Boart Longyear Limited (BLY) : Company Profile and SWOT Analysis

							Boart Longyear Limited

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Boart Longyear Limited                                                           Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                        10808 South River Front Parkway, South   The company reported revenue of US$2,012 million
Headquarters Address                    Jordan, Utah, 84095,United States of     during the fiscal year 2012 (2012). The company's
                                        America                                  revenue grew at a CAGR of 2.25% during 2008–
Telephone                               + 1 801 9726430                          2012, with an annual decline of 0.44% over 2011. In
                                                                                 2012, the company recorded an operating margin of
Fax                                     + 1 801 9773374
                                                                                 6.31%, as against 12.16% in 2011.

Website                                 www.boartlongyear.com                    Revenue and Margins

Ticker Symbol, Stock Exchange           BLY, Australian Stock Exchange

Number of Employees                     6,500

Fiscal Year End                         December

Revenue (in US$ million)                2,012




SWOT Analysis
                                                                                 Return on Equity
Strengths                               Weaknesses
                                                                                 The company recorded a return on equity (ROE) of
Broad products and services portfolio   Declining operational performance        6.00% for 2012, as compared to its peers, Astec
                                                                                 Industries, Inc. (Ticker: ASTE), Nabors Industries, Ltd.
Diversified geographical presence       Limited financial leverage               (Ticker: NBR) and Layne Christensen Company
                                                                                 (Ticker: LAYN), which recorded ROEs of 7.36%,
                                                                                 2.78% and -12.50% respectively. The company
Strong liquidity position                                                        reported an operating margin of 6.31% in 2012.

Opportunities                           Threats                                  Return on Equity

Recovery in US construction industry    Foreign currency fluctuations

Strategic growth initiatives            Increase in labor costs in the US

                                        Stringent regulations




                                                                                 Liquidity Position

                                                                                 The company reported a current ratio of 2.39 in 2012,
                                                                                 as compared to its peers, Astec Industries, Inc.,
                                                                                 Nabors Industries, Ltd. and Layne Christensen
                                                                                 Company, which recorded current ratios of 3.46, 2.77
                                                                                 and 1.53 respectively. As of December 2012, the
                                                                                 company recorded cash and short-term investments
                                                                                 of worth US$90 million, against US$0 million current
                                                                                 debt. The company reported a debt to equity ratio of
                                                                                 0.53 in 2012 as compared to its peers, Astec
                                                                                 Industries, Inc., Nabors Industries, Ltd. and Layne
                                                                                 Christensen Company, which recorded debt to equity
                                                                                 ratios of 0.00, 0.73 and 0.13 respectively.




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Boart Longyear Limited - SWOT Profile                                                                                     Page 1
Boart Longyear Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ......................................................................................................................................... 5
    1.2       Business Description ....................................................................................................................................... 6
    1.3       Major Products and Services ........................................................................................................................... 7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 8
    2.2       Key Financial Performance Indicators ............................................................................................................ 11
      2.2.1       Revenue and Operating Profit.................................................................................................................... 11
      2.2.2       Asset and Liabilities ................................................................................................................................... 12
      2.2.3       Net Debt vs. Gearing Ratio ........................................................................................................................ 13
      2.2.4       Operational Efficiency ................................................................................................................................ 14
      2.2.5       Solvency ................................................................................................................................................... 15
      2.2.6       Valuation ................................................................................................................................................... 16
    2.3       Competitive Benchmarking ............................................................................................................................ 17
      2.3.1       Market Capitalization ................................................................................................................................. 18
      2.3.2       Efficiency................................................................................................................................................... 19
      2.3.3       Turnover – Inventory and Asset ................................................................................................................. 20
3     Recent Developments ........................................................................................................................... 21
4     SWOT Analysis ...................................................................................................................................... 22
    4.1       SWOT Analysis - Overview ............................................................................................................................ 22
    4.2       Strengths ....................................................................................................................................................... 22
    4.3       Weaknesses ....................