New Risk • Mar 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.5% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (170% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (3.5% increase in shares outstanding). Reported Earnings • Feb 19
First half 2024 earnings released: EPS: AU$0.41 (vs AU$0.03 in 1H 2023) First half 2024 results: EPS: AU$0.41 (up from AU$0.03 in 1H 2023). Revenue: AU$82.3m (up 14% from 1H 2023). Net income: AU$51.0m (up AU$47.3m from 1H 2023). Profit margin: 62% (up from 5.1% in 1H 2023). Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Duyuru • Jan 29
A2B Australia Limited to Report First Half, 2024 Results on Feb 16, 2024 A2B Australia Limited announced that they will report first half, 2024 results on Feb 16, 2024 Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment deteriorates as stock falls 34% After last week's 34% share price decline to AU$1.42, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 10x in the Transportation industry in Oceania. Total returns to shareholders of 72% over the past three years. Upcoming Dividend • Jan 05
Upcoming dividend of AU$0.60 per share at 2.3% yield Eligible shareholders must have bought the stock before 12 January 2024. Payment date: 30 January 2024. Trailing yield: 2.3%. Lower than top quartile of Australian dividend payers (6.9%). Lower than average of industry peers (3.7%). Duyuru • Dec 23
A2B Australia Limited Declares Ordinary Fully Paid Special Dividend, Payable on January 30 2024 The Directors of A2B Australia Limited have declared a ordinary fully paid special dividend of AUD 0.60000000 per share. The record date: January 15, 2024. Ex Date: January 12, 2024. Payment Date: January 30 2024. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to AU$2.14, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 10x in the Transportation industry in Oceania. Total returns to shareholders of 82% over the past three years. New Risk • Nov 17
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 27% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 27% per year for the foreseeable future. High level of non-cash earnings (28% accrual ratio). Minor Risk Dividend is not well covered by cash flows (dividend per share is over 26x cash flows per share). Upcoming Dividend • Sep 21
Upcoming dividend of AU$0.05 per share at 3.0% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 26 October 2023. Trailing yield: 3.0%. Lower than top quartile of Australian dividend payers (7.1%). Lower than average of industry peers (4.0%). Duyuru • Aug 23
A2B Australia Limited Declares Fully Franked Final Dividend for the Period Ended June 30, 2023, Payable on 26 October 2023 The Directors of A2B Australia Limited have declared a fully franked final dividend of AUD 0.05 per share for the Period Ended June 30, 2023. The record date: 29 September 2023. Ex Date: 28 September 2023. Payment Date: October 26, 2023. New Risk • Aug 23
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Dividend per share is over 26x cash flows per share. Dividend yield: 3.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risk Dividend is not well covered by cash flows (dividend per share is over 26x cash flows per share). Duyuru • Aug 22
A2B Australia Limited, Annual General Meeting, Nov 06, 2023 A2B Australia Limited, Annual General Meeting, Nov 06, 2023, at 11:00 E. Australia Standard Time. Location: The Gold Melting Room, The Mint, 10 Macquarie Street Sydney Australia Reported Earnings • Aug 22
Full year 2023 earnings released: EPS: AU$0.22 (vs AU$0.23 loss in FY 2022) Full year 2023 results: EPS: AU$0.22 (up from AU$0.23 loss in FY 2022). Revenue: AU$170.4m (up 35% from FY 2022). Net income: AU$26.8m (up AU$54.9m from FY 2022). Profit margin: 16% (up from net loss in FY 2022). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Duyuru • Jul 18
A2B Australia Limited to Report Fiscal Year 2023 Results on Aug 22, 2023 A2B Australia Limited announced that they will report fiscal year 2023 results on Aug 22, 2023 Board Change • Apr 01
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Director Cliff Rosenberg is the most experienced director on the board, commencing their role in 2017. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 22
First half 2023 earnings released: EPS: AU$0.03 (vs AU$0.057 loss in 1H 2022) First half 2023 results: EPS: AU$0.03 (up from AU$0.057 loss in 1H 2022). Revenue: AU$72.3m (up 21% from 1H 2022). Net income: AU$3.66m (up AU$10.5m from 1H 2022). Profit margin: 5.1% (up from net loss in 1H 2022). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Duyuru • Feb 07
A2B Australia Limited to Report First Half, 2023 Results on Feb 21, 2023 A2B Australia Limited announced that they will report first half, 2023 results on Feb 21, 2023 Duyuru • Jan 23
A2B Australia Limited Announces General Counsel and Company Secretary Changes A2B Australia Limited announced that Howard Edelman has been appointed General Counsel and Company Secretary effective 23 January 2023. He brings with him almost 30 years of corporate and commercial experience across a variety of industries, including technology, financial services,manufacturing, infrastructure and retail. Howard joins A2B having previously worked as General Counsel and Company Secretary at RealPet Food Company, CSG Limited, AUB Group Limited, CIMB Australia and iSoft Group Limited. He has also held senior roles with AustralianSuper and Super Retail Group. Howard sits on the National Executive Committee for the Australian Association of Corporate Counsel (ACC) and is also VicePresident of ACC NSW. Howard Edelman will be the Company's representative responsible for communication with the ASX under Listing Rule 12.6. Adrian Lucchese has resigned as General Counsel and Company Secretary of A2B after serving in the role for more than eight years. Duyuru • Oct 07
A2B Australia Limited Appoints Brent Cubis as Director A2B Australia Limited announced that the appointment of Brent Cubis as director with effect from October 3, 2022. Duyuru • Sep 26
A2B Australia Limited Announces Board Changes, Effective 3 October 2022 A2B Australia Limited announced the following changes to its Board of Directors, effective 3 October 2022: David Grant to retire from the Board. Brent Cubis to be appointed to the Board as an Independent Non-executive Director and Chair of the Audit and Risk Committee. David Grant was appointed a Director of A2B on 2 June 2020. David's unique mix of skills, attributes and expertise strengthened the capabilities of the Board and supported the Company through its most recent transformation. This was aptly demonstrated when David undertook the role of Executive Chairman shepherding the business through its HY22 results and facilitating the much- needed change in the Company's leadership. With new leadership in place, a strategic review undertaken, and A2B stabilised and refocused on returning to growth, David informed the Company of his intention to step down from the Board. Brent Cubis has been appointed as an Independent Non-executive Director of A2B and Chair of the Audit and Risk Committee. He is a highly experienced Non-executive Director, Advisory Board Member and CFO mentor with over 20 years' board level experience. Brent is currently a Non-executive Director of Silverchain Group, Carbon Cybernetics, and leading youth cancer charity Canteen Australia. His previous roles have included CFO of Cochlear Ltd, CFO of Nine Network Australia and a Non-executive Director of Prime Media Group Limited. Brent has a Bachelor of Commerce (Finance/Accounting and Information Systems) from the University of New South Wales, is a Chartered Accountant and a Graduate Member of the Australian Institute of Company Directors. His appointment will be ratified at the Company's Annual General Meeting currently scheduled for 17 November 2022. Recent Insider Transactions • Sep 06
Independent Non-Executive Director recently bought AU$50k worth of stock On the 2nd of September, Jennifer Horrigan bought around 42k shares on-market at roughly AU$1.20 per share. This transaction amounted to 39% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$107k more in shares than they have sold in the last 12 months. Reported Earnings • Aug 24
Full year 2022 earnings released: AU$0.23 loss per share (vs AU$0.15 loss in FY 2021) Full year 2022 results: AU$0.23 loss per share (down from AU$0.15 loss in FY 2021). Revenue: AU$126.1m (up 11% from FY 2021). Net loss: AU$28.1m (loss widened 54% from FY 2021). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Duyuru • Mar 04
A2B Australia Limited Announces Board Changes The board of A2B Australia Limited announced the appointment of Mr. Mark Bayliss as Executive Chairman of the company, effective 7 March 2022. Current Executive Chairman, Mr. David Grant, who was appointed on 8 February, will return to his previous position as a Non-Executive Director of the company and Chairman of its Audit and Risk Committee. Also, in relation to board composition, the company announced that Non-Executive Director, Louise McCann, who has been on extended leave with a material health challenge, has decided to retire from the company effective immediately, in order to focus on her recovery. Mark was most recently Executive Chairman and then CEO of CSG Ltd. His previous executive roles include being CEO of Grays eCommerce Group Limited, and CEO of Quick Service Restaurants Holdings. Mark also spent four years as a Partner at Anchorage Capital. Mark has also performed roles as Executive Chairman of Burger King (NZ), and as Chief Financial Officer of Australian Discount Retail and Chief Financial Officer of Fairfax Media Limited. Reported Earnings • Feb 28
First half 2022 earnings: EPS misses analyst expectations First half 2022 results: AU$0.051 loss per share (up from AU$0.052 loss in 1H 2021). Revenue: AU$59.7m (up 18% from 1H 2021). Net loss: AU$6.70m (loss widened 7.6% from 1H 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Duyuru • Feb 07
A2B Australia Limited Announces Board Changes A2B Australia Limited announced that Independent Chairman Paul Oneile is retiring as Chairman and non-executive director of the Company and that current non-executive director of the Company, David Grant will assume the role. Mr. Oneile was appointed as Independent Chairman in February 2017 and a member of the Remuneration and Nominations Committee and a member of the Audit and Risk Committee. David Grant joined the board in June 2020 and is Chairman of the Audit and Risk Committee and a member of the Remuneration and Nominations Committee. He is an experienced Non-executive Director with broad financial and commercial experience and has held various senior executive roles including Group M&A Director at Goodman Fielder Limited and Chief Financial Officer of Iluka Resources Limited. Reported Earnings • Aug 27
Full year 2021 earnings released: AU$0.15 loss per share (vs AU$0.20 loss in FY 2020) The company reported a mediocre full year result with weaker revenues, although its control over expenses remained stable and losses reduced. Full year 2021 results: Revenue: AU$131.4m (down 23% from FY 2020). Net loss: AU$18.3m (loss narrowed 23% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 02
First half 2021 earnings released: AU$0.052 loss per share (vs AU$0.029 profit in 1H 2020) The company reported a poor first half result with weaker earnings, revenues and control over costs. First half 2021 results: Revenue: AU$50.7m (down 52% from 1H 2020). Net loss: AU$6.23m (down 277% from profit in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 92% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Mar 01
New 90-day low: AU$1.10 The company is down 20% from its price of AU$1.38 on 01 December 2020. The Australian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Transportation industry, which is up 7.0% over the same period. Is New 90 Day High Low • Nov 18
New 90-day high: AU$1.15 The company is up 25% from its price of AU$0.92 on 20 August 2020. The Australian market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Transportation industry, which is up 10.0% over the same period. Duyuru • Oct 16
A2B Australia Limited Announces Retirement of Rick Millen as Non- Executive Director The Board of A2B Australia Limited announced that Mr. Rick Millen will retire as a non- executive director following the conclusion of this year's Annual General Meeting. Rick was appointed as a director of the Board in June 2014 and served as Chairman of the Company from November 2016 to February 2017. As Chairman of the Audit and Risk Committee, Rick has been central to improvements in the Company's financial reporting processes and practices including the Company's risk management and business continuity frameworks. Through his extensive experience and insight in respect of corporate transactions, corporate finance and accounting gained while leading PwC's first Corporate Finance practice Rick helped guide the Company through a lengthy period of regulatory and market disruption. Duyuru • Sep 17
A2B Australia Limited Decides Not to Declare A Final Dividend for the Financial Year 2020 A2B Australia Limited announced the given uncertainty around the current economic environment and focus on challenging cash into growth opportunities the board has decided not to declare a final dividend for the financial year 2020.