Bingo Industries FY18 full year results

Bingo Industries Limited has announced its full year results for the 12 months ending 30 June 2018, with pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) up 46 per cent to $93.7 million.

As it announced its full-year results, the company also revealed plans to acquire Dial A Dump Industries Group. More news on that here.

In an ASX statement, the company noted its strong growth trajectory was maintained with net revenue up 44.5 per cent to $303.8 million, attributing it to ongoing business momentum, favourable economic and market conditions and acquisitions.

The results showed earnings per share growth of 53.1 per cent year on year. The Tartak family, who own about 30 per cent of the $1 billion group, floated on the ASX last year after raising $440 million.

Pro forma net profit after tax before amortisation of acquired intangibles (NPATA) was up 44.8 per cent at $48.2 million. It noted that pro forma excludes acquisition, capital raising, integration costs and prepayment amortisation, prior to any impact of the company’s acquisition of Dial A Dump Industries Group.

The statement said the acquisition was performing in line with guidance and on track to realise full identified synergy benefits of $6 million from the acquisition of National Recycling Group in financial year 2019. There is also an anticipated growth in the underlying business of about 15 to 20 per cent for financial year 2019 of pro forma EBITDA.

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Bingo CEO Daniel Tartak said the 2018 financial year was a very successful year across many measures for Bingo.

“We delivered strong growth in revenue and earnings, and successfully executed on our growth plans set out at the time of the initial public offering, through strong organic growth, acquisitions and entry into the Victorian market,” Mr Tartak said.

“We are on track to realise the full annualised synergies identified with the acquisition of National Recycling Group in FY19. Meanwhile construction at Paton’s Lane is progressing well and remains on track to be operational in July 2019.”

“We have strong momentum across the business, supported by major infrastructure programs in NSW and Victoria. We have seen a significant ramp up in government work in our building and demolition business and are winning more commercial and industrial contracts with Tier 1 customers. The infrastructure sector now contributes 22 per cent (against eight per cent at the time of the initial public offering) to our bins business, while residential construction activity remained buoyant during the year.”

“We continue to generate strong cash flows, with operating free cash flow up 45.6 per cent to $88.9 million, and have strengthened our balance sheet by refinancing our debt on more attractive terms. This provides a funding platform that is more aligned with the scale of our operations and greater flexibility to execute on our growth plans.”

Revenue from its collections increased by 45.2 per cent to $176.9 million, driven by increased volumes in the market underpinned by sustained construction activity and buoyant economic conditions. Its post-collections revenue meanwhile increased by 47.7 per cent to $176.2 million, which the statement said was primarily driven by increased network capacity in NSW, with full year contributions from St Marys and Revesby.

OUTLOOK

The statement said Bingo remains well positioned to capitalise on favourable end markets in both NSW and Victoria. It said continued revenue growth is expected to be underpinned by supportive macroeconomic conditions, a ramp up in infrastructure and commercial construction activity and an ongoing structural shift towards increased recycling.

Bingo’s positive momentum has continued into FY19 with a strong base of contracted work, projects under tender and pipeline of building and demolition and commercial and industrial opportunities.

“As a result, Bingo expects to report year-on-year pro forma before EBITDA growth of the underlying business in the range of 15 to 20 per cent in FY19, prior to any impact of the acquisition of DADI,” the statement read.

“Bingo expects EBITDA margin, excluding the Dial A Dump acquisition, to return to its longer term target of approximately 30 per cent in FY20, supported by enhanced recovery rates and internalisation of volumes following completion of development program.”

Mr Tartak said Bingo has a clear growth strategy in place which will see it continue to expand its network capacity over the next five years to help meet the rapidly growing demand along the east coast of Australia.

“With a strong team in place and a culture of success, I am confident of another successful year ahead for our company,” he said.