Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q1 2012 Earnings Presentation
16 slides from Signet Jewelers's earnings presentation, May 26, 2011
Slide 1: Fiscal 2012 Q1 Results
Fiscal 2012 Q1 Results May 26, 2011
Slide 2: Forward Looking Statements & Other Disclosure Matters
Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements - This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management’s beliefs and expectations
Slide 3: Q1 Fiscal 2012 Results Highlights
Q1 Fiscal 2012 Results Highlights Same store sales up 10.2% US division +12.5%, Q1 Fiscal 2011 +7.3% UK division +0.2%, Q1 Fiscal 2011 -0.2% 13.4% operating margin, +310 bpts record for Q1 Income before taxes $117.8 million, +$43.7 million or +59.0% Diluted eps $0.87, +$0.29 or +50.0% Free cash flow
Slide 4: US Performance
US Performance Changes in Sales Same store Sales ASP1 sales Q1 Fiscal 2012 Kay $435.4m 13.9% 13.4% 11.8% Jared $227.8m 11.8% 12.7% 7.7% Regionals $74.8m 6.5% (2.1)% 13.7% US division $738.0m 12.5% 11.4% 12.1% Operating income, net $126.2m up $37.8 million , +42.8% Operating margin 17.1% Up 380 bpts
Slide 5: Strong US Bridal Performance
Strong US Bridal Performance Outstanding customer experience is based on: superior service great value and selection ability to offer customer financing Branded differentiated merchandise Advertising for bridal category 5
Slide 6: US Branded Differentiated and Exclusive Merchandise
US Branded Differentiated and Exclusive Merchandise Strong performance by branded merchandise Creates a unique store destination Powerful selling proposition for sales associates Supported by national TV advertising 6
Slide 7: UK Performance
UK Performance Changes in Sales Same store Sales at ASP2 sales CER1 Q1 Fiscal 2012 H.Samuel $79.5m 2.7% 0.7% 8.9% Ernest Jones $69.8m (2.4)% (3.5)% 10.3% UK division $149.3m 0.2% (1.3)% 9.0% Operating loss $(0.2)m better by $1.2 million Operating margin (0.1)% better by 90 bpts 1. Change in sales at
Slide 8: Management Priorities
Management Priorities Continue investment in successful strategies that are driving gains in profitable market share growth-enabling technologies space growth Growth of branded jewelry Be opportunistic where there are possible investments that satisfy our demanding return hurdles 8
Slide 9: Q1 Fiscal 2012 Sales Performance
Q1 Fiscal 2012 Sales Performance US UK Total Sales Q1 Fiscal 2012 $m 738.0 149.3 887.3 Sales Q1 Fiscal 2011 $m 662.5 142.9 805.4 Change in sales % % % Same store sales 12.5 0.2 10.2 Space impact (1.1) (1.5) (1.2) Change in total sales at constant 11.4 (1.3) 9.0 exchange rate1 Exchange translation im
Slide 10: Q1 Fiscal 2012 Reconciliation
Q1 Fiscal 2012 Reconciliation % of sales Income before tax Q1 Fiscal 2011 $74.1m 9.2% Gross margin movement $56.1m 2.9% Selling, general & admin. expense movement $(25.3)m (0.1)% Other operating income movement $5.1m 0.3% Operating income movement $35.9m 3.1% Net interest movement $7.8m 1.0% Income
Slide 11: Receivables Trend Shows Continued Improvement
Receivables Trend Shows Continued Improvement 6.0 15.0 5.0 12.0 4.0 Net bad 9.0 Average debt 3.0 monthly as % 6.0 collection of total 2.0 rate % sales 1.0 3.0 Q1 Fiscal 2002 to Q1 Fiscal 2008 net bad debt range 1.5% to 2.1% 0.0 0.0 11
Slide 12: Cash Flow
Cash Flow Q1 Fiscal Q1 Fiscal 2012 2011 $m $m Net cash provided by operating activities 105.3 184.2 Net cash used in investing activities (12.9) (6.3) Free cash flow1 92.4 177.9 Net cash used in financing activities (0.2) (48.0) Increase in cash and cash equivalents 92.2 129.9 Cash and cash equivale
Slide 13: Financial Outlook
Financial Outlook Fiscal 2012 Financial Objectives gain profitable market share improve gross margin ratio maintain broadly similar SG&A ratio planned capex in Fiscal 2012 of $110 million to $130 million free cash flow target of $150 million to $200 million New $400 million senior unsecured multi- c
Slide 14: Regulation G Disclosures
Regulation G Disclosures JEWELERS
Slide 15: Q1 Fiscal 2011 Results
Q1 Fiscal 2011 Results Signet has historically used constant exchange rates to compare period-to-period changes in certain financial data. Management considers this a useful measure for analyzing and explaining changes and trends in Signet’s results. The impact of the re-calculation, including a rec
Slide 16: Free Cash Flow
Free Cash Flow Free cash flow is a “non-GAAP financial measure” defined as the net cash provided by operating activities less net cash flows used in investing activities. Management considers that it is helpful in understanding how the business is generating cash from its operating and investing act