@MarsC
1. Has it been funding it's growth from operating cashflows or has it been raising debt?
Yes, it's been funding its growth from operating cashflows. Please note that recently NCK has embarked on a shift in their property strategy, namely, they are starting to purchase strategic sites that they believe will continue to be profitable well into the future.
The properties that they own outright:
1. Alexandria, NSW, a new store purchased in FY2011 for $7m
2. Fyshwick, ACT, a new store purchased in FY2013 for $6.5m
3. Caringbah, NSW, an existing store purchased in FY2015 for $6.3m
4. Joondalup, WA, a new store purchased in FY2015 for $4.5m
5. Macgregor, QLD, an existing store purchased in FY2016 for $9.1m
6. Nunawading, VIC, an existing store purchased in FY2016 for $4.4m
Total property purchases to date is $37.8m. The current valuation of these properties is around $42m.
These property purchases were financed using a mix of debt/cash. As a result, as of December 2015, NCK's non current borrowings has increased to $18.6m and cash is $25m.
With 6 stores fully owned out of a total of 48 stores, the proportion of fully owned properties is now 12.5%. This new strategy will give NCK some degree of protection against future rental increases and future market downturn.
2. What has its dividend payout ratio been?
2005: 65.17%
2006: 74.94%
2007: 84.14%
2008: 85.96%
2009: 100.89%
2010: 64.77%
2011: 62.80%
2012: 71.81%
2013: 60.74%
2014: 73.97%
2015: 71.15%
This relatively high payout ratio hasn't precluded NCK from pursuing its growth/expansion.
3. What has it's free cashflow (operating cashflow minus capex) been like?
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
| 1 |
Operating Cash Flows |
Depreciation |
Capex |
Property Purchases |
Capex - Property |
Operating Cash Flows - (Capex - Property) |
|
| 2 |
2004 |
6,784,000 |
664,000 |
625,000 |
|
625,000 |
6,159,000 |
| 3 |
2005 |
7,801,000 |
625,000 |
1,907,000 |
|
1,907,000 |
5,894,000 |
| 4 |
2006 |
7,242,000 |
886,000 |
1,164,000 |
|
1,164,000 |
6,078,000 |
| 5 |
2007 |
9,340,000 |
910,000 |
1,739,000 |
|
1,739,000 |
7,601,000 |
| 6 |
2008 |
6,659,000 |
1,029,000 |
1,055,000 |
|
1,055,000 |
5,604,000 |
| 7 |
2009 |
8,600,000 |
848,000 |
1,237,000 |
|
1,237,000 |
7,363,000 |
| 8 |
2010 |
15,520,000 |
927,000 |
1,201,000 |
|
1,201,000 |
14,319,000 |
| 9 |
2011 |
14,255,000 |
1,064,000 |
10,109,000 |
7,000,000 |
3,109,000 |
11,146,000 |
| 10 |
2012 |
12,853,000 |
1,327,000 |
2,203,000 |
|
2,203,000 |
10,650,000 |
| 11 |
2013 |
19,703,000 |
1,734,000 |
9,268,000 |
6,500,000 |
2,768,000 |
16,935,000 |
| 12 |
2014 |
22,416,000 |
1,947,000 |
2,933,000 |
|
2,933,000 |
19,483,000 |
| 13 |
2015 |
18,821,000 |
2,105,000 |
14,578,000 |
10,800,000 |
3,778,000 |
15,043,000 |
As you can see, NCK's capex requirements can easily be met by operating cash flows alone.
4. Does the company issue executive options?
No options at all. Since IPO, the number of shares outstanding has been constant at 81,000,000.
I hope my answers help.
Regards
(20min delay)