The Village Roadshow Ltd (ASX: VRL) share price has fallen today following the company's release of its preliminary full year result to 30 June 2020. At the time of writing, the Village Roadshow share price has edged 0.47% lower to $2.10 after closing yesterday's trade at $2.11.
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What did Village Roadshow report?
Investors are today driving the Village Roadshow share price lower after the company reported that income from operations was down 21.5% to $786.18 million. Village Roadshow stated that income had been affected by the closure of its cinemas and theme parks as a result of the coronavirus pandemic.
The company posted a net loss after tax of $117.35 million. While expenses were down compared to the 2019 financial year, Village Roadshow's drop in revenue resulting from COVID-19 led to it reporting a loss in FY2020. Village Roadshow stated that cost cutting measures were introduced in the fourth quarter of the financial year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $82.9 million in the 2020 financial year compared to $124.9 million in the 2019 financial year.
Village Roadshow had net debt of $278.3 million at 30 June 2020. Covenants with the company's lending group related to trading performance were waived and will not be tested until 30 March 2021.
Village Roadshow's board resolved not to pay a dividend for the 2020 financial year.
When commenting on the outlook for FY 2021, the company stated that theme parks are restricted to 50% capacity as a result of coronavirus and that all cinemas in Victoria are currently closed while other cinemas are trading with social distancing rules in place. As a result, Village Roadshow expects to receive lower operating cash flows in FY2021.
In its annual report, Village Roadshow stated, "VRL is currently operating on a negative cash basis and expects this will continue for several months."
The company also advised that it had received a debt facility of $70 million to support it during the first half of FY 2021.
About the Village Roadshow share price
Village Roadshow is an entertainment company that operates cinemas and theme parks in addition to its film production and film distribution businesses. It was founded in 1954 and has since grown into an iconic Australian company.
The Village Roadshow share price has increased 172.7% since its 52-week low of 77 cents, however, it is down 45.03% since the beginning of the year. The Village Roadshow share price is down 13.22% since this time last year.
