AMA Group has delivered its Quarterly Cash Flow and Activities Report for Q1 2024, unaudited, to the Australian Stock Exchange. Revenue was $248 million, up from $218.6 million in Q1 2023, while EBITDA post AASB 16 was $27.3 million compared to $8.7 million in Q1 2023.
The company reported a cash balance of $71.4 million and unused available finance facilities (undrawn bank guarantees) of $0.7 million, including $51.7 million of net equity raising proceeds received by 30 September 2023.
The report showed negative operating cash flows of $6.7 million during the quarter after including $7.9 million in principal elements of leases (presented as part of financing cash flows). The operating cash flow for the quarter includes the impacts of semi-annual interest payments on senior debt and convertible bonds of $7.5 million, and a non-recurring increase in working capital of $10.8 million, driven by:
- One-off catch up payments to key suppliers who provided extended trading terms during FY 2023 (approximately $4 million)
- Increase in work-in-progress / debtors, up from record low results in June 2023, which is timing-related and expected to reverse throughout the remainder of FY 2024 (approximately $4.5 million)
- Impacts of restrictions to credit terms from other suppliers (approximately $2 million). The cumulative cash impacts of reduced supplier trading terms, estimated at approximately $5 million including FY 2023 impacts, are expected to reverse in future as AMA’s trading performance continues to improve.
AMA spent $25 million on property, plant, and equipment during the quarter, including $1.5 million invested into the new Wales heavy repair site in South Australia and the consolidated AMA Collision site in Queensland. Make-good expenditure of approximately $0.4 million is reflected in operating cash flows.
“AMA Group continues to tightly manage spending with a further review of overhead costs expected to deliver approximately $5 million in annualised savings by the end of FY 2024,” said the company. “Whilst the full benefit of these cost savings is expected to be realised in FY 2025, they provide some further potential upside opportunity to FY 2024 guidance.”
Overall collision repair revenue was $235.3 million ($202.5 million in Q1 2023). Repair volumes were up three per cent on Q4 2023 and down four per cent on Q1 2023, reflecting network consolidation and higher severity repairs. However, repair revenues were up 19 per cent due to repair mix and improved pricing.
ACM Parts continued to deliver consistent growth in daily parts sales following investment in inventory in FY 2023. Average daily parts sales in Q1 2024 (excluding consumables and brokered sales) are up 36 per cent compared to Q1 2023, with average daily parts sales to AMA Group repair sites up 62 per cent.
AMA Group said it maintains FY 2024 guidance of $86 million to $96 million normalised post-AASB 16 EBITDA ($39 million to $49 million normalised pre-AASB 16 EBITDA). Should operational outperformance in Q1 2024 persist and/or there be earlier than expected progress on the realisation of identified cost savings opportunities, the company will revisit the guidance range.