Thursday 26 February 2015 by William Arnold Company updates

NEXTDC Ltd - 1H15 trading update

Key points

  • First ever positive EBITDA of $3m 1H15 (loss of $3.4m 1H14), and shrinking net loss to $5.8m ($7.3m 1H14)
  • The company continues to perform strongly beating expectations and again increasing full year forecasts (shares up ~11% on the day)
  • Forecast full FY15 EBITDA of $6-8m, compared FY14 EBITDA loss of $16.1m
  • NextDC has good liquidity, low net debt, good asset backing. While continuing to post losses, it is quickly moving to profitability and looks relatively attractive in the AUD space

Details

NEXTDC statutory financial results table
NEXTDC non-statutory financial highlights

Source: FIIG Securities, Company presentation

Results

  • Data centre revenue up 134% to $26.7m (1H14: $11.4m)
  • New sales up 164% to 2.5MW (1H14: 940kW)
  • First period of positive EBITDA achieved of $3.0m (1H14: $3.4m)
  • First period of positive operating cash flow achieved of $2.2m (1H14: $3.9m)
  • Statutory net loss of $5.8m (1H14: $7.3m net loss)
  • Good liquidity: Cash on balance sheet of $62.3m and $20m available in undrawn secured lending facility
  • Net debt of $3.87m, Net debt/EBITDA 1.3x
  • Net tangible assets of $216.7m

Forecast FY15:

  • Total new sales between 3.4MW and 4.0MW (up 37% on prior guidance)
  • Data centre revenue between $55m and $60m (up 8% on prior guidance)
  • Capital investment on plant and equipment of between $35m and $42m (up 18%)
  • Fixed costs, excluding power and consumables, of between $44m and $46.5m (unchanged)
  • FY15 EBITDA of between $6m-8m