Higher results for SnowWorld in the first half-year after expansion

Transcription

1 Press release 17 May 2017 Important winter season for SnowWorld (16/17) went well Higher results for SnowWorld in the first half-year after expansion KEY POINTS 2016/2017 General - Construction of extension of third ski run in SnowWorld Zoetermeer - Construction of Skybar (catering establishment 80m in the air) - Start installation of 10,000 solar panels on roofs of both SnowWorld sites - Signature of Letter of Intent for construction of new location in Italy Financial - Number of ski passes sold increased by 5.2% - Increase in turnover by 3.5% to 19.3 million and gross margin by 3.2% to 17.5 million - Increase in EBITDA by 2.6% to 9.1 million - Increase in net profit by 2.8% to 4.8 million - Decrease in operating cash flow by 11.8% to 7.0 million - Increase in group equity vis-à-vis 31 March 2016 by 21.7% to 18.4 million - Increase in guarantee capital vis-à-vis 31 March 2016 by 3.1% to 30.0% - Increase in interest-bearing debt (excluding interest rate swaps) vis-à-vis 31 March 2016 by 4.9 million (15.7%) to 36.1 million - SnowWorld expects a higher EBITDA and higher net profit for the full financial year 2016/2017 GENERAL DEVELOPMENTS The first half-year of the 2016/2017 financial year was a major half-year for SnowWorld. After the company worked hard on extending the third ski slope (from approx. 200 to 300 metres) in the summer months of financial year 2015/2016, visitors had high expectations. After the festive opening on 15 October 2016, the extension became increasingly known to the public during the first six months of financial year 2016/2017, which has led to a significant increase in visitor numbers in the Zoetermeer branch. Not only the length of the slope, but also the incline (of 21%), mean that SnowWorld Zoetermeer now has a spectacular new challenge to offer, which visitors have well received. As part of the extended third ski slope in Zoetermeer, the Skybar with a large panoramic terrace opened on 12 December At a height of 80 metres, SnowWorld s unique catering facility sits perched atop the third slope, where visitors can enjoy a snack and a drink while surveying the slopes on one side and the Green Heart nature area and skyline of Rotterdam and The Hague on the other. The Skybar is not only accessible from the slopes, but it can also be reached from outside, via a stairway at the side of the slope. In the first half of financial year 2016/2017, SnowWorld Zoetermeer started preparations for the installation of solar panels on the roofs of the slopes. Meanwhile, all solar panels have been placed in Zoetermeer, and preparations are now underway in SnowWorld Landgraaf. It is expected that this installation will be put into operation this summer already. In total, 10,000 solar panels will be installed, which will make SnowWorld s two sites fully energy selfsufficient on sunny days.

2 The further development of the Wilhelminaberg (the hill upon which SnowWorld Landgraaf was built), which was started in fiscal year 2014/2015 in cooperation with a number of parties, including the municipality of Landgraaf, is progressing steadily. The preliminary plans include the construction of an oloid as a tourist attraction for this location. As a result of local political developments, progress in the projects in Paris and Barcelona has been limited. SnowWorld continues to exert pressure on local political parties to convince them that an indoor ski complex in global cities like Paris and Barcelona will be an asset. However, progress has been made in the development of potential other locations abroad. For example, in March 2017, a Letter of Intent was signed with a renowned Italian business for the development of an indoor ski resort in northern Italy. The plan is that the Italian partner will make the land available that is needed for the ski resort, while making a significant contribution to the financing of the project. The construction of the complex is expected to start in FINANCIAL DEVELOPMENT General The proposal to distribute an optional dividend of 0.30 per share was unanimously approved at the shareholders meeting on 17 March The majority of shareholders have opted for distribution of stock dividends (25 existing shares entitled the bearer to 1 new share). Since only a small proportion of shareholders chose a cash dividend, a limited amount of cash was paid out. The dividend payment was effected on 7 April 2017, meaning it has not yet been included in the figures of the first half-year of 2016/2017. Performance for the 1st half-year of 2016/2017 The consolidated results for the first half of financial year 2016/2017 (1 October 2016 to 31 March 2017), can be represented as follows: (in thousands of euros) 1 st half year 1 st half year 2016/ /2016 Net revenue 19,345 18,685 Gross profit 17,158 16,598 EBITDA 9,108 8,881 Operating result (EBIT) 7,256 7,120 Result after tax 4,781 4,652 2

3 The developments of the gross profit per segment/location can be shown as follows: (in thousands of euros) 1 st half year 2016/ st half year 2015/2016 difference cost- gross cost- gross gross revenue price margin revenue price margin margin Ski 12, ,462 11, ,920 5,0% Hospitality 4,995 1,564 3,431 4,829 1,500 3,329 3,1% Fitness ,7% Hotel ,1% Outdoor ,8% Other ,9% 19,345 2,187 17,158 18,685 2,087 16,598 3,4% Zoetermeer 8, ,854 7, ,721 16,9% Landgraaf 10,521 1,217 9,304 11,078 1,201 9,877-5,8% 19,345 2,187 17,158 18,685 2,087 16,598 3,4% Compared to the same period last year, turnover for the first half of financial year 2016/2017 has increased by 3.5%, to 19.3 Million. The company s gross margin also increased compared to last, by as much as 3.2%, to 17.5 million. Particularly in the Ski segment (consisting of sales revenue from ski passes sold, lessons, and the rental of ski and snowboard equipment), both turnover and gross profit rose. This is the direct result of the 5.2% increase in the number of ski passes sold, compared with the first six months of 2015/2016. The average ticket revenue was comparable to last year. All revenue components in the Ski segment increased by a substantially equal percentage. The increase in catering income by 3.4% remained slightly behind the rise in ski revenues. The number of visitors in Zoetermeer increased sharply (by 17.3%) due to the extended third ski slope opened there in October Immediately after the opening of the extended third ski slope, the increase in visitor numbers in Zoetermeer was still limited. The visitor numbers only increased sharply compared to the same period in the previous year in the second quarter of the 2016/2017 financial year, once the extension had become better known to the general public. The branch in Landgraaf showed a decline in visitors of 4.4%, especially in November and December. The higher turnover led to a slight increase in staffing. Staff costs per FTE also increased slightly. The total increase in staff costs has remained limited at 2.6%, but this is partly due to the outsourcing of cleaning operations and due to a shift towards hiring more staff (freelancers). Other operating expenses increased by 5.7%, mainly due to higher additional staff costs (hiring freelancers and business clothing) and higher cleaning costs. On the other hand, there was a decrease in the cost of energy and water, as a result of the investment in a new engine room in Zoetermeer. EBITDA for the first 6 months of the financial year of 9.1 million is 0.2 million (2.6%) higher than the same period last year. 3

4 Depreciation costs increased by 5.2% compared with last year, mainly due to the investments in the extension of the third ski slope and the engine room in Zoetermeer. EBIT for the first 6 months of the 2016/2017 financial year increased by 1.9% to 7.3 million, compared with the previous financial year. Despite the increase in interest-bearing debt, interest expenses remained almost the same as last year, due to a fall in the average interest rate. Net profit over the same period increased by 2.8%, to 4.8 million. Earnings per share in the first half of financial year 2016/2017 were This is an increase of 0.04 (2.6%) per share, compared with the same period last year. The total earnings per share increased by 10.8%, from 1.57 in the first half of 2015/2016, to 1.74 in the first half of 2016/2017. Balance sheet as at 31 March 2017 The consolidated balance sheet at the end of March is as follows: (in thousands of euros) 31 March 30 September Intangible non-current assets Property, plant and equipment 60,750 60,014 Financial non-current assets Working capital -4,918-4,238 56,915 56,722 Provisions Non-current liabilities -39,532-41,221 Receivable from shareholder Cash and cash equivalents 1,042-2,316 Group equity 18,435 13,187 Solvency Due to the addition of the positive after-tax result to the reserves, and the lower hedge reserve (because the negative value of the interest rate swap fell), group equity increased by 39.8%, from 13.2 million as of 30 September 2016, to 18.4 million as of 31 March A comparison of group equity as at 31 March 2017 with 31 March 2016 shows an increase of 21.7%. Solvency thus increased from 20.9% at 30 September 2016, to 28.7% on 31 March The guarantee capital rose from 22.2% to 30.0% during the same period. It should be noted that the tangible fixed assets, mainly commercial buildings and land, are valued at cost price, less straight line depreciation. The current value of the business buildings and land as at September 2016 amounts to 76.6 million (derived from the 2015/2016 financial statements). This is 15.8 million higher as at 31 March 2017, than the valuation based on historical cost. The solvency and guarantee capital do not consider these potential hidden reserves. Operating capital The traditionally negative operating capital follows a seasonal pattern. As at 31 March, operating capital is normally more negative than at 30 September. In financial year 2015/2016, operating capital was adversely affected due to the high creditor position (due to the many investments). Despite the fact that the creditor position was again at a normal level as at 31 March 2017, operating capital was 4.9 million negative. This high negative balance was caused by the large amount of taxes and social contributions due. As at 31 March 2017, 1.1 million more in corporation tax was due than on 30 September 2016, which was due, on the one hand, to the high performance corresponding to the usual seasonal pattern. In addition, there was a shift from deferred corporation tax to actual corporate income tax due, as a result of a reduction of a fiscal maintenance reserve. Turnover tax also increased 4

5 compared with 30 September 2016, by 0.8 million. As at 30 September 2016, an amount of turnover tax was still due, as a result of the investments, which turned into a turnover tax debt as at 31 March Interest-bearing debt Mainly as a result of the operating cash flow achieved over the first 6 months of 2016/2017, interest-bearing liabilities (excluding interest rate swaps) decreased by 4.4 million (10.9%), from 40.5 million to 36.1 million. The interest-bearing debt is made up as follows: (in thousands of euros) 31 March 30 September Non-current liabilities 34,770 36,697 Repayment obligation on non-current liabilities 4,762 4,524 Receivable from shareholder Debts to credit institutions / Cash and cash equivalents -1,042 2,316 38,480 43,496 Less: interest-rate swap liability -2,354-2,967 36,126 40,529 SnowWorld Leisure N.V. has a credit arrangement with ABN AMRO Bank. This facility is SnowWorld s main source of financing. SnowWorld has agreed ratios with ABN AMRO Bank regarding a minimum guarantee capital, maximum Total net debt / EBITDA ratio and minimum Debt Service Capacity Ratio (DSCR). As at 31 March 2017, SnowWorld met these ratios. The share As of 31 March 2017, the number of outstanding shares was 3,029,850 (equivalent to the number as at 31 March 2016). As a result of a stock dividend, 116,513 new shares will be issued in the second half of financial year 2016/2017. The closing price as at 30 September 2016 was As at 31 March 2017, this was During the first half-year, a number of changes occurred in the positions of the major shareholders in SnowWorld s share capital. The positions as at 31 March 2017 are as follows: J.H.M. Hendriks Beheermaatschappij B.V. with 50%, Alychlo N.V. with 24%, Mr J.P. Visser with 5%, Axxion S.A. with 3%, and Value8 N.V. with 2%. OUTLOOK For SnowWorld, the first six months of the financial year are by far the most important of the year. SnowWorld generates over 70% of its annual turnover in the first six months of the year. The performance for this period therefore lays a very strong foundation for the results for the full financial year. Given the developments during the first half-year, and the closing of the third ski slope in Zoetermeer last summer, we are positive about the entire 2016/2017 financial year. For the entire 2016/2017 financial year, we expect to achieve a higher EBITDA and higher net profit than in the previous financial year. Earnings per share are also expected to be higher than in the previous year. Regular investments are expected to reach a maximum of 1.7 million this financial year. In addition, investments will still be made in 2016/2017 in the completion of the extension of the third ski slope in Zoetermeer. 5

6 We will also seek a dividend payout of 30% to 50% of net profit in 2016/2017. For more information on this press release or additional information, please contact: Koos Hendriks (CEO), +31 (0) or corporate@snowworld.com Wim Moerman (CFO), +31 (0) or corporate@snowworld.com SnowWorld profile SnowWorld N.V. is a listed company based in Zoetermeer. With its two indoor ski resorts in the Netherlands, SnowWorld is one of the world leaders in the industry. Since its establishment in 1996 by Mr J.H.M. Hendriks, SnowWorld has experienced rapid growth. In connection with SnowWorld s strategy of further rolling out its proven, successful concept in Europe, SnowWorld went public in

7 CONSOLIDATED INCOME STATEMENT (in x 1,000) 1 st half year 2016/ st half year 2015/2016 Net revenue 19,345 18,685 Cost of goods sold and services provided -2,187-2,087 Gross profit 17,158 16,598 Other operating income Gross margin 17,531 16,980 Wages and salaries 4,054 3,920 Social insurance payments Depreciation of property, plant and equipment 1,852 1,761 Other operating expenses 3,699 3,494 Total operating expenses 10,275 9,860 Operating result 7,256 7,120 Financial income and expenses Result before tax 6,337 6,192 Tax -1,556-1,540 Result after tax 4,781 4,652 EBITDA 9,108 8,881 Mutation compared to the same period last year +2.6% +7.1% EBIT 7,256 7,120 Mutation compared to the same period last year +1.9% +8.0% Result after tax 4,781 4,652 Mutation compared to the same period last year +2.8% +11.7% Unaudited 7

8 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EARNINGS PER SHARE (in x 1,000) 1 st half year 2016/ st half year 2015/2016 Result after tax 4,781 4,652 Items to be recognised in the income statement in future years: Movement in valuation of interest-rate swap Effect on corporate income tax Total direct movements in group equity Total result 5,241 4,722 Earnings per share Diluted earnings per share Total result per share Diluted total result per share The company presents its earnings per share and total result per share on the basis of the issued share capital. Earnings per share is calculated by dividing the result after tax attributable to shareholders in the company by the weighted average number of ordinary shares in issue during the reporting period. The total result per share is calculated by dividing the total result attributable to shareholders in the company by the weighted average number of ordinary shares in issue during the reporting period. The average number of outstanding shares of both 2015/2016 and for 2016/2017 is, in accordance with IAS 33, adjusted for, with the payment of the stock dividend, issued new shares. In 2016/2017, the stock dividend was paid in the second half of the financial year. Unaudited 8

9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (before profit appropriation) A s s e t s (in x 1,000) 31 March September 2016 Non-current assets Intangible non-current assets Property, plant and equipment Land and buildings 56,786 46,957 Machinery and installations Other non-current assets 2,929 2,600 Assets in production 1,007 10,415 60,750 60,014 Financial non-current assets Current assets Inventory Accounts receivable Trade receivables Receivable from shareholder Tax and social insurance contributions Other receivables, accrued income and prepaid expenses ,201 1,441 Cash and cash equivalents 1, Total assets 64,327 63,047 Unaudited 9

10 L i a b i l i t i e s (in x 1,000) 31 March September 2016 Group equity 18,435 13,187 Provisions - 39 Non-current liabilities 34,770 36,697 Current liabilities Repayment obligations on non-current liabilities 4,762 4,524 Debts to credit institutions - 2,547 Payable to suppliers and trading credits 1,136 2,832 Tax and social insurance contributions 2,411 1,047 Other payable and accruals 2,813 2,174 11,122 13,124 Total liabilities 64,327 63,047 Unaudited 10

11 CONSOLIDATED STATEMENT OF CASH FLOW (in x 1,000) 1 st half year 2016/ st half year 2015/2016 Cash flow from operating activities Operating result 7,256 7,120 Adjusted for: Depreciation and amortisation 1,852 1,761 Movement in deferred tax credit (excluding interest-rate swap) Movements in working capital: Movement in inventory Movement in receivables Movement in current liabilities (excluding credit institutions) Cash flow from business operation 8,733 9,686 Interest paid Income tax paid ,712-1,718 Cash flow from operating activities 7,021 7,968 Cash flow from investment activities Investments in intangible non-current assets - - (Dis)investments in property, plant and equipment -2,588-3,227-2,588-3,227 Cash flow from investment activities -2,588-3,227 Cash flow from financing activities Dividend distributions Drawdown of non-current liabilities (excluding interest-rate swap) 1, Repayment of non-current liabilities (excluding interest-rate swap) -2,478-2,605 Cash flow from financing activities -1,075-2,430 Net cash flow 3,358 2,311 11

12 (in x 1,000) 1 st half year 2016/ st half year 2015/2016 Situation cash at 1 October 231 1,509 Situation credit institutions at 1 October -2,547 - Situation cash and cash equivalents at 1 October -2,316 1,509 Net cash flow 3,358 2,311 Situation cash at 31 March 1,042 3,820 Situation credit institutions at 31 March - - Situation cash and cash equivalents at 31 March 1,042 3,820 Unaudited 12

13 CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY (in x 1,000) Share Result for Total Issued premium Hedge Other the reporting group capital reserve reserve reserves year equity Situation at 1 October ,060 12,501-2,224-5,579 2,429 13,187 Result for the reporting year ,781 4,781 Processing of result from previous reporting year ,429-2,429 - Costs of share options Movement in valuation interest-rate swap Situation at 31 March ,060 12,501-1,764-3,143 4,781 18,435 Unaudited 13