THREE-MONTH REPORT 1 SEPTEMBER 30 NOVEMBER 2010

Transcription

1 THREE-MONTH REPORT 1 SEPTEMBER 30 NOVEMBER 2010 Tandådalen, Sälen, November 2010 SIGNIFICANT EVENTS DURING THE PERIOD * Net sales and profi t - Net sales amounted to MSEK 44 (41). - Income before taxes amounted to MSEK 255 ( 242). - Income after taxes amounted to MSEK 234 ( 222). - Earnings per share increased to SEK 5.96 ( 5.67). SIGNIFICANT EVENTS AFTER THE PERIOD * The volume of bookings is 7% lower than at the corresponding time in the previous year. CEO Mats Årjes comments on the current situation: Favourable weather conditions with prolonged cold have meant that, in principle, snow production for the entire winter season is complete. A weaker period over Christmas and New Year, as a result of fewer public holidays, has a negative effect on accommodation sales, at the same time as a late Easter implies a long winter season and thereby, good possibilities of maintaining a high level of bookings later in the season.

2 Three-month report 1 SEPTEMBER 30 NOVEMBER 2010 Comments from the CEO Accommodation sales don t quite reach the record figures of last year, but are in line with the year before that, when the Business Area Destinations reported its best ever result. Christmas and New Year falling on weekends and, therefore, fewer free days, is the primary cause of the accommodation sales displaying an 7% fall in volume, to 446,000 overnight stays. Of the entire winter season s planned accommodation sales, 73% (80) has already been sold. A later Easter implies a longer winter season and, usually, a later demand for bookings. Unusually early prolonged and severe cold has meant that, in principle, snow production for the entire winter is already complete. This is a positive, in that it guarantees the skiing for the winter season, and in that snow production over a shorter period and at lower temperatures is more cost-effective. The Business Area Property is increasing the sales of shares within the holiday concept SkiStar Vacation Club, with more apartments in Lindvallen and the expansion of the concept to the next destination, Hemsedal in Norway. Within a few years, SkiStar Vacation Club will be established at all of SkiStar s destinations, and our belief is that the business will be substantial. Net profit for the SkiStar Group during the first quarter is somewhat lower than the previous year, with higher costs, due to more extensive snow production during the period, as well as the new associated company, Experium AB, generating a deficit in the autumn. The overall assessment is that conditions are favourable for a good winter season. This is SkiStar SkiStar is listed on the Nasdaq OMX Mid Cap, Stockholm. The Group owns and operates alpine destinations in Sälen, Åre and Vemdalen in Sweden and Hemsedal and Trysil in Norway. The Group s core business is alpine skiing, with a focus on the guests overall skiing experience. Operations are divided into two Business Areas; Destinations, consisting of skiing, accommodation services, ski school and ski rentals, and Property, which includes construction and development. As the leading operators of European alpine destinations, SkiStar s vision is to create memorable winter experiences, providing value for guests, employees and other interested parties, and, in turn, ensuring value for our shareholders. Sales and income The Group s net sales increased by MSEK 3 to MSEK 44 (41), income before taxes decreased by MSEK 13 to MSEK 255 (-242) and income after taxes decreased by MSEK 12 to MSEK 234 (-222). Earnings per share amounted to SEK 5.96 (-5.67). Operating income from Destinations operations amounted to MSEK 240 (-239). The income was impacted by higher expenditure, as a result of more extensive snow production during November compared with the previous year. The earnings in the Business Area Destinations first arise in December, which is the reason why the results for the first quarter are always negative. Operating income for the Business Area Property decreased to MSEK 3 (6), due to a lower level of sales of plots of land and apartments, expenses attributable to newly-started operations within SkiStar Vacation Club and a deficit from the associated company Experium, all of which negatively impacted the result. The sale of shares in SkiStar Vacation Club is displaying the same seasonal pattern as other parts of the operations, as sales are made to visiting guests. The deficit from net financial income/expenses has increased by MSEK 2 to MSEK 12 due to higher interest rates. The exchange rate fluctuations NOK/SEK have positively affected income after taxes by MSEK 3 as a result of a strong Swedish krona. Cash flow Cash flow from operating activities before 2 changes in working capital amounted to MSEK 206 (-205) and after changes in working capital to MSEK 94 (79). Changes in working capital are primarily a result of advance payments from booked guests. Cash flow for the period after investing activities amounted to MSEK 51 (-32). Investments, sales and acquisitions Investments during the period amounted to MSEK 122, net. Investments within the Business Area Destinations amounted to MSEK 114, net, and were primarily comprised of investments in replacements, strengthening of the Group s snowmaking capacity and development of the ski areas in Björnrike in Vemdalen, Björnen in Åre and Hundfjället in Sälen. Investments within the Business Area Property amounted to MSEK 8, net, and referred primarily to renovation of apartments for hire and the development of SkiStar Vacation Club in Sälen. During the period, a plot of land in Sälen was sold for MSEK 2 with value added gains of MSEK 1. Liquidity and financing The Group s liquid funds amounted to MSEK 309 (414), including unutilised credits of MSEK 262 (382). The interestbearing net debt increased during the period by MSEK 10 to MSEK 1,843, due to the seasonal weak earnings during the first quarter. Average interest expenses (net interest income/expenses/average interest-bearing net debt) amounted, during the period, to 2.4% (2.1%). The share The number of shareholders was 17,008 on 30 November 2010, which is an increase of 616 (4%) since 31 August. The total number of shares was 39,188,028. In addition, there is a convertible subordinated debenture, d esignated 2007/12, of MSEK 30 which can be converted to a maximum of 250,000 Class B shares. The debenture

3 matures in 2012 and can be converted at any point at a price of SEK 138. Full conversion of the subordinate debenture corresponds to a dilution of 0.6% of the share capital and 0.4% of the votes in the Company. Personell During the period, the average number of employees increased by 20 persons to 750, compared with the same period in the previous year, as a result of advanced snow production. Transactions with related parties The Group is under the controlling influence of the brothers Erik and Mats Paulsson, together with their families and companies. As per 30 November, they, together, own approximately 55% of the votes in the Parent Company. The Peab Group is also under the controlling influence of the brothers Erik and Mats Paulsson, together with their families and companies. Mats Paulsson is the Managing Director of Peab AB. SkiStar purchases building contracts, among other things, from companies within the Peab Group, in connection with investments in facilities. During the period, purchases from the Peab Group have been made at a value of MSEK 12. The outstanding liability to Peab was MSEK 5 as per 30 November During the period, purchases from related parties have been made at a value of MSEK 4. The outstanding liability to related companies was MSEK 3. During the period, purchases from associated companies have been made at a value of MSEK 4. The outstanding liability to associated companies was MSEK 3. Sales to associated companies and to the Peab Group have been made at a value of MSEK 1 and outstanding receivables from associated companies amounted to MSEK 30. In addition to the Group s transactions with related parties, the Parent Company has transactions with the subsidiaries. Transactions with related parties have taken place on the basis of market conditions. Risks and factors of uncertainty The number of guests at SkiStar s destinations is affected by weather and snow conditions. A late winter and poor access to natural snow dampens the demand. However, the risk to operations is limited by the fact that over 70% of the available accommodation capacity is booked prior to Christmas. In addition, SkiStar has well-developed snow systems which ensure skiing on the pistes connected to approximately 80% of the total lift capacity. However, a prolonged lack of cold weather during, primarily, November and December implies limitations to the range of skiing on offer. SkiStar s five destinations are situated at different locations around Scandinavia with different weather conditions, which reduces the Group s overall exposure to weather-related risk. During November 2010, the temperatures have been extremely favourable for snow production, which is why the entire winter season s snow production has, in principle, been carried out as early as November. A tax investigation has proposed that the regulations regarding the income tax-free status of operations located on specially assessed property should be revoked. These regulations are currently applicable in SkiStar s Swedish operations. This change in regulation is proposed to come into effect on 1 January 2011, but the work is delayed, and no new date for the change in the regulations has been proposed. Furthermore, SkiStar has determined unutilised losses carried forward amounts of MSEK 844, which can be utilised from the current financial year 2010/11. Parent Company The Parent Company s net sales amounted to MSEK 24 (25) and income before tax to MSEK 175 (-167). Prospects for 2010/11 Current accomodation sales prior to the winter season are the second best in the history of the Company, 7% lower than last year, but in line with accommodation 3 sales of two years ago. The lower level of accommodation sales is primarily due to the Christmas and New Year weeks containing fewer public holidays than the previous year. Also, Easter will be later, which means the season is longer and that bookings are postponed until the later part of the season. In total, 446,000 overnight stays have been booked, up to and including 19 December Up to and including the same date, accommodation has been sold amounting to MSEK 478, a decrease of 3% compared to the previous year. Of the entire winter season s planned accommodation sales, 73% (80) has already been sold. Sales via skistar.com continue to increase and, thus far, 67% (64) of total sales have taken place via the web. New cabins and apartments will be built for season 2010/11 comprising a total of approximately 700 commercial beds and approximately 1,000 noncommercial beds. Investments before the 2010/11 season have, in principle, been concluded. Pistes and lifts in three skiing areas have been developed for the season; in Björnrike in Vemdalen, new pistes and a new 6-chair lift are in use, in Björnen in Åre, new pistes and a T-bar lift have been constructed and in Hundfjället in Sälen, a new skiing area, comprising a T-bar lift and two new slopes, has opened. Decisions regarding investments before the 2011/12 season will be made during the winter and communicated in the half-year report. In the long-term, the investments within the Business Area Destinations shall not exceed the Group s depreciation level (approximately MSEK 220). Within the Business Area Property, investments should not, in the long-term, exceed the level of disposals and sales. During the winter season, the range of shares within the holiday concept SkiStar Vacation Club will expand, with more apartments in Lindvallen and start-up in Hemsedal. Annual General Meeting and Board Meeting At the Annual General Meeting at Experium in Lindvallen, Sälen on 11

4 December 2010, there were 179 shareholders present, representing 73% of the votes in the Company. Among other things, the following resolutions were made at the Annual General Meeting: dividends were established at SEK 5.50 per share (5.00), Erik Paulsson, Mats Qviberg, Mats Paulsson, Per-Uno Sandberg, Eva-Karin Dahl, Olle Larsson and Mats Årjes were re-elected as Board members, with Erik Paulsson as Chairman of the Board, the Board fees were established at a total of TSEK 730 (unchanged level), of which TSEK 155 comprised compensation to the Chairman and TSEK 115 for each of the other Board members elected by the Annual General Meeting and nonemployees in the Company. Erik Paulsson, Mats Qviberg, Mats Paulsson and Per Limberg were re-elected as members of the Nomination Committee with Erik Paulsson as the Chairman, the principles proposed by the Board for remuneration and other employment conditions for company management were determined, the Board of Directors was authorised to resolve upon acquisitions and the transfer of own shares. At the Board meeting following election, held directly after the Annual General Meeting, the following decisions were made; The Compensation Committee shall be comprised of Erik Paulsson, Mats Qviberg and Mats Paulsson, with Erik Paulsson as Chairman. The Audit Committee shall be comprised of Per-Uno Sandberg, Eva-Karin Dahl and Olle Larsson, with Per-Uno Sandberg as the Chairman Financial information The interim The Interim reports for the financial year and the year-end report will be published as follows; Half-year report 1 September February 2011, on 22 March 2011, Nine-month report 1 September May 2011, on 22 June 2011, Year-end report 1 September August 2011, on 6 October Accounting principles The Interim report is prepared in accordance with IAS 34 Interim Financial Reporting. In addition, the applicable provisions of the Annual Accounts Act and the Swedish Securities Market Act have been applied. Since 1 September 2005, SkiStar prepares its consolidated accounts in accordance with the IFRS standards which have been adopted by the EU Commission. The Parent Company reports in accordance with the Annual Accounts Act and the Swedish Securities Market Act, which are in accordance with the provisions in RFR 2.3. The Accounting Principles applied for the Group and Parent Company correspond with the accounting principles applied in the preparation of the latest Annual Report. DEFINITIONS Earnings on capital employed Profit/loss after net financial income/ expense plus financial costs in relation to average capital employed. Capital employed is defined as assets less non-interest-bearing liabilities. Earnings on equity Profit/loss after tax in relation to average equity. Earnings on total capital Profit/loss after net financial income/ expense plus financial costs, in relation to average balance sheet total. Gross margin Operating profit/loss before depreciation in relation to sales. Operating margin Operating profit/loss after depreciation in relation to sales. Net margin Profi t/loss before taxes in relation to sales. Equity/assets ratio Equity in relation to average balance sheet total. Earnings per share Net profit/loss for the year attributable to the Parent Company s shareholders, divided by average number of shares. Earnings per share after full conversion Net profit/loss for the year attributable to the Parent Company s shareholders, adjusted for interest expenses, after tax, on convertible loans, and divided by the number of shares after full conversion of subscribed convertibles. Share price/cash flow Share price as per report date divided by cash fl ow per share. Equity per share Equity divided by average number of shares for the report period. Share price/equity Share price as per closing date divided by equity per share. Interest-bearing net liabilities Net liabilities less interest-bearing assets and cash and cash equivalents. 4

5 Statement of Comprehensive Income, summery, TSEK 1 September- 30 November 3 months 1 Dec - 30 Nov 12 months 1 Sep - 31 Aug 12 months / /10 Net sales 43,509 41,114 1,690,788 1,688,393 Other income 1,562 3,786 38,021 43,369 Total operating income 41,947 44,900 1,728,809 1,731,762 Goods for resale 10,843 8, , ,873 Other external expenses 128, , , ,823 Personnel expenses 94,186 90, , ,778 Depreciation 51,589 54, , ,032 Operating profit/loss 243, , , ,256 Financial net 11,520 9,419 18,748 16,647 Profit/loss before tax 254, , , ,609 Tax 21,316 20,151 11,749 12,914 Profit/loss for the period 233, , , ,695 Other comprehensive income Translation gains/losses on consolidation for the period, attributable to the translation of foreign operations 13,495 14,710 33,344 5,143 Other comprehensive income for the period 13,495 14,710 33,344 5,143 Total comprehensive income for the period 247, , , ,552 Profit/loss for the period attributable to: The Parent Company s shareholders 233, , , ,695 Profit/loss for the period 233, , , ,695 Total comprehensive income for the period attributable to: The Parent Company s shareholders 247, , , ,552 Profit/loss for the period 247, , , ,552 Earnings per share before dilution, SEK after dilution, SEK Total number of outstanding shares at the end of period before dilution 39,188,028 39,188,028 39,188,028 39,188,028 after dilution 38,438,028 39,438,028 39,438,028 39,438,028 Average number of shares outstanding before dilution 39,188,028 39,188,028 39,188,028 39,188,028 after dilution 39,438,028 39,438,028 39,438,028 39,438,028 Distribution of net sales, MSEK 1 September 30 November 3 months 1 September - 31 August 12 months / /10 SkiPass Accommodation Ski rental Ski school/activities Sporting goods outlets Property services Capital gains Other Total ,691 1,688 5

6 The Group s business segments, MSEK Income and profit/loss per business segment 1 September - 30 November Group-wide expences have been appotioned on the basis of estimated benefit. Sälen Åre Vemdalen Hemsedal 2010/ / / / / / / /10 Income from external clients Income from other segments 1 1 Operating expenses Operating expenses from other segments Depreciaton Profit/loss for the segment Operating margin for the segment, % neg neg neg neg neg neg neg neg Trysil Property Development Inter-segment eliminations Total Group 2010/ / / / / / / /10 Income from external clients Income from other segments Operating expenses Operating expenses from other segments 10 8 Depreciation Profit/loss for the segment Operating margin for the segment % neg neg neg 55 neg neg Financial items, net 12 9 Group profit/loss before tax Quarterly results, TSEK 2010/ /10 Sep-Nov Dec-Feb March-May June-Aug Sep-Nov Sep-Nov Dec-Feb March-May June-Aug Year Quarterly income 41,947 41,947 44, , ,702 18,326 1,731,762 Quarterly profit/loss 245, , , , , , ,256 Profit/loss before tax 254, , , , , , ,609 Operating margin, % neg neg neg neg 21 Cash flow statement for the Group, summery,tsek 1 September 30 November 1 Sep - 31 Aug /10 Operating activities Profit/loss after financial items 254, , ,609 Adjustments for non-cash items 54,376 47, ,777 Paid tax 5,493 10,920 1,575 Changes in working capital 299, ,346 43,632 Cash flow from operating activities 93,816 78, ,179 Cash flow from investment activities 145, , ,483 Cahs flow from financing activities 65,801 23, ,470 Cash flow for the period 14,382 8, Cash and cash equivalents at the beginning of the year 38,398 39,432 39,432 Exchange rate difference in cash and cash equivalents 6,035 1, Cash and cash equivalents at the end of the year 46,745 31,878 38,398 Unutilised credits 261, , ,798 Available liquidity 308, , ,196 6

7 Statement of financial position for the Group, summery, TSEK 31 August 31 August Assets Fixed assets Intangible fixed assets 207, , ,441 Tangible fixed assets 3,004,713 3,050,912 2,945,408 Financial fixed assets 308, , ,386 Total fixed assets 3,520,319 3,540,253 3,474,235 Current assets Inventories 99,228 90,065 54,411 Current receivables 221, , ,890 Cash and cash equivalents 46,745 31,878 38,938 Total current assets 367, , ,239 Total assets 3,887,839 3,870,947 3,726,474 Equity and liabilities Equity 1,250,041 1,164,98 1,497,216 Long-term liabilities Interest-bearing liabilities 1,840,244 2,032,908 1,922,468 Interest-bearing provisions, pensions 6,136 7,368 6,150 Non-interest-bearing liabilities Non-interest-bearing provisions 1,765 13,808 1,558 Defferred tax liabilities 7, ,239 Total long-term liabilities 1,856,549 3,870, 947 3,726,474 Current liabilities Interest-bearing liabilities 155,521 22,207 20,981 Non-interest-bearing liabilities 625, , ,296 Total current liabilities 781, , ,277 Total liabilities 2,637,798 2,706,649 2,229,258 Total equity and liabilities 3,887,839 3,870,947 3,726,474 Pledged assets and contingent liabilities Pledged assets 2,011,155 1,992,286 2,008,117 Contingent liabilities 56,072 56, ,483 Statement of change in equity for the Group, summery, TSEK Equity attributable to the Parent Comapny s shareholders Share capital Other contributed capital Translation reserve Retained earnings on profit/loss for the year Total equity Opening equity 1 September , ,573 11, ,161 1,371,603 1,371,603 Total comprehensive income for the period 14, , , ,305 Closing equity 30 November , ,573 25, ,146 1,164,298 1,164,298 Total Opening equity 1 September , ,573 6,131 1,073,918 1,497,216 1,497,216 Total comprehensive income for the period 13, , , ,175 Closing equity 30 November , ,573 7, ,238 1,250,041 1,250,041 7

8 Key ratios and data per share. TSEK Key ratios 1 September 30 November 1 Sep - 31 Aug /10 Net sales, TSEK 43,509 41,114 35,306 31,329 24,010 1,688,393 Operating income, TSEK 41,947 44,900 39,829 45,140 29,659 1,731,762 Profit/loss before tax, TSEK 254, , , , , ,609 Profit/loss after tax, TSEK 233, , , , , ,695 Cash flow before changes in working capital, TSEK 206, , , , , ,811 Cash flow, total, TSEK 14, Earnings on - capital employed, % neg neg neg neg neg 11 - equity, % neg neg neg neg neg 23 - total capital, % neg neg neg neg neg 10 Gross margin, % neg neg neg neg neg 34 Operating margin, % neg neg neg neg neg 21 Net margin, % neg neg neg neg neg 20 Equity/assets ratio,% / / /09 Sep-Nov June-Aug March-May Dec-Feb Sep-Nov June-Aug March-May Dec-Feb Net sales, TSEK 43, , ,415 21,781 41,114 31, , ,603 Opearating income, TSEK 41, , ,702 18,326 44,900 26, , ,561 Profit/loss before tax, TSEK 254, , , , , , ,587 Profit/loss after tax, TSEK 233, , , , , , ,501 Cash flow before changes in working capital, TSEK 206, , , , , , , ,822 Cash flow, total, SEK 14,381 87,502 54,384 25,120 8,772 14,862 40,348 7,953 Gross margin, % neg neg neg neg Operating margin, % neg neg neg neg Net margin, % neg neg neg neg Data per share 30 November 31 August Stock market price, SEK Average number of shares 39,188,028 39,188,028 39,188,028 39,172,313 39,115,552 39,188,028 Average number of shares after full conversion 39,438,028 39,438,028 39,438,028 39,438,028 39,188,028 39,438,028 Earnings, SEK Earnings after full conversion, SEK Cash flow before changes in working capital, SEK Share price/cash flow, times *) Equity, SEK Stock market price/equity, % / / /09 Sep-Nov June-Aug March-May Dec-Feb Sep-Nov June-Aug March-May Dec-Feb Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 Average number of shares after full conversion 39,438,028 39,438,028 39,438,028 39,438,028 39,438,028 39,438,028 39,438,028 39,438,028 Earnings SEK Earnings after full conversion, SEK Cash flow before changes in working capital, SEK : *) before changes in working capital 8

9 Parent Company s income statement, summery, TSEK 1 Sep 30 November 3 months 1 Sept 31 Aug 12 months /10 Net sales 23,740 25,027 1,145,049 Other income 3,024 6,174 20,398 Total operating income 26,764 31,201 1,165,447 Goods for resale 5,472 6,834 83,612 Other external expenses 98,359 95, ,403 Personnel expenses 63,403 61, ,484 Depreciation 29,203 29, ,138 Operating profit/loss 169, , ,810 Financial net 5,643 4,485 11,957 Profit/loss after financial net 175, , ,767 Appropriations 72,112 Profit/loss before tax 175, , ,655 Tax 459 Profit/loss for the period 175, , ,196 Parent Company s balance sheet, summery, TSEK 30 November 31 August Assets Fixed assets Intagible fixed assets 21,192 19,271 23,389 Tangible fixed assets 1,583,446 1,517,980 1,517,166 Financial fixed assets 844, , ,436 Total fixed assets 2,449,372 2,411,817 2,300,991 Current assets Invetories 75,166 64,081 42,598 Current receivables 162, ,363 97,452 Cash and cahs equivalents 3,395 3,786 2,893 Total current assets 240, , ,943 Total assets 2,690,233 2,622,047 2,443,934 Equity and liabilities Equity Restricted equity 45,344 45,344 45,344 Non-restricted equityl 604, , ,070 Total equity 650, , ,414 Untaxed reserves 301, , ,776 Lon-term liabilities Interest-bearing liabilities 1,147,798 1,279,502 1,111,201 Interest-bearing provisions, pensions Non-interest-bearing liabilities Non-interest-bearing provions 1,558 Deferred tax liabilitiesr 46,242 35,014 41,881 Total long-term liabilities 1,195,291 1,155,733 Current liabilities Interest-bearing liabilities 155,000 18,700 8,400 Non-interest-bearing labilities 388, , ,611 Total current liabilities 543, , ,011 Total liabilities 1,738,359 1,698,641 1,316,744 Total equity and liabilities 2,690,233 2,622,047 2,443,934 Pledget assets and contingent liabilities Pledged assets 622, , ,398 Contingent liabilities 725, , ,247 9

10 Share price performance and turnover Sälen 21 December 2010 Mats Årjes CEO This three-month report has not been subject to special examination by the company s auditors. SkiStar AB (publ) SE SÄLEN Corporate Identity Number: Tel: Fax: E-post: info@skistar.com