1
-MarketRelease-31January2016
CatapultreportsstrongARRgrowth,reaffirmsguidance,andadvanceslivebroadcastoffering
CatapultGroupInternationalLimited(ASX:CAT),theworldleaderinwearableandvideoperformanceanalyticsforelitesportingteams,todaylodgeditsAppendix4Creportofcashflowforthesecondquarterended31December2016(Q2FY17)withtheAustralianSecuritiesExchange.ThisreportpresentsthefirstfullquarteroffinancialsfortherecentlyacquiredXOSTechnologiesInc.(XOS)andPLAYERTEK1businesses(bothcompletedinAugust2016).Toprovidecontinuityforinvestors,thisBusinessUpdatecontinuestofollowthepreviousformat(primarilyfocusingontheElitewearablesbusiness).However,CatapultadvisesthatitscustomarypracticeandformatofquarterlyBusinessUpdateswillchangefromQ3FY17tomorefullyreflecttheenlargedbusiness.KeyHighlights
§ GrouplevelAnnualisedRunRate(ARR)rosetoA$44.7m2asat31December2016,up13%onthe30June2016pro-formaARRof$39.5m3and391%overlasttwelvemonths;
§ SolidUnderlying4growthinEliteteamwearablesales5with1,731unitsorderedduringthequarter,up28%onthepreviouscorrespondingperiod(pcp);
§ ContinuedhighmixofsubscriptionsalesinElitewearables,representing63%ofunitsorderedduringthequarterupfrom55%inpcp;
§ Managementreiteratesguidanceof21-30%pro-formarevenuegrowthinFY17(226-250%growthonastatutorybasis)setatAnnualGeneralMeeting(AGM);
§ Significantprogresstowardsthestrategicobjectiveoffan-drivendatamonetisation,withNBLshowingtelevisedCatapultstatisticsduringbroadcast;
§ CatapultpartnerswithReese’stotracktheperformanceofselectedseniorcollegefootballplayersastheyenterthelaunchoftheNFLdraftseason;
§ PLAYERTEKsalescontinuetovalidatedemandintheprosumermarketwith437unitsorderedduringthequarter,asworkcontinuestowardsstrategicgoaloflaunchingaglobalprosumerplatformoffering
1 KodaplayLimited,tradingasPLAYERTEK2CalculatedonaconstantcurrencybasiswithAUD:USD=0.753Pro-formaARRcombinesCatapultARRof$13.5mwithXOSARRof$26masatJune302016.XOSwasacquiredon12August20164Excludingnewunitsorderedaspartofaleaguewidedeal5IncludesunitordersdeliveredbyEliteWearablessalesteam;excludesunitordersdeliveredbyPLAYERTEKsalesteam
2
SecondquarterElitewearablessalesperformanceCatapulttodayreportedthatithadsold1,731newEliteunitstoteamsinQ2FY17viateamsales.Thiscomparestoteamsalesof1,350unitssoldinQ2FY16,representinggrowthof28%onpcp.
Q2FY16totalunitordersalsoincludedanadditional650unitssoldvia2leaguewidedeals(AFLandARU).Leaguedealsareinherentlylargerandlessfrequentthanteamsales,distortingquarteronquartercomparisons.Hencethetableabovedisplaystotalunitsaleswiththeimpactofleaguepartnershipshighlighted.Commentingontheresults,CEOShaunHolthousesaid:“Wearereallypleasedwiththecontinuedstrongperformanceofourcoreelitewearablesbusiness.Teamsalesgrewagainthisquartercomparedtopcp,andthehighsubscriptionmixcontinuestovalidateourlong-termbusinessstrategy.”“Wearealsoreallypleasedwithhowourleague-widedealpipelineisbuilding.Whileleaguedealsweren’tacontributortoQ2(FY17),wehaveseveralactivedealscurrentlybeingnegotiatedandweexpecttoreportfurtherprogressthisfinancialyear.LastyearourleagueopportunitieswerefocusedonAustralia,wheretransactionstendstocloseinQ2(pre-seasonforlocalfootballcodes).Thisyeartheyarefocusedprimarilyonnorthernhemispheremarkets.Thesesportsmoveintotheirpre-seasoninH2,wheretransactionstypicallycluster.“CatapultreportsstrongARRgrowthandcontinuedhighmixofsubscriptionsalesPleasingly,Q2FY17onceagainsawahighproportionofunitssoldtoteamsonasubscriptionbasis.63%ofQ2FY17Eliteunitssoldwereonasubscriptionbasis(comparedto55%inpcp),adding1,090unitstoCatapult’sElitewearablesubscriptionbasewhichgrewto11,125unitsasat31December2016.TheElitewearableunitorderscontinuetoshowstrongAverageRevenueperUnit(ARPU)andARRforthecompany(combiningbothXOSandCatapultElitewearables)hasnowincreasedtoA$44.7m.Thisisup391%inthelasttwelvemonthsand13%onthepreviouslyreportedpro-formaARRof$39.5masat30June2016.
0
500
1,000
1,500
2,000
2,500
3,000
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217
Elitewearableunitordersperquarter
Eliteteamunits Upliftunitsfromleaguewidedeals
Unitsorderedunderleaguewidedealswith
ARUandAFL
+28%
3
SignificantprogresstowardsdatamonetisationwithdatastreamingliveforgamedayandscoutingCatapultreachedasignificantmilestoneinitsongoingdevelopmentoffanengagementapplicationsforusebyleagues.TheNBLhasbegundisplayinguniquegraphicsliveon-screenduringgame-daybroadcasts,usingCatapult’sproprietaryanalyticstotrackplayermovementandworkload.TheNBLpartnershipactsasaglobalshowcasefortheopportunitiestoworkwithleaguesandmonetisedataforfanengagement.
Images:Catapult’sproprietaryPlayerload®databroadcastedliveduringNationalBasketballLeague(NBL)Round15(Cairns
TaipansvPerthWildcats)CatapulthasalsobeenprovidingrealtimeplayerperformancedataforReese’sSeniorBowlintheUS(www.seniorbowl.com).SeniorBowlisapost-seasoncollegefootballall-stargamewhichshowcasesthebestNFLdraftprospectsfromtheNCAA.Thisco-operativeventureaimstodramaticallyexpandthepoolofdraft-prospectdataavailableatthispointintheprofootballcalendar,andtocreatefanengagementopportunities."TheSeniorBowlpresentsauniqueandexcitingopportunitytolegitimatelyshowcasethefutureoftechnologyforfootball,"saidBrianKopp,PresidentofNorthAmericaforCatapultSports."We'reexcitedtouseCatapult’swearablesolutionstotrackeveryplayerthroughouttheentireweek.Italsomeansthatfortheveryfirsttime,incollaborationwithourXOSteamweareprovidingcoachesandscoutswithintegratedtacticalandperformanceanalyticsfromourcomplementarytechnologies.Thisisakeypartofourlong-termstrategy".Catapultwearablesolutionsdeliveredathleteprofilingandrankingacrosskeyperformancemetricsincluding:maximumvelocities,playerworkload(Playerload®)andhighintensitymovements.Thisanalysiswascompiledintoaprofilingreport,andapublicversioncanbefoundatthefollowinglink:<http://www.seniorbowl.com/pdf/news/catapult_final.pdf>“IncorporatingXOSandCatapulttechnologyintoSeniorBowlweekallowsustobettershowcasethetalentsoftheparticipantsandprovidegreaterinsighttoallthescouts,coaches,andexecutivesinattendance,”SeniorBowlexecutivedirectorPhilSavagesaid6.Commentingonthesepartnerships,CEOShaunHolthousesaid“Catapulthasarapidlygrowinginstallbaseinelitesport,andanumberofleagueandfanengagementdevelopmentsthisquarterareaveryencouragingsteptowardscreatingmultiplerevenuestreamsthatleveragethismarketleadership.Wecontinuetobelievethattherearelucrativeopportunitiestoaddhigh-margin,incrementalrevenueacrossbotheliteteamsandleagues.”
6 http://www.sporttechie.com/2017/01/27/sports/nfl/senior-bowl-partners-with-catapult-xos-digital-to-offer-more-data-to-nfl-draft-talent-evaluators/
4
NewCatapultteamadditionsNewclientacquisitionsduringthequartercontinuecoverawiderangeofsportsandgeographies,including:§ WestHamUnitedFC(EnglishPremierLeaguefootball)§ ColgateUniversity(NCAAdiv1,USA)§ ConcordiaUniversity,St.Paul(NCAAdiv2,USA)§ FCDynamoBrest(BelarusianFirstDivisionLeaguefootball)§ FCInfonetTallinn(EstonianFirstDivisionFootball)§ KalmarFF(SwedishFirstDivisionFootball)§ RealSaltLake(MajorLeagueSoccer,USA)§ NetballNewZealand§ PUMASRugbyUnion(Nationalteam,Argentina)§ RSCAnderlecht(BelgianFirstDivisionFootball)§ Sarpsborg08FF(NorweiganFirstDivisionFootball)§ ShimizuS-Pulse(JapaneseFirstDivisionFootball)§ FKVojvodina(SerbianFirstDivisionLeagueFootball)FY17outlookreaffirmedManagementissuedFY17guidanceatitsAnnualGeneralMeeting,withrevenueexpectedtobeintherangeof$61.0m-$65.5m,representingstatutorygrowthof226-250%andpro-formagrowthof21%-30%onFY167,8.Thisgrowthguidancecomesfromcombiningtheoriginalelitewearablesbusinesswhichcontinuestodeliverhighgrowth,withthenewlyacquiredXOS–traditionallyalowgrowthbuthighlyreliablebusiness.“CatapulthasmadeastrongstarttotheyearinelitewearablesandexcellentprogresstowardsintegratingtheXOSandPLAYERTEKacquisitions.WeremainconfidentofreachingtheFY17guidanceandQ2isconsistentwiththeseforecasts.IntegrationoftheXOSbusinesshasalreadydeliveredexcellentcross-sellingopportunitiesintheUSmarket,andweexpectthatmomentumtocontinueandovertimetransformXOSintoamuchhighergrowthdivision”saidMr.Holthouse.PLAYERTEKsalescontinuetovalidatelargeprosumermarketopportunityWithasignificantsoftwareupgradenearingcompletion,inQ2PLAYERTEKachievedordersof437unitssellingonlyitsexistingrangeofproducts.ThispositiveresultcontinuestovalidatetheCompany’sviewoftheaddressablemarketforteamsportswearablesbeyondeliteteams.Commentingonprosumerprogress,CEOShaunHolthousesaid“Whileit’sgoodtoseePLAYERTEK’sexistingplatformachievinghealthysalesnumbers,theacquisitionwasprimarilyfocusedonacceleratingCatapult’sdeploymentofelite-inspiredwearablesolutionsintotheprosumermarket.TothisendwecontinuetomakegoodprogressandachievedasignificantstepforwardinQ2.Wehaveallocatedincreasedfunding,asannouncedatourAGM,andnowhaveinplaceatopqualityteamledbyBenoitSimerayasCEOofthisdivision.Benoithasrecruitedanexperiencedseniorleadershipexecutivesupportedbyastrongteam,allofwhomarefullydedicatedtothismassivemarketopportunity.”-Ends-
7 Revenueguidancerangeexcludesc.$3.7mofrevenuegeneratedbyXOSTechnologiesInc(XOS)andKodaplayLimited(PLAYERTEK)pre-acquisitioncloseinFY17
8 Assumesasubscriptionmixof62%ofallelitewearableunitsordered.Overallrevenuerecordedishighlysensitivetosubscriptionmixeg.+5%insubscriptionmixdecreasesrevenueandEBITDAby~$600k,increasesARRby$940k;Growthinuptakeofsubscriptionmodelisdifficulttopredict
5
FormoreinformationonCatapult,pleasevisit:InvestorCentre–http://www.catapultsports.com/au/investors/Website–www.catapultsports.comEnquiriesBevinShieldsHeadofInvestorRelations,CatapultGroupInternationalPh:+61291998855
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Page1
Appendix4C
QuarterlyreportforentitiessubjecttoListingRule4.7B
NameofentityCatapultGroupInternationalABN Quarterended(“currentquarter”)53164301197 31December2016
Consolidatedstatementofcashflows Currentquarter$A’000
Yeartodate(6months)
$A’000
1. Cashflowsfromoperatingactivities
13,673 27,9181.1 Receiptsfromcustomers
1.2 Paymentsfor
(104) (251) (a) researchanddevelopment
(b) productmanufacturingandoperatingcosts (4,718) (9,225)
(c) advertisingandmarketing (505) (972)
(d) leasedassets (74) (126)
(e) staffcosts (6,303) (12,058)
(f) administrationandcorporatecosts (2,970) (5,078)
1.3 Dividendsreceived(seenote3) - -
1.4 Interestreceived 6 47
1.5 Interestandothercostsoffinancepaid - -
1.6 Incometaxespaid (1) (3)
1.7 Governmentgrantsandtaxincentives 48 48
1.8 Other(providedetailsifmaterial) (7) (39)
1.9 Netcashfrom/(usedin)operatingactivities (955) 261
2. Cashflowsfrominvestingactivities
(1,153) (1,619)
2.1 Paymentstoacquire:
(a) property,plantandequipment(i)
(b) businessesnetofcashacquired(seeitem10)
- (81,955)
(c) investments - -
(d) intellectualproperty - -
(e) othernon-currentassets(ii) (1,791) (2,457)
2.2 Proceedsfromdisposalof:
- - (a) property,plantandequipment
(b) businesses(seeitem10) - -
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Page2
Consolidatedstatementofcashflows Currentquarter$A’000
Yeartodate(6months)
$A’000
(c) investments - -
(d) intellectualproperty - -
(e) othernon-currentassets - -
2.3 Cashflowsfromloanstootherentities - -
2.4 Dividendsreceived - -
2.5 Other(providedetailsifmaterial) - -
2.6 Netcashfrom/(usedin)investingactivities (2,944) (86,031)
3. Cashflowsfromfinancingactivities
- 100,3353.1 Proceedsfromissuesofshares
3.2 Proceedsfromissueofconvertiblenotes - -
3.3 Proceedsfromexerciseofshareoptions - -
3.4 Transactioncostsrelatedtoissuesofshares,convertiblenotesoroptions
(81) (4,907)
3.5 Proceedsfromborrowings - -
3.6 Repaymentofborrowings - -
3.7 Transactioncostsrelatedtoloansandborrowings
- -
3.8 Dividendspaid - -
3.9 Other(providedetailsifmaterial) - -
3.10 Netcashfrom/(usedin)financingactivities (81) 95,428
4. Netincrease/(decrease)incashandcashequivalentsfortheperiod
17,317 3,6434.1 Cashandcashequivalentsatbeginningof
quarter/yeartodate
4.2 Netcashfrom/(usedin)operatingactivities(item1.9above)
(955) 261
4.3 Netcashfrom/(usedin)investingactivities(item2.6above)
(2,944) (86,031)
4.4 Netcashfrom/(usedin)financingactivities(item3.10above)
(81) 95,428
4.5 Effectofmovementinexchangeratesoncashheld
666 702
4.6 Cashandcashequivalentsatendofquarter 14,003 14,003
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Page3
5. Reconciliationofcashandcashequivalentsattheendofthequarter(asshownintheconsolidatedstatementofcashflows)totherelateditemsintheaccounts
Currentquarter$A’000
Previousquarter$A’000
5.1 Bankbalances 14,003 17,317
5.2 Calldeposits - -
5.3 Bankoverdrafts - -
5.4 Other(providedetails) - -
5.5 Cashandcashequivalentsatendofquarter(shouldequalitem4.6above)
14,003 17,317
6. Paymentstodirectorsoftheentityandtheirassociates Currentquarter$A'000
6.1 Aggregateamountofpaymentstothesepartiesincludedinitem1.2 (315)
6.2 Aggregateamountofcashflowfromloanstothesepartiesincludedinitem2.3
-
6.3 Includebelowanyexplanationnecessarytounderstandthetransactionsincludedinitems6.1and6.2
7. Paymentstorelatedentitiesoftheentityandtheirassociates Currentquarter$A'000
7.1 Aggregateamountofpaymentstothesepartiesincludedinitem1.2 (93)
7.2 Aggregateamountofcashflowfromloanstothesepartiesincludedinitem2.3
-
7.3 Includebelowanyexplanationnecessarytounderstandthetransactionsincludedinitems7.1and7.2
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Page4
8. FinancingfacilitiesavailableAddnotesasnecessaryforanunderstandingoftheposition
Totalfacilityamountatquarterend
$A’000
Amountdrawnatquarterend
$A’000
8.1 Loanfacilities - -
8.2 Creditstandbyarrangements - -
8.3 Other(pleasespecify) - -
8.4 Includebelowadescriptionofeachfacilityabove,includingthelender,interestrateandwhetheritissecuredorunsecured.Ifanyadditionalfacilitieshavebeenenteredintoorareproposedtobeenteredintoafterquarterend,includedetailsofthosefacilitiesaswell.
9. Estimatedcashoutflowsfornextquarter $A’000
9.1 Researchanddevelopment (120)
9.2 Productmanufacturingandoperatingcosts (6,456)
9.3 Advertisingandmarketing (1,014)
9.4 Leasedassets (75)
9.5 Staffcosts (7,544)
9.6 Administrationandcorporatecosts (2,051)
9.7 Other(providedetailsifmaterial) -
9.8 Totalestimatedcashoutflows (17,260)
10. Acquisitionsanddisposalsofbusinessentities(items2.1(b)and2.2(b)above)
Acquisitions Disposals
10.1 Nameofentity
10.2 Placeofincorporationorregistration
10.3 Considerationforacquisitionordisposal
10.4 Totalnetassets
10.5 Natureofbusiness
10. Acquisitionsanddisposalsofbusinessentities(items2.1(b)and2.2(b)above)
Acquisitions Disposals
10.1 Nameofentity
10.2 Placeofincorporationorregistration
10.3 Considerationforacquisitionordisposal
10.4 Totalnetassets
10.5 Natureofbusiness
Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
Page5
Notes(i)‘Property,plantandequipment’includesCapitalisationofhardwaresoldundersubscriptionmodel.(ii)‘Othernon-currentassets’includesCapitalisationofproductdevelopmentactivities.Compliancestatement
1 ThisstatementhasbeenpreparedinaccordancewithaccountingstandardsandpolicieswhichcomplywithListingRule19.11A.
2 Thisstatementgivesatrueandfairviewofthemattersdisclosed.Signhere: ............................................................ Date:.............................................
(Director/Companysecretary)Printname: .........................................................
