Experience flushed again

Experience Co is apparently learning the hard way on the vagaries of our tropical climate with another seasonal profit warning ahead of the upcoming half year results. The ugly details:

Experience Co Limited (“Experience Co” or “the Company”) (ASX: EXP) today announces the following trading update, revised guidance, executive leadership and board changes:
1. Unaudited results for H1 FY2019 The unaudited results for H1 FY2019 are summarised as $84.3m revenue and $17.6m EBITDAI. In summary, skydiving pax numbers, revenue and contribution were marginally ahead of management internal forecasts, whilst other adventure activities were behind due to a combination of factors including, softer than anticipated international and domestic visitors in December 2018 and significantly higher than average rainfall for the December month. The full results, with management commentary, will be set out in the ASX Appendix 4D and the Half Year Financial Report expected to be released on 26 February 2019.
2. Revised Guidance for FY2019 The Directors have revised the FY2019 earnings guidance due to the continuation of softer trading conditions in the FNQ other adventure activities, combined with continued adverse weather conditions impacting volumes and earnings in both January and February 2019. We also expect this momentum will have some impact on volumes in the coming months. This severe weather event saw extensive flooding, airline and hotel cancellations and impacted tour operators in the region. Management has reviewed the forward projections for all operations for H2 FY2019 and as a result provides the following revenue and EBITDAI expectations for FY2019 as follows:

Previous Guidance Revised Guidance Revenue $165m – $175m $155m – $165m EBITDAI $37m – $41m $30m – $33m

Further details on the revised guidance will be provided when the Company releases its half year results at the end of the month.

The “other adventure activities” are pretty much the Cairns FNQ businesses: Raging Thunder; Reef Magic; Big Cat; GBR Helicopters; Tropical Journeys

And

3. Resignation of CEO/Executive Director CEO and Executive Director, Anthony Ritter has resigned from the Company as an executive and as a Director, with immediate effect.
4. Interim CEO arrangements Non-Executive Chairman, Bob East, will assume the role of Executive Chairman, pending appointment of a replacement CEO. The Board has commenced a formal process for the recruitment of a replacement CEO for the business.
5. Board changes Founder and Managing Director, Anthony Boucaut (Bowie), will step down as an Executive Director of the Company when a new CEO is appointed. At that time, he will join the Board as a Non-Executive Director of the Company. Bowie is keen to remain involved in the ongoing strategy and development of the business and both he and the Board believe that his extensive experience and expertise will be of benefit to the future direction of the business. The transition to a Non-Executive Director also coincides with his 20-year anniversary of founding the business.

Bob East was the highly regarded former CEO of Mantra Group until the takeover of that company by Accor. East joined the board last year after completion of that takeover and was elevated to the Chair at the AGM in November.

Only just posted at ASX this morning so will have a closer look later ……..

Previous posts: Update on Experience; Experience washed away in wet season

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