Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (August 2020)
18 slides from Nick Scali's investor presentation, Aug 6, 2020
Slide 1: FY20 Results Presentation
FY20 Results Presentation 6 August 2020
Slide 2: Results Overview
Results Overview FY20 Highlights • Written sales orders up 9% to $293.2m (FY19: $268.9m) Sales • Sales down 2% to $262.5m (FY19: $268.0m) Margin • Gross margin 62.7% (FY19 : 62.9%) NPAT • Underlying1 NPAT $42.1m, above guidance of $39-40m (FY19: 42.1m) • Net increase in cash of $26.8m Cashflow • Und
Slide 3: Sales Orders & Trading
Sales Orders & Trading Written Sales Orders, A$m FY20 Trading Commentary • Written sales orders for the year up from $268.9m to $293.2m, driven by exceptional growth in May and June • H2 FY20 written sales up 18% on H2 FY19, driven by increased levels of customer activity prior to temporary store cl
Slide 4: Sales Revenue
Sales Revenue Sales Revenue, A$m Sales Commentary • Total sales revenue down 2.1%, and down 6.7% on a LFL basis, largely due to temporary store closures in April and a subdued trading environment in March 2020 impacting revenue for FY20 • Despite the closures, sales revenue greater than initially an
Slide 5: Profit & Loss
Profit & Loss FY20 FY19 Change Profitability Sales revenue 262.5 268.0 - 5.5 • Gross profit margins maintained despite significant devaluation of AUD, driven by retail pricing initiatives and Cost of sales (97.8) (99.4) + 1.6 support from suppliers Gross profit 164.7 168.6 - 3.9 • Operating expenses
Slide 6: Balance Sheet
Balance Sheet FY20 FY19 Change Receivables (ex AASB16) • $4.1m of COVID related receivables from ATO (JobKeeper) Cash 63.0 36.3 + 26.8 and landlords (rent relief) at 30 June 2020 Receivables 5.4 1.1 + 4.3 Inventory Inventory 36.3 37.6 - 1.3 Fixed assets - Owned 90.2 92.7 - 2.5 • Improved efficiency
Slide 7: Cashflow
Cashflow FY20 FY19 Change Cashflow Commentary Receipts from customers 304.5 295.4 + 9.1 • $26.8m increase in cash on hand due to strong trading in May and June, with operating cash flow increased by 38% to Payments to suppliers/employees (229.1) (232.1) + 3.0 $62.8m Operating cashflow before interes
Slide 8: Impact of COVID-19
Impact of COVID-19 • Traffic down 40%+ in last two weeks of March Store Network • All stores closed for between two and four weeks (seven weeks in NZ) in April and May • Traffic up 30% since re-opening • Estimated $9-11m loss in sales due to store closures Sales • Since reopening, sales orders have
Slide 9: Nick Scali Online
Nick Scali Online Average transaction value since launch (A$) Online Commentary • Nick Scali online launched in April 2020 and has performed strongly since inception $3,000 • Website traffic up 75% from April to June 2020, despite reduced advertising spend $2,500 • Average transaction value of ~$1,8
Slide 10: Store Network
Store Network Network Changes Jun 19 Opened Closed Jun 20 Nick Scali Furniture Australia 55 - - 55 New Zealand 2 1 - 3 Total 57 1 - 58 One new NSF showrooms opened in FY20: • St. Lukes (New Zealand) Two new NSF showrooms planned for H1 FY21: • Bennetts Green (NSW): November 2020 • Wairau Park (New Z
Slide 11: Company Owned Properties
Company Owned Properties Over 37,000sqm of property owned in metro locations, adjacent to major growth corridors Location State/ Territory Date acquired Site area (sqm) NLA (sqm) Auburn NSW December 2017 4,763 5,469 Auburn** NSW February 2020 1,490 788 Alexandria NSW July 2010 1,680 1,680 QLD (1) Ca
Slide 12: Outlook
Outlook Outlook • As highlighted in the Trading Update on 19 June 2020, the Company experienced a significant rebound in customer activity during May and June, with sales orders up 65%+ on a comparable store basis against the prior corresponding period. Total growth in the combined period was over 7
Slide 13: Important Notice & Disclaimer
Important Notice & Disclaimer Notice on Information Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on
Slide 14: Appendix 1: NPAT Reconciliation
Appendix 1: NPAT Reconciliation Reversal of FY20 Recognition of FY20 Operating Lease One-offs Underlying AASB 16 Reported Expense Sales revenue 262.5 262.5 Cost of sales (97.8) (97.8) Gross profit 164.7 164.7 Other income 1.9 1.1 1.8 4.8 Operating expenses (100.9) 27.3 2.3 (0.6) (71.9) EBITDA 65.7 2
Slide 15: Appendix 2: Balance Sheet Reconciliation
Appendix 2: Balance Sheet Reconciliation FY20 AASB16 AASB16 FY20 Reported (ex AASB16) Adoption FY20 Impact Cash 63.0 63.0 Receivables 5.4 (2.8) 2.6 Inventory 36.3 36.3 Fixed assets - Owned 90.2 (0.5) 89.7 Fixed assets - Leased 174.3 (12.6) 161.7 Intangibles 2.4 2.4 Deferred tax 2.2 4.6 0.2 7.0 Other
Slide 16: Appendix 3: Cashflow Reconciliation
Appendix 3: Cashflow Reconciliation Reclassification of FY20 FY20 Lease Payments as One-offs Underlying Reported Financing Receipts from customers 304.5 304.5 Payments to suppliers/employees (229.1) 29.3 0.6 (199.2) Operating cashflow before interest and tax 75.4 29.3 0.6 105.3 Interest received 0.5
Slide 17: Appendix 4: Historical Performance
Appendix 4: Historical Performance FY16 FY17 FY18 FY19 Sales revenue 203.0 232.9 250.8 268.0 Cost of sales (79.7) (87.3) (93.6) (99.4) Gross profit 123.4 145.6 157.2 168.6 Other income 1.4 1.6 1.9 2.2 Operating expenses (83.8) (90.5) (95.6) (105.8) EBITDA 41.0 56.6 63.6 65.0 Depreciation (3.1) (2.8)
Slide 18: Appendix 5: Company Owned Properties
Appendix 5: Company Owned Properties Diversified portfolio of company owned properties across 6 states and territories in Australia Alexandria, New South Wales Auburn, New South Wales Nunawading, Victoria Caringbah, New South Wales 18