Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — H1 2020 Earnings Presentation
24 slides from Mayfield Childcare's earnings presentation, Aug 18, 2020
Slide 1: Financial Results for the Half Year ended 30 June 2020
18 August 2020 Mayfield Childcare Limited - Financial Results for the Half Year ended 30 June 2020 Mayfield Childcare Limited (ASX:MFD) is pleased to announce its results for the first half of Calendar Year 2020. Statutory revenue from continuing operations was $9.4m (down 40.5%). With the inclusion
Slide 2: JobKeeper Wage Subsidy
JobKeeper Wage Subsidy Notwithstanding the support the ECEC Relief Package provided, the introduction of the Federal Government’s JobKeeper Wage Subsidy program meant that the combined stimulus packages provided the necessary funds to meet, in part, the significant labour and other operational costs
Slide 3: Revenue mix, margins and cost mitigation
With the introduction of the various Government stimulus packages, and the effective freezing of income, the revenue mix changed considerably. First half revenue from continued operations, predominately generated in the first quarter, was $9.1m (down 42.8%). The ECEC Relief Package of $3.7m, combine
Slide 4: Please direct any further enquiries to: Dean Clarke
Market expectations were that 3Q CY 2020 would be a period of recovery, though the tenuous and immediate situation in Victoria will dampen that position. Current occupancy for the group is circa 64%, though physical attendance has fallen to circa 40% following the introduction of Stage 4 restriction
Slide 5: Mayfield Childcare Limited CY 2020 Half Year Results
MAYFIELD CHILDCARE LIMITED CY 2020 HALF YEAR RESULTS INVESTOR PRESENTATION 18 August 2020 1
Slide 6: 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 7: Contents
CONTENTS 01 1H CY 2020 HIGHLIGHTS 02 FINANCIAL PERFORMANCE 03 OPERATIONAL PERFORMANCE 04 2020 OUTLOOK 3
Slide 8: 1H CY 2020 Highlights
1H CY 2020 Highlights The COVID-19 pandemic, along with the various Government support packages and their associated conditions, have shaped the performance of the sector, and Mayfield, over the first half of CY 2020. • Strong first quarter trends. • Revenue growth of 10.3%, generated from the flow
Slide 9: 1H CY 2020 Highlights
1H CY 2020 Highlights • Mayfield withstands impact of COVID-19 despite reduced demand. • Centre operating margins remain strong at 16.4%. • The redesign of staff rosters across all job functions maximised the value of the JobKeeper Wage Subsidy. • Cost mitigation strategies reduce operational expens
Slide 10: 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 Government recognises essential service that early education Schools and Childcare. plays in the economy. Childcare deemed essential and remain
Slide 11: Financial Performance
02 FINANCIAL PERFORMANCE: EBIT RECONCILIATION OPERATING PERFORMANCE BALANCE SHEET CASH FLOW 7
Slide 12: 1H CY 2020 EBIT Bridge
1H CY 2020 EBIT Bridge Underlying EBIT movement from 1H CY 2019 to 1H CY 2020 • Underlying EBIT of $1.1 million, was down 39.6%. • Base centres declined $3.2m, reflecting the revenue shortfall of $3.0m brought about by the capping of revenues under the ECEC Relief package, combined with wage growth
Slide 13: Operating Performance
Operating Performance A$ 000’s 1H CY 2020 AASB 16 1H CY 2020 1H CY 2019 Var % Statutory Leases Underlying Underlying • First half revenues from continued operations, predominately generated in the first quarter, were $9.1m, down 42.8%. Childcare fees 9,435 (357) 9,078 15,861 (42.8) • Combined Govern
Slide 14: Balance Sheet
Balance Sheet A$ 000’s 30 Jun 20 AASB 16 30 Jun 20 30 Jun 19 Var $ Statutory Leases Underlying Underlying Cash and cash equivalents 161 161 649 (488) Trade and other receivables 1,434 1,434 1,572 (138) • Lower cash position reflects tighter cash management strategies to offset Current Assets 1,595 1
Slide 15: Cash Flow
Cash Flow A$ 000’s 1H CY 2020 AASB 16 1H CY 2020 1H CY 2019 Statutory Leases Underlying Underlying Operating cash flows Customer receipts 9,966 9,966 15,756 • Positive net operating cash flows aided by Federal Government stimulus ECEC Relief Package 4,257 4,257 packages and a reduction in tax obliga
Slide 16: Operational Performance
03 OPERATIONAL PERFORMANCE: OCCUPANCY & ATTENDANCE REVENUE PERFORMANCE WAGE PERFORMANCE MAYFIELD QUALITY PROGRAM 12
Slide 17: Occupancy and Attendance
Occupancy and Attendance 70.0% CY 2020 Weekly Occupancy % 68.0% 66.0% The impact of the pandemic was immediately reflected in both occupancy Occupancy % 64.0% levels and attendance rates. 62.0% • Weekly occupancy that was tracking well, fell sharply by 5% over the 60.0% period 16 March to 6 April. 5
Slide 18: Revenue Performance
Revenue Performance Weekly Revenue $750 $700 The revenue mix changed considerably over the first half of CY 2020. $650 A$ 000's • 1Q 2020 revenue performance exceeded 2019 by +10% and followed $600 occupancy growth. $550 • The ECEC Relief Package of $3.7m introduced in April, capped revenue at $500
Slide 19: Wage Performance
Wage Performance Total Centre Based Wages 500 Centre Based Wages A$ 000's 450 The movement in centre based wages has clearly been shaped by the COVID- 19 pandemic and its impact on the business. 400 • Wages growth over the 1Q 2020 reflected the additional wages associated 350 with 2019 acquisition c
Slide 20: Mayfield Quality Program (MQP)
Mayfield Quality Program (MQP) • Mayfield improved its Quality rating profile during the first quarter, with 90% of Mayfield services now rated Meeting or Exceeding against the National Quality Framework • Quality initiatives during the period focused on Advancement of our Early Childhood Teachers t
Slide 21: 2020 Outlook
04 2020 OUTLOOK: VICTORIAN STAGE 4 RESTRICTIONS CY 2020 OUTLOOK 17
Slide 22: Stage 4 Restrictions in Victoria
Stage 4 Restrictions in Victoria • The Victorian Government has introduced Stage 4 lockdown restrictions, commencing 6 August and running for 6 weeks until 13 September. • Under Stage 4 ‘Stay at Home’ Restrictions, workplaces in metropolitan Melbourne are closed unless the workplace is part of a per
Slide 23: CY 2020 Outlook
CY 2020 Outlook • CY 2019 Shareholder Dividend. • The Mayfield Board confirms that the shareholder dividend that was deferred from 27 March to 25 September, will be paid on that date. • The Board would like to thank all its shareholders for their support during these trying times. • Current Trading.
Slide 24: Mayfield Childcare Limited
Mayfield Childcare Limited Suite 2, 207 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@overlandadvi