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Author: HongKongFoolie One star, 50 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 195  
Subject: Industrea 1H2012 results Date: 2/23/2012 8:43 PM
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Results and presentation posted here:
http://www.industrea.com.au/irm/content/investors_welcome.ht...

- YoY net profit down 14% due to increased depreciation expense and increase in effective tax rate.
- Mining Equipment unit: Revenue increased 54% YoY, EBITDA up 63% and EBITDA margin at 21% from 20%. Launched 4 new products; see improved prospects for new sales and service revenue in China
- Mining Technology: Rev down 69%, EBITDA down 68%, margins improved from 26% to 27%. Due to change in distribution strategy in China; should see 2nd half improvement with new streamlined distribution channel
- Gas Management: Industrea's newest unit; moderate initial contribution; management anticipates growth in revenue and margin in 2nd half.
- Mining Services: Revenue up 30%, EBITDA up 12%, EBITDA margin down 3%. High investment in 2011 starting to payoff with renewed existing contracts with largest customers.
- Full year outlook: company remains on track to deliver FY2012 revenue and EBITDA increases 10-15% and net profit 5-10%.

I like the prospects going forward, however the increase in debt (>50% increase in net debt) and capex has me a little concerned. Is today's 20% decline in stock price a good buying opportunity? Looking forward as always to seeing the GG team's take.
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