SiteMinder Limited Announces Restatement of Cash Flow Reports for Q1 and Q2 FY24
SDR (SDR) Share Update September 2024 Monday 9th
SiteMinder Revises Cash Flow Reports After Financial Audit
SiteMinder Limited (ASX: SDR) has announced a revision in its cash flow reports for the first and second quarters of the fiscal year 2024, following a financial audit. The changes aim to align the unaudited reports with the company's audited consolidated statement of cash flows for FY24.
Instant Summary:
- Reclassification of cash outflows related to the establishment of a credit facility with HSBC Ventures USA Inc.
- Increase in reported cash flows from operating activities for Q1FY24 and Q2FY24.
- No change in underlying free cash flow and cash and liquidity position.
Revised Cash Flow Reports
SiteMinder Limited has revised its cash flow reports for Q1FY24 and Q2FY24. The revision follows the financial audit for the year ended 30 June 2024. The primary change involves the reclassification of cash outflows from the establishment of a credit facility with HSBC Ventures USA Inc. to replace a credit facility with Silicon Valley Bank (SVB).
These cash outflows, amounting to $461k in Q1FY24 and $303k in Q2FY24, have been reclassified from 'cash flows from operating activities' to 'cash flows from financing activities' to better reflect their nature in line with AASB standards. As a result, reported cash flows from operating activities for Q1FY24 have increased from ($191)k to $270k, and for Q2FY24, they have increased from $936k to $1,239k.
Impact on Financial Statements
The company's disclosure of underlying free cash flow, defined as the sum of cash flows from operating and investing activities adjusted for non-recurring items, remains unchanged at ($5.5)m for Q1FY24 and ($3.1)m for Q2FY24. Additionally, SiteMinder's disclosures regarding its cash and liquidity position are also unchanged.
Below is a summary of the impact on SiteMinder's cash flow disclosures for Q1FY24 and Q2FY24:
- Q1FY24: Reported cash flows from operating activities increased from ($191)k to $270k.
- Q2FY24: Reported cash flows from operating activities increased from $936k to $1,239k.
- H1FY24: Reported cash flows from operating activities increased from $744k to $1,508k.
The reclassification of cash outflows is a technical adjustment that aligns SiteMinder's unaudited and audited financial statements. While the underlying free cash flow remains unchanged, the increase in reported cash flows from operating activities may be viewed positively by investors as it reflects better operational performance. However, the overall financial health and liquidity position of the company remain unaffected by this reclassification.
Investor Reaction:
Analysts are likely to view this announcement as a routine adjustment following an audit, with minimal impact on the company's overall financial health. The positive adjustment in operating cash flows may boost investor confidence slightly, but the unchanged underlying free cash flow and liquidity position suggest that the company's financial fundamentals remain stable.
Conclusion:
Investors should note that the revisions in SiteMinder's cash flow reports are primarily technical adjustments to align with audited statements. While the reported cash flows from operating activities have improved, the underlying financial health of the company remains unchanged. Investors are encouraged to continue monitoring SiteMinder's financial performance and strategic initiatives.