COMPAGNIE DES ALPES (EPA:CDA) - Compagnie des Alpes // FY 2016/2017 H1 results

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23/05/2017 07:30

Press Release

                              1ST HALF 2016/2017

               GOOD RESULTS IN LINE WITH THE GROUP'S MISSION

Paris, May 23, 2017 - The board of directors of Compagnie des Alpes, in a
meeting chaired by Dominique Marcel, approved the financial statements for the
1st half of the Group's 2016/2017 financial year.

(in thousands of EUR)
                    1st half 2016/2017 1st half 2015/2016  Variation
Total sales              460 119             443 703         +3.7%
Divisional EBITDA(1)     167 875             164 987         +1.8%
Divisional EBITDA/Sales     36,5%               37,2%       -70 bps
Operating income         100 321              98 066         +2.3%
Net attributable
income, Group share       58 277              54 484         +7.0%

Free cash flow from
operations(1)             87 133              62 446        +39.5%

Commenting on the results for the first half, Dominique Marcel noted: "This was
a good first half, once again demonstrating that our strategy is sound. The
Group is firmly anchored in two high-performance businesses, Ski areas and
Leisure destinations, which, year after year, get closer to the objectives we
set for ourselves. Our Development business continues to pursue other growth
drivers, such as new formats like Chaplin's World by Grévin and the Jardin
d'Acclimatation in Paris, or strong geographies that include China, Turkey, and
Georgia. These results are aligned with our goal of becoming the leader in
international leisure through a combination of growth in our current markets
and development in new countries."

The Group's consolidated sales increased by 3.7% compared with the same period
last year, reaching 460.1 MEUR. In analyzing this performance, it should be
noted that Easter weekend fell in the third quarter this financial year (in
2016, it fell in March; this year in April). Adjusted to account for this
difference, sales would have increased by an additional 100 basis points.

In this context, sales for Ski areas increased by 1.7%, to EUR 369.8 million.
After a difficult start to the season, with a shortage of snowfall and
unfavorable holiday dates (both Christmas and New Year's fell on a Sunday),
business picked up particularly well during the peak season in January and
February.

The natural qualities of the Group's sites, in particular their high altitude,
the investment efforts of recent years - in particular with respect to
snowmaking - , and the technical mastery of the field staff, have once again
demonstrated their efficiency.

(1) See glossary

For Leisure destinations, sales were up a solid +8.2%, reaching 83.7 MEUR. This
performance is all the more remarkable considering that it comes after three
consecutive years of sales growth in excess of 10% (on a like-for-like basis)
during this period and despite a security environment that remains challenging.
It was driven by dynamic sales in the first quarter, especially during the
Halloween period, the Christmas Trees at Parc Astérix, and robust sales at
Futuroscope. The second quarter is typically the slowest of the year (about 7%
versus the previous year).

Group development reported sustained sales for the first half of this year,
totaling 6.6 MEUR compared to 2.6 MEUR the previous year. Sales growth was
driven mainly by Chaplin's World by Grévin which success is confirmed after
this first year of exploitation.

The consulting business also contributed to this performance thanks to CDA
Beijing in China and to a number of contracts signed (Jardin d'Acclimatation,
China, Georgia, etc.).

Divisional EBITDA(2) came to 167.9 MEUR and represents 36.5% of sales, versus
37.2% for the same period in the previous financial year.

This slight decrease was due to the very slight dip of 0.7% in EBITDA for Ski
areas, which fell to 185.9 MEUR. This business is experiencing a calendar lag
that will be corrected in the third quarter. It also incurred a higher
artificial snow cost and a higher payroll expense versus last year because
hiring was postponed due to a lack of snow in 2016.

Conversely, EBITDA for Leisure destinations improved by a significant 14.4%, an
increase attributable to the good operating performance during the half-year
and to a favorable calendar effect: last year, some sites opened as early as
March, resulting in opening and launch costs that will be incurred in the 3rd
quarter this year.

Group development EBITDA also improved, due primarily to sales reported for
Chaplin's World by Grévin.

Group EBITDA rose by 3.0%, more rapidly than Divisional EBITDA, thanks to
efforts made over the past three years to reduce the cost base of holdings.

Net industrial investments decreased over the first half by 24.1 MEUR compared
with the previous year. This reduction, which will be offset in the second
half, mainly concerns the Ski areas. The implementation schedule for this year
is more concentrated in the second half but the annual target of 85 MEUR
remains unchanged.

Operating Income (OI) reached 100.3 MEUR, an increase of 2.3% compared with the
same period one year prior.

Net Attributable Income, Group Share comes to 58.3 MEUR for the period, a
significant increase of 7.0% that reflects the good operating performance, the
2.6% reduction in net debt, and the lower tax expense due in particular to the
elimination of the 10.7% exceptional contribution.

Free Cash Flow From Operations(2) for the first half of the year rose by nearly
40%, surpassing 87 MEUR. This increase is explained by growth in cash flow, the
decline in investments, notably in Ski areas (which will be made up in the
second half of the year), and the lower tax expense.

The Group's net debt continues to improve, reaching 257.3 MEUR, which is 7.7
MEUR less than it was on March 31, 2016. Thus, the banking covenant's net debt
to EBITDA ratio (which must be less than 3.50) is largely respected, since it
is 1.36 versus 1.42 a year ago.

(2) See glossary

Refinancing
On March 15, 2017, the Group announced that it had successfully completed the
refinancing of its 2017 bond (200 MEUR) and the amendment of its syndicated RCF
(250 MEUR). This transaction further strengthens its financing structure and
achieves a number of objectives:
o It substantially reduces the net cost of debt by more than 40% (the average
weighted rate of financings is less than 1.5%) as of 2017-2018 - with the cost
of the 2017 bond borne during the current financial year until it falls due
along with the carrying cost of the new financing (around    1.2 MEUR).
o It significantly extends the average maturity of the debt, with due dates
extending to 2029 (12 years).
o It extends debt repayment periods.
o It diversifies its sources of funding.

Disposal of Fort Fun
The Group announced on April 26, 2017 the disposal of the Fort Fun amusement
park (Germany) to Looping Group. The operation is subject to the prior approval
of the German competition authorities

The transaction valued the company at 7.0 MEUR and will be paid in cash. In
fiscal year 2015/2016, this site generated sales of 5.9 MEUR, a gross operating
surplus of about 1.5% of that of the Leisure destinations division, and
welcomed more than 265,000 visitors.

This disposal will have an insignificant impact on the Group's income
statement, with interim losses (booked at the beginning of the season when the
park has little revenue) being offset by the capital gain on disposal.

The sale of Fort Fun is in line with the strategy of refocusing the Group's
portfolio on sites that can radiate from a regional level to a national or even
international level, in some cases, and that can achieve Very High Customer
Satisfaction profitably.

OUTLOOK FOR 2016/2017
The following outlook for 2016/2017 is given barring the occurrence of major
unforeseen events.

* Ski areas
The fact that Easter weekend was in April this year, the good performance over
the spring holidays, and all actions lead by the Group allow to envisage an
increase in sales of more than 3.5% for the year as a whole. In addition, a
slightly higher EBITDA margin than guidance is confirmed.

* Leisure destinations
The second half of the year accounts for approximately 75% of annual sales and,
barring major climate or safety hazards, is expected to be better than the same
period last year even though the base effect is unfavorable (after three years
of sustained growth, on a like-for-like basis). However, growth during the peak
season will be automatically lower than that recorded during the extremities of
the season.

* Group development
The Chaplin's World by Grévin site, which celebrated its first anniversary
last April, is very successful. The three pilot sites, Montreal, Prague, and
Seoul, have been key in shaping this concept. But staying below the expected
performance, specific action plans have been developed. These action plans will
be evaluated and decisions made accordingly.

The consulting business, through CDA Management, participated in a variety of
competitive bids, the results of which should be known during the second half
of the year.

Upcoming events:
* 3Q 2016/2017 sales: Thursday, July 20, 2017, after stock market close
* Financial year 2016/2017 sales: Thursday, October 19, 2017, after stock
market close
* Financial year 2016/2017 results: Tuesday, December 12, 2017, before stock
market opening

www.compagniedesalpes.com

Since it was founded in 1989, Compagnie des Alpes has established itself as an
uncontested leader in the leisure industry. At the helm of 11 of the world's
most prestigious ski resorts (Tignes, Val d'Isère, Les Arcs, La Plagne, Les
Menuires, Les 2Alpes, Méribel, Serre-Chevalier, etc.) and13 renowned leisure
destinations (Parc Astérix, Grévin, Walibi, Futuroscope, etc.), the company
is steadily expanding in Europe (France, the Netherlands, Belgium, Germany,
etc.) and, more recently, at the international level (Grévin Montréal in
April 2013, Grévin Prague in May 2014, Grévin Seoul in July 2015 and
engineering and management assistance contracts (Russia, Morocco, Japan)). CDA
also owns stakes in 4 ski areas, including Chamonix.
During the financial year ended September 30, 2016, CDA facilities welcomed
nearly 22.5 million visitors and generated consolidated sales of 720.2 MEUR.
With more than 5,000 employees, Compagnie des Alpes works with its partners to
build projects that generate unique experiences, the opposite of a standardized
concept. Exceptional leisure activities for everyone.

CDA is included in the following indices: CAC All-Shares, CAC All-Tradable, CAC
Mid & Small et CAC Small.
ISIN: FR0000053324; Reuters: CDAF.PA ; FTSE: 5755 Recreational services

Contacts:

Compagnie des Alpes:     Denis HERMESSE  +33 1 46 84 88 97
                         denis.hermesse@compagniedesalpes.fr
                         Sandra PICARD   +33.1 46 84 88 53
                         sandra.picard@compagniedesalpes.fr
                         Alexis d'ARGENT +33 1 46 84 88 79
                         alexis.dargent@compagniedesalpes.fr

Thomas Marko & Associés: Xavier YVON   +33.6 88 29 72 37
                         xavier.y@tmarkoagency.com

Additional information

1 - Consolidated 1st half results 2016-2017 - October 1, 2016 through March 31,
2017

(in thousands of EUR)
                         1st half     1st half
                        2016 / 2017   2015 / 2016     Variation
                            (1)           (2)       (2)-(1) / (2)
Sales                       460,1        443,7           3,7%
EBITDA                      157,3        152,7           3,0%
EBITDA/Sales                34,20%       34,42%
Operationg income           100,3         98,1           2,3%
Net cost of debt and
miscellaneous                -9,5         -9,1           4,1%
Tax expense                 -33,2        -35,5          -6,5%
Equity method investees       4,6          5,5         -16,3%
Net income from going
concerns                     62,3         59,0           5,6%
Net income from
dsicintinued concerns         0,0          0,0
Net income                   62,3         59,0           5,6%
Minorities -4 -4,5
Net attributable income,
Group share                  58,3         54,5           7,0%

2 - Sales by division
(en MEUR)
                         1st half     1st half
                        2016 / 2017   2015 / 2016     Variation
                            (1)           (2)       (2)-(1) / (2)
Ski areas                  369,8         363,7           1,7%
Leisure destinations        83,7          77,4           8,2%
Group development            6,6           2,6         155,9%
Holdings and supports        0,0           0,0           N/A
Sales                      460,1         443,7           3,7%

3 - EBITDA by division

(en MEUR)
                         1st half     1st half
                        2016 / 2017   2015 / 2016     Variation
                            (1)           (2)       (2)-(1) / (2)
Ski areas                   185,9        187,3          -0,7%
Leisure destinations        -15,1        -17,7          14,4%
Group development            -2,9         -4,6          38,0%
Holdings and supports       -10,5        -12,3          14,1%
EBITDA                      157,3        152,7           3,0%

Glossary

Divisional EBITDA: Combined EBITDA for Ski areas, Leisure destinations, and
Group development

Free cash flow: Difference between self-financing capacity and net industrial
investments (changes in working capital requirements are not taken into
account).

Self-financing capacity = net income
* Plus depreciation, amortization and provisions, capital losses on disposals,
  dividends paid by companies accounted for under the equity method, and any
  other charges without cash impact
* Less reversals of provisions, capital gains on disposals, the share of
  income in companies accounted for by the equity method, and any other
  non-cash income.

Net industrial investments: Acquisitions of tangible and intangible assets net
of changes in accounts payable for fixed assets and proceeds from the sale of
fixed assets.

Free cash flow from operations: Free cash flow before interest expense and
taxes

ROOC: used to measure the profitability of capital invested in the Group's core
businesses (Ski areas and Leisure destinations). It corresponds to the ratio,
for each division and aggregated for both divisions, of after tax operating
income to consolidated net assets excluding goodwill.

  * After tax operating income is calculated after the deduction of a
    theoretical tax expense based on the normative tax rate of 33.33%
  * Net assets used excluding goodwill include:
   o The net values of long-term fixed assets after the exclusion of goodwill
   o Working capital requirement
   o Deferred tax assets net of deferred tax liabilities
   o Current provisions

For financial year 2015/2016, the reconciliation of ROOC was established as
follows:

                           Ski Areas &                   Total
                             Leisure     Rest of groupe  groupe
                           Destinations

Operating income              93 500  -      20 413      73 087
Theoretical tax (33.3%)   -   31 164          6 803   -  24 360
After-tax operating income    62 336  -      13 609      48 727

Assets used, ex Goodwill     785 364          8 504     793 868

Divisional ROOC                  7,9%                       6,1%

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COMPAGNIE DES ALPES (EPA:CDA) - Compagnie des Alpes // FY 2016/2017 H1 results

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