Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — H1 2021 Earnings Presentation
23 slides from Mayfield Childcare's earnings presentation, Aug 6, 2021
Slide 1: Mayfield Childcare Limited – Financial Results for the Half Year ended 30 June 2021
6 August 2021 Mayfield Childcare Limited – Financial Results for the Half Year ended 30 June 2021 Mayfield Childcare Limited (ASX:MFD) is pleased to announce its results for the first half of Calendar Year 2021. Statutory revenue before stimulus package income was $16.9m (up 79.0%). With the inclusi
Slide 2: As Victorian’s worked their way out of a gruelling 111 day lockdown, lingering restrictions
As Victorian’s worked their way out of a gruelling 111 day lockdown, lingering restrictions marginally hampered the start of the 2021 year. Even more evident was the overwhelming desire by our families to get back to a sense of normality, with an end to home schooling and a return to childcare. Fami
Slide 3: CY 2021 Outlook
CY 2021 Outlook The Board is pleased with the first half performance of the business, with a return to normal operating conditions, albeit a new ‘COVID Normal’ operating environment. Occupancy levels are performing at pre- COVID19 levels and trending well though continued growth remains contingent o
Slide 4: Mayfield Childcare Limited CY 2021 First Half Results Investor Presentation
MAYFIELD CHILDCARE LIMITED CY 2021 FIRST HALF RESULTS INVESTOR PRESENTATION 6 August 2021 1
Slide 5: 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 6: Contents
CONTENTS 01 1H CY 2021 HIGHLIGHTS 02 FINANCIAL PERFORMANCE 03 OPERATIONAL PERFORMANCE 04 CY 2021 OUTLOOK 3
Slide 7: 1H CY 2021 Highlights
1H CY 2021 Highlights The first half of the CY 2021 year has been a stark contrast to the extraordinary situation and challenges faced by our communities, our people, and the economy 12 months ago with the onset of the COVID-19 pandemic. While the pandemic is far from over, the year so far has been
Slide 8: 1H CY 2021 Highlights
1H CY 2021 Highlights • Increased investment in business assets and customer acquisition. • Acceleration of capital improvement program following the suspension of works during the 2020 year. • Significant investment in online assets, 3rd party referral sites and search engine optimisation. • Ongoin
Slide 9: Financial Performance
02 FINANCIAL PERFORMANCE: EBIT & REVENUE RECONCILIATION OPERATING PERFORMANCE BALANCE SHEET CASH FLOW 6
Slide 10: 1H CY 2021 Revenue Bridge and EBIT Bridge
1H CY 2021 Revenue Bridge Underlying Revenue Movement from 1H CY20 to 1H CY21 (A$ 000’s) • Underlying Revenue was $17.5m, up 8.5%. • With a full half year of normal CCS and co-parent payments, Childcare Fees increased by $7.7, offset by Government stimulus payments of $7.0m received in CY 2020. • Th
Slide 11: Operating Performance
Operating Performance A$ 000’s 1H CY 2021 Statutory AASB 16 Leases 1H CY 2021 Underlying 1H CY 2020 Underlying Var % • Childcare Fees of $16.9m, up 86.0%, reflects occupancy growth and a Childcare fees 16,886 16,886 9,078 86.0 return to normal trading with CCS and co-parent payments. Industry Suppor
Slide 12: Balance Sheet
Balance Sheet A$ 000’s 30 Jun 21 AASB 16 30 Jun 21 30 Jun 20 Var $ Statutory Leases Underlying Underlying • Improved cash position of $1.7m, reflects strong operating cash flows. Cash and cash equivalents 1,655 1,655 161 1,494 Trade and other receivables 989 989 1,434 (445) Current Assets 2,644 2,64
Slide 13: Coverage & Gearing Ratios
Coverage & Gearing Ratios A$ 000’s 1H CY 2021 1H CY 2020 1H CY 2019 Underlying Underlying Underlying Current Borrowings 1,072 1,001 547 • During 1H CY 2021 the business retired $2.1m of non current debt. Non-Current Borrowings 8,171 10,245 14,179 Cash & Cash Equivalents (1,655) (161) (73) • Improved
Slide 14: Cash Flow
Cash Flow A$ 000’s 1H CY 2021 Statutory AASB 16 Leases 1H CY 2021 Underlying 1H CY 2020 Underlying Operating cash flows • Operating cash flows reflect; Customer receipts 17,489 17,489 9,966 • Strong net operating cash inflows aided by Government COVID-19 ECEC Relief Package 598 598 4,257 assistance.
Slide 15: Operational Performance
03 OPERATIONAL PERFORMANCE: OCCUPANCY PERFORMANCE REVENUE & WAGE PERFORMANCE 2021 ACQUISITIONS CHILDCARE FEES & ACECQA QUALITY OPERATIONAL METRICS 12
Slide 16: 1H CY 2021 Occupancy
1H CY 2021 Occupancy Weekly Occupancy (%) Year-to-Date Occupancy (%) 75.0% 69.0% CY2020 CY2021 70.0% 67.0% CY2020 CY2021 65.0% 65.0% 63.0% 60.0% 61.0% 59.0% 55.0% 57.0% 50.0% 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 Wk Wk Wk Wk Wk Wk Wk Wk
Slide 17: Revenue & Wage Performance
Weekly Revenue (A$ 000’s) Revenue & Wage Performance $800 CY 2020 CY 2021 $750 • Movements in weekly revenue reflects occupancy growth and a Revenue A$ 000's return to normal trading with CCS and co-parent payments, when $700 compared to 1H CY 2020. • The sharp increase in the first 4 weeks of tradi
Slide 18: 2021 Acquisitions
2021 Acquisitions Acquisition 1 Acquisition 2 Total Location VIC Metro VIC Metro - • During May, the business announced its first acquisition for the 2021 year, being a Victorian based 70 place purpose built centre, with an annualised Purpose Built Yes Yes - EBITDA forecast of $550K, reflecting a 4.
Slide 19: Childcare Fees & Quality Rating
Average Childcare Fees (A$) Childcare Fees & Quality Rating $122.00 $120.00 Ave Childcare Fee A$ • Childcare Fees were held constant throughout CY 2020 at an average $118.00 of $115/day, in line with the Federal Governments funding eligibility criteria. $116.00 • CY 2021 price increase of 5.1% to $1
Slide 20: Operational Metrics
Operational Metrics Key Metrics 1H CY 2021 1H CY 2020 1H CY 2019 Number of Centres 20 21 21 • During CY 2020 the business disposed of an underperforming regional centre. Number of Registered Places 1,671 1,771 1,771 Average Centre Size 83 84 84 No of Managed Services Clients 3 3 1 Average Fees per D
Slide 21: CY 2021 Outlook
04 2021 OUTLOOK: CY 2021 OUTLOOK 18
Slide 22: CY 2021 Outlook
CY 2021 Outlook • The Board is pleased with the first half performance of the business, with a return to normal operating conditions, albeit a new ‘COVID Normal’ operating environment. • Occupancy levels are performing at pre-COVID-19 levels and trending well, though continued growth remains conting
Slide 23: 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