Nick Scali Limited · ASX:NCK
Nick Scali — H1 2006 Earnings Presentation
11 slides from Nick Scali's earnings presentation, Feb 14, 2006
Slide 1: Results Presentation Half Year Ended 31 December 2005
i a S nicksceall FouRN EIT URE Results Presentation Half Year Ended 31 December 2005
Slide 2: 1H'06 Highlights
1H’06 Highlights > Sales of $32.7m ~ increase of 22% over 1H’05 > NPAT of $4.9m ~ increase of 3.5% over $4.7m in 1H’05 > EPS of 6.1 cents > Dividend declared of 4.5 cents per share, fully franked ~ Increase of 50% over 1H’05 dividend of 3.0 cents > 2store openings, taking total stores to 19 ~ Chimsi
Slide 3: Profit and Loss
Profit and Loss > Sales increased 21.7% to $32.7m for the half compared to the previous corresponding period (pcp) >» Gross margin expanded to 59.3% from 57.3% a year ago (and stable with 59.5% in the previous 6 month period) > Operating expenses increased by $3.6m (41%) to $12.3m » NPAT increased b
Slide 4: Sales Analysis
Sales Analysis > Sales increased by 21.7% to $32.7m as a Sales Increase (%) result of: ~ Adecline in same-store sales‘ of 17.7% 22.4% 24.9% 21.7% 9 20.2% 18.4% 18.0% 18.2% — Contribution of $10.7m from stores opened/acquired since the previous corresponding period > Decline in same-store sales’ is p
Slide 5: Operating Expense Analysis
Operating Expense Analysis >» Operating expenses increased by $3.6m Operating Expenses as a % of Sales (41%) from $8.7m in 1H'05 to $12.3m in 1H'06 > Operating expenses as a percentage of sales increased from 32.4% in 1H'05 to 37.5% in 1H’06, due primarily to: ~ Negative same-store store growth — In
Slide 6: Cash Flow
Cash Flow YiEnd 30 Jun ($m EBITDA Net interest Tax paid Working capital / other . Operating Cash Flow 1.5 Capital expenditure {0.4) Acquisitions Investing Cash Flow (0.4) Borrowings Dividends {0.8) Other Financing Cash Flow {0.8) Net Cash Flow 0.3
Slide 7: Balance Sheet
Balance Sheet > Strong cash position of $7.9m (pre interim dividend of $3.6m) > No debt Period End ($m) Dec'04 Cash 8.9 Receivables 04 Inventories 73 Fixed assets V7 intangibles Other 14 Total Assets 19.4 Borrowings 0.0 Payables 63 Current tax payable 413 Provisions 04 Other Total Liabilities 8.0 Ne
Slide 8: Store Openings
Store Openings > 2-stores (Townsville in Queensland and Chirnside Park in Melbourne) were opened in December 2005 — taking total stores to 19 > A further 2 store openings are planned for the 2H’06 (Campbelltown in Sydney and Mildura in Victoria), followed by an additional 2 in Melbourne in 1H’07 ~ w
Slide 9: Outlook
Outlook > Reasonable sales orders in January 2006 ~ Up 15% overall against January 2005 - 6% down on a same-store basis against what was a strong January 2005 > Contributions forthcoming in 2H’06 from: ~ Townsville - which has opened strongly ~ Chirnside Park — which will find going tough until addi
Slide 10: Leather lounge package promotions
31,790 Samuel Leather 3 Seater plus 2 a 1,790| Roxy Leather 3 Seater plus 2 Seater plus Arncholr PACKAGE $1,990) iy Fou RM fT UW RE Outstanding vatue. All genuine leather. Lifetime frame warranty. Generously proportioned. Represents current trends in design. Stock program - available for fast detive
Slide 11: New Product Category
New Product Category Outdoor furniture a ae ae