(26-11-2013, 08:20 AM)Greenrookie Wrote: I have some questions on the operating numbers of APTT.
Q3 numbers (000)
OCF ->43240
PPE -> 16378
Interest and other fiance cost ->9648
"real" FCF = 17214
Annualized it = 68856
Number of units = 143680
Annual DPU est = 4.79 cents
How did they project 8.5 cents distribution?
Do they expect PPE and/or OCF to significantly decrease/increase? Loan will not be re-payed so fiance costs should more or less remain constant.
Also, if they drawn down loans to settle tax provision and for capex, it should be another 8 million per annual. FCF will be further reduced, 4.79 cents doesn't even look safe.
Did I make any mistakes in my calculation? Of course they can ignore/ push back Finance costs or capex to hit projection, but how long can you push back capex and can you push back fiance cost at all??
I believe you were looking at the first column in the cashflow report in the qtr results and not the second?
Regarding dividends, I believe the forecast distribution is 7.5% for 2013, and 8.5% for 2014 in the IPO prospectus. At the IPO price of 97 cents, this works out to between 105 to 120 million dollars.
The 2012 operating cashflow (from prospectus) before working capital changes is 190 mio. The 2013 number is 195 mio and the forecast 2014 number is 201 mio. i.e. a per qtr cashflow of circa 50 mio. The 3rd qtr showed 65 mio.
What is significant is the working capital movement of 31 mio. However I note that they forecasted 40 mio of capital expenditure for network upgrades and new set top boxes for their initiative.
From what I gather (the IPO forecast for 2014 has a clearer picture) they expect to:
- get operating cashflow of about 190 mio per annum, which includes income tax but excludes new investment/working capital changes
- pay 42 mio of interest costs.
- pay 40 mio for property plant and equipment
- pay 114 mio in dividends (works out as 7.9 cents per share)
- borrow an additional 17 mio (presumably from their 198 mio revolving facility).
Any numbers from a single qtr can be lumpy and I gather the main lumpiness in 3rd qtr is due to the 31 mio in working capital change, which is unfortunately not footnoted, but it is entirely possible APTT stocked up for their network upgrade in that qtr.