Nick Scali Limited · ASX:NCK
Nick Scali — H1 2007 Earnings Presentation
8 slides from Nick Scali's earnings presentation, Feb 16, 2007
Slide 1: Nick Scali Limited
Nick Scali Limited ABN 82 000 403 896 Head Office 3-9 Birnie Avenue Lidcombe NSW 2141 Australia Phone: 61 2.9748 4000. Facsimile: 61 29748 4022. 15 February 2007 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGMENT NICK SCALI LIMITED
Slide 2: Result Presentation 6 Months ended 31 December 2006 (1H07)
FoU R M FT UR E Result Presentation 6 Months ended 31 December 2006 (1H07)
Slide 3: 1H07 Overview
1H07 Overview e Sales of $37.1m — increase of 13.4% over 1HO6 « NPAT of $4.5m — down 7.9% on 1HO6 « EPS of 5.6 cents — down 7.9% on 1H06 e Dividend of 4.5 cents — in line with 1HO6 « 3 new stores opened during the half — Nunawading (VIC) — second store in Melbourne — 26 October 2006 — Belrose (NSW)
Slide 4: Profit
1H07 Profit e Sales increased 13.4% to $37.1m — same-store sales were down 1.3% « Gross margin consistent with previous period e Primary reason for /ower profit was increased planned infrastructure and new store start-up costs, which lead to operating expenses as a % of sales increasing from 37.6% t
Slide 5: Sales
1H07 Sales e Sales of $37.1m were up 13.4% on $32.7m in 1HO6 « Same-store sales were down 1.3% e Same-store orders were up 3.6% e Nunawading (VIC) and Belrose (NSW) — both opened late October 2006 — as well as Essendon (VIC) — opened late Dee 2006 — are all large stores in prime locations and are pe
Slide 6: Cash Flow
Cash Flow Operating cash flow decline to $2.5m in 1HO07 from $4.6m in 1HO6, primarily attributable to: ~ Increased inventories associated with new store openings ~- Reduced payables due to timing differences Cash balances were $5.4m at December 2006 with no debt 1HO7 v 1HO6 Y/End 30 Jun ($m) THOG 4H
Slide 7: Store Openings — past months
Store Openings — past 18 months Mildura, VIC (May 06) Campbeltown, NSW (Jun 06) Townsville, QLD (Dee 05) Chirnside Park, VIC (Dec 05) Nunwading, VIC {Oct 06) Belrose, NSW (Oct 06) Essendon, VC (Dec 06) Jun 08 4HO6 openings 2HO6 openings 1H07 openings Dec 06
Slide 8: Outlook
Outlook e Melbourne — with 3 stores and DC capable of handling significant expansion — now has a position from which to build « Planning to open 3 to 4 new stores during calendar year 2007 e On track to achieve our previously stated FY07 NPAT estimate of approximately $9.0m