary to take off the income resulting from the GoLivestock loans ($6.573m, ref AR2023 p71). I shall now attempt an up to date version of this covenant calculation.
FCCR= [(EBITDA+Lease Expenses)(1)] / [Total Interest(less interest income in cash)+Lease Expenses]
(1) Under IFRS16, the definition of EBITDA has been rewritten to include lease expenses. So there is no need to add them back as a 'supplementary entry' as before.
= [$61.194m - $6.573m] / [$5.521m + ($3.800m+$19.532m]] = 1.89 < 2.0 (! Oh oh)
It looks like PGW has failed this covenant test. But did I do it right?
SNOOPY
FY2024 NPAT and interim dividend forecast (Oct 2023)
Quote:
Originally Posted by
winner69
Operating EBITDA in F22 was $67m ….in F23 $61 ….and down further to $52m in F24
Is a volatile world eh ….times are tough but a 15% decline in profit isn’t that good
Look forward to Snoops comments
Interesting to plug this new EBITDA guidance into the 'Consolidated Statement of Profit and Loss for FY2023' and the associated cost structures.
Consolidated Statement of Profit and Loss
|
FY2024 Forecast |
FY2023 Actual |
Operating EBITDA |
$52.000m |
$61.194m |
less Depreciation and Amortisation Expense |
$28.063m |
$28.063m |
equals EBIT |
$23.937m |
$33.509m |
less Net Interest and Finance Costs |
$9.573m |
$9.573m |
equals Profit Before Income tax |
$14.364m |
$23.936m |
less Income Tax Expense |
$4.022m |
$6.418m |
equals Profit Net of Income Tax |
$10.342m |
$17.518m |
Now: $10.342m/75.484m= 13.7cps
As it happens 10.0cps has already been paid out during FY2023 as the final dividend for FY2022. So to keep that balance sheet intact, the final dividend paid during FY2024 (actually the interim dividend for FY2024) should be no more that 4cps. And 4cps is only a little down on the interim dividend paid in that same time space but a year earlier of 12cps. Hey, just a minute........
SNOOPY