ERD - ERoad. (Transport sector technology)

[cdonald]

https://www.nzx.com/announcements/316437

Eroad mkt update - on track to meet guidance, unit sales up 61.5% YOY, but impressively 191% in USA. Still smaller in States than Aus/NZ but for how long.

It would be nice to see what $$$ effect these sales have. Its hard to know if they are increasing volume by offering discounts or if there is real high value coming in. Always suspicious when no dollar value is given for the sales.

[BlackPeter]

It would be nice to see what $$$ effect these sales have. Its hard to know if they are increasing volume by offering discounts or if there is real high value coming in. Always suspicious when no dollar value is given for the sales.

They don't sell their units, but lease them out. High customer loyalty (from memory well above 95%).

So - this is not one off revenue but a rapidly increasing income stream ;

Unlikely that they discount leases, but if you want to know how much one unit is worth to them, than just take the last annual report (or their recent investor presentation) and divide their revenue by number of units at that time.

from http://nzx-prod-s7fsd7f98s.s3-websit...787/271598.pdf

For the full FY18 year EROAD expects:
• Total contracted units in excess of 77,000
• Total group revenue between $46.9 million and $47.6 million
• Group EBITDA between $12.8 million and $13.3 million

Now - not all units are equal, customers can lease various additional modules. However - based on above data is one new leased unit in average worth roughly $614 in annual revenue. Obviously the EBITDA component is less likely to be linear.

[Yoda]

http://nzx-prod-s7fsd7f98s.s3-websit...478/277373.pdf

good to see HAM buying too.

[BlackPeter]

http://nzx-prod-s7fsd7f98s.s3-websit...478/277373.pdf

good to see HAM buying too.

Well, yes - though wasn't it the same crowd buying quite late into the game into CBL?

Don't misunderstand me, I am positive on ERD. Just not sure whether Harbour buying is a positive indicator. I think it is more likely uncorrelated to the quality of whatever they buy or sell ...

[Yoda]

Yes I see your point thank you

[BlackPeter]

Sweet:

• Total Contracted Units up 61.5% to 77,600 (FY17: 48,041)
• Revenue up 57% to $51.5 million (FY17: $32.7 million)
• EBITDA up 113% to $15.0 million (FY17: $7.1 million)
• Net Profit after Tax of $0.2m vs a net loss after tax of $5.3 million in FY17, a positive change of $5.5 million
• In the second half of the year the business graduated from start-up mode, generating self-sustaining cash flows for the first time

Well done, particularly considering that the market still expected a small loss (vs a very small profit) and less growth than they achieved (latest analyst consensus was 47.5m vs the achieved 51.5m).

https://www.nzx.com/announcements/318137

This should give the SP some deserved wings ...

[BlackPeter]

Ah yes - and US sales now exceeding the sales in their home market (AU/NZ) ... looks like they made a credible dent

The sky is the limit?

[Leftfield]

I've been watching this one for awhile and I see a lot to like about today's release. Snuck in early today and ERD now part of my portfolio with a small blue arrow beside it already.

[RupertBear]

I've been watching this one for awhile and I see a lot to like about today's release. Snuck in early today and ERD now part of my portfolio with a small blue arrow beside it already.

Same here Left field

[freebee]

Great result with record sales and revenue - a lot of good reading in the announcement.

https://www.nzx.com/announcements/318182

Apart from the figures, some highlights for me:
A very good 98% customer retention rate (happy customers are the best advertising)
USA sales are already more than NZ and Australia combined, and growing
Having the foresight to get their ELD independently verified in the US to give customers trust in the product has really paid off

Adding value by getting into the telematics side with driver fatigue/safety aspect of transport along with the base road tax aspect.

Australian market looking set to grow with Australian federal govt announcing pilot program for collecting road tax electronically.



Also looking forward, from the announcement:


Outlook for FY19
The growth in units this year has put the company on a stronger financial footing, and the experiences gained from a rapid scale-up in sales and customer support means EROAD is in a good position for the year ahead, said Mr Newman.
This came at a time when the global trend towards electronic road user charging as an alternative to fuel taxes was accelerating due to the commercialisation of electric trucks and vans, which will rapidly and severely impact fuel tax-based road funding, he said.

In addition, a parallel trend of addressing driver fatigue and improving road safety was promoting the growth of regulatory telematics, said Mr Newman. The mandated use of electronic logging devices in North America was part of a global move to better manage fatigue in the transport industry.

“EROAD is well positioned to meet both these opportunities,” he said.


I like the last line….