Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — Investor Presentation (February 2021)
22 slides from Mayfield Childcare's investor presentation, Feb 8, 2021
Slide 1: CY 2020 Full Year Results Investor Presentation
MAYFIELD CHILDCARE LIMITED CY 2020 FULL YEAR RESULTS INVESTOR PRESENTATION 8 February 2021 1
Slide 2: 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 periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are ava
Slide 3: Contents
CONTENTS 01 CY 2020 HIGHLIGHTS 02 FINANCIAL PERFORMANCE 03 OPERATIONAL PERFORMANCE 04 2021 OUTLOOK 3
Slide 4: The COVID-19 Environment
The COVID-19 Environment What did we see ? How did we respond ? How did the Government Support ? Early public debate on risks to children and the closure of Health and safety was paramount with enhanced Government recognises essential service that early education plays Schools and Childcare. hygiene
Slide 5: CY 2020 Highlights
CY 2020 Highlights The unprecedented events of the COVID-19 pandemic and the extensive and ever evolving social and economic restrictions imposed, have characterized the performance of the sector and Mayfield over the course of CY 2020. • Mayfield's results exceed expectations and lays testament to
Slide 6: CY 2020 Highlights
CY 2020 Highlights • Health crisis shapes occupancy performance and attendance levels. • Occupancy of 67.2% fell 2.3% across the year. • Sharp declines experienced in March / April as the pandemic took hold, though recovers as the Government moves to waive parent gap payments. • 2H CY20 occupancy im
Slide 7: Financial Performance
02 FINANCIAL PERFORMANCE: EBIT RECONCILIATION OPERATING PERFORMANCE BALANCE SHEET CASH FLOW 7
Slide 8: CY 2020 EBIT Bridge
CY 2020 EBIT Bridge Underlying EBIT Movement from CY 2019 to CY 2020 (A$ 000’s) • Underlying EBIT of $6.2m, exceeded market expectations up 8.3%. • Base centres declined $3.3m, reflecting the revenue shortfall of $3.0m brought about by the capping of revenues under the ECEC Relief package, combined
Slide 9: Operating Performance
Operating Performance A$ 000’s CY 2020 Statutory AASB 16 Leases CY 2020 Underlying CY 2019 Underlying Var % • Revenues from continued operations, down 31.1% as revenue was funded Childcare fees 25,122 (395) 24,727 35,866 (31.1) directly under the ECEC Package, and then supplemented by the Industry S
Slide 10: Balance Sheet
Balance Sheet A$ 000’s 31 Dec 20 AASB 16 31 Dec 20 31 Dec 19 Var $ Statutory Leases Underlying Underlying Cash and cash equivalents 1,569 1,569 649 920 • Improved cash position of $0.9m. Trade and other receivables 1,300 1,300 1,572 (272) • P&E increase of $0.4m as all non-critical projects were hal
Slide 11: Coverage & Gearing Ratios
Coverage & Gearing Ratios A$ 000’s CY 2020 CY 2019 CY 2018 Underlying Underlying Underlying Current Borrowings 1,632 1,328 0 • During CY 2020 the business retired $3.2m of non current debt. Non-Current Borrowings 8,297 11,526 13,384 Cash & Cash Equivalents (1,569) (649) (880) • Overall, significant
Slide 12: Cash Flow
Cash Flow A$ 000’s CY 2020 Statutory AAS,B 16 Leases CY 2020 Underlying CY 2019 Underlying Operating cash flows • Positive net operating cash flows aided by Industry Support packages and Customer receipts 25,232 25,232 35,596 Federal Government stimulus packages along with a reduction in tax ECEC Re
Slide 13: Operational Performance
03 OPERATIONAL PERFORMANCE: OCCUPANCY & ATTENDANCE REVENUE PERFORMANCE WAGE PERFORMANCE OPERATIONAL METRICS 13
Slide 14: CY 2020 Occupancy
CY 2020 Occupancy Weekly Like for Like Occupancy* (%) Year-to-Date Like for Like Occupancy* (%) 80.0% 70.0% CY 2019 CY 2020 CY 2019 CY 2020 75.0% 70.0% 65.0% 65.0% 60.0% 60.0% Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk W
Slide 15: CY 2020 Occupancy and Attendance
CY 2020 Occupancy and Attendance Half-Yearly Like for Like Occupancy* (%) Weekly Attendance against Weekly Occupancy* (%) 76.0% 80.0% 74.2% 90.0% 74.0% 75.0% 80.0% 72.0% Attendance % Occupancy % 69.8% 69.5% 70.0% 70.0% 70.0% 68.0% 67.2% 60.0% 65.0% 66.0% 64.7% 64.6% 50.0% 64.0% 60.0% 40.0% COVID-19
Slide 16: Revenue Performance
Revenue Performance $1,150 Weekly Revenue (A$ 000's) $1,050 CY 2019 CY 2020 The revenue mix changed considerably over CY 2020. $950 A$ 000's • 1st Qtr CY20 revenue performance in line with occupancy growth. $850 $750 • 2nd Qtr revenues capped at a flat rate of 50% of pre COVID-19 levels under $650 E
Slide 17: Wage Performance
Wage Performance $500 Weekly Wages (A$ 000's) vs Weekly Attendance (%) 90.0% $450 80.0% The movement in centre based wages has clearly been shaped by the Wages – A$ 000’s Attendance % COVID-19 pandemic and attendance rates of families. $400 70.0% $350 • Wage levels strongly correlate with attendance
Slide 18: Childcare Fees & Quality Rating
Childcare Fees & Quality Average Childcare Fees (A$) Rating $116.00 $114.00 $112.00 • Childcare Fees were held constant throughout CY 2020 at an average $110.00 of $115/day. $108.00 $106.00 • To be eligible for the ECEC, Transition and Recovery Packages, $104.00 operators were required to hold fees
Slide 19: Operational Metrics
Operational Metrics Key Metrics CY 2018 CY 2019 CY 2020 Number of Centres 20 21 20 • During 2020 the business disposed of an underperforming regional centre, Number of Registered Places 1,693 1,771 1,671 while its Managed Services client base continues to grow. Average Centre Size 85 84 84 No of Man
Slide 20: 2021 Outlook
04 2021 OUTLOOK: CY 2021 OUTLOOK 20
Slide 21: CY 2021 Outlook
CY 2021 Outlook • The Board remain cautiously optimistic about the prospects for 2021, though is acutely aware that the pandemic is not over. • Occupancy levels are performing at pre-COVID19 levels. • Moderate price increases will be sought in July 2021. • Wage and operational cost strategies develo
Slide 22: Mayfield Childcare Limited
Mayfield Childcare Limited Suite 2, 207-213 Waverley Road Malvern East VIC 3145 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.au andrewangus@overland
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