SNOWWORLD N.V.
Press release 27 may 2015
- Investments by SnowWorld Zoetermeer in upgrade of fitness and new sun terrace
- Fall in turnover by 2.6% to €18.0 million
- Fall in gross margin by 1.8% to €16.4 million
- Operating EBITDA same as previous year at €8.3 million
- Rise in net operating profit by 3.7% to €4.2 million
- Rise in group equity by 57.3% to €11.8 million
- Decrease in interest-bearing debt (excluding interest rate swap) by 15.2% to €33.4 million
- Increase in guarantee capital to 23.3%
- SnowWorld maintains expectation of higher EBITDA and higher operating net profit throughout the year
2014/2015
In 2014/2015, SnowWorld continued its development of three new construction projects, consisting of the extension of SnowWorld Zoetermeer's current third slope and the development of new SnowWorld sites in Paris and Barcelona. Local political developments mean the progress of the projects in Paris and Barcelona has been limited. The project in Zoetermeer where the current third ski slope is to be extended by 100 metres has developed as planned. Planning permission is expected to be granted before the end of this summer.
SnowWorld invested in its fitness and wellness centre in Zoetermeer in autumn 2014. This now features a whole new look and feel and the latest line of Technogym cardio equipment. The first effects on membership numbers are now visible. In addition, the construction of a new sun terrace immediately adjacent to the entrance of the building has started in Zoetermeer. The outdoor terrace, which is about 600 m2, will have around 300 seats.
In the previous period, SnowWorld made concrete plans to convert the cooling system in Zoetermeer. Although no orders have yet been given to suppliers, it is expected that this conversion will take place before the end of this financial year.
A group of ten cooperating parties, including the municipality of Landgraaf and SnowWorld, have launched an investigation into the feasibility of further developing the Wilheminaberg (hill where SnowWorld Landgraaf is located). The preliminary plans consist of constructing a tower which may reach the highest point in the Netherlands.
The first 6 months of the 2014/2015 financial year were good months in operating terms. Although 7.0% fewer ski passes were sold than in the same period of the previous year, the fall in turnover remained limited to 2.6% as a result of higher prices. Turnover totalled €18.0 million in the first six months of the financial year while turnover in the same period of the previous year was €18.4 million. An important reason for the fall in turnover was a bad month in March. Early Easter holidays meant that the winter sports season finished several weeks earlier than in the previous year.
The company's gross margin decreased 1.8% compared to the previous year to €16.4 million. Operating expenses fell
3.4% to €9.8 million, as a result of which operating EBITDA was the same as the previous year at €8.3 million. As a
result of somewhat lower depreciation, EBIT rose by 0.8% to €6.6 million compared to the previous year. Net operating profit ultimately rose 3.7% to €4.2 million, partly as a result of lower interest expenses.
Primarily as a result of the incorporation of the positive net profit, group equity rose 57.3% compared to 30
September 2014 (a rise from €7.5 million as at 30 September 2014 to €11.8 million as at 31 March 2015). The guarantee capital thus rose to 23.3% as at 31 March 2015. This takes no account of any hidden reserves in the commercial buildings and land (carrying amount as at 31 March 2015 of €48.2 million and appraised value as at June
2014 of €76.7 million).
Interest-bearing debt (excluding interest rate swap) decreased 15.2% to €33.4 million.
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.
Despite the decrease in the number of ski passes sold in the first 6 months of the 2014/2015 financial year, our sentiment is positive. For the full 2014/2015 financial year, we reiterate our earlier expectation of achieving higher operating EBITDA and higher net operating profit than the previous year. Operating profit per share is also expected to be higher than the previous year.
In accordance with the policy agreed by the General Meeting of Shareholders on 12 March 2015, a dividend amounting to 30% to 50% of net profit will be distributed for the 2014/2015 financial year.
Koos Hendriks (CEO), +31 (0)6 51837518 or corporate@snowworld.com
Wim Moerman (CFO), +31 (0)6 41219496 or corporate@snowworld.com
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 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 2013.
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- Upgrade of fitness and wellness centre in Zoetermeer
- Start of construction of sun terrace (600 m²) in Zoetermeer
- Further development of new developments (third slope in Zoetermeer, Paris, Barcelona)
- Decrease in number of ski passes sold by 7.0%
- Decrease in turnover by 2.6% to €18.0 million and decrease in gross margin by 1.8% to €16.4 million
- Operating EBITDA same as previous year at €8.3 million
- Rise in net profit by 3.7% to €4.2 million
- Rise in operating cash flow by 0.6% to €6.9 million
- Rise in group equity by 57.3% to €11.8 million
- Increase in guarantee capital to 23.3%
- Decrease in interest-bearing debt (excluding interest rate swap) by €6.0 million to €33.4 million
- SnowWorld maintains expectation of higher EBITDA and higher operating net profit throughout the year
2014/2015
With its two indoor ski resorts in the Netherlands, SnowWorld is one of the world leaders 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 recourse to the capital market in December 2013. Through the reverse takeover of Fornix BioSciences N.V., SnowWorld has been listed on the NYSE Euronext Amsterdam exchange since December 10, 2013. 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 2014/2015, 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 branches in Paris and Barcelona. As a consequence of local political developments, the progress of the projects in Paris and Barcelona has been limited. The relevant zoning plans are still expected to be approved this year.
The project in SnowWorld Zoetermeer where the current third ski slope is to be extended by 100 metres has developed as planned. The amendment of the zoning plan and the all-in-one permit for physical aspects have been available for inspection. The opinions have now been answered. The zoning plan is expected to be approved by the end of this summer. On the basis of this, SnowWorld still expects use of the extended third slope to start in September 2016.
SnowWorld gave its fitness and wellness centre in Zoetermeer a whole new look and feel in autumn 2014. The latest line of Technogym cardio equipment was also introduced. At the same time, investments were made in software that the trainers can use to serve individual members even better. The first effects on membership numbers are now visible.
At the end of March 2015, the construction of a new sun terrace immediately adjacent to the entrance of the building started in Zoetermeer. The sun terrace, which is about 600 m2, will have around 300 seats. For SnowWorld, the
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operation of a terrace like this makes a welcome addition for the traditionally less busy summer season. The location of SnowWorld Zoetermeer on the edge of a nature reserve and near various walking and cycling routes contributes to the expected successful operation.
In the previous period, SnowWorld made concrete plans to convert the cooling system in Zoetermeer. Although no orders have yet been given to suppliers, it is expected that a conversion of this sort will take place before the end of this financial year. The planned investment will total around €1.5 million. Future EBITDA contributions from this investment are expected to be around €0.2 million.
This investment is in addition to the annual budget for replacement investment and will very probably be funded with the aid of a multi annual financial lease construction.
A group of ten cooperating parties, including the municipality of Landgraaf and SnowWorld, has launched an investigation into the feasibility of further developing the Wilheminaberg (hilll where SnowWorld Landgraaf is located). The preliminary plans consist of constructing a tower which may reach the highest point in the Netherlands.
The General Meeting of Shareholders on 12 March 2015 passed a resolution to amend the articles of association. This amendment to the articles of association pertains to the reduction of the issued capital by means of reducing the par value per share from €3.75 to €2.00. The difference of €1.75 will be added to other reserves. In advance of the actual execution of this shareholder resolution, the effects of it have already been incorporated in the figures as at 31 March
2015.
The aim of this resolution is to change the composition of the group equity so as to enable future dividend payments.
The consolidated results for the first half of the financial year 2014/2015 (1 October 2014 to 31 March 2015), can be represented as follows:
(in € x 1,000) result operational result
Net revenue | 17,951 | 18,435 | - | 18,435 |
Gross margin | 16,027 | 16,262 | - | 16,262 |
EBITDA | 8,294 | 8,290 | 1,416 | 6,874 |
Operating result (EBIT) | 6,591 | 6,541 | 1,416 | 5,125 |
Result after tax | 4,164 | 4,014 | 1,349 | 2,665 |
Application of the International Financial Reporting Standards (IFRS) in the processing of the reverse takeover and share issue in the 2013/2014 financial year has resulted in a one-off effect 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 was an actual cash
outflow.
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The development of gross profit by segment/site can be shown as follows:
(in € x 1,000)
revenue | cost- price | gross margin | revenue | cost- price | gross margin | gross margin | |
Ski | 10,780 | 493 | 10,287 | 11,290 | 555 | 10,735 | -4,2% |
Hospitality | 4,863 | 1,395 | 3,468 | 4,939 | 1,578 | 3,361 | 3,2% |
Fitness | 784 | 2 | 782 | 812 | 3 | 809 | -3,3% |
Hotel | 902 | 34 | 868 | 824 | 37 | 787 | 10,3% |
Outdoor | 111 | - | 111 | 111 | - | 111 | 0,0% |
Other | 511 | - | 511 | 459 | - | 459 | 11,3% |
17,951 | 1,924 | 16,027 | 18,435 | 2,173 | 16,262 | -1,4% | |
Zoetermeer | 7,361 | 887 | 6,474 | 7,418 | 956 | 6,462 | 0,2% |
Landgraaf | 10,590 | 1,037 | 9,553 | 11,017 | 1,217 | 9,800 | -2,5% |
17,951 | 1,924 | 16,027 | 18,435 | 2,173 | 16,262 | -1,4% |
Turnover for the 1sthalf of the 2014/2015 financial year decreased 2.6% compared to the same period of the previous year to €18.0 million. The company's gross margin decreased 1.8% compared to the previous year to €16.4 million. Especially in the 'Ski'segment (consisting of revenue from ski pass sales, revenue from lessons and revenue from the rental of ski and snowboard equipment) turnover decreased. This is a direct consequence of the 7.0% fall in the number of ski passes sold. An important reason for the fall in turnover was a bad month in March 2015. Early Easter holidays meant that the winter sports season finished several weeks earlier than in the previous year.
In addition, the increase in turnover in the 'Hotel'segment is noteworthy. For the first 6 months of the 2014/2015
financial year, average room revenue was almost the same as the same period of the previous year, but average occupancy increased, resulting in an increase in turnover of more than 10%.
A slight decrease in the number of staff and lower costs of a share option scheme led to a slight decrease in personnel costs. Other operating costs fell, particularly as a consequence of lower marketing costs. Operating EBITDA for the first 6 months of the financial year of €8.3 million was the same as for the same period of the previous year.
As a result of lower depreciation, in the first 6 months of the 2014/2015 financial year operating EBIT rose 0.8%
compared to the previous year to €6.6 million. Net operating profit for the same period rose 3.7% to €4.2 million.
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The consolidated balance sheet at the end of March is as follows:
(in € x 1,000) 31 March 30 September
Intangible non-current assets | 1,044 | 1,044 |
Property, plant and equipment | 52,374 | 53,057 |
Financial non-current assets Working capital | 147 -4,382 | 180 -3,279 |
Non-current liabilities | 49,183 -37,537 | 51,002 -43,621 |
Current assets / Payable to shareholder | 25 | -67 |
Debts to credit institutions / cash and cash equivalents | 177 | 183 |
Group equity | 11,848 | 7,497 |
Solvency
By adding the profit after tax to the reserves and two small direct changes in equity, group equity increased 57.3%
from €7.5 million as at 30 September 2014 to €11.8 million as at 31 March 2015.
Solvency thus increased from 13.4% as at 30 September 2014, to 21.4% as at 31 March 2015. The guarantee capital rose from 15.4% to 23.3%. 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 commercial buildings and land, as assessed as at June 2014, amounted to €76.7 million. That is €28.5 million higher as at 31 March 2015 than the valuation based on historical cost. The solvency does not consider these potential hidden reserves.
Working capital
The traditionally negative working capital follows a seasonal pattern. The higher negative working capital as at 31
March 2015 is in line with that of 31 March 2014.
Interest-bearing debt
Mainly as a consequence of the operating cash flow achieved in the first 6 months of the 2014/2015 financial year, interest-bearing debt (excluding interest rate swap) is €6.0 million (15.2%) down from €39.4 million to €33.4 million.
The interest-bearing debt is made up as follows: (in € x 1,000) | 31 March | 30 September |
2015 | 2014 | |
Non-current liabilities | 33,234 | 39,346 |
Repayment obligation on non-current liabilities | 4,303 | 4,275 |
Current liabilities / Receivable from shareholder Debts to credit institutions / Cash and cash equivalents | -25 -177 | 67 -183 |
Less: interest-rate swap liability | 37,335 -3,930 | 43,505 -4,140 |
33,405 | 39,365 |
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
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Total net debt / EBITDA ratio and minimum Debt Service Capacity Ratio (DSCR). SnowWorld met these ratios as at 31
March 2015.
The reverse takeover and the share issue that took place in the 2013/2014 financial year had a disadvantageous one-
off effect on group equity of €1.9 million. €1.4 million of this was initially recognised in the result for 2013/2014 and
€0.5 million was recognised directly in group equity. This one-off effect has been excluded when assessing the results achieved and therefore reference is made to 'operating'results.
During the first 6 months of the 2014/2015 financial year there were no changes to the number of shares outstanding. This was 2,950,163 as at 31 March 2015.
The closing price on 30 September 2014 was €8.00. As at 31 March 2015 it was €7.58.
As at 31 March 2015, 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 5%.
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.
Despite the decrease in the number of ski passes sold in the first 6 months of the 2014/2015 financial year, our sentiment is positive. For the full 2014/2015 financial year, we reiterate our earlier expectation of achieving higher operating EBITDA and higher net operating profit than the previous year. Operating profit per share is also expected to be higher than the previous year.
In accordance with the policy agreed by the General Meeting of Shareholders on 12 March 2015, a dividend amounting to 30% to 50% of net profit will be distributed for the 2014/2015 financial year. A proposal will be made to this effect at the next General Meeting of Shareholders.
Koos Hendriks (CEO), +31 (0)6 51837518 or corporate@snowworld.com
Wim Moerman (CFO), +31 (0)6 41219496 or corporate@snowworld.com
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 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 2013.
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(in € x 1,000) 1sthalf year 2014/2015 1sthalf year 2013/2014
Cost of goods sold and services provided -1,924 -2,173
Other operating income 324 381
Wages and salaries 3,789 3,983
Social insurance payments 657 594
Depreciation of property, plant and equipment 1,703 1,749
Other operating expenses 3,611 5,192
Financial income and expenses -1,079 -1,176
Tax -1,348 -1,284
EBITDA | 8,294 | 6,874 |
Adjusted for costs of reverse takeover | 8,294 | 8,290 |
EBIT | 6,591 | 5,125 |
Adjusted for costs of reverse takeover | 6,591 | 6,541 |
Result after tax | 4,164 | 2,665 |
Adjusted for costs of reverse takeover | 4,164 | 4,014 |
Unaudited
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(in € x 1,000) | 1sthalf year 2014/2015 | 1sthalf year 2013/2014 |
Result after tax | 4,164 | 2,665 |
Items to be recognised in the income statement in future years: Movement in valuation of interest-rate swap | 210 | -3 |
Effect on corporate income tax | -53 | 1 |
Total direct changes in Group equity | 157 | -2 |
Total result | 4,321 | 2,663 |
Earnings per share | 1.42 | 1.23 |
Earnings per share (adjusted for costs of reverse takeover) | 1.42 | 1.85 |
Diluted earnings per share | 1.42 | 1.19 |
Total result per share | 1.47 | 1.23 |
Total result per share (adjusted for costs of reverse takeover) | 1.47 | 1.85 |
Diluted total result per share | 1.47 | 1.19 |
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 and multiplied by the exchange ratio established in the takeover agreement.
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 and multiplied by the exchange ratio established in the takeover agreement.
Earnings per share and total result per share were, as a result of the above calculation of the weighted average number of shares outstanding during the period of the reverse takeover and share issue (1st half 2013/2014), positively affected. This creates a crude comparison between the two financial years.
Unaudited
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(before profit appropriation)
A s s e t s
(in € x 1,000) 31 March 2015 30 September 2014
Intangible non-current assets 1,044 1,044
Property, plant and equipment
Land and buildings | 48,198 | 49,038 |
Machinery and installations | 79 | 112 |
Other equipment | 2,423 | 2,321 |
Assets in production | 1,674 | 1,586 |
52,374 | 53,057 | |
Financial non-current assets | 147 | 180 |
Current assets | ||
Inventory | 341 | 312 |
Accounts receivable Trade receivable | 519 | 551 |
Receivable from shareholder Tax and social Insurance contributions Other receivables, accrued income and prepaid expenses | 25 - 593 | - 69 368 |
1,137 | 988 | |
Cash and cash equivalents | 347 | 399 |
Unaudited
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(in € x 1,000) 31 March 2015 30 September 2014
Repayment obligation on
non-current liabilties 4,303 4,275
Debts to credit institutions 170 216
Payable to suppliers and
trading credits 1,029 1,420
Payable to shareholder - 67
Tax and social insurance contributions 1,937 842
Other payable and accruals 2,869 2,317
10,308 9,137
Unaudited
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