The Qube Holdings Ltd (ASX: QUB) share price closed 4.26% higher on Thursday at $3.18 per share after a strong full-year results release from the Aussie logistics group.
What did Qube announce yesterday?
On an underlying basis, Qube's full-year revenue for FY19 climbed 4.7% to $1,728.6 million as earnings before interest, tax, depreciation and amortisation (EBITDA) surged 9.5% higher to $180.5 million compared to FY18 figures.
While statutory net profit after tax (NPAT) fell 1.4% to $196.6 million, underlying NPAT rocketed 15.4% higher compared to the prior corresponding period (pcp) to $123.2 million.
Statutory results were generally softer across the board for Qube which exclude "certain non-cash and non-recurring items", however, it's always worth considering exactly what management classifies as "non-recurring".
Underlying NPAT before amortisation or "NPATA" climbed 13.4% to $139.2 million while underlying earnings per share before amortisation (EPSA) similarly shot 13.0% higher to 8.7 cents per share (cps).
In terms of segment performance, Qube has continued to diversify its earnings and asset base throughout FY19 which provided a strong foundation for the full-year earnings result.
Logistics and Ports & Bulk remain Qube's largest underlying revenue drivers, contributing 34.9% and 44.7% respectively, while Infrastructure & Property (5.1%) and Patrick (15.3%) were also material contributors in FY19.
In terms of the balance sheet, the majority of Qube is tied up in its Operating Division (46.2%) while Infrastructure & Property (31.5%) and Patrick (19.6%) are also significant assets.
However, it wasn't all good news for Qube with management citing challenging industry and macro trends as a slight drag on earnings for FY19.
Management cited slowing 12-month rolling container trade growth and weaker exports of Australian grains as two factors, while sliding China GDP figures are a warning sign for FY20 growth.
Foolish takeaway
While statutory numbers were softer for Qube, the underlying results appear quite solid and reflect a positive 12 months for the Aussie logistics group.
Qube recently acquired mining services group LCR Group for $135 million and is still adjusting to its newly-added operations, meaning there is potential for further synergies to be realised in FY20.
While there are potential headwinds looming ahead, I think the result justifies the positive share price reaction we saw in yesterday's trade.
