Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — FY2019 Earnings Presentation
23 slides from Mayfield Childcare's earnings presentation, Jan 31, 2020
Slide 1: Mayfield Childcare Limited (ASX:MFD) - CY 2019 Full Year Results
Mayfield Childcare Limited (ASX:MFD) - CY 2019 Full Year Results 31 January 2020 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 2019 Highlights 02 Financial performance 03 Operational performance 04 Acquisitions 05 Industry 06 2020 Outlook 3
Slide 4: 2019 Highlights
01 2019 Highlights › Business strength delivers solid performance › Continued positive growth across all financial and operating measures › Revenue growth of 13.9% on the back of 2018 and 1H 2019 acquisitions, slightly improved pricing and occupancy growth › Easing trading conditions saw occupancy g
Slide 5: 2019 Highlights
01 2019 Highlights › Quality recognition › Our Quality Improvement Program continues to deliver great results for the business › Initiatives focused on Centre Presentation, Educator Development and Educational Programs › Despite acquiring a Working Towards centre during 2019, 86% of the portfolio is
Slide 6: Financial performance
02 Financial performance: AASB 16 Leases Operating performance Balance Sheet Cash flows Dividend 6
Slide 7: AASB 16 Leases Standard
02 AASB 16 Leases Standard › As previously advised, 1 January 2019 saw the implementation of the new Accounting Standard, AASB 16 Leases. With the exception of short-term and low-value asset leases, all leases are now recognised on the balance sheet, with the following implications: › Lease liabilit
Slide 8: Operating Performance
02 Operating Performance $000’s CY 2019 AASB 16 CY 2019 CY 2018 Var % Statutory Leases Underlying Underlying The operating performance for CY 2019 reflects the following Revenue 35,866 35,866 31,489 13.9 › Revenues up 13.9% on the back of 2018 and 1H 2019 acquisitions, Labour costs 20,186 20,186 17,
Slide 9: Group EBIT Reconciliation
02 Group EBIT Reconciliation Underlying EBIT Reconciliation from CY 2018 to CY 2019 › The initial IPO portfolio and 2017 acquisitions generated additional EBIT of $0.3m › Though slightly behind expectations, CY 2018 acquisitions have responded to our investment in centre improvements and quality pro
Slide 10: Balance Sheet
02 Balance Sheet $000’s 31 Dec 19 AASB 16 31 Dec 19 31 Dec 18 Var Statutory Leases Underlying Underlying Cash & cash equivalents 649 649 880 (231) › Lower cash position from partial funding of acquisitions, and tighter Trade & other receivables 1,572 1,572 1,256 316 cash management strategies to off
Slide 11: Cash flows
02 Cash flows $000’s CY19 1H AASB 16 CY19 1H CY 2018 Statutory Leases Underlying Underlying Operating cash flows Customer receipts 35,596 - 35,596 31,465 Operating expenses (25,252) (3,877) (29,129) (26,262) › Positive net operating cash flows in line with business performance Net interest paid (660
Slide 12: Dividend
02 Dividend › In March of 2019, Mayfield paid its annual fully franked dividend of $2.8m or 8.97 cps for the year ended 31 December 2018 › Dividend payment was made up of $1.9m in cash and 869,647 ordinary shares issued under the DRP at $0.97/share › The Board announces for the 12 months ending 31 D
Slide 13: Operational performance
03 Operational performance: Centre based metrics Occupancy & revenue Operational metrics 13
Slide 14: Centre Based Metrics
03 Centre Based Metrics Key Metrics CY 2017 CY 2018 CY 2019 Number of centres 19 20 21 › Average fees are $115, following a 3.9% price increase › In real terms, price increases reflect a $4-5/day fee Number of registered places 1,588 1,693 1,771 increase › Excluding the 2 highest priced centres (+$1
Slide 15: Occupancy, Revenue & Wage Performance
03 Occupancy, Revenue & Wage Performance Weekly Occupancy % Weekly Revenue A$ 000’s 80.0% $800 75.0% $750 $700 70.0% $650 $600 65.0% $550 $500 CY 2018 CY 2019 60.0% $450 CY 2018 CY 2019 55.0% $400 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 16: Operational Metrics
03 Operational Metrics Quality Improvement Plan Average Daily Fees 90.0% 85.0% 85.7% $116 80.0% 73.7% $114 70.0% 56.3% $112 % Percentage 60.0% 50.0% 43.8% $110 40.0% 26.3% $108 30.0% 20.0% 15.0% 14.3% $106 10.0% $104 CY 2018 CY 2019 0.0% CY 2016 CY 2017 CY 2018 CY 2019 $102 WkWkWkWkWkWkWkWkWkWkWkWkW
Slide 17: Acquisitions
04 Acquisitions: 17
Slide 18: Centre Acquisitions
04 Centre Acquisitions Key Metrics Acquisitions No of centres as at Number of centres 1 20 Dec 2018 Registered places 76 EBITDA CY 2019 $0.12m Average Daily Fees $119 Centre acquired in 1 July Rent per place $3,500 Purchase price $0.9m Funding source Debt / Cash › While the single acquisition for 20
Slide 19: Industry
05 Industry: 19
Slide 20: Industry
05 Industry › Victorian childcare supply › In the context of Victoria, we have seen supply numbers progressively decrease quarter on quarter which has been encouraging › The in-market perspective in geographical areas that Mayfield operates, is that supply growth has eased › Though supply in the Dec
Slide 21: 2020 Outlook
06 2020 Outlook: 21
Slide 22: 2020 Outlook
06 2020 Outlook › The Mayfield Board and Management team look forward to a more robust year in 2020. › Key areas of focus › Drive Business Growth › Generate Underlying EBIT growth of 10% excluding any new acquisitions › Aggressively seek acquisition growth in Victoria, while exploring interstate exp
Slide 23: Thankyou
Thankyou Mayfield Childcare Limited Level 1, 275 Wattletree Road MALVERN VIC 3144 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@overla