FINANCIAL STATEMENT ANALYSIS - In two hours only
a. For the years ending June 30, 2013, and June 30, 2011, compute and discuss the return on equity (ROE), return on assets (ROA), profit margin ratio, asset turnover ratio, current ratio, cash flow ratio, debt-to-equity ratio, interest coverage ratio, debt coverage ratio, NTAB, EPS, DPS and the PER. Discuss the major differences between your analysis of the June 30, 2013, report and the June 30, 2011, report (prior to the takeover of CTEC). Appraise the problems faced by FGL management in light of your analysis. Using the January 31, 2014, unaudited financial information, compute the ROE, ROA, profit margin ratio, asset turnover ratio, current ratio, cash flow ratio, debt-to[1]equity ratio, interest coverage ratio, debt coverage ratio, NTAB, EPS, DPS and the PER. Comment on the ratio analyses performed.
SHARE MARKET INFORMATION and generally need co combinc or merge in some way or stay small. This adds further risk and places the financial statements and the order book under increased scrutiny as business valuations rely on this information. The historical share price chart since listing is shown in Figure 2. THE FORGE GROUP LTD (FGL) Figure 2: FGL Share Price S8 S7 -Closing Price SG S5 S4 am S3 S2 $1 SO 6:27/2007 6/27/2009 6:27/2009 6/27/2010 6/27/2011 6/27/2012 6/27/2013 The market closing prices, major announcements, and significant shareholding changes are listed in chronological order in 'lable 1. The company was a success story, It listed on the Australian stuck exchange on June 26, 2007, frein a private construction company called AiConstruction. It was a well-run company that needed access to more capital if it was to continue to grow. Within a year, it made its first acquisition by taking over Abcsquc Engineering. The company survived the Global Financial Crisis and leveraged to the subscqucni. mining and construction boom led by China's appculc for ininerals and resources. Over the next few years, the company grew organically and in April 2010 another construction company called Clough bought 13% (10.5 million shares) of FGL ordinary shares, thus becoming the largest shareholder. Clough continued to purchase shares in FGL until it divested its rocal holding of 35% in March 2013. Clough management explained its divestment by indicating that expectations of joint ventures between the two companies did not crcntuate, and therefore, the equity holding was cashed in to allow the pursuit of other objectives. In January 2012, FGL undertook a major acquisition by purchasing CTEC Pty Ltd. In essence, the acquisition meant taking over two major projects. The Diamantina Power Station (DPS) Project in Queensland, Australia and the West Angelas Power Station (WAI'S) Project in the Pilbara region of Western Australia. It was expected that these major projects would add $7.5 million and $10.8 million to carnings before interest, tax, depreciation, and amortization (EBITDA) in 2012 and 2013, respectively. The purchase price was S16 million up-front with funher payments duc on thc mccling of specified performance targets (total paid was S32.26 million). This increased FGIS urder book significantly, and IGL's share price ruse in response. Ini June 2013, FGL quired Taggare Global for $43 million, This purchase meant that FGL was now diversifying into asset management and inco other economics. CTEC PURCHASE In the wash up of the demise of FGL is the attention being paid to to main contracts: The Diamantina l'ower Station (DPS) Project in neensland, Australia, and the West Angclas Power Station (WAPS) Projeci. in the Pilbara region of Western Australia. Both projects were cuired after FGL took over CTEC Pty Ltd on January 13, 2012. The purchase of CTEC was to change the business model by bringing sub-contracting work in-house with the intended consequence of caking out the "middle man" and thereby increasing earnings (by negating sub-contractor margins). The CTEC purchase payment terms required an up- front payment of $16 million with subsequent payments conditional on meeting performance criteria (possible further payment of $40 inillion in total), CTEC's prior year June 30, 2011) EBIT was $2 million, with expected EBITDA at year end 2012 and 2013 to be $18.4 million and $24.8 million, respectively. The DPS and WAPS projects were to increase this expected EBITDA by S7.5 million in 2012 and $10.8 illion in 2013 IMA EDUCATIONAL CASE JOURNAL 3 VOL 3, NO. 1, ART. 2, MARCH 2015 Table 1. Timeline of Forge Group Ltd (FGL) Date Jure 27. 2007 Closing Market S0.56 Major Announcement/Change FGL listen on Australian Stock Exchange Jure 31 2002 S0.78 Jure 3C 2009 S0.43 Clobal rancia Crisis impact Clugh partlas 11.5 | at allures t 13% UVIVI SIP Auril 2010 S2.5G Jure 30.2010 S2.16 Jure 30, 2012 S5.46 $1.37 $5.25 Sb.ca S6.09 Jure 31, 2012 January 13, 2012 March 6. 2013 March 28, 2013 May 17, 2013 June 3, 2013 July 2, 2013 Jury 30, 2013 August 29, 2013 Seulemer 2, 203 FGL purchases cos of CTEC Pay Ltd for $32.26 rillion Peac stare price Clough sells FGL shares at S6 065167 million 35% of FGLI TCL awarded me or contact iDucald Rove1 FG acquire: Taggart Global II. S. company at S43 million TCL awarded me cr contact ITAN Durup pant! S4.09 SETTEMBER 12, 2013 Setember 19, 2013 Jctober 7, 2013 8418 November 4, 2013 November 5, 2013 Novembar 20.2013 November 26, 2013 Annual Report released NPAT AT SR3 million, enuity at S2135 million, dividend at $2.14 par sara $1.47 billion jaink veritare with Curo Felguera amounted value to Forge is $400 million order book now at $2.7 billion FGL awarded ma er cant rart Yandicapogina for Rio Tinto-S100 million contract) FOL major contract terminated Dugald Five FGL declares $50 millinin Tajor contracts in U.S. and Australia since June 1, 203 Trading halt ANZ Bank ima or financiclagpoints Korda Mertha to review books FGI Marcat Amouncement -ANZ Bank supants and nentiates new finance facilities Considering cquity capital raising erillies unde purforming assets... CTEC praeces! -Negotiates agreements with customers and sub-contractors -No mal operations for che parts of tusiness TCL Mact Amouncement -$127 rolit vi. Dawn o'n two large contracts Diana aina Power Station and West Angeles Power Station $5 million to complete bathpjents -Challenging Iquidity period net cash flow, Nov. and Men. -ANZ Bank continued suppor with some adjustment to finance facilites Business as usual Trading halthed TCL Morcot Amouncement In response lu ASX query. Indicated became aware al problems with Diamantina Puner Saliun and West Angelas Power Station pects in alle Sept. wil nargin erosions de la Costavenons and delays causing the profil duwi- granda Costing analysis During Pict and Navler to requested trading Halt and profit downgrade in Nov FGL imanded me or S40 million contract in North American wal sector Trading halt until.anuary 11, 2011 Trading halt until January 28, 2014 S0.89 SD.EE Nirvaribar 28.2013 Decorber 4, 2013 S:28 S02 December 17, 2013 January 10, 2014 January 14, 2014 January 24, 2014 Januay 28, 2014 Tebruary0.2014 SOCO $0.92 Trading coases Board aups attristalors and secure creditors appoint receivers. February 1 20'4 IMA EDUCATIONAL CASE JOURNAL 4 VOL 8, NO. 1, ART. 2, MARCH 2015 . Instead cost overruns and poor budgeting meant that the projects' revised 2013 estimates showed a $61 million project margin loss for the DPS project and a $41.7 million project margin loss on the WAPS project. The cost overruns on these un projects lead to the profil downgrade and contributed to the resulting shortage of cash. Added to that was the discovery of an early payment to the vendors of CTEC Pty Ltd before its perfornance conditions were met. Further, the payment of bonuses to the previous Managing Director, Peter Ilutchinson, of $375,000 was made for a successful acquisition and integration. These payments are the subject of further investigations by che liquidacor. DPS AND WAPS COSTING AND BUDGETING In any business the custing and budgeting systems are critical to success. The PGL administrator report for 2013/2014 (year ending January 2014) shows that the: Actual work-in-progress income for the period was $126 million below management forecast. Labor costs were $70 million over budget. Matcrial costs wcre $55 million over budget. Work-in-progress overheads were $22 million over budgci. . FINANCIAL INFORMATION The financial statements for 2010-2014 are presented in Tables 2-5. Table 2. Comprehensive Income Statement (in thousands of Australian dollars) June 30, 2011 June 30, 2013 June 30, 2010 , $246,169 June 30, 2012 S774,879 Unaudited January 31, 2014 S520,041 1711,430) S421,595 $1,054,100 9,0EG 1121/11 179,1941 132161 15.000 1211,000 (137,-91 15. 59: 15,86/) 1164.502 6292 1582) 1536.3341 256.5151 121.381 5.380 1.62 07.1321 537 13041 18,043 12.711) 257 121.0331 135 Revenue Cost of salas Changes in imanturies affimiset goods and WP Materials, plant, and contractor casts Erployes tenoft: coense Deareciation and amerization Consulting fees Provision for impairment losses Oltur uxuunas Other gains and losses Expenses Results from Operating Activities Finance con Finance costs Not finance income Share of profitilloss of associates and jointly concled entities Net Profit Before Tax inconna tax expense Net Profit After Tax Foreign exchange differences thet of tax) Total Comprehensive Income S64,182 S40,059 1,023 1711 $307 $54,898 3.079 7111 $2.366 1513 $56,753 117,320 SZ $93,665 5,935 14.8161 32,123 5.6791 $90,109 127,901 $62,919 1,828 $64,745 5,658 12,850) $2,848 3,052 $70,082 20.781) S49,302 (310) $48,992 S40,366 109151 S29,451 S(324.162) 12,301) S(326,463 $38.833 13481 $29.105 11.946) $36,887 IMA EDUCATIONAL CASE JOURNAL 5 VOL. 8, NO. 1, ART. 2, MARCH 2015 Table 3. Balance Sheet (in thousands of Australian dollars) June 30, 2010 June 30, 2011 Unaudited January 31, 2014 June 30, 2012 June 30, 2013 S51,921 $76.285 $15.316 $51,091 72,500 12.182 45.82 03.270 Current Assets Cast and nasienivalent She deposits Fraded other receival: Irmen lunes and WP Current tox assets Other assess Nancurrent assets classif ed as held for sale Total Current Assets 96,85/ 11,321 $90.728 2.7/8 83.251 15049 2.535 1.560 14,621 28.622 40,516 1.574 2,467 123,415) 2,246 6.900 $117,850 S159,023 $334,293 $331 316 S135,796 Noncurrent Assets Trade and other rivaales 73,253 Tem depuses 1.421 10.468 71.5/5 1.124 35.577 26,79 1,82/ 7,051 14.20 87,736 4,273 2.545 48,243 Property, plant, equipment Deferred tax assots Investments ou nted for using equity metacd Intangibles Other asses Total Noncurrent Assets Total Assets 5,621 15.637 40.337 44,237 $152,087 54 25/ S213,280 44,18 $478,401 132.894 $464210 50.157 63.700 S299,556 215.568 299.99 Current Liabilities Trade and a liat sayables Burrowings Current tax liabilities Provisions Ilther liabilities Total Current Liabilities 52,988 2,79 8,644 525 72.845 3.272 19: 11.139 207,19 8,734 9.387 755 825 3.970 63,721 S363,640 S64,926 $83 259 $285,095 $234,677 1,517 9,246 17,453 1.90 51 305 11.547 1.06/ Noncurrent Liabilities Trade and other dayables Borrowings Doforcu tax liabilities les mes accounted using a quity in the Provisions Other liabilities Total Noncurrent Liabilities 2,753 469 493 164 299 469 493 50,667 $3,785 S5,559 $29,981 $16.107 S52,184 250,784 58,711 93,376 88,818 124 426 315,076 163,325 415,624 (116.268 213,426 42,899 44.291 45,430 42.738 Total Liabilities Net Assets Equity Issuu capital Profit reserve Reserves Retained earnings Total Equity Number of shares 1,034 1159,036) 1912) 81.080 124.462 81,541,569 $5.46 49,5C5 93,376 70,699,487 45.430 62.919 1,4/1 103 606 213.426 86,169,014 (1,2211 19,116 163,325 86,169,014 (116.268) 86,169,014 Share price S2.66 S4.37 $4.20 IMA EDUCATIONAL CASE JOURNAL 6 VOL 3, NO. 1, ART. 2, MARCH 2015 Table 4. Statement of Cash Flows in thousands of Australian dollars) 2010 2011 2012 2013 711,720 (631.924 176.226 11,113,073/ 215/8 1215.2401 943 (0701 $30,451 13.399 1373,484) 138 20,390) $38,183 121.537 591,259 145.2311 $17.922 11,257) 139.7371 119.521 8.371 224 1,023 6.435 500 059 3.0/9 3,649 186.7601 7,3/9 73545 130 1205) 13.4391 Cash Flows from Operating Activities Heteps froir stories Payments to suppliers and emplomous [tiui TVII Income taxes paid Net cash flows provided by operating activities Cash Flows from Investing Activities Payments for propu. plat, und quiprent Proceeds from disgosal of proporty, plon, and equiemont Intcrosticceived Tem deposits matured expired Amount received from joint ventures Acuisition of imestrents ar associates Payment of deforted consideration Net cash flows provided by/used in financing activities Cash Flows from Financing Activities Procrents from issue of stare ceaital Proceeds from torrig Repayment crawings Inte est paid Dividends peid Net cash provided by/used in financing activities Net increasc/decrease in cash and equivalents Cash and equivalents at 00jinning of yco Effect at exchange rate changes 119./u! $42,604 17,124) (1,898) (123,787) 18.907 458 1.136 23.01 (4.6981 14.131 1271 03.1191 13,484 1659) 9.152 19,654 40771 115,510 12.0501 17.257) 111.265 $11,086 S/9,9211 $5,334 $120,899) 34,413 26,364 39,637 127,194) 79.265 17,440 5.921 5097 67 Cash and equivalents at end of year $57,920 $78,285 S51,091 $90,728 Table 5. Reconciliation (in thousands of Australian dollars) 2010 S29,450 327 2012 S49,302 'G,262 2013 $62,919 21 361 907 2011 $38,832 5.155 1,815) 17.390 115,000 671 1215 25,2021 19,698 11011 Profit for the year after tax Lepreciation and a tortization Olurons diferences Decreasecrease in trade de oors and receivables Cacrease increase in inventories and WIP Lecrease increase in other current assets Increase in dele red tax assets Decrease increase it trade and payables Decreasccrease in content tax liabilities Decrease/crease in deferred tax liabilities Increase in the provisions Net cash inflow from operating activities 143,488) 1154,3931 18.291 19'30 13799 28 409 119 256 (139,160) 927 14.831: 137,123 110.903 11.7271 85 $17,922 19,577 12.311 12.2311 203,417 1,900 2.742 280 21.881 10,649 64 64 S30,451 365 $38,183 S91,259 IMA EDUCATIONAL CASE JOURNAL 7 VOL 3, NO. 1, ART. 2, MARCH 2015 . 8, SHARE MARKET INFORMATION and generally need co combinc or merge in some way or stay small. This adds further risk and places the financial statements and the order book under increased scrutiny as business valuations rely on this information. The historical share price chart since listing is shown in Figure 2. THE FORGE GROUP LTD (FGL) Figure 2: FGL Share Price S8 S7 -Closing Price SG S5 S4 am S3 S2 $1 SO 6:27/2007 6/27/2009 6:27/2009 6/27/2010 6/27/2011 6/27/2012 6/27/2013 The market closing prices, major announcements, and significant shareholding changes are listed in chronological order in 'lable 1. The company was a success story, It listed on the Australian stuck exchange on June 26, 2007, frein a private construction company called AiConstruction. It was a well-run company that needed access to more capital if it was to continue to grow. Within a year, it made its first acquisition by taking over Abcsquc Engineering. The company survived the Global Financial Crisis and leveraged to the subscqucni. mining and construction boom led by China's appculc for ininerals and resources. Over the next few years, the company grew organically and in April 2010 another construction company called Clough bought 13% (10.5 million shares) of FGL ordinary shares, thus becoming the largest shareholder. Clough continued to purchase shares in FGL until it divested its rocal holding of 35% in March 2013. Clough management explained its divestment by indicating that expectations of joint ventures between the two companies did not crcntuate, and therefore, the equity holding was cashed in to allow the pursuit of other objectives. In January 2012, FGL undertook a major acquisition by purchasing CTEC Pty Ltd. In essence, the acquisition meant taking over two major projects. The Diamantina Power Station (DPS) Project in Queensland, Australia and the West Angelas Power Station (WAI'S) Project in the Pilbara region of Western Australia. It was expected that these major projects would add $7.5 million and $10.8 million to carnings before interest, tax, depreciation, and amortization (EBITDA) in 2012 and 2013, respectively. The purchase price was S16 million up-front with funher payments duc on thc mccling of specified performance targets (total paid was S32.26 million). This increased FGIS urder book significantly, and IGL's share price ruse in response. Ini June 2013, FGL quired Taggare Global for $43 million, This purchase meant that FGL was now diversifying into asset management and inco other economics. CTEC PURCHASE In the wash up of the demise of FGL is the attention being paid to to main contracts: The Diamantina l'ower Station (DPS) Project in neensland, Australia, and the West Angclas Power Station (WAPS) Projeci. in the Pilbara region of Western Australia. Both projects were cuired after FGL took over CTEC Pty Ltd on January 13, 2012. The purchase of CTEC was to change the business model by bringing sub-contracting work in-house with the intended consequence of caking out the "middle man" and thereby increasing earnings (by negating sub-contractor margins). The CTEC purchase payment terms required an up- front payment of $16 million with subsequent payments conditional on meeting performance criteria (possible further payment of $40 inillion in total), CTEC's prior year June 30, 2011) EBIT was $2 million, with expected EBITDA at year end 2012 and 2013 to be $18.4 million and $24.8 million, respectively. The DPS and WAPS projects were to increase this expected EBITDA by S7.5 million in 2012 and $10.8 illion in 2013 IMA EDUCATIONAL CASE JOURNAL 3 VOL 3, NO. 1, ART. 2, MARCH 2015 Table 1. Timeline of Forge Group Ltd (FGL) Date Jure 27. 2007 Closing Market S0.56 Major Announcement/Change FGL listen on Australian Stock Exchange Jure 31 2002 S0.78 Jure 3C 2009 S0.43 Clobal rancia Crisis impact Clugh partlas 11.5 | at allures t 13% UVIVI SIP Auril 2010 S2.5G Jure 30.2010 S2.16 Jure 30, 2012 S5.46 $1.37 $5.25 Sb.ca S6.09 Jure 31, 2012 January 13, 2012 March 6. 2013 March 28, 2013 May 17, 2013 June 3, 2013 July 2, 2013 Jury 30, 2013 August 29, 2013 Seulemer 2, 203 FGL purchases cos of CTEC Pay Ltd for $32.26 rillion Peac stare price Clough sells FGL shares at S6 065167 million 35% of FGLI TCL awarded me or contact iDucald Rove1 FG acquire: Taggart Global II. S. company at S43 million TCL awarded me cr contact ITAN Durup pant! S4.09 SETTEMBER 12, 2013 Setember 19, 2013 Jctober 7, 2013 8418 November 4, 2013 November 5, 2013 Novembar 20.2013 November 26, 2013 Annual Report released NPAT AT SR3 million, enuity at S2135 million, dividend at $2.14 par sara $1.47 billion jaink veritare with Curo Felguera amounted value to Forge is $400 million order book now at $2.7 billion FGL awarded ma er cant rart Yandicapogina for Rio Tinto-S100 million contract) FOL major contract terminated Dugald Five FGL declares $50 millinin Tajor contracts in U.S. and Australia since June 1, 203 Trading halt ANZ Bank ima or financiclagpoints Korda Mertha to review books FGI Marcat Amouncement -ANZ Bank supants and nentiates new finance facilities Considering cquity capital raising erillies unde purforming assets... CTEC praeces! -Negotiates agreements with customers and sub-contractors -No mal operations for che parts of tusiness TCL Mact Amouncement -$127 rolit vi. Dawn o'n two large contracts Diana aina Power Station and West Angeles Power Station $5 million to complete bathpjents -Challenging Iquidity period net cash flow, Nov. and Men. -ANZ Bank continued suppor with some adjustment to finance facilites Business as usual Trading halthed TCL Morcot Amouncement In response lu ASX query. Indicated became aware al problems with Diamantina Puner Saliun and West Angelas Power Station pects in alle Sept. wil nargin erosions de la Costavenons and delays causing the profil duwi- granda Costing analysis During Pict and Navler to requested trading Halt and profit downgrade in Nov FGL imanded me or S40 million contract in North American wal sector Trading halt until.anuary 11, 2011 Trading halt until January 28, 2014 S0.89 SD.EE Nirvaribar 28.2013 Decorber 4, 2013 S:28 S02 December 17, 2013 January 10, 2014 January 14, 2014 January 24, 2014 Januay 28, 2014 Tebruary0.2014 SOCO $0.92 Trading coases Board aups attristalors and secure creditors appoint receivers. February 1 20'4 IMA EDUCATIONAL CASE JOURNAL 4 VOL 8, NO. 1, ART. 2, MARCH 2015 . Instead cost overruns and poor budgeting meant that the projects' revised 2013 estimates showed a $61 million project margin loss for the DPS project and a $41.7 million project margin loss on the WAPS project. The cost overruns on these un projects lead to the profil downgrade and contributed to the resulting shortage of cash. Added to that was the discovery of an early payment to the vendors of CTEC Pty Ltd before its perfornance conditions were met. Further, the payment of bonuses to the previous Managing Director, Peter Ilutchinson, of $375,000 was made for a successful acquisition and integration. These payments are the subject of further investigations by che liquidacor. DPS AND WAPS COSTING AND BUDGETING In any business the custing and budgeting systems are critical to success. The PGL administrator report for 2013/2014 (year ending January 2014) shows that the: Actual work-in-progress income for the period was $126 million below management forecast. Labor costs were $70 million over budget. Matcrial costs wcre $55 million over budget. Work-in-progress overheads were $22 million over budgci. . FINANCIAL INFORMATION The financial statements for 2010-2014 are presented in Tables 2-5. Table 2. Comprehensive Income Statement (in thousands of Australian dollars) June 30, 2011 June 30, 2013 June 30, 2010 , $246,169 June 30, 2012 S774,879 Unaudited January 31, 2014 S520,041 1711,430) S421,595 $1,054,100 9,0EG 1121/11 179,1941 132161 15.000 1211,000 (137,-91 15. 59: 15,86/) 1164.502 6292 1582) 1536.3341 256.5151 121.381 5.380 1.62 07.1321 537 13041 18,043 12.711) 257 121.0331 135 Revenue Cost of salas Changes in imanturies affimiset goods and WP Materials, plant, and contractor casts Erployes tenoft: coense Deareciation and amerization Consulting fees Provision for impairment losses Oltur uxuunas Other gains and losses Expenses Results from Operating Activities Finance con Finance costs Not finance income Share of profitilloss of associates and jointly concled entities Net Profit Before Tax inconna tax expense Net Profit After Tax Foreign exchange differences thet of tax) Total Comprehensive Income S64,182 S40,059 1,023 1711 $307 $54,898 3.079 7111 $2.366 1513 $56,753 117,320 SZ $93,665 5,935 14.8161 32,123 5.6791 $90,109 127,901 $62,919 1,828 $64,745 5,658 12,850) $2,848 3,052 $70,082 20.781) S49,302 (310) $48,992 S40,366 109151 S29,451 S(324.162) 12,301) S(326,463 $38.833 13481 $29.105 11.946) $36,887 IMA EDUCATIONAL CASE JOURNAL 5 VOL. 8, NO. 1, ART. 2, MARCH 2015 Table 3. Balance Sheet (in thousands of Australian dollars) June 30, 2010 June 30, 2011 Unaudited January 31, 2014 June 30, 2012 June 30, 2013 S51,921 $76.285 $15.316 $51,091 72,500 12.182 45.82 03.270 Current Assets Cast and nasienivalent She deposits Fraded other receival: Irmen lunes and WP Current tox assets Other assess Nancurrent assets classif ed as held for sale Total Current Assets 96,85/ 11,321 $90.728 2.7/8 83.251 15049 2.535 1.560 14,621 28.622 40,516 1.574 2,467 123,415) 2,246 6.900 $117,850 S159,023 $334,293 $331 316 S135,796 Noncurrent Assets Trade and other rivaales 73,253 Tem depuses 1.421 10.468 71.5/5 1.124 35.577 26,79 1,82/ 7,051 14.20 87,736 4,273 2.545 48,243 Property, plant, equipment Deferred tax assots Investments ou nted for using equity metacd Intangibles Other asses Total Noncurrent Assets Total Assets 5,621 15.637 40.337 44,237 $152,087 54 25/ S213,280 44,18 $478,401 132.894 $464210 50.157 63.700 S299,556 215.568 299.99 Current Liabilities Trade and a liat sayables Burrowings Current tax liabilities Provisions Ilther liabilities Total Current Liabilities 52,988 2,79 8,644 525 72.845 3.272 19: 11.139 207,19 8,734 9.387 755 825 3.970 63,721 S363,640 S64,926 $83 259 $285,095 $234,677 1,517 9,246 17,453 1.90 51 305 11.547 1.06/ Noncurrent Liabilities Trade and other dayables Borrowings Doforcu tax liabilities les mes accounted using a quity in the Provisions Other liabilities Total Noncurrent Liabilities 2,753 469 493 164 299 469 493 50,667 $3,785 S5,559 $29,981 $16.107 S52,184 250,784 58,711 93,376 88,818 124 426 315,076 163,325 415,624 (116.268 213,426 42,899 44.291 45,430 42.738 Total Liabilities Net Assets Equity Issuu capital Profit reserve Reserves Retained earnings Total Equity Number of shares 1,034 1159,036) 1912) 81.080 124.462 81,541,569 $5.46 49,5C5 93,376 70,699,487 45.430 62.919 1,4/1 103 606 213.426 86,169,014 (1,2211 19,116 163,325 86,169,014 (116.268) 86,169,014 Share price S2.66 S4.37 $4.20 IMA EDUCATIONAL CASE JOURNAL 6 VOL 3, NO. 1, ART. 2, MARCH 2015 Table 4. Statement of Cash Flows in thousands of Australian dollars) 2010 2011 2012 2013 711,720 (631.924 176.226 11,113,073/ 215/8 1215.2401 943 (0701 $30,451 13.399 1373,484) 138 20,390) $38,183 121.537 591,259 145.2311 $17.922 11,257) 139.7371 119.521 8.371 224 1,023 6.435 500 059 3.0/9 3,649 186.7601 7,3/9 73545 130 1205) 13.4391 Cash Flows from Operating Activities Heteps froir stories Payments to suppliers and emplomous [tiui TVII Income taxes paid Net cash flows provided by operating activities Cash Flows from Investing Activities Payments for propu. plat, und quiprent Proceeds from disgosal of proporty, plon, and equiemont Intcrosticceived Tem deposits matured expired Amount received from joint ventures Acuisition of imestrents ar associates Payment of deforted consideration Net cash flows provided by/used in financing activities Cash Flows from Financing Activities Procrents from issue of stare ceaital Proceeds from torrig Repayment crawings Inte est paid Dividends peid Net cash provided by/used in financing activities Net increasc/decrease in cash and equivalents Cash and equivalents at 00jinning of yco Effect at exchange rate changes 119./u! $42,604 17,124) (1,898) (123,787) 18.907 458 1.136 23.01 (4.6981 14.131 1271 03.1191 13,484 1659) 9.152 19,654 40771 115,510 12.0501 17.257) 111.265 $11,086 S/9,9211 $5,334 $120,899) 34,413 26,364 39,637 127,194) 79.265 17,440 5.921 5097 67 Cash and equivalents at end of year $57,920 $78,285 S51,091 $90,728 Table 5. Reconciliation (in thousands of Australian dollars) 2010 S29,450 327 2012 S49,302 'G,262 2013 $62,919 21 361 907 2011 $38,832 5.155 1,815) 17.390 115,000 671 1215 25,2021 19,698 11011 Profit for the year after tax Lepreciation and a tortization Olurons diferences Decreasecrease in trade de oors and receivables Cacrease increase in inventories and WIP Lecrease increase in other current assets Increase in dele red tax assets Decrease increase it trade and payables Decreasccrease in content tax liabilities Decrease/crease in deferred tax liabilities Increase in the provisions Net cash inflow from operating activities 143,488) 1154,3931 18.291 19'30 13799 28 409 119 256 (139,160) 927 14.831: 137,123 110.903 11.7271 85 $17,922 19,577 12.311 12.2311 203,417 1,900 2.742 280 21.881 10,649 64 64 S30,451 365 $38,183 S91,259 IMA EDUCATIONAL CASE JOURNAL 7 VOL 3, NO. 1, ART. 2, MARCH 2015 . 8
