Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — FY2021 Earnings Presentation
24 slides from Mayfield Childcare's earnings presentation, Feb 23, 2022
Slide 1: CY 2021 Full Year Results Investor Presentation
Mayfield Childcare Limited CY 2021 Full Year Results Investor Presentation 23 February 2022 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 2021 HIGHLIGHTS 02 FINANCIAL PERFORMANCE 03 CY 2021 ACQUISITIONS 04 OPERATIONAL PERFORMANCE 05 CY 2022 OUTLOOK 3
Slide 4: CY 2021 Highlights
CY 2021 Highlights The CY 2021 year has proven to be the tale of two halves, characterised by the level of restrictions and challenges associated with the COVID-19 pandemic, faced by our communities, our people, and the economy. The first half of CY 2021 reflected a more normalised trading environme
Slide 5: CY 2021 Highlights
CY 2021 Highlights • Occupancy performance at pre-COVID-19 levels. • Occupancy of 70.1% vs 67.2% in CY 20 and 69.5% in CY 19. • Strong 1H growth, was constrained in the 2H, by COVID restrictions placed on the access to childcare and work permits for authorised workers. • Increased investment in busi
Slide 6: Financial Performance
02 FINANCIAL PERFORMANCE: REVENUE & EBIT RECONCILIATION OPERATING PERFORMANCE BALANCE SHEET CASH FLOW 6
Slide 7: CY 2021 Revenue Bridge and EBIT Bridge
Underlying Revenue Movement from CY 2020 to CY 2021 CY 2021 Revenue Bridge • Underlying Revenue was $40.1m, up 7.9%. • With a full year of normal CCS and co-parent payments, Childcare Fees increased by $13.9m, offset by the various Industry and Government stimulus payments of $11.8m received in CY 2
Slide 8: Operating Performance
Operating Performance A$ 000’s CY 2021 Statutory AASB 16 Leases CY 2021 Underlying CY 2020 Underlying Var % • Childcare Fees of $38.6m, up 56.2%, reflects occupancy growth Childcare fees 38,632 38,632 24,727 56.2 and a return to normal trading with CCS and co-parents payments. Industry Support Payme
Slide 9: Balance Sheet
Balance Sheet A$ 000’s 31 Dec 21 Statutory AASB 16 Leases 31 Dec 21 Underlying 31 Dec 20 Underlying Var $ • Improved cash position of $0.7m. Cash and cash equivalents 2,265 2,265 1,569 696 Trade and other receivables 2,826 2,826 1,300 1,526 • Movements in receivables, plant and equipment and intangi
Slide 10: Coverage & Gearing Ratios
Coverage & Gearing Ratios A$ 000’s CY 2021 Underlying CY 2020 Underlying CY 2019 Underlying Current Borrowings 409 1,632 1,329 Non-Current Borrowings 8,077 8,297 11,493 • Net debt reduced by $2.1m or 25.6% to $6.2m. Cash & Cash Equivalents (2,265) (1,569) (649) Net Debt 6,221 8,360 12,172 • Sharehol
Slide 11: Cash Flow
Cash Flow A$ 000’s CY 2021 Statutory AASB 16 Leases CY 2021 Underlying CY 2020 Underlying Operating cash flows Customer & Government funds 39,670 39,670 33,390 • Positive net operating cash flows reflects return to normal JobKeeper Wage Subsidy 4,336 trading with CCS and co-parents payments, partial
Slide 12: CY 2021 Acquisitions
03 CY 2021 ACQUISITIONS: CY 2021 ACQUISITIONS 12
Slide 13: CY 2021 Acquisitions
CY 2021 Acquisitions Mayfield Portfolio (pre Genius) Centres As at December 2020 20 • CY 2021 heralded a significant change in the size, scale and CY 2021 Acquisitions 2 geographical footprint of Mayfield. • In 2H CY 21, the business secured 2 additional Victorian centres Total 22 from independent o
Slide 14: Genius Learning Acquisition
Genius Learning Acquisition • Transformational acquisition of 14 premium childcare centres across Victoria, Queensland and South Australia from Genius Education Holdings Pty Ltd Acquisition • Centres are operated under a premium brand, in high density locations with overall average occupancy of circ
Slide 15: Mayfield Growth Pipeline
Mayfield Growth Pipeline Pipeline Terms Term 5 years • Mayfield and Genius have entered a 5-year incubator partnership Acquisition Price 4.25x EBITDA (EBITDA of previous three months annualised) providing certainty of growth for the business Mayfield will provide Genius with a strategic investment e
Slide 16: Operational Performance
04 OPERATIONAL PERFORMANCE: OCCUPANCY & ATTENDANCE REVENUE & WAGE PERFORMANCE CHILDCARE FEES & ACECQA RATING OPERATIONAL METRICS 16
Slide 17: CY 2021 Occupancy
CY 2021 Occupancy Weekly Like for Like Occupancy* Year-to-Date Like for Like Occupancy* 80.0% 71.0% 69.0% 75.0% 67.0% % Percentage % Percentage 70.0% 65.0% 63.0% 65.0% 61.0% 59.0% 60.0% 57.0% 55.0% 55.0% 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
Slide 18: CY 2021 Occupancy and Attendance
CY 2021 Occupancy and Attendance Half- Yearly Like for Like Occupancy* CY 21 2H Weekly Attendance vs Weekly Occupancy* 76.0% 74.4% 78.0% 100.0% 74.0% 95.0% 72.0% 76.0% 69.8% 70.1% 90.0% 70.0% 74.0% 67.2% Attendance % 85.0% Occupancy % 68.0% Percentage % 66.0% 66.0% 72.0% 80.0% 64.0% 62.0% 75.0% 62.0
Slide 19: Revenue & Wage Performance
Revenue & Wage Performance Weekly Revenue $1,050 $950 Revenue A$ 000’s • In the main, movements in weekly revenue reflects occupancy $850 growth, and a return to normal trading with CCS and co-parent payments in play throughout the year. $750 • During the second half of CY 21, , Mayfield, as did mos
Slide 20: Childcare Fees & Quality
Childcare Fees & Quality Average Childcare Fees Rating $122.00 $120.00 Average Childcare Fees $118.00 $116.00 • With the removal of the moratorium placed on fee increases as $114.00 part of the various Industry Support packages during CY 2020, $112.00 Mayfield increased its average childcare fees by
Slide 21: Operational Metrics
Operational Metrics Key Metrics CY 2021 CY 2020 CY 2019 Number of Centres 36 20 21 Number of Registered Places 3,299 1,671 1,771 • The enlarged Mayfield portfolio now consists of 36 centres, representing 3,299 licensed places and an average centre size of Average Centre Size 91 84 84 92 places No of
Slide 22: CY 2022 Outlook
05 CY 2022 OUTLOOK: CY 2022 OUTLOOK 22
Slide 23: CY 2022 Outlook
CY 2022 Outlook • The 2021 year has heralded a significant step change in the business with 16 new centres acquired, positioning Mayfield as a leading Australian childcare operator • The estimated incremental earnings of $8.0m EBITDA for CY22 from the Genius transaction will substantially increase t
Slide 24: 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