Net operating profit SnowWorld rises to 1.8 million

Transcription

1 Press release 14 January 2015 SnowWorld sells 2.8% more ski passes Net operating profit SnowWorld rises to 1.8 million Key points 2013/2014: - Obtained listing on NYSE Euronext Amsterdam in December 2013 and share issue in February Increase in number of ski passes sold by 2.8% - Increase in net revenue by 1.5% to 25.8 million and gross margin by 0.8% to 23.3 million - Increase in net operating profit (excluding non-recurring costs relating to reverse takeover) by 3.3% to 1.8 million - Increase in net operating profit per share from 0.56 to Group equity rose by 91.6% - Interest-bearing debt (excluding interest-rate swap) decreased by 13.0% to 39.4 million Important year Last year was strategically significant for SnowWorld. In December 2013, SnowWorld obtained a listing on NYSE Euronext Amsterdam via a reverse takeover, after which new shares were issued in February In addition, in the spring of 2014, the company decided to abandon the previously announced acquisition of SnowPlanet in Spaarnwoude. The planned extension of the third slope in Zoetermeer and the new indoor ski resorts in Paris and Barcelona were further developed during 2013/2014. In operating and financial terms, 2013/2014 was a good year. 2.8% more ski passes were sold than last year. Despite slightly higher operating expenses related to the listing, net operating profit increased by 3.3% to 1.8 million. Higher net operating profit 2013/2014 Compared to last year, net revenue for the financial year has increased by 1.5% to 25.8 million, mainly due to the increase in the number of ski passes sold. The company s gross margin also increased compared to last year, by as much as 0.8%, to 23.3 million. Partly because of the listing of SnowWorld, operating expenses increased slightly, causing the operating EBITDA (excluding non-recurring costs relating to reverse takeover) for the financial year to decrease by 3.9% to 8.2 million, compared to in the previous financial year. Because of lower depreciation, EBIT rose over the financial year compared to in the previous year by 2.7% to 4.7 million. Net operating profit eventually rose 3.3% to 1.8 million. The one-off effect of the reverse takeover and the share issue of 1.9 million on group equity ( 0.5 million) and profit ( 1.4 million), of which 0.3 million were ultimately cash outflow, was not included in the net operating profit. Higher profit per share Net operating profit per share, excluding the effect of the listing, amounted to 0.68 in 2013/2014, an increase compared to the 0.56 in the previous financial year. As previously communicated, SnowWorld will propose a dividend policy at the Annual General Meeting of Shareholders on 12 March 2015, that provides a future dividend payout ratio of 30% to 50% of net profit.

2 Strengthened balance sheet ratios The processing of the reverse takeover and the proceeds of the share issue, after deduction of the one-off (theoretical) cost of both of these transactions as well as the results achieved for the financial year resulted in SnowWorld being able to strengthen its shareholders equity by 91.6% to 7.5 million. As a result the guarantee capital increased to 15.4%. This does not take into account the possible hidden reserves in land and buildings ( 49.0 million bookvalue at year-end and assessed in June 2014 at 76.7 million). As from 30 September 2014, the interest-bearing debt (excluding interest-rate swap) was reduced by 13.0% to 39.4 million. SnowWorld optimistic about 2014/2015 We are positive about the financial year 2014/2015. We believe that the effect of the difficult economic conditions on SnowWorld are now behind us. In addition, we have increased our rates for ski passes for the first time in years. This price increase and a strong focus on controlling personnel and marketing costs, lower depreciation and interest expenses, provide a solid foundation for the expected performance in 2014/2015. 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 s leading companies in this 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

3 KEY POINTS 2013/2014 General - Obtained a listing on NYSE Euronext Amsterdam in December 2013 through a reverse takeover - Issue of new shares in February 2014 to the sum of more than 6 million - Dispense with the previously announced acquisition of SnowPlanet in Spaarnwoude - Further development of extension existing ski resorts and new indoor ski resorts (third slope in Zoetermeer, Paris, Barcelona) Financial - Increase in number of ski passes sold by 2.8% - Increase in net revenue by 1.5% to 25.8 million and gross margin by 0.8% to 23.3 million - Decrease in operating EBITDA (excluding non-recurring costs of reverse takeover) by 3.9% to 8.2 million, partly due to higher recurring operating expenses related to the listing - Increase in net operating profit (excluding non-recurring costs relating to reverse takeover) by 3.3% to 1.8 million - Increase in net operating profit per share from 0.56 to One-off effect of the reverse takeover and share issue of 1.9 million on equity ( 0.5 million) and profit ( 1.4 million). Of this, 0.3 million is cash outflow - Decrease in operating cash flow (excluding effects of processing the reverse takeover) by 8.3% to 5.4 million - Increase in equity by 91.6% to 7.5 million ( 2.54 per share) - Increase in guarantee capital to 15.4% - Decrease in interest-bearing debt (excluding interest rate swap) by 5.9 million to 39.4 million GENERAL DEVELOPMENTS With its two indoor ski resorts in the Netherlands, SnowWorld is one of the world s leading in this industry. Since its establishment in 1996 by Mr J.H.M. Hendriks, SnowWorld has experienced rapid growth. The strategy formulated by SnowWorld revolves around creating value for SnowWorld s shareholders. In addition to further optimising the two current ski resorts, the strategy is aimed at continuing to roll out the proven concept in Europe. The latter can be achieved through the development of new projects or acquisition of existing indoor ski resorts. To decrease our dependence on the availability of bank credit in the implementation of the formulated strategy, SnowWorld has sought entrance to the capital market in December Through the reverse takeover of Fornix BioSciences N.V., SnowWorld has been listed on the NYSE Euronext Amsterdam exchange since December 10, To improve its balance sheet ratios, SnowWorld then issued new shares on 19 February 2014, to the sum of over 6 million. This further strengthened the company s equity capital. In the spring of 2014, SnowWorld examined the possibility of acquiring SnowPlanet in Spaarnwoude. It was concluded that the acquisition would not deliver the intended contribution to shareholder value. SnowWorld therefore decided not to pursue the acquisition. In 2013/2014, SnowWorld continued its development of three new construction projects, consisting of the extension of the current third slope in SnowWorld Zoetermeer and the development of new SnowWorld ski resorts in Paris and Barcelona. Development planning was further advanced and the zoning plan procedure begun for all three projects. 3

4 FINANCIAL DEVELOPMENT As of September 30, 2013, the SnowWorld group consisted of SnowWorld Leisure N.V. and its 100% subsidiary, SnowWorld International B.V. Because of the reverse takeover on 10 December 2013, the SnowWorld group was extended to include SnowWorld N.V. (formerly Fornix BioSciences NV) from that date. The consolidated balance sheet as at September 30, 2014, therefore includes SnowWorld N.V, with its 100% subsidiaries, SnowWorld Leisure N.V. and SnowWorld International B.V. The comparative figures concern the consolidated figures of SnowWorld Leisure N.V., which have been prepared based on IFRS principles. Profit trend The consolidated results for the financial year 2013/2014 (October 1, 2013, to September 30, 2014), can be represented as follows: (in x 1,000) Performance Listing Operating result 2013/2014 expenses 2013/ /2013 Net revenue 25,759-25,759 25,378 Gross margin 23,280-23,280 23,090 EBITDA 6,770 1,437 8,207 8,542 Operating result (EBIT) 3,308 1,437 4,745 4,619 Result after tax 386 1,381 1,767 1,710 Application of the International Financial Reporting Standards (IFRS) in the processing of the reverse takeover and share issue has resulted in a one-off cost item of 1.9 million. Of this, 1.4 million was allocated to the result and 0.5 million to the company s equity. Of these total costs, 0.3 million is an actual cash outflow. Compared to the previous year, net revenue for the financial year has increased by 1.5%, to 25.8 million. The company s gross margin also increased compared to last year, by as much as 0.8%, to 23.3 million. The number of ski passes sold increased by 2.8%. This has resulted in an increase in revenue from ski activities, consisting of revenue from ski pass sales, revenue from lessons and revenue from the rental of ski and snowboard equipment. A slight increase in the number of staff and the cost of a share option scheme led to an increase in personnel costs. Sales and distribution costs increased slightly during the year. In contrast, accommodation costs declined. A number of cost items increased structurally this year as a result of the listing. This primarily involves costs relating to Euronext and AFM, audit fees and costs relating to the Board of Supervisory Directors. On balance, the operating EBITDA for the year compared to the previous year decreased by 3.9% to 8.2 million. Because of lower depreciation, EBIT rose over the financial year compared to in the previous year by 2.7% to 4.7 million. Net operating profit eventually rose 3.3% to 1.8 million. 4

5 Year-end balance sheet The consolidated balance sheet at the end of the financial year is as follows: (in x 1,000) 30 September 30 September Intangible non-current assets 1,044 1,044 Property, plant and equipment 53,057 55,109 Financial non-current assets Working capital -3,279-3,150 51,002 53,052 Non-current liabilities -43,621-49,199 Shareholders current assets/liabilities Current account banks / Cash and cash equivalents Group equity 7,497 3,913 Solvency By adding the result to the reserves, the issue of 753,255 shares at an issue price of 8 per share on 19 February 2014 and the processing of the reverse takeover, shareholders equity increased from 3.9 million as at 30 September 2013 to 7.5 million as at 30 September Solvency thus increased from 6.7% at September 30, 2013, to 13.3% on September 30, The guarantee capital rose from 7.8% to 15.4%. It should be noted that the property, plant and equipment, mainly land and buildings, are valued at cost price, less straight-line depreciation. The current value of the land and buildings, as assessed as at June 2014, amounted to 76.7 million. That is 27.7 million higher than the valuation based on historical cost. The solvency does not consider these potential hidden reserves. Working capital The traditional negative working capital at year-end is in line with that of last year. Interest-bearing debt The reverse takeover, the issue of new shares, and the operating cash flow achieved over the past financial year have caused the interest-bearing debt (excluding interest-rate swap) to decrease by 5.9 million (13%) from 45.3 million to 39.4 million. 5

6 The interest-bearing debt is made up as follows: (in x 1,000) 30 September 30 September Non-current liabilities 39,346 44,530 Repayment obligation on non-current liabilities 4,275 4,669 Shareholders current assets/liabilities Current account banks / Cash and cash equivalents ,505 49,139 Less: interest rate swap liability -4,140-3,865 39,365 45,274 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). SnowWorld met these ratios at the end of financial year 2013/2014. Higher profit per share The average number of outstanding shares of SnowWorld N.V. for the year 2013/2014 amounted to 2,587,265. This number of shares is used as a basis for calculating the figures per share. Net operating profit per share, excluding the effect of the listing, amounted to 0.68 in 2013/2014, an increase compared to the 0.56 in the previous financial year. Operating cash flow per share amounted to Group equity per share (based on 2,950,163 shares outstanding at year-end) amounted to 3.20 at year-end 2013/2014. As previously communicated, there will be no dividend proposal for the financial year 2013/2014. A dividend policy is proposed for the agenda of the Annual General Meeting of Shareholders on March 12, 2015, that provides a future dividend payout ratio of 30% to 50% of result after tax. The share Until 10 December 2013, Fornix Biosciences N.V. held 8,047,688 shares with a nominal value of Through a reverse share split on 10 December 2013, this was reduced by a factor of 25 to 321,908 shares with a nominal value of Through the issuance of 1,875,000 shares in connection with the reverse takeover of SnowWorld on 10 December 2013, and the share issue on 19 February 2014 (753,255), the number of shares outstanding as at 30 September 2014 was 2,950,163. Prior to the announcement of the reverse takeover by SnowWorld, the share price of Fornix BioSciences N.V. (adjusted for the reverse share split) amounted to 8 per share. This rate was also used by SnowWorld as issue price, both for the shares issued in connection with the reverse takeover and for the shares issued in the offering of 19 February On 30 September 2014, the closing price was also 8. As at 1 October 2014, current major shareholders in the share capital of SnowWorld were J.H.M. Hendriks Beheermaatschappij B.V. with 68%, Value8 N.V. with 15% and Mr J.P. Visser with 3%. 6

7 PROSPECTS We are positive about the financial year 2014/2015. We believe that the effect of the difficult economic conditions on SnowWorld are now behind us. In addition, we have increased our rates for ski passes for the first time in years. This price increase and a strong focus on controlling personnel and marketing costs, lower depreciation and interest expenses, provide a solid foundation for the expected performance in 2014/2015. The financial statements included in this press release are derived from the Annual Report 2013/2014, dated January 14, This Annual Report can be downloaded at 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 s leading companies in this 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

8 CONSOLIDATED INCOME STATEMENT (in x 1,000) 2013/ /2013 Net revenue 25,759 25,378 Cost of goods sold and services provided -3,223-3,146 Gross profit 22,536 22,232 Other operating income Gross margin 23,280 23,090 Wages and salaries 6,786 6,560 Social insurance payments 1,209 1,160 Depreciation of property, plant and equiment 3,462 3,923 Other operating expenses 8,515 6,828 Total operating expenses 19,972 18,471 Operating result 3,308 4,619 Financial income and expenses -2,285-2,343 Result before tax 1,023 2,276 Tax Result after tax 386 1,710 EBITDA 6,770 8,542 Adjusted for flotation cost 8,207 8,542 EBIT 3,308 4,619 Adjusted for flotation cost 4,745 4,619 Result after tax 386 1,710 Adjusted for flotation cost 1,767 1,710 Derived from the Annual Report of SnowWorld N.V. dated January 14,

9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EARNINGS PER SHARE (in x 1,000) 2013/ /2013 Result after tax 386 1,710 Items to be recognised in the income statement in future years: Movement in valuation of interestrate swap ,129 Effect on corporate income tax Total direct movements in Group equity Total result 180 2,557 Earnings per share Earnings per share (adjusted for flotation costs) Diluted earnings per share Total result per share Total result per share (adjusted for flotation costs) Diluted total result per share Derived from the Annual Report of SnowWorld N.V. dated January 14,

10 CONSOLIDATED BALANCE SHEET (before appropriation of results) A s s e t s (in x 1,000) 30 September September 2013 Non-current assets Intangible non-current assets 1,044 1,044 Property, plant and equipment Land and buildings 49,038 51,231 Machinery and equipment Other non-current assets 2,321 2,415 Assets in production 1,586 1,242 53,057 55,109 Financial non-current assets Current assets Inventory Accounts receivable Trade receivables Receivable from shareholder - 13 Tax and social insurance contributions Other receivables, accrued income and prepaid expenses Cash and cash equivalents Total assets 55,980 57,867 Derived from the Annual Report of SnowWorld N.V. dated January 14,

11 E q u i t y a n d l i a b i l i t i e s (in x 1,000) 30 September September 2013 Group equity 7,497 3,913 Non-current liabilities 39,346 44,530 Current liabilities Repayment obligation on non-current liabilities 4,275 4,669 Debts to credit institutions Payable to suppliers and trading credits 1,420 1,627 Payable to shareholder 67 - Tax and social insurance contributions Other payables and accruals 2,317 2,376 9,137 9,424 Total equity and liabilities 55,980 57,867 Derived from the Annual Report of SnowWorld N.V. dated January 14,

12 CONSOLIDATED STATEMENT OF CASH FLOW (in x 1,000) 2013/ /2013 Cash flow from operating activities Operating result 3,308 4,619 Adjusted for: Depreciation and amortisation 3,462 3,923 Movement in deferred tax credit (excluding interest-rate swap) Costs of reverse takeover (non cash items) 1,242 - Movements in working capital: Movement in inventory Movement in receivables Movement in current liabilities (excluding credit institutions) -74-1, Cash flow from business operation 7,845 8,369 Interest paid -2,250-2,366 Income tax paid ,608-2,448 Cash flow from operating activities 5,237 5,921 Cash flow from investment activities Reverse takeover: Cash acquired 1,233 - Assets/liabilities acquired -1-1,232 - Investments of property, plant and equipment -1,523-1,126 Divestments of property, plant and equipment ,410-1,107 Cash flow from investment activities ,107 Cash flow from financing activities Proceeds of share issue 5,930 - Buy-back of own shares - -5,600 Drawdown of non-current liabilities (excluding interest-rate swap) 400 5,355 Repayment of non-current liabilities (excluding interest-rate swap) -11,253-4,580 Cash flow from financing activities -4,923-4,825 Net cash flow

13 (in x 1,000) 2013/ /2013 Situation cash at 1 October Situation credit institutions at 1 October Situation cash and cash equivalents at 1 October Net cash flow Situation cash at 30 September Situation credit institutions at 30 September Situation cash and cash equivalents at 30 September Derived from the Annual Report of SnowWorld N.V. dated January 14,

14 CONSOLIDATED STATEMENT OF MOVEMENTS IN GROUP EQUITY (in x 1,000) Total Share Premium Hedge Other Result for Group capital reserve reserve reserves the year equity Situation at 1 October ,207 10,326-3,746-1,915 1,084 6,956 Result for the year ,710 1,710 Processing of result from previous year ,084-1,084 - Buy-back of own shares , ,600 Movement in valuation interest-rate swap Situation at 30 September ,207 10,034-2,899-6,139 1,710 3,913 Situation at 1 October ,207 10,034-2,899-6,139 1,710 3,913 Result for the year Processing of result from previous year ,710-1,710 - Reverse takeover ,474-2,474 Vendor loan , ,000 Proceeds of share issue 2,825 3, ,026 Issue of shares due to reverse takeover 7, , Costs of share issue Costs of share options Movement in valuation interest-rate swap Situation at 30 September ,063 12,687-3,105-13, ,497 Derived from the Annual Report of SnowWorld N.V. dated January 14,