ERD - ERoad. (Transport sector technology)

[freebee]

I noticed BP, definite uptrend recently and a Huge day today. Your comparison to pph spot on, nz company with a great product into a massive USA market with,perfect timing whats not to like.
Happy holder

[axe]

results due shortly - cash flow will be interesting see from last two quarters

Anybody noticing the lovely SP appreciation today? Up 45 cents, that's 15% ... without any news (unless the market took more than a day to digest the news released on Tuesday about ERD's involvement in this latest US trial).

Discl: Happy holder

[freebee]

Half year results due out Tuesday then conference call to discuss outlook for next 6 months maybe to do with jump up today? Will be very interesting to see how they are tracking and most important for me is what are the US market share projections

[freebee]

Half year results released on Tuesday, surprising there is not more discussion about Eroad on here, as of last week, their share price up 110 percent so far this year, the 7th best performing stock on the S&P/NZX All Index , not too shabby!
The half year result pretty much as expected for me, a bit disappointing to see that ugly 3.7m loss down from around breakeven point and probably why SP has dropped back a bit after result released as expectation may have been higher. Large one off US set up costs dragged the NZ profit away and may do a bit more until US costs stabilise and sales increase. Happy with how this is tracking and with good solid investment now in US market, the next 12 months are looking very good IMO.

http://www.sharechat.co.nz/article/7...-business.html

· Revenue at $20.9 million up by 35% over same period last year
· EBITDA of $4.0 million during the period underpinned by EBITDA of the New Zealand/Australia business which reached $11.1 million during the period
· Net Loss before tax $3.7 million, driven by investment in US sales activity
· Total Contracted Units in New Zealand/Australia 49,802 up by 31% since September 2016
· Total Contracted Units in North America 9,736 up by over 84% since September 2016
· Q1 and Q2 of FY18 were both record sales quarters for the New Zealand and North American markets
· Customer Retention Rate remains strong at 98%
· Future Contracted Income grew to $75 million during the period up $17m or 29% in 6 months
· Secured new credit facility from the BNZ totalling $33.4 million for initial term of 12 months with initial drawdown in July 2017. Post September 2017, EROAD has subsequently signed a credit approved facility letter with the BNZ to further extend its facilities by approximately $16 million, to further support expected growth
· Strong momentum has continued in the business with total contracted units increasing in October 2017 by 1,133 units for the New Zealand/Australia business and 1,166 units for the North American business
· As part of EROAD’s continuing focus on growth in the US, EROAD has engaged First NZ Capital to undertake a strategic review of its North American business. The review is focused on evaluating options to further capture the compelling growth opportunity in North America.

The last point was interesting. In an NBR interview with CEO Steven Newman, he was asked if engaging First NZ Capital was an indication that they may be looking to sell off Eroad’s North American business sometime in the future he replied ‘I think that could be one option, but an unlikely option’ and went on to say they are looking to First NZ Capital to analyse their distribution options to maybe engage in a joint venture or distribution partner in addition to their existing sales channels. It sounds to me like they are expecting a huge demand for their product over the next few years and they are trying to work out the best way to capitalise on it.


Any thoughts?

[BlackPeter]

Half year results released on Tuesday, surprising there is not more discussion about Eroad on here, as of last week, their share price up 110 percent so far this year, the 7th best performing stock on the S&P/NZX All Index , not too shabby!
The half year result pretty much as expected for me, a bit disappointing to see that ugly 3.7m loss down from around breakeven point and probably why SP has dropped back a bit after result released as expectation may have been higher. Large one off US set up costs dragged the NZ profit away and may do a bit more until US costs stabilise and sales increase. Happy with how this is tracking and with good solid investment now in US market, the next 12 months are looking very good IMO.

http://www.sharechat.co.nz/article/7...-business.html

· Revenue at $20.9 million up by 35% over same period last year
· EBITDA of $4.0 million during the period underpinned by EBITDA of the New Zealand/Australia business which reached $11.1 million during the period
· Net Loss before tax $3.7 million, driven by investment in US sales activity
· Total Contracted Units in New Zealand/Australia 49,802 up by 31% since September 2016
· Total Contracted Units in North America 9,736 up by over 84% since September 2016
· Q1 and Q2 of FY18 were both record sales quarters for the New Zealand and North American markets
· Customer Retention Rate remains strong at 98%
· Future Contracted Income grew to $75 million during the period up $17m or 29% in 6 months
· Secured new credit facility from the BNZ totalling $33.4 million for initial term of 12 months with initial drawdown in July 2017. Post September 2017, EROAD has subsequently signed a credit approved facility letter with the BNZ to further extend its facilities by approximately $16 million, to further support expected growth
· Strong momentum has continued in the business with total contracted units increasing in October 2017 by 1,133 units for the New Zealand/Australia business and 1,166 units for the North American business
· As part of EROAD’s continuing focus on growth in the US, EROAD has engaged First NZ Capital to undertake a strategic review of its North American business. The review is focused on evaluating options to further capture the compelling growth opportunity in North America.

The last point was interesting. In an NBR interview with CEO Steven Newman, he was asked if engaging First NZ Capital was an indication that they may be looking to sell off Eroad’s North American business sometime in the future he replied ‘I think that could be one option, but an unlikely option’ and went on to say they are looking to First NZ Capital to analyse their distribution options to maybe engage in a joint venture or distribution partner in addition to their existing sales channels. It sounds to me like they are expecting a huge demand for their product over the next few years and they are trying to work out the best way to capitalise on it.


Any thoughts?

Experts certainly expect huge market growth (makes sense - electronic road fees are a sensible method to pay for deteriorating infrastructure), and ERD are currently (while not the largest) one of the bigger fishes in the so far rather untouched US market.

There is certainly huge potential - whether they will live up to it is yet unknown.

On the other hand - the technology is not that hard to implement (no rocket science) and the US market is not always nice to foreign players.
Overall I can probably remember more recent NZ companies who underperformed in the US market (e.g. PEB, OHE) than companies who succeeded (e.g. DIL).
Many more companies who want to get rich in the US than companies who do.

Time will tell, whether ERD are the next DIL or the next OHE.

Discl: hold (a small parcel) and like the (recent) trend so far ...

[thedrunkfish]

Half year results released on Tuesday, surprising there is not more discussion about Eroad on here, as of last week, their share price up 110 percent so far this year, the 7th best performing stock on the S&P/NZX All Index , not too shabby!
The half year result pretty much as expected for me, a bit disappointing to see that ugly 3.7m loss down from around breakeven point and probably why SP has dropped back a bit after result released as expectation may have been higher. Large one off US set up costs dragged the NZ profit away and may do a bit more until US costs stabilise and sales increase. Happy with how this is tracking and with good solid investment now in US market, the next 12 months are looking very good IMO.

http://www.sharechat.co.nz/article/7...-business.html

· Revenue at $20.9 million up by 35% over same period last year
· EBITDA of $4.0 million during the period underpinned by EBITDA of the New Zealand/Australia business which reached $11.1 million during the period
· Net Loss before tax $3.7 million, driven by investment in US sales activity
· Total Contracted Units in New Zealand/Australia 49,802 up by 31% since September 2016
· Total Contracted Units in North America 9,736 up by over 84% since September 2016
· Q1 and Q2 of FY18 were both record sales quarters for the New Zealand and North American markets
· Customer Retention Rate remains strong at 98%
· Future Contracted Income grew to $75 million during the period up $17m or 29% in 6 months
· Secured new credit facility from the BNZ totalling $33.4 million for initial term of 12 months with initial drawdown in July 2017. Post September 2017, EROAD has subsequently signed a credit approved facility letter with the BNZ to further extend its facilities by approximately $16 million, to further support expected growth
· Strong momentum has continued in the business with total contracted units increasing in October 2017 by 1,133 units for the New Zealand/Australia business and 1,166 units for the North American business
· As part of EROAD’s continuing focus on growth in the US, EROAD has engaged First NZ Capital to undertake a strategic review of its North American business. The review is focused on evaluating options to further capture the compelling growth opportunity in North America.

The last point was interesting. In an NBR interview with CEO Steven Newman, he was asked if engaging First NZ Capital was an indication that they may be looking to sell off Eroad’s North American business sometime in the future he replied ‘I think that could be one option, but an unlikely option’ and went on to say they are looking to First NZ Capital to analyse their distribution options to maybe engage in a joint venture or distribution partner in addition to their existing sales channels. It sounds to me like they are expecting a huge demand for their product over the next few years and they are trying to work out the best way to capitalise on it.


Any thoughts?

Yeh overall I was happy with the figures. Good growth in the US market and good retention rates. Time will tell. Not particularly fussed about the loss, I guess I see this as a longer term play, as BP alluded to time will tell.

http://eldratings.com/eroad/ - makes interesting reading.

[gbogo]

trading halt today - share placement announced.

https://www.nzx.com/announcements/311778

[BlackPeter]

trading halt today - share placement announced.

https://www.nzx.com/announcements/311778

Hmm - yes, have seen this. While this can be good news, I'd prefer if they give at least some range at what discount they plan to place the shares. The process so far feels a bit haphazard - don't they know what their shares are worth?.

Anyway - not a lot we can do now, it's just wait, hope and see. Don't like the hope component.

Discl: Hold a small parcel and glad now I didn't buy more ...

[gbogo]

I would not worry. Apparently instos took all they were offered. I would think trading halt ends tomorrow morning.

[winner69]

Suppose it’s good that the CEO (or his interests) take $5m off the table

Good Xmas presents and a new deck being built over the holidays.