ABC Learning Centres has announced a $213 million write down and it expects to book a $437 million pre-tax loss result for the FY08.
The child care centre owner operator expects to book a $86 million loss in earnings before interest depreciation and amortisation as at July 31 2008, which does not account for the prior $219 million loss announced as at April 22 and additional impairments and finance charges of $132 million.
ABC had previously forecast an EBITDA of $105 million and $114 million earlier this year after accounting the $280 million expected loss from the sale of its
ABC also expects to book a loss of $110 million from the sale of
In addition, the company will report a $20 million loss due to changes in underlying operating earnings and a further $68 million for one-off adjustments.
ABC said the $20 million loss related to reduction in profitability is mainly attributable to lower than expected improvements in the company’s management of waiting lists and occupancy levels as well as salary and rent expenses which were higher than planned during second half of FY08.
ABC has slowed down the pace of acquisitions and expects to spend less than $400 million.
In the year 2009, the company expects to spend $165 million for 110 new centres and $45 million for refurbishments in
And in 2010, it expects to spend around $80 million on 70 new centres and $17 million for refurbishments.
ABC said it has determined not to declare a dividend for the second half of FY08 and payment of future dividends will depend upon profitability, capital commitments and available cash and franking credits at that time.
A fully franked interim dividend of 8 cents per share was paid for the six months to December 31 2007.
ABC said the first three weeks of the 2009 fiscal year have been encouraging and its centres in
Australian Property Journal
