Nick Scali Limited · ASX:NCK
Nick Scali — FY2006 Earnings Presentation
9 slides from Nick Scali's earnings presentation, Aug 9, 2006
Slide 1: Results presentation – Year ended 30 June 2006
i a S nicksceall FURNITURE Results presentation Year ended 30 June 2006
Slide 2: FY'06 Highlights
FY’06 Highlights VV VV Sales of $64.5m ~ increase of 19% over FY’05 NPAT of $8.1m — in-line with FY’05 EPS of 10.0 cents ~ same as FY’05 Dividends of 7.5 cents per share, fully franked (equating to a 75% pay-out ratio) compares to 6.5 cents per share in FY’05 final dividend of 3.0 cents per share >
Slide 3: FY'06 Profit
FY’06 Profit > Sales increased 19.0% to $64.5m > Gross margin expanded to 59.5% from 58.4% > NPAT of $8.1m in-line with FY’05 given: — incremental contribution from stores opened during FY’05 (+$3.5m) — _ lower contribution from existing comparable stores (-$1.9m) — increased planned infrastructure
Slide 4: FY'06 Sales
FY’06 Sales > Sales of $64.5m was 19% up on FY’05 Sales — year on year > Same-store sales declined 9.7% (-$4.5m) due ($ million) to reduced discretionary spend — H1'06 same-store sales declined 17.7% 704 64.5 — H2’06 same-store sales increased 1.4% 604 $4.2 > Stores opened during FY’05 met expectati
Slide 5: Operating Expense Analysis
Operating Expense Analysis > Operating expenses were $26.4m in FY’06 - Operating expenses as a % of sales up from $20.1m in FY'05 > Increase in expenses as a % of sales, from 37.1% to 41.0%, due to: — negative same-store sales growth — higher budgeted infrastructure costs, primarily associated with
Slide 6: Cash Flow
Cash Flow > Operating cash flow of $7.2m in FY’06 . . YiEnd 30 Jun ($m) FY'05 FY‘06 compared to $7.8m in FY’05, is largely a reflection of the timing of tax payments EBITDA 117 12.0 Net int t 0.4 0.4 >» Capital expenditure of $1.1m largely reflects: Tax pad (2.7) (4.0) — new store fit-outs of $0.5m
Slide 7: Balance Sheet
Balance Sheet > Strong balance sheet maintained with: — cash position of $6.3m (pre final Period End ($m) Jun'05 Dec'05 Jun'06 dividend of $2.4m) Cash 6.7 7.9 63 — no debt Receivables 05 14 0.9 Inventories 9.9 10.0 11.0 Fixed assets 29 3.0 3.1 Intangibles 24 2.4 24 Other 0.6 0.3 07 Total Assets 23.0
Slide 8: Store Openings
Store Openings Growth in store numbers Store numbers by state (as at Jun’06) Number of stores dun'04 Dec'04 Jun'05 Dec'05 Jun'06 Dec'06 Jun'07 ©) )
Slide 9: Forward Plans
Forward Plans > Four further store openings planned for FY’07 being: — Nunawading, Melbourne — October 2006 — Belrose, Sydney — October 2006 — Essendon, Melbourne — December 2006 — Thomastown, Melbourne — June 2007 > Strong roll-out in Melbourne will provide critical mass — Melbourne DC to be operat