Nick Scali Limited · ASX:NCK
Nick Scali — H1 FY2011 Earnings Presentation
8 slides from Nick Scali's earnings presentation, Feb 10, 2011
Slide 1: ASX announcement cover letter: Half Year Ended 31 December 2010
Nick Scali Limited ABN 82 000 403 896 Head Office 3-29 Birnie Avenue Lidcombe NSW 2141 For personal use only Phone: (02) 9748 4000 Facsimile: (02) 9748 4022 10 February 2011 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 By electronic lodgement Nick S
Slide 2: Results Presentation, Six Months Ended 31 December 2010 (1H11)
Results Presentation Six Months Ended 31 December 2010 (1H11)
Slide 3: Key points – 1H11
Ke y p o in ts – 1H11 For personal use only • Sales increased 1.3% to $49.3m. S a le s • Same store sales fell 2.7% against exceptionally strong growth in the prior period • NPBT down 5.7% ($8.4m vs $8.9m 1H10) P ro fit • EPS 7.3 cents, vs 7.7 cents 1H10 • Gross margin levels maintained • Operating
Slide 4: Earnings Summary
Ea rn in g s S u m m a ry For personal use only Half Year End 31 Dec ($m) 1H10 1H11 • Sales volumes reflect contribution of new stores, and challenging Q2 sales environment. • Same store sales drop 2.7% against Sales revenue 48.7 49.3 exceptionally strong growth in the prior Cost of sales (18.3) (18
Slide 5: Cash flow
Ca s h flo w For personal use only • Operating cashflow has reduced due to the Half Year End 31 Dec ($m) 1H10 1H11 difference in timing of sales and payments to suppliers between the two periods Receipts from customers 54.3 53.1 • Capex includes purchase of building ($7m) and Pmts to suppliers/emplo
Slide 6: Balance Sheet
Ba la n c e S h e e t For personal use only • Inventory stocked in DCs $5.3m (FY10 $6.5m) Period End ($m) Jun'10 Dec'10 • Fixed asset increases are due to Alexandria building purchase, construction and fitout ($8.3m); and store Cash 17.3 13.6 refurbishments Receivables 0.6 0.3 • Use of borrowings to
Slide 7: Sofas2Go new brand store format
© Sofas only © Store format approx. 1000m2 Large choice in specific categor g p gory — Entry level price points - first home buyer, renters © NSW roll out FY11/FY12. Minimal start up costs © Stores youthful, edgy, fashionable, colourful, unique © Diverse marketing channels, including internet and so
Slide 8: Outlook
Ou tlo o k For personal use only Sales and Profit • Consumer spending has been volatile and hence difficult to predict • Peak trading month of January 2011 was strong – in contrast to a weak Q2 • The strength of the recovery remains uncertain and consumer sentiment reactive to economic commentary an