NINE-MONTH REPORT 1 SEPTEMBER MAY 2009

Transcription

1 NINE-MONTH REPORT 1 SEPTEMBER MAY 2009 SIGNIFICANT EVENTS DURING THE PERIOD * Net sales and profi ts - Net sales increased to MSEK 1,603 (1,448), of which MSEK 640 (579) refers to Q3. - Income before tax increased to MSEK 455 (360), of which MSEK 248 (226) refers to Q3. - Income after taxes increased to MSEK 420 (326), of which MSEK 226 (203) refers to Q3. - Earnings per share increased to SEK (8.32), of which MSEK 5.77 (5.18) refers to Q3. * Operating income from business areas - Operating income from Destinations increased to MSEK 501 (406). - Operating income from Property amounted to MSEK 11 (28). Commenting on the current position of SkiStar, CEO Mats Årjes states: A high level of priority regarding alpine vacationing, a weakened Swedish Krona and a relatively weak Norwegian Krona, and high level of attractiveness and otherwise good conditions during the winter season, have contributed to SkiStar reporting its best nine-month result ever.

2 Nine-month Report 1 SEPTEMBER MAY 2009 I word from the CEO We can now complete the successful winter season 2008/09 by noting that all our five destinations show higher profits than last year for the first three quarters. A high level of attraction in combination with a weak Swedish Krona and a relatively weak Norwegian Krona has meant an increased flow of guests. The number of guests from Sweden has increased by 8 percent, from Denmark by 10 percent and from Norway by 3 percent. The largest growth is in guests coming from foreign countries where growth is 13 percent. Russia shows the largest growth with 49 percent. The business area Destinations increased its operating income by MSEK 95 to MSEK 501 during the first three quarters. The business area Property decreased its operating income to MSEK 11 (28). However, the demand to purchase own vacation properties increased somewhat after interest rates decreased. SkiStar is also favoured by lower interest rates as the entire loan stock is based on variable fixing rates. Net financial income also increased by MSEK 17 to MSEK 57. It is also gratifying that we have managed to keep the level of costs down and therewith achieved reaped positive benefits from the increase in revenues. We will continue to work hard at this in the coming year. Looking forward, there are two things I would like to point out. Partly, we have a good booking situation as we face the coming season. Already today, six months before the winter season starts, we have sold accommodation for MSEK 102, gross, which is 27 percent more than at the corresponding time last year. We have now sold 17 percent of the accommodations we sold during the entire last winter season. The other item I would like to note is that we will, from this autumn, begin to sell week shares, so-called ownership shares, in Sälen. The owners of these weeks will be associated to one of the international companies within trade and mediation of vacation accommodation. The owners of these ownership shares will also become members of SkiStar Vacation Club, which implies a number of attractive benefits. Ownership entails a flexible and simple ownership form whereby the owner does not have to take responsibility to the same degree as for a cottage or apartment. Ownership shares and SkiStar Vacation Club is something we really believe in and the concept will, in the long-run, be developed at SkiStar s other destinations. This is SkiStar SkiStar is listed on the 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 guest s 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. Operations have large seasonal variations. By and large, income is generated during the period December April. This means that the second quarter (December February) and the third quarter (March May) are the quarters which are decisive for the operational year s total income. As the leading operator of European alpine destinations, SkiStar s business concept is to create memorable winter experiences, creating value for guests, coworkers and other contracting partners, all creating value for our shareholders. The Scandinavian Market According to SLAO (Swedish Ski Resort Association), Swedish sales of SkiPass increased by 16 percent to MSEK 1,160 compared with the previous year. The average increase in price was 4.5 percent. In Norway, the preliminary sales of SkiPass increased by 10 percent to MNOK 960 according to ALF (National Alpine Resorts Association). The average price change was 5.0 percent. The Scandinavian ski industry is currently in a positive trend with strong growth. In the larger destinations, a large amount of funds has been invested in improved infrastructure, modern living arrangements, extended offering of restaurants with high quality, shopping, snow systems, wider slopes, parks with challenging skiing and modern chairlifts. The investments have meant that many Scandinavian ski destinations have strengthened their competitiveness and have received an increased number of guests. Ski vacations have become more and more important for families interested in skiing and the buying decision today has a high priority before many other buying decisions. Sales and income The Group s net sales increased by MSEK 155 to MSEK 1,603 (1,448) and income before taxes increased by MSEK 95 to MSEK 455 (360) and income after taxes increased by MSEK 94 to MSEK 420 (326). Earnings per share increased by SEK (8.32). Operating income from the Business Area Destinations amounted to MSEK 501 (406), an increase by 23 percent. Interest for alpine skiing in Scandinavia is larger than ever. During the entire season, SkiStar s destinations have offered good conditions for alpine skiing. At the same time, a weak Swedish Krona and a relatively low Norwegian Krona has meant that more people have chosen to vacation in their home country, which has favoured SkiStar. A restrained cost development, in combination with increased income, has meant improved profitability and increased profits. The Group s sales of SkiPass during the winter season increased 12 percent to MSEK 933 2

3 (836). The average SkiPass price increased by 4.3 percent, including discounted SkiPass via the Internet, which is in line with the Group s salary increases (4.5 percent). On a full-year basis, income from SkiPass totalled approximately 50 percent of the Group s total income. Personnel costs are approximately 50 percent of the Group s operating expenses (personnel costs and other external costs). During the Christmas week to 1 May, the rate of occupation in cottages and apartments mediated by SkiStar totalled 81 percent (78). During the same period, the number of mediated objects increased by 6 percent. In Sälen, net sales increased by MSEK 61 to MSEK 574 and operating income by MSEK 45 to MSEK 210, compared to the previous year. Sales of SkiPass increased by 14 percent to MSEK 300. In Åre, net sales increased by MSEK 15 to MSEK 336 and operating income by MSEK 13 to MSEK 96. Sales of SkiPass increased by 9 percent to MSEK 214. In Vemdalen, net sales increased by MSEK 16 to MSEK 160 and operating income by MSEK 10 to MSEK 48. Sales of SkiPass increased by 15 percent to MSEK 83. In Hemsedal, net sales increased by MSEK 33 to MSEK 248 and operating income by MSEK 12 to MSEK 59. Sales of SkiPass increased in local currency (NOK) by 8 percent to MNOK 112 and in SEK by 9 percent to MSEK 134. In December 2008, in Hemsedal, the Alpine Lodge containing 43 apartments, reception, a sporting goods store, ski rental and a restaurant was opened. In Trysil, net sales increased by MSEK 32 to MSEK 284 and operating sales by MSEK 15 to MSEK 88. Sales of SkiPass increased in local currency (NOK) by 11 percent to MNOK 169 and in SEK by 12 percent to MSEK 202. The exchange rate fluctuation NOK/SEK has had a positive effect on net sales by MSEK 5 and on income before tax by MSEK 1. Operating income from the Business Area Property decreased to MSEK 11 (28). Demand for buying accommodations in the mountains continues to be weak even if the interest is today somewhat higher than previously. The Group s net financial income has increased to MSEK 57 ( 74) due to a lower interest rate level. SkiStar only has loans with interest based on variable fixing rates. Net financial income is burdened by interest expenses of MSEK 6 from a dispute which was lost in the court of appeal. The dispute also implies that SkiStar will re-purchase previously sold companies whereby a write-down requirement may exist of up to MSEK 6. At the same time, SkiStar has right of recourse against another company which is the outcome of the dispute is uncertain. During the third quarter (March May), net sales increased by MSEK 61 to MSEK 640, profit before taxes by MSEK 22 to MSEK 248 and profit after taxes by MSEK 23 to MSEK 226. During the third quarter, earnings per share amounted to SEK 5.77 (5.18). A later Easter period has implied additional peak season weeks with higher sales. Many of the destinations had visitor records during Easter. Cash flow Cash flow from operating activities before changes in working capital amounted to MSEK 614 (470) and after changes in working capital to MSEK 617 (545). Cash flow for the period after investing activities was MSEK 324 (262). Investments and sales During the period, investments amount to MSEK 373, gross and MSEK 292, net. Investments within the Destinations operations amounted to MSEK 178 net and were comprised of the completion of investments in replacements, the expansion of the Group s snow-making systems and the upgrading of two chairlifts in Åre. Investments within property operations comprised, mainly, the completion of the Alpine Lodge in Hemsedal, as well as shares in the associated company Ski Invest Sälen AB, which is Parent Company to Experium AB. During the period, land in Sälen and tenant-owners rights in Åre have been sold for a total of MSEK 8 with a value added gain of MSEK 6. On 30 November 2008, accommodation properties, hotel, development land and shares in partly-owned listed companies were transferred to the wholly-owned subsidiary Fjällinvest AB where the Business Area Property will carry out operations in the future. Liquidity and financing The Group s available liquid funds amounted to MSEK 486 (426) including unutilised bank overdraft facilities of MSEK 431 (387). Interest-bearing net liabilities have decreased by MSEK 173 to MSEK 1,705 during the period. Average interest expenses (net financial income/expense as a percentage of average net interest-bearing liabilities) amounted to 4.5 percent (6.1) during the period. This lower level is directly attributed to the recent reductions in interest rates made by the Central banks in Sweden and Norway. All liabilities carry shortterm interest rates. The share On 31 May, the number of shareholders was 14,938, which is an increase of 3,883 (35 percent) since 31 August On the reporting day, the number of shares was 39,188,028. In addition, there exists a convertible subordinate debenture of MSEK 30 which can be converted into a maximum amount of 250,000 Class B shares at a conversion rate of SEK 138. Full conversion of the subordinate debenture corresponds to a dilution of 0.6 percent of the share capital and 0.4 percent of the shares in the Company. Personell Compared to last year, the average number of employees has increased by 12 individuals to 1,345. Transactions with related parties The Group is under the controlling influence of brothers Erik and Mats Paulsson, together with their families and companies. On 31 May 2009, their holdings totalled 55 percent of the votes in the Group s 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 CEO of Peab AB. SkiStar purchases construction 3

4 services from companies in the Peab Group in conjunction with investments in plant. During the period, purchases from the Peab Group have been made at a value of MSEK 26. On 31 May 2009, the outstanding liability to Peab was MSEK 2. SkiStar also carries out transactions on a smaller scale with Fabege and Hansan, in which Erik Paulsson has controlling influence. During the period, purchases from associated companies have been made at a value of MSEK 7. On 31 May, the outstanding liability to associated companies was MSEK 1. Sales to associated companies and the Peab Group have been made at a value of MSEK 6 and outstanding receivables in associated companies amount to MSEK 2. Transactions with related parties have been made on market terms. Risks and factors of uncertainty Operating risk for the current operational year is, in principal, non-existent since the winter season, when revenues are received, is terminated. The investigation which the Swedish Government has initiated to review the taxation of nonprofit organisations and foundations will release its report before the end of June. This investigation is comprised of, amongst other things, a review of the rules for tax exemption for properties with special tax rates which are applied today in SkiStar s Swedish operations. Should the investigation report imply that the rules and regulations would change in long-term and that SkiStar can no longer utilise the tax exemption for specially taxed properties, SkiStar has unutilised loss carry forward amounts of approximately MSEK 800. Parent Company The Parent Company s net sales amounted to MSEK 1, 079 (966) and income before tax amounted to MSEK 324 (246). Prospects for 2008/09 Since the operations, season-wise, are slow during the fourth quarters, mainly positive effects arise as regards net interest income/expenses because due to a low interest rate level which can impact the earnings trend during the last three months of the financial year. Prospects for 2009/10 The inflow of bookings for the coming winter season continues to be good. Up until around the 12th of June, accommodations totalling MSEK 102, gross, have been reserved. This is MSEK 22 (27 percent) more than at the same time last year. Approximately 17 percent of last season s total sales of accommodations has, therefore, been sold before Midsummer. Regarding cottages and apartments, a total of approximately 1,000 commercial beds (2 percent) as well as 800 non-commercial beds will be built for the coming winter season. Investments within the destinations operations are assessed to amount to MSEK 115 for the coming season. This is significantly less for the Group s depreciation level. Investments in the Property area are assessed to total MSEK 15 net. From the autumn of 2009, SkiStar will start up sales of week shares, so called ownership shares, in Lindvallen, Sälen. The owners of these ownership shares will be associated with one of the international companies within trade and mediation of vacation accommodation. The owners of these ownership shares will also become members of SkiStar Vacation Club, which implies a further number of attractive benefits. Ownership implies a flexible and simple ownership form whereby the owner does not have to take responsibility to the same extent as for a privately owned cottage or apartment. Ownership shares and SkiStar Vacation Club will, in the long-term, also be developed at SkiStar s other destinations. Annual General Meeting The Annual General Meeting will be held at the Experium in Lindvallen, Sälen on the morning of 12 December Financial information The financial year 2008/09 Interim report, 1 September August 2009, on 2 October The Annual Report will be made available from week 48. The financial year 2009/10 Three-month report, 1 September November 2009, on 18 December Semi-annual report, 1 September February 2010, on 19 March Nine-month report, 1 September may 2010, on 22 June Interim report, 1 September August 2010, on 4 October Accounting principles This nine-month report has been prepared according to IAS 34 - Interim Financial Reporting. In addition, the appropriate provisions of the Swedish Annual Accounts Act and the Swedish Securities Market Act have been applied. From 1 September 2005, SkiStar s consolidated accounts have been prepared in accordance with the IFRS standards adopted by the EU Commission. The Parent Company adheres to the Swedish Annual Accounts Act and the Swedish Securities Market Act, which is in accordance with the provisions of the Swedish Financial Reporting Board s Recommendation RFR 2.1 The accounting principles applied for the Group and the Parent Company correspond with the accounting principles applied in the preparation of the latest Annual Report. 4

5 Consolidated income statement in summery, TSEK 1 March 31 May 3 months 1 September 31 May 9 months 1 June 31 May 12 months 1 Sep 31 Aug 12 months 2008/ / / / / /08 Net sales 640, ,389 1,602,926 1,448,289 1,637,709 1,483,072 Other Income 7,377 21,566 14,858 35,123 27,708 47,973 Total operating income 647, ,955 1,617,784 1,483,412 1,665,417 1,531,045 Goods for resale 39,432 34,376 92,719 79,731 95,643 82,655 Other external expenses 145, , , , , ,195 Personnel costs 144, , , , , ,734 Depreciation 56,811 53, , , , ,127 Operating profit/loss 261, , , , , ,334 Financial net 13,720 20,160 56,590 74,479 78,184 96,073 Profit/loss before tax 247, , , , , ,261 Tax 21,686 22,828 35,212 33,915 14,279 12,982 Profit/loss for the period 226, , , , , ,279 - of which attributable to the Parent Company s shareholders 226, , , , , ,515 - of which attributable to minority shareholding 1, Average number of shares 39,188,028 39,173,574 39,188,028 39,175,230 39,185,242 39,188,028 Average number of shares after full conversion 39,423,028 39,438,028 39,438,028 39,438,028 39,438,028 39,438,028 Earnings per share, SEK Earnings per share after full conversion, SEK Allocation of sales, MSEK 1 September 31 May 9 months 2008/ /08 SkiPass Accomodation Ski rental Ski school/activities Sporting goods outlets Property services Value added gain 7 31 Other Total 1,618 1,483 Net sales and profit/loss per business area, MSEK Sälen Vemdalen Åre Hemsedal Trysil Total destinations Property 2008/ / / / / / / / / / / / / /08 Net sales ,602 1, Other income Total income ,603 1, Operating expences Depreciation Operating profit/loss Operating margin, %

6 Quarterly results, TSEK 2008/ /08 Sep-Nov Dec-Feb March-May June-Aug Sep-May Sep-Nov Dec-Feb March-May June-Aug Year Operating income 39, , ,394 1,617,784 45, , ,955 47,633 1,531,045 Operating profit/loss 217, , , , , , , , ,334 Profit/loss before tax 242, , , , , , , , ,261 Operatiang margin, % neg neg neg 20 Consolidated balance sheet in summery, TSEK 31 May 31 August Assets Fixed assets Intangible fixed assets 231, , ,470 Tangible fixed assets 2,992,355 2,859,947 2,938,314 Financial fixed assets 256, , ,041 Total fixed assets 3,479,968 3,229,911 3,312,825 Current assets Interest-bearing 57,060 40,766 76,854 Non-interest-bearing 183, , ,498 Total current assets 240, , ,352 Total assets 3,720,273 3,476,677 3,571,177 Equity and liabilities Equity 1,521,387 1,407,595 1,278,299 Long-term liabilities Interest-bearing liabilities 1,831,910 1,727,190 1,985,166 Interest-bearing provisions, pensions 7,458 7,924 7,435 Non-interest-bearing liabilities Non-interest-bearing provisions, pensions 14,644 16,468 15,232 Deferred tax liabilities 16,385 15,021 12,289 Current liabilities Interest-bearing liabilities 23,903 13,634 15,313 Non-interest-bearing liabilities 303, , ,781 Total equity and liabilities 3,720,273 3,476,677 3,571,177 Pledged assets and contingent liabilities Pledged assets 1,996,634 1,966,891 1,980,598 Contingent liabilities 66,441 51,486 83,137 Change in equity, TSEK 1 September 31 May 2008/ /08 Opening equity 1,278,299 1,257,282 Conversion of convertible promissory notes 81 Dividend 176, ,279 Translation differences Profit/loss for the period 419, ,872 Closing equity 1,521,417 1,407,595 6

7 Consolidated cash flow statement in summery, TSEK 1 September 31 May 1 Sep 31 Aug 2008/ / /08 Operating activities Profit/loss after financial items 455, , ,261 Adjustment for non cash items 158, , ,121 Paid tax ,289 21,515 Changes in working capital 2,970 74,842 91,485 Cash flow from operating activities 616, , ,352 Cash flow from investment activities 292, , ,010 Cash flow from financing activities ,412 5,229 Cash flow for the period ,199 26,571 Cash and cash equivalents at the beginning of the period 54,385 27,572 27,572 Exchange rate difference in cash and cash equivalents Cash and cash equivalents at the end of the period 54,741 38,836 54,385 Unutilised credits 431, , ,079 Available liquidity 485, , ,464 Key ratios and data per share 1 September 31 May 1 Sept 31 Aug 2008/ / / / / /08 Key ratios Net sales, TSEK 1,602,926 1,448,289 1,233,654 1,259, ,148 1,483,072 Operating income,, TSEK 1,617,784 1,483,412 1,306,318 1,304, ,116 1,531,045 Profit/loss before tax, TSEK 455, , , , , ,261 Profit/loss after tax, TSEK 419, , , , ,279 Cash flow, TSEK *) 613, , , , ,867 Earnings on - capital employed, % equity, % total capital, % Gross margin, % Operating margin, % Net margin, % Equity/assets ratio, % May 31 August Data per share Stock market price, SEK Average number of shares 39,188,028 39,175,230 39,145,462 39,058,927 38,934,670 39,174,401 Average number of shares after full conversion 39,438,028 39,438,028 39,188,028 39,188,028 39,188,028 39,438,028 Earnings, SEK Earnings after full conversion, SEK Cash flow, SEK *) Cash flow after full conversion, SEK Price/cash flow, times Price/cash flow after full conversion, times Equity, SEK Equity after full conversion, SEK Market value/equity, % Market value/equity after full conversion, % *) Cash flow before changes in working capital 7

8 The Parent Company s income statement in summery, TSEK 1 March 31 May 3 months 1 September 31 May 9 months 1 Sep 31 Aug 12 months 2008/ / / / /08 Net sales 425, ,587 1,079, , ,022 Other income 2,630 11,232 9,733 26,126 44,640 Total operating income 427, ,819 1,088, ,626 1,036,662 Goods for resale 31,157 29,358 73,352 67,596 70,244 Other external expenses 95,273 85, , , ,143 Personnel costs 100,760 92, , , ,436 Depreceation 29,699 29,871 87,300 84, ,811 Operating profit/loss 170, , , , ,028 Financial net 1,602 7,892 16,203 36,795 45,842 Profit/loss before tax 169, , , , ,186 Tax 4,483 4, ,311 Profit/loss for the period 164, , , , ,497 The parent Company s balance sheet in summery, TSEK 31 May 31 August Assets Fixed assets Intangible fixed assets 18,887 20,564 21,005 Tangible fixed assets 1,488,113 1,592,465 1,654,496 Financial fixed assets 876, , ,781 Total fixed assets 2,383,845 2,092,733 2,176,282 Current assets Interest-bearing 5,286 6,393 23,838 Non-interest-bearing 122, , ,142 Total current assets 127, , ,980 Total assets 2,511,797 2,237,925 2,346,262 Equity and liabilities Equity 934, , ,373 Untaxed reservers 285, , ,407 Long-term liabilities Interest-bearing liabilities 1,129, ,331 1,055,597 Interest-bearing provisions, pensions Non-interest-bearing liabilities ,681 Deferred tax liabilities 16,913 15,072 12,430 Current liabilities Interest-bearing liabilities 8,400 8,400 8,400 Non-interest-bearing liabilities 135, , ,590 Total equity and liabilities 2, ,237,925 2,346,262 Pledged assets and cntingent liabilities Pledged assets 664, , ,119 Contingent liabilities 751, , ,018 8

9 Share price trend and net sales The information included in this interim report is information which SkiStar AB will make public according to the rules and regulations regarding the securities market. The information was submitted for publication on 18 June 2009, Mats Årjes, CEO Auditor s report regarding review of the interim report To the Board of Directors in SkiStar AB (publ.) Corporate Identity Number Introduction We have reviewed the attached interim report for SkiStar AB (publ.) for the period 1 September May The Board of Directors and the Managing Director are responsible for preparing and presenting this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review. The review s emphasis and scope We have carried out our review in accordance with Standard for review SÖG 2410 Review of interim financial information performed by the Company s elected. A review consists of inquiries in the first place to persons responsible for financial and accounting issues, to perform an analytical review and take other review procedures. A review is significantly less in scope than an audit in accordance with generally accepted auditing standards and good auditing practice in Sweden. The review procedures made at a review do not secure that we are aware of all significant circumstances, which could have been identified if an audit had been performed. Therefore, the expressed conclusion based on a review does not have the security, which an expressed conclusion based on an audit has. Conclusion During our review we have not identified any circumstances, which indicate that the interim report is not in all in compliance with the requirements of IAS 34 and the Annual Accounts Act. Sälen 18 June 2009, KPMG Bohlins AB Carl Lindgren, Authorised Public Accountant SkiStar AB (publ) SE SÄLEN Corporate Identity Number Tel: Fax: E-post: info@skistar.com