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ALLIANCE Aviation Services (ASX: AQZ) today announced delivery of $223 million in revenues for 2013.
This is an increase of 21 per cent on 2012.
Total net profit after tax for this year was $23.3 million which after removing a tax adjustment of $1.6 million represents a 13 per cent increase in underlying earnings compared with the 2012 financial year.
Alliance managing director Scott McMillan says this year has been rewarding one for the group because many business strategies commenced following the initial public offering (IPO) had been delivered.
“In addition we acquired five F70LR aircraft which enables Alliance to provide services that meet our customers’ needs,” says McMillan.
“For example we can fly non-stop to every Western Australian project from the East Coast.”
Indeed capital expenditure during Alliance’s 2013 year was focused on the acquisition and entry into service of the F70LR aircraft and completing in-house heavy maintenance on six aircraft already in service.
The group remains the only operator of Fokker aircraft with Australian heavy maintenance capability.
The outlook for its 2014 is stable as Alliance consolidates following the introduction of the additional aircraft and a new organisational structure.
Alliance's share price dropped 4.12 per cent on the news, from an opening price of $1.770, to a high of $1.80, then close of $1.70.
McMillan says revenue forecasts contained conservative growth for the coming year, and the group had successfully negotiated extensions to a number of its contracts with key customers during the year.
“Over two thirds of the 2014 financial year forecast revenue is secured by existing contracts.
This strong ongoing contracted position is a result of the excellent track record that Alliance has demonstrated and ongoing good relationships with our customers.
While safety will always be the most important operational requirement, Alliance is proud of its industry leading on time performance and reliability.
We also endeavour to exceed our customer expectations,” says McMillan.
With its national footprint and unique fleet offering, Alliance has been able to successfully improve the diversification of its revenue sources.
This has been possible through a broader customer base and exposure to an increasing number of parts of the resources sector.
McMillan says these revenue sources have been complimented by new flying opportunities for adhoc charter as a result of the increased capacity and the unique offering of the Fokker fleet.
“On behalf of the board, I would like to thank our staff, who without their ongoing support and flexibility, this result would not have been possible,” he says.
Highlights from the FY2013 year:
• ï€ Increased contracted FIFO flying activity including the introduction of five additional
long range Fokker 70 (F70LR) aircraft into the fleet;
• ï€ An increase of 17% in flying hours and a 14% increase in the number of flights whilst
maintaining the average financial performance per flight hour;
• ï€ A successful institutional share placement of $24.1 million in November 2012 to
secure the funding to acquire the five additional F70LR aircraft;
• ï€ The introduction of a new competitive debt financing structure in December 2012
which provides for additional capacity and certainty of funding until October 2015;
• ï€ Ongoing reliability and industry leading on time performance of 90% for the year; and
• ï€ A final fully franked dividend of 5.6 cents for FY13 bringing the total dividend for
FY2013 to 10.4 cents per share.
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