Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — H1 2019 Earnings Presentation
20 slides from Mayfield Childcare's earnings presentation, Aug 2, 2019
Slide 1: Financial Results for the Half Year ended 30 June 2019
2 August 2019 For personal use only Mayfield Childcare Limited - Financial Results for the Half Year ended 30 June 2019 Mayfield Childcare Limited (ASX:MFD) is pleased to announce its results for the first half of Calendar Year 2019. Revenue from continuing operations was $15.9m (up 13.6%) deliverin
Slide 2: Dividend, price increases and CEO outlook
In March 2019, Mayfield Childcare paid its annual dividend for the year ended 31 December 2018 of $2.8m. Cash dividend payments totalled $1.9m and 869,647 ordinary shares were issued under the Dividend Reinvestment Plan (DRP) at $0.97 per share. Effective 1 July 2019, the business put through its 20
Slide 3: CY 2019 Half Year Results
For personal use only Mayfield Childcare Limited (ASX:MFD) - CY 2019 Half Year Results 2 August 2019
Slide 4: Disclaimer
DISCLAIMER This Presentation contains summary information about the current activities of Mayfield Childcare Limited (Mayfield). It should be read in conjunction with Mayfield’s other For personal use only periodic and continuous disclosure announcements lodged with the Australian Securities Exchang
Slide 5: Contents
For personal use only Contents 01 CY 2019 First Half Highlights 02 Financial Performance 03 Operational Performance 04 Acquisitions 05 Industry 06 Full Year 2019 Outlook 3
Slide 6: CY 2019 First Half Highlights
01 CY 2019 First Half Highlights › Solid first half performance › Business generates positive results across all operating measures For personal use only › Revenue performance reflects CY 2018 acquisitions, price increases and favourable occupancy and mix › Operating margins continue to strengthen -
Slide 7: Financial performance
For personal use only 02 Financial performance: AASB 16 Leases Operating performance Balance sheet Cash flow 5
Slide 8: AASB Leases Standard
02 AASB 16 Leases Standard For personal use only › 1 January 2019 saw the implementation of the new Accounting Standard, AASB 16 Leases. With the exception of short-term and low-value asset leases, all leases are now recognised on the balance sheet, with the following implications: › Lease liabiliti
Slide 9: Operating Performance
02 Operating Performance $000’s CY19 1H AASB 16 CY19 1H CY18 1H Var % For personal use only Statutory Leases Underlying Underlying The operating performance for CY 2019 reflects the following Revenue 15,861 15,861 13,957 13.6 › Revenues up 13.6% driven by flow through of CY 2018 acquisitions and Lab
Slide 10: Balance Sheet
02 Balance Sheet $000’s 30 Jun 19 AASB 16 30 Jun 19 31 Dec 18 Var For personal use only Statutory Leases Underlying Underlying Cash & cash equivalents 73 73 880 (807) › Lower cash position from partial funding of acquisitions, and tighter Trade & other receivables 1,326 1,326 1,256 70 cash managemen
Slide 11: Cash flows
02 Cash flows $000’s CY19 1H AASB 16 CY19 1H CY 2018 For personal use only Statutory Leases Underlying Underlying Operating cash flows Childcare receipts 15,756 15,756 13,922 Operating expenses (11,566) (1,873) (13,439) (11,926) › Positive net operating cash flows in line with business performance N
Slide 12: Operational Performance: Occupancy, Revenue & Wage Performance
For personal use only 03 Operational Performance: Occupancy, Revenue & Wage Performance 10
Slide 13: Occupancy, Revenue and Wage Performance
03 Occupancy, Revenue and Wage Performance Weekly Occupancy % Weekly Revenue A$000’s For personal use only 70.0% $700 $650 Percentage % 65.0% $600 A$ 000's 60.0% $550 55.0% $500 50.0% $450 Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 3 5 7 9 11 13 15 17 19 21 23 25 $400 Wk 1Wk 3Wk 5Wk 7Wk 9 Wk Wk Wk Wk
Slide 14: Acquisitions
For personal use only 04 Acquisitions: 12
Slide 15: Acquisitions
04 Acquisitions For personal use only › Mayfield continues to seek acquisition opportunities with a number of prospects under consideration, though stocks of suitable sites are low › Selection criteria - the business remains committed to its selection criteria, and will not compromise for acquisitio
Slide 16: Industry
For personal use only 05 Industry: 14
Slide 17: Industry
05 Industry For personal use only › Government Funding - 2019 › We are now 12 months into the new CCS system, and both existing and new families, are well versed in the machinations of the system › It’s clear that families with an ‘activity test’ below full time in the main have been disadvantaged,
Slide 18: 2019 Outlook
For personal use only 06 2019 Outlook: 16
Slide 19: Full Year 2019 Outlook
06 Full Year 2019 Outlook For personal use only › Market guidance remains unchanged and excludes impact of AASB 16 Leases › Revenues of approx. $34.0m › EBIT of $5.8m to $6.2m › Occupancy up +1% › Guidance is prefaced on › Earnings – Improvement on CY 2018 earnings › Pricing – Comparatively higher p
Slide 20: Thankyou
For personal use only Thankyou Mayfield Childcare Limited Level 1, 275 Wattletree Road MALVERN VIC 3144 www.mayfieldchildcare.com.au Dean Clarke Glenn Raines Andrew Angus Chief Executive Officer Chief Financial Officer Investor Relations dclarke@mayfieldchildcare.com.au graines@mayfieldchildcare.com