BOART LONGYEAR LIMITED (BLY)



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General Information
Company Name: Boart Longyear Limited
Stock Code: BLY
Website: www.boartlongyear.com
GICS Sub-Industry: Industrial Machinery
Market Cap ($M): 134
Equiv. Shares (M): 461

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.290 $ 0.290 $ 0.295 $ 0.290 $ 0.290 301,152 0%

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 10th Mar 2014
12 Month Target Price (average): $0.313
Brokers Surveyed: 7

Company Overview

Business Description:
Boart Longyear Limited (BLY) is a provider of mineral exploration drilling services, drilling equipment and performance tooling for the global mining industry. BLY operates in two main divisions which are drilling services and drilling products.

Strategy Analysis:
Organic growth for drilling services is leveraged to the commodities growth cycle which is volatile and cyclical. The Global Products business has been rationalized with the closure of some facilities, which has improved manufacturing margins. Long term success depends on successful diversification away from minerals exploration and into other growth areas such as environmental and infrastructure drilling. Boart Longyear reported NPAT down 57.4% to US$68.16m for the year ended 31 December 2012. Revenues from ordinary activities were US$2.01bn, down 0.4% from last year. Diluted EPS was 14.8 US cents compared to 34.8 US cents last year. Net operating cash flow was US$64.21m compared to US$197.7m last year. The final dividend declared was 1.0 US cent, taking the full year dividend to 7.4 US cents compared with 10.4 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F -20.4 -3.1 -- -9.3 0.0 0.0 0.0
2014  F -37.6 -5.7 -- -5.1 0.0 0.0 0.0
2013  A -98.7 -21.7 -190.7 -7.3 0.0 0.0 26.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
Austin Engineering (ANG) $179 M -0.0589 -0.2075 0.0412 5.4908 6.9281 6.6541 0.0708 0.0579 0.0708
Bradken (BKN) $794 M -0.3461 0.0818 0.1421 11.8670 10.9693 9.6046 0.0819 0.0649 0.0700
Boart Longyear (BLY) $134 M -- -- -- -- -- -- 0.0000 0.0000 0.0000
Maxitrans (MXI) $216 M 1.0785 -0.1824 0.1742 8.4666 10.3556 8.8191 0.0730 0.0644 0.0670

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BLY 1.93 -- 0.28 -- 0.10
Market 1.07 16.0 1.27 1.98 1.72
Sector 1.13 11.0 1.03 10.00 0.42

Directors
Name Position Start Date
Mr David McLemore -- 21 February 2007
Mr Rex McLemore -- 24 August 2013
Mr Richard T O'Brien Executive Director 21 May 2013
Mr William Peter Day Non-Executive Director 25 February 2014
Mr Roy Alexander Franklin Non-Executive Director 15 October 2010
Ms Tanya Fratto Non-Executive Director 01 June 2011
Mr Bruce R Brook Non-Executive Director (other) 21 February 2007
Mr Roger A Brown Non-Executive Director (other) 01 July 2010
Mrs Barbara Jeremiah Non-Executive Director,Non-Executive Chairman 01 October 2011

Management
Name Position
Joe Ragan III Chief Financial Officer
Paul Blewett Company Secretary
Fabrizio Rasetti Company Secretary
Fabrizio Rasetti Senior Vice President, General Counsel and Secretary
Kent Hoots Senior Vice President, Global Products
Brad Baker Senior Vice President, Human Resources
Alan Sides Vice President, Global Products

Substantial Shareholders
Holding Name
33,608,857 (7.29%) Beutel Goodman & Company Ltd
27,462,119 (5.95%) Paradice Investment Management Pty Ltd

Calendar of Events
Date Event
16 April 2015 Report (Annual)
23 February 2015 Report (Prelim)
25 August 2014 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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