Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (February 2020)
12 slides from Nick Scali's investor presentation, Feb 6, 2020
Slide 1: HY20 Results Presentation
Nick Scali Limited | NCK.ASX HY20 Results Presentation 6 February 2020
Slide 2: Results Overview
Results Overview HY20 Highlights • Sales down 2.5% to $137.5m (HY19: $141.1m) Sales • Negative same store sales growth of 7.5% Margin • Gross margin 62.2% (HY19 : 62.8%) NPAT • Underlying1 NPAT $20.3m above guidance of $17 -19m (HY19 : 25.4m) • Net increase in cash of $7.4m Cashflow • Operating cash
Slide 3: Sales Growth
Sales Growth Sales Revenue $’m Sales Commentary ▪ Negative sales growth with full period contribution of stores opened in FY19 insufficient to off-set LFL sales decline ▪ LFL sales down 7.5% with store traffic significantly reduced due to difficult trading conditions highlighted in October Trading U
Slide 4: Profit & Loss
Profit & Loss HY20 HY19 Change Net Profit Sales revenue 137.5 141.1 - 3.6 ▪ Gross profit margin 62.2% - 60 bps reduction due to product Cost of sales (51.9) (52.5) + 0.6 mix and competitive pressure Gross profit 85.6 88.6 - 3.0 ▪ Operating expense increase of $4.3m. Majority of increase Other income
Slide 5: Balance Sheet
Balance Sheet HY20 FY19 Change Leases (AASB16) Cash 43.7 36.3 + 7.4 ▪ Balance sheet reflects adoption of AASB16. Impact at Receivables 0.6 1.1 - 0.5 implementation: - $194.8m lease liability Inventory 37.0 37.6 - 0.6 - $174.3m right-of-use assets (Fixed Assets – Leased) Fixed assets – Owned 86.0 92.
Slide 6: Cashflow
Cashflow HY20 HY19 Change Cashflow Commentary Receipts from customers 147.8 156.0 - 8.2 ▪ $7.4m increase in cash on hand Payments to suppliers/employees (122.1) (122.8) + 0.7 ▪ Operating cash flow $16.6m Operating cashflow before interest and tax 25.7 33.2 - 7.5 ▪ Modest capex during HY20, primarily
Slide 7: Outlook
Outlook Store Network One store was opened during the half year ended 31 December 2019 in Auckland, New Zealand. The Company now has a total network of 58 stores, and expects to open a further three new stores in the second half of the financial year, of which two are in Victoria and one in New Zeal
Slide 8: Important notice and disclaimer
Important notice and disclaimer 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 information availabl
Slide 9: AASB16: P&L Impact
Appendix 1 AASB16: P&L Impact Recognition of Reversal of HY20 AASB 16 HY20 Operating Comparable Depreciation Reported Lease Expense and Interest Sales revenue 137.5 137.5 Cost of sales (51.9) (51.9) Gross profit 85.6 85.6 Other income 0.7 0.7 Operating expenses (55.3) 15.5 (39.8) EBITDA 31.0 15.5 46
Slide 10: AASB16: Cashflow Impact
Appendix 1 (continued) AASB16: Cashflow Impact Reclassification HY20 of Lease HY20 Comparable Payments as Reported Financing Receipts from customers 147.9 147.9 Payments to suppliers/employees (122.2) 14.8 (107.4) Operating cashflow before interest and tax 25.7 14.8 40.5 Interest received 0.3 0.3 In
Slide 11: Store network
Appendix 2 Store network NSF store network, at 31 December 2019 Network changes, HY20 Jun 19 Opened Closed Dec 19 Nick Scali Furniture Australia 55 - - 55 New Zealand 2 1 - 3 Total 57 1 - 58 14 6 4 Jun 19 Opened Closed Dec 19 17 Nick Scali Clearance 5 1 - 6 1 3 12 One new NSF stores opened in HY20:
Slide 12: Historical Performance
Appendix 3 Historical Performance HY16 HY17 HY18 HY19 HY20 Sales revenue 102.5 118.4 128.0 141.1 137.5 Cost of sales (41.0) (45.4) (47.9) (52.5) (51.9) Gross profit 61.5 73.0 80.1 88.6 85.6 Other income 0.2 0.2 0.5 0.6 2.5 Operating expenses (40.5) (42.7) (45.0) (51.0) (39.8) EBITDA 21.1 30.5 35.6 3