Full Year 2024 Alliance Aviation Services Ltd Earnings Call Transcript
Key Points
- Alliance Aviation Services Ltd (ASX:AQZ) reported a significant increase in revenue to $646.8 million, marking a substantial growth from the previous year.
- The company achieved a 39% increase in flight hours, reaching 104,545 hours, which highlights operational expansion.
- Wet lease revenue saw a remarkable growth of 62%, contributing $266 million, driven by increased operations with Qantas.
- Alliance successfully renewed seven major contracts during FY24, ensuring long-term stability and revenue continuity.
- The company expanded its fleet with 72 aircraft in service, including a mix of Embraer and Fokker aircraft, supporting increased operational capacity.
- Alliance Aviation Services Ltd (ASX:AQZ) faces increased finance costs due to debt drawn for aircraft transactions, impacting overall financials.
- The company has a high level of borrowings, which increased from $227 million to $329 million, raising concerns about leverage.
- There is a reduction in available capacity for Ad-hoc charter services due to high demand for contract and wet lease services.
- The company is not paying dividends currently, with plans to revisit this only after completing its capital expenditure program.
- Potential revenue impact from the Nickel West contract, which could result in an $8 million to $9 million earnings hit over the next two financial years.
Good morning all, I'm Stewart Tully, CEO of Alliance Aviation Services. Welcome to our results presentation today for FY24. Today with me in the room is our Managing Director, Scott McMillan; our CFO, Mark Stanton, and our CFO, who will be starting with Alliance now. But we'll be moving into the CFO role, Andrew Evans. So each of us will talk today. We'll answer questions.
Today, we'll walk through the path that's on the screen. And at the end of it, we'll have some questions and answers.
Thank you for attending today. It's extremely pleasing to have the results that Alliance has had, and we will step through today starting with the highlights slide at page number 2. So page 2 highlights our revenue this year with $646.8 million significantly increase on the previous year.
EBITDA $178.4 million, our PBT was slightly above a consensus at $86.3 million, operating cash flows $109.3 million. Our flight hours, a significant in uplift in flight hours 39% of 104,545 hours. And our operating fleet today with
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