Appendix 4D carsales.com Ltd
ABN 91 074 444 018
Results for Announcement to the Market
Half-year ended 31 December 2020
(Previous corresponding period: Half-year ended 31 December 2019)
A$'000
Revenue from continuing operations | 198,908 | |
Profit for the half-year after tax | 61,300 | |
Net profit for the period attributable to members | 61,070 | |
Adjusted net profit* for the period attributable to members | 73,963 | |
Franked | ||
Amount per | amount per | |
Dividends/Distribution | security | security |
2020 Interim Dividend paid | 22.0 cents | 22.0 cents |
2020 Final Dividend paid | 25.0 cents | 25.0 cents |
2021 Interim Dividend declared | 25.0 cents | 25.0 cents |
2021 Interim Dividend dates | ||
Record date for determining entitlements to the dividends | 24th March 2021 | |
Latest date for dividend reinvestment plan participation | 25th March 2021 | |
Dividend payable | 21st April 2021 | |
31 December 2020 | 30 June 2020 | |
Net tangible assets backing per ordinary share** | (134.3 cents) | (138.1 cents) |
Down Down Down Up
(6.78%) (10.81%) (8.35%) 16.63%
to to to to
*The presentation of adjusted net profit provides the best measure to assess the performance of the Group by excluding COVID-19 Dealer Support Packages, hedge reserve amortisation for closed out hedges, fair value gain arising from discontinuing the equity method (net of NCI), gain on disposal of subsidiary, M&A and restructure costs, changes in fair value of put option liabilities and deferred consideration, and non-cash acquired intangible amortisation from the reported IFRS measure. This is further detailed in Note 3(b) of the half-year report.
** Net tangible assets exclude all right-of-use assets leased by the Group.
Other information required by Listing Rule 4.2A
Other information requiring disclosure to comply with Listing Rule 4.2A is contained in the 31 December 2020 Financial Report.
carsales.com Ltd
Half-Year Report 2020
Half-Year Report 2020
Contents
Consolidated Financial Statements
Directors' Report 1
Auditor's Independence Declaration 3
Consolidated Statement of Comprehensive Income 4
Consolidated Statement of Financial Position 6
Consolidated Statement of Changes in Equity 7
Consolidated Statement of Cash Flows 9
Notes to the Consolidated Financial Statements
Basis of preparation 10
Corporate Information 10
Key performance measures
1. Segment information 11
2. Revenue from contracts with customers 14
3. Earnings per share 15
Financing and risk management
4. Borrowings 17
5. Financial assets and liabilities
and fair value measurement 18
Equity
6. Contributed equity 19
7. Dividends 19
Group structure
8. Interests in other entities 20
9. Discontinued operations 21
Items not recognised
10. Events occurring after the reporting period 21
Directors' Declaration 22
Independent auditor's review report
to the members of carsales.com Ltd 23
Corporate Directory 25
Lodged with the ASX under Listing Rule 4.2A. This information should be read in conjunction with the 30 June 2020 Annual Report.
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by carsales.com Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
carsales.com Ltd
Half-Year Report 2020
ABN 91 074 444 018
Directors' Report
Your Directors present their report on the consolidated entity (referred to hereaſter as the Group) consisting of carsales.com Ltd and the entities it controlled at the end of, or during, the half-year ended 31 December 2020.
Directors
The following persons were Directors of carsales.com Ltd during the half-year ended 31 December 2020 and up to the date of this report:
Pat O'Sullivan (Non-Executive Chair)
Cameron McIntyre (Managing Director and Chief Executive Officer, CEO)
Wal Pisciotta OAM (Non-Executive Director) Kim Anderson (Non-Executive Director) Edwina Gilbert (Non-Executive Director) Kee Wong (Non-Executive Director)
David Wiadrowski (Non-Executive Director) Steve Kloss (Alternate Non-Executive Director)
Use of non-IFRS measures
The Directors believe the additional information on non International Financial Reporting Standards (IFRS) measures included in this report are relevant and useful in measuring the financial performance of the Group. In particular, the presentation of 'Adjusted Revenue', 'Adjusted EBITDA' and 'Adjusted NPAT'*.
Operational and Financial Review
The Group delivered an excellent result despite the challenges of COVID-19, highlighting the resilience and diversification of the Group's business model.
The Group reported total operating revenue from continuing operations of $198.9m down 7% on the prior corresponding period ("pcp") in FY20. Excluding $11m in rebates provided in support of our dealers, Adjusted Revenue, was only down 2% on pcp.
* Adjusted Items are further detailed in Note 3(b).
Earnings before interest, taxes, depreciation and amortisation ("EBITDA") was $113.8m up 9% on pcp, whilst Adjusted EBITDA (excluding one-off, non-cash and abnormal items) was up 18% on pcp. This earnings result reflects a resilient revenue performance enhanced by a continued focus on cost management. This translated to a similar level of growth in Adjusted net profit after tax ("NPAT") which was up 17% on pcp. Reported NPAT was down 14% reflecting the impact of $11m in dealer support measures and other non-cash gains in the prior year.
The key operational matters for the Group were: carsales Domestic
• Dealer - Adjusted Revenue growth of 10%, reflecting healthy demand for cars, yield improvements and a strong contribution from our suite of inventory sourcing products. Reported revenue was impacted by $11m Dealer Support Package.
• Private - Revenue was down 24% on pcp which was due to lower tyresales volumes stemming from a greater focus on profitability. Revenue excluding tyresales was in line with pcp which was a pleasing result given the first quarter was negatively impacted by social distancing measures. Instant Offer volumes recovered well showing very strong growth on pcp in Q2.
• Media - Adjusted Revenue was down 19% on pcp, reflecting a challenging new car advertising market with new car sales down 14% in 2020.
• Data, Research & Services - Adjusted Revenue was down 1% on pcp largely due to the exit of our low margin warranty product. Revenue was up 2% excluding this which reflects good demand for our core data product set, with solid growth in the RedBook business.
carsales International
• Asia - Revenue growth of 18% reflects excellent performance from our Encar business in South Korea.
The key growth drivers have been the Guarantee inspection service and Dealer Direct products.
• Latin America - Revenue was down 25% on pcp which reflects the challenges associated with COVID-19 and a negative impact from FX rates. Our 30% stake in Webmotors (Brazil) is equity accounted and not included in EBITDA. Webmotors delivered a good result with constant currency revenue growth of 11% and EBITDA growth of 21%.
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carsales.com Ltd
Half-Year Report 2020
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