COMPAGNIE DES ALPES (EPA:CDA) - CDA - Half year results 2017/2018
Transparency directive : regulatory news
24/05/2018 17:46
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Press release1ST HALF 2017/2018
OPERATIONAL AND FINANCIAL PERFORMANCE GAINS
Paris, May 24, 2018 - The Board of Directors of Compagnie des Alpes, in a
meeting chaired by Dominique Marcel, approved the Group's consolidated
financial statements for the first half of the Group's financial year
2017/2018.
(in thousands of EUR)
1st half 1st half Change Change
2017/2018 2016/2017 (versus Comparable
Restated (*) Restated) scope
Group sales 491.2 458.8 +7.1% +3.2%
of which Ski Area sales 372.1 362.1 +2.8% +2.8%
of which Leisure Destination
sales 93.8 87.8 +6.8% +7.7%
Group EBITDA 169.8 159.2 +6.7% +3.6%
EBITDA/Sales 34.6% 34.7% -10 bps
of which Ski Area EBITDA 187.7 184.8 +1.6% +1.6%
of which Leisure Destination
EBITDA -11.9 -15.9 +25.5% +20.3%
Operating Income 111.8 103.1 +8.4%
Net Attributable Income,
Group Share 69.0 58.3 +18.4%
Free cash flow from operations(1) 77.8 89.5 -13.1%
The results for the 1st half of financial year 2017/2018 take into account the
acquisition of Travelfactory, changes in scope, certain reclassifications
between divisions, and a change in accounting method.
* I - Restated data are data from 16/17 disclosures from which data concerning
Grévin Prague and Seoul (reclassified as discontinued businesses) have been
eliminated and in which reclassifications between divisions or business
units have been made:
o The business at the Grévin Montréal and Chaplin's World by Grévin sites,
as well as that of CDA Production, formerly accounted for in the Group
Development BU (which has been eliminated) were reclassified under the
Leisure
Destination BU
o Historic real estate agency and online distribution (in particular Alpes
Ski Résa) business is accounted for using a different income recognition
accounting method (margin in 2017/2018 vs. business volume in 2016/2017).
Previously accounted for under the Ski Area BU, these businesses have been
reclassified under the BU Holdings and Support, as is the consulting
business carried by CDA Management and CDA Beijing, which were previously
accounted for under the BU Group Development.
* II - Comparable scope refers to reported data that have been restated (see
point I above), from which all business relating to Fort Fun (sold in April
2017) has been eliminated.
* III - Change on a comparable scope: The change is calculated by comparing
reported data from 2017/2018, from which Travelfactory (consolidated as of
01/01/18) has been eliminated, to 2016/2017 data on a comparable scope basis
(see point II).
Commenting on the results for the first half, Dominique Marcel said: "We had a
good first half, driven by growth in the Group's historical activities. In the
Ski Area Division, we posted new growth in sales and managed to cope with
extreme operating conditions, especially in January, thanks to the expertise of
our teams on site. In Leisure Destinations, higher sales reflect our ability to
further boost our park operations during the Halloween period and increase
spending per visitor. The first half of this year was also marked by the
acquisition of Travelfactory, which has enabled the Group to become the leading
distributor of ski holidays in France. Lastly, in a year marked by an increase
in our investments in growth and attractiveness, the sale of two of our Grévin
museums abroad, combined with a decrease in our cost of debt following the
refinancing operations carried out last year, has led to an improvement in our
financial performance."
(1) See glossary
Consolidated sales for the Group rose to EUR491.2M, up +7.1% on a restated
basis (+3.2% on a comparable scope basis) compared with the same period of the
previous financial year.
Ski Area sales reached EUR372.1M for the 1st half, an increase of +2.8% versus
the same period of the previous financial year (+2.9% for lift sales alone).
Sales for the period were driven by an increase in the number of skier days (up
1.5%) and revenue per skier day up +1.4%, in spite of the adverse impacts
caused by weather conditions, which are often extreme during the month of
January (wind, cold and precipitation) and which disrupted operations for most
of the Group's ski resorts.
The number of skier is expected to be higher for the year as a whole for the
third consecutive year despite a more competitive environment nationwide this
season due to good snowfall levels across the board, including at mid-altitude
facilities.
After four first half periods in a row that showed strong growth, Leisure
Destination sales once again rose over the course of the 1st half 2017/2018,
growing by +7.7% on a comparable scope basis (+6.8% on a restated basis) to
EUR93.8M.
Once again this season, this performance is primarily attributable to dynamic
sales during the Halloween period, which now accounts for a significant part of
some parks' annual sales. In addition, spending per visitor (SPV) increased by
a significant 6%, while attendance was up by 1.7%.
The Holdings and Support Division currently groups the consulting businesses
(CDA Management and CDA Beijing), the online distribution businesses, and CDA's
real estate agencies (in particular Alpes Ski Résa), which were previously
consolidated under the Ski Area BU, as well as - since January 1, 2018, the
business of Travelfactory. Its sales for the 1st half of financial year
2017/2018 came to EUR25.3M, compared with EUR8.9M for the 1st six months of
financial year 2016/2017, due in particular to this acquisition, while the
consulting business continues to develop.
Divisional EBITDA(2) (which is the sum total of Ski Area EBITDA and Leisure
Destination EBITDA) reached EUR175.9M for the period, an increase of 4.1%. On a
comparable scope basis, the increase was +3.5%.
For the Ski Area Division, the increase in EBITDA fell short of the increase in
sales, due in particular to a negative base effect related to the hiring of
seasonal employees (which was delayed due to the lack of snow at the start of
the season in 2016/2017) but also to the costs incurred to improve ski slope
safety. In fact, weather conditions disrupted the operation of some sites and
the consequences of Storm Eleanor generated additional expenses for slope
grooming, controlled avalanche triggering, and general maintenance work. EBITDA
was EUR187.7M, compared with EUR184.8M for the same period last year, which is
therefore 50.5% of sales compared with 51.0% for the first half of 2016/2017.
For the Leisure Destination Division, EBITDA was once again negative for the
period due to the highly seasonal nature of this business, although it showed
considerable improvement compared with the same period last financial year,
going from -15.9 million euros for the 1st half of 2016/2017 to -11.9 million
euros this year, mainly due to the good operating performances for
facilities.
During the half-year period, EBITDA for the Holdings and Support Division also
increased significantly (+37.8%), thanks in particular to Travelfactory, whose
EBITDA is also highly seasonal. Due to the concentration of second-quarter
revenues, this increase is not representative of what it will be on an annual
basis.
For the first six months of the year, consolidated EBITDA was EUR169.8M, an
increase of 6.7%.
(2) See glossary
Operating Income (OI) rose by a substantial 8.4% versus the same period of the
previous financial year, reaching EUR111.8M, thanks to robust sales during the
period.
Net cost of debt for the Group stands at EUR4.5M, a reduction of EUR3.2M that
resulted from the refinancing operation that was conducted in 2017. For the
financial year as a whole, the decrease will amount to more than 40%.
Grévin Prague and Grévin Seoul (discontinued businesses)
The Group decided last December not to continue operating the Seoul and Prague
sites and therefore to recognize them as discontinued operations in the income
statement. The Grévin Museum in Seoul was ceded to a Korean minority partner
last February. The Prague site was sold in April 2018 (post half-year closing)
to a Belgian industrialist. The negative contribution of these two sites to the
Group's results in 2016/2017 was - 5.9 million euros, while it will be positive
in 2017/2018 due to the proceeds of their sale.
These two sites will continue to be operated under the Grévin brand, but the
expected royalties will be insignificant.
Net attributable income, Group share, came to EUR69.0M, an increase of 18.4%.
As anticipated, net industrial investments(3) increased by 30.7% over the first
six months of the current financial year, reaching EUR93.7M.
This is primarily due to an increase in investments in Ski Areas. In the first
half of 2017/2018, they amounted to EUR53.7M, compared with EUR35.9M in
2016/2017, when the investment phasing was concentrated in the second half of
the year because of the timetable for their completion. The planned increase of
EUR7M in the annual investment budget is confirmed.
Net industrial investments for Leisure Destinations increased by EUR5M, mainly
attributable to work done to build the Hôtel de la Cité Suspendue at Parc
Astérix and the announced increase of EUR 20M in the annual investment
budget.
Free Cash Flow from Operations(4) was EUR77.8M for the period, versus EUR89.5M
for the first six months of the previous financial year, with the difference
due mainly to the difference in phasing of the Ski Area investments between the
1st and 2nd half-year periods and their global increase at the Group level.
The Group's net debt as of March 31, 2018, was up by 4.8% to EUR269.6M, due to
the increase in investments. The net debt/EBITDA ratio continues to improve, at
1.24 versus 1.36 at the end of the first half of the previous financial year,
thanks to the improvement in operating income.
(3) See glossary
(4) See glossary
OUTLOOK FOR 2017/2018 AND UPDATING OF EBITDA MARGINS
The outlook for 2017/2018 is subject to change in light of major economic
uncertainties.
* Ski Areas
Ski Area business, which suffered during the first two weeks of April (due to
the late school holiday calendar and the transportation strike), went on to
recover somewhat for the end of the season. As a result, the Group estimates
that growth in sales for this division will be slightly higher than 2% for the
financial year as a whole.
Following the acquisition of Travelfactory, which is accounted for under
Holdings and Support, the Group's historical real estate and online
distribution businesses (including Alpes Ski Résa), previously recorded under
Ski Areas, were reclassified as Holdings and Support. These activities were
dilutive to the EBITDA/Sales margin for this division (0.8 point). In light of
this reclassification, the Group's target for EBITDA margin is around 37% over
the next two years, compared with 36% previously.
* Leisure Destinations
Barring the occurrence of a weather or major security risk, sales should
continue to increase for this division, boosted by an investment program
focused on adding appeal and capacity and by the results of the Very High
Customer Satisfaction strategy, as both encourage visitors to return to our
sites for repeat visits.
The impact of reclassifications, with the integration of Chaplin's World by
Grévin and Grévin Montréal activities into the Leisure Destinations BU, was
already factored into Leisure Destination figures when the annual results were
announced last December. Accordingly, there is no change at this level and the
Group reaffirms its EBIT margin/sales target (excluding Futuroscope) of 27% in
2019.
* Holdings and Support
The integration of Travelfactory will continue throughout the year. As for the
consulting business, two new collaboration agreements - with the Chinese
Beidahu Station and the Vanke Group, which operates in Jilin Province - have
recently been signed to assist them in their development projects. In addition,
after 9 months of work and a complete transformation carried out with the help
of the Compagnie des Alpes teams, the Jardin d'Acclimatation, in collaboration
with the LVMH group, will reopen on June 1st of this year.
* Group
In light of the investment trend, the Group reaffirms that ROOC, which measures
the return on capital invested in ski areas and leisure destinations, should
increase over the 2018-2022 period, but in a non-linear manner due to the fact
that the sales increase related to investments in leisure parks emerges one to
two years after the underlying capital expenditure and that the cost of
launching new offers is generally incurred the financial year prior to their
opening.
When it released its 2016/2017 financial statements, the Group reported that
ROOC was 8.9%. Restated for the impacts of the various reclassifications, it
would have been 8.8%.
Upcoming events:
-> 3Q 2017/2018 sales: Thursday, July 19, 2018, after stock market closes
-> FY 2017/2018 sales: Thursday, October 18, 2018, after stock market
closes
-> FY 2017/2018 results: Tuesday, December 11, before stock market opens
www.compagniedesalpes.com
Additional Information
1 - Consolidated 1st half results for 2017-2018 through March 31, 2018
(in thousands of EUR)
1st half 1st half Change Change
2017 / 2018 2016 / 2017 (vs restated) Comparable
restated (*) scope
Sales 491,2 458,8 7,1% 3,2%
EBITDA 169,8 159,2 6,7% 3,6%
EBITDA/SALES 34,6% 34,7%
Operating Income 111,8 103,1 8,4%
Net cost of debt and
miscellaneous -6,3 -9,5 -34,2%
Tax expense -35,1 -33,2 5,7%
Equity method 4,6 4,6 -1,2%
Net income from going
concerns 75,0 65,1 15,3%
Net income from
discontinued businesses -0,5 -2,8
Net income 74,5 62,3 19,7%
Minority interests -5,5 -4,0 38,8%
Net Attributable Income,
Group Share 69,0 58,3 18,4%
2 - Sales by division
(in thousands of EUR)
1st half 1st half Change Change
2017 / 2018 2016 / 2017 (vs restated) Comparable
restated (*) basis
Ski Areas 372,1 362,1 2,8% 2,8%
Leisure Destinations 93,8 87,8 6,8% 7,7%
Holdings and support 25,3 8,9 185,0% -24,3%
Sales 491,2 458,8 7,1% 3,2%
3 - EBITDA by division/business unit
(in thousands of EUR)
1st half 1st half Change Change
2017 / 2018 2016 / 2017 (vs restated) Comparable
restated (*) scope
Ski Areas 187,7 184,8 1,6% 1,6%
Leisure Destinations -11,9 -15,9 25,5% 20,3%
Holdings and support -6,0 -9,7 37,8% -1,6%
EBITDA 169,8 159,2 6,7% 3,6%
Divisional EBITDA: Combined EBITDA for Ski Areas and Leisure Destinations.
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 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 2016/2017, the reconciliation of ROOC is as follows:
Ski Areas and Rest of Total, Group
Leisure the group
Destinations
Operating income 110 702 - 17 578 93 126
Theoretical tax
expense (33.33%) - 36 897 5 858 - 31 039
After-tax operating
income 73 805 - 11 718 62 087
Assets used
ex-goodwill 827 147 - 7 741 819 406
Operational ROCE 8,9% 7,6%
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, 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, 2017, CDA facilities welcomed
nearly 23 million visitors and generated consolidated sales of EUR762.3
million. With nearly 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
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