Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (August 2021)
17 slides from Nick Scali's investor presentation, Aug 5, 2021
Slide 1: FY21 Results Presentation
FY21 Results Presentation 5 August 2021
Slide 2: FY21 Highlights
FY21 Highlights Sales Revenue Underlying Net Gross Profit Margin $373.0m Profit After Tax 63.5% $84.2m Total Growth: +42% (FY20: 62.7%) LFL Growth: +34% +100% vs FY20 Total Dividend Store Network Operating Cashflow1 65.0 cents per share 61 Showrooms $137.9m Interim: 40.0 cps Australia: 57 (FY20: $76
Slide 3: Revenue
Revenue Sales revenue ($’m) Revenue growth (%) vs FY20 Total +42% Comparable Stores1 +34% 21.4 Revenue growth ($’m) Growth Comparable Stores1 +87.7 89.1 New Stores Opened FY19/202 +1.9 373.0 New Stores Opened FY213 +5.1 Nick Scali Online +14.4 Clearance Stores +1.4 262.5 Total +110.5 1Based on typic
Slide 4: Sales Orders & Trading
Sales Orders & Trading Order bank ($’m) • Total full year written sales orders of $401.6m, Days representing growth of 37% on FY20 63 56 97 Outstanding • Total written sales orders for Nick Scali New Zealand up 95% on FY20 • Total written sales orders for Nick Scali Online totalled $18.3m, up $15.3m
Slide 5: Financial Performance
Financial Performance FY20 FY21 FY20 FY21 Gross profit margin 62.7% 63.5% Sales revenue 262.5 373.0 Operating expenses/Sales 38.4% 30.0% Cost of sales (97.8) (136.3) EBITDA margin 25.0% 33.9% Gross profit 164.7 236.8 NPAT margin 16.0% 22.6% Other income 1.9 1.6 Operating expenses (100.9) (111.8) EBI
Slide 6: Cashflow
Cashflow 12.3 6.4 5.4 27.8 15.6 137.9 50.6 126.6 43.9 EBITDA Normal Increased Increased Operating Tax & Capex Dividends Net 1 Working Customer DC Cashflow Interest Cashflow Capital Deposits Inventory before Tax Payments1 Changes Holdings & Interest 1 109% EBITDA 1 Excludes the impact of accounting f
Slide 7: Balance Sheet
Balance Sheet FY20 FY21 Inventory – On hand ($’m) Cash 63.0 106.9 Inventory – In transit 7.6 11.7 FY20 Showrooms DCs 15.1 13.6 Inventory – On hand 28.7 35.1 Property 74.5 83.4 Plant & equipment 15.2 15.2 FY21 Showrooms DCs 16.2 18.9 Other assets 14.1 13.6 Borrowings 33.7 33.7 Payables 18.0 22.1 Defe
Slide 8: New Zealand
New Zealand Written sales orders ($’m) St Lukes Comparable store growth: +40% Open FY20 Wairau Park Hamilton Open FY21 Open FY19 +95% Mt Wellington Open FY18 FY20 FY21 • Full year benefit of Wairau Valley showroom to be realised in FY22 Hastings Open July 2021 • Hastings showroom opened in July 2021
Slide 9: Nick Scali Online
Nick Scali Online Online written sales orders ($’m) • Nick Scali Online written sales orders of $18.3m in FY21, the first full year of operation, and a six-fold increase on FY20. • Nick Scali Online written sales orders of $5.5m in Q4 FY21, an increase of 84% on Q4 FY20 • Full year revenue of $15.3m
Slide 10: Store Network
Store Network WA: 6 QLD: 12 NSW/ACT: 20 30 FY21 New 30 Target June Stores June 2020 2021 Australia 55 2 57 73 New Zealand 3 1 4 13 Total 58 3 61 86 SA: 4 VIC: 14 TAS: 1 NZ: 4
Slide 11: Property
Property Keswick Flagship Showroom Location Date Area NLA acquired (m2) (m2) 19 Anzac Highway, Keswick SA Auburn, NSW Dec 2017 4,763 5,469 Auburn, NSW Feb 2020 1,490 788 Alexandria, NSW Jul 2010 1,680 1,680 Caringbah, NSW Jul 2014 3,396 2,633 Fyshwick, ACT Nov 2012 7,070 4,120 Nunawading, VIC Sep 20
Slide 12: FY22 Outlook
FY22 Outlook • The Company’s future growth will primarily be driven by the continuation of the new store rollout and increasing online penetration, and the Company continues to accelerate initiatives to capture these opportunities • Trading during July 2021 was impacted by government mandated lockdo
Slide 13: ickseali
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Slide 14: Important Notice & Disclaimer
Important Notice & 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 available
Slide 15: Appendix 1 NPAT Reconciliation FY21
Appendix 1 NPAT Reconciliation FY21 Reported Impact of Underlying AASB16 Sales revenue 373.0 - 373.0 Cost of sales (136.3) - (136.3) Gross profit 236.8 - 236.8 Other income 1.6 - 1.6 Operating expenses (79.3) (32.5) (111.8) EBITDA 159.1 (32.5) 126.6 Depreciation (30.9) 26.2 (4.7) EBIT 128.2 (6.3) 12
Slide 16: Appendix 1 NPAT Reconciliation FY20
Appendix 1 NPAT Reconciliation FY20 Reported Impact of One-offs1 Underlying AASB16 Sales revenue 262.5 - - 262.5 Cost of sales (97.8) - - (97.8) Gross profit 164.7 - - 164.7 Other income 4.8 (1.1) (1.8) 1.9 Operating expenses (71.9) (29.6) 0.6 (100.9) EBITDA 97.5 (30.6) (1.2) 65.7 Depreciation (30.0
Slide 17: Appendix 2 Cashflow Reconciliation
Appendix 2 Cashflow Reconciliation FY20 FY21 Reported net cash from operating activities 92.2 140.4 Less: Repayment of lease liabilities (22.8) (23.6) Interest payments - lease liabilities (6.5) (6.2) Add: Income tax payments 13.6 27.3 Operating cashflow before interest and tax 76.5 137.9