COMPAGNIE DES ALPES (EPA:CDA) - CDA - 2018 2019 annual results

Transparency directive : regulatory news

10/12/2019 07:52

Press Release

                          2018/2019 ANNUAL RESULTS

                  VERY GOOD SALES AND EARNINGS DYNAMIC

* SALES UP BY 6.6% (+4.2% ON A COMPARABLE SCOPE BASIS)
* OPERATING MARGIN TARGETS REACHED
  - EBITDA FOR SKI AREAS: 37.3% OF SALES
  - EBITDA FOR LEISURE DESTINATIONS (EX-FUTUROSCOPE): 28.2% OF SALES
* NET ATTRIBUTABLE INCOME, GROUP SHARE, REACHES RECORD LEVEL OF 62.2 MEUR
* PROPOSED DIVIDEND OF 0.70 EUR PER SHARE

Paris, December 10, 2019 - The Board of Directors of Compagnie des Alpes, in a
meeting chaired by Dominique Marcel, approved the Group's consolidated
financial statements for the financial year ended 09/30/2019 (audited financial
statements).

(in EURM)               2018/2019  2017/2018  Change   Change Comparable
                                                       scope basis(1)

Group Sales             854.0      801.2    +6.6%          +4.2%
o/w Ski Area            443.8      429.3    +3.4%          +3.4%
o/w Leisure Destination 380.7      339.9   +12.0%          +7.0%
o/w Holdings & Support   29.5       32.0    -7.7%         -13.9%
Group EBITDA            232.3      218.3    +6.4%          +4.2%
EBITDA/SALES            27.2%      27.3%   -10 bps
o/w Ski Area            165.5      159.3    +3.9%          +3.9%
o/w Leisure Destination  97.0       82.0   +18.4%          +9.1%
o/w Holdings & Support  -30.3      -22.9   -32.1%         -19.0%
Operating income        105.1       97.0    +8.4%         +5 ;2%
Net attributable
income, Group share      62.2       57.2    +8.8%
Net investments         209.4      186.2   +23.2 M
Free cash flow from
operations1              27.5       31.8    -4.4 M

(1) : The change on a comparable scope basis excludes the sales of Familypark
(Leisure Destinations), consolidated as of April1, 2019, as well as those of
Travelfactory (Holdings & Support) for the first quarter of 2018/2019, as this
acquisition was not consolidated until the 2nd quarter of the prior year, i.e.
January 1, 2018.

(1) See glossary

Commenting on these results, Dominique Marcel, Chairman and CEO of the
Compagnie des Alpes, stated: "2018/2019 was a very good year, both in terms of
operating performance and financial results, even though it follows on the
heels of another very good year. This is primarily the result of the daily
efforts of our teams at every Group entity. It is also attributable to a
relevant strategy, focused on maintaining consistently high customer
satisfaction and supported by a proactive investment policy.

Once again this year, the Group was agile and able to seize good opportunities,
particularly with the acquisition of Familypark and a dynamic financing
strategy.
We will continue to deploy our growth strategy and our investment policy in
line with our long-term value creation objectives for Compagnie des Alpes and
all our stakeholders."

Consolidated sales for the Group reached EUR854.0M, an increase of 6.6% on a
reported basis and of 4.2% on a comparable scope basis. This performance was
driven by a good ski season and dynamic sales in the Leisure Destination
division.

Ski Area sales came to EUR443.8M, an increase of 3.4% compared with the
previous financial year, which included a property sale of EUR2.4M. The season
experienced favorable snow conditions, and ski lift sales grew by 3.9%. For the
fourth consecutive year, the number of skier days was up (+0.6% compared to the
previous year), while average revenue per skier day increased by 3.3%.
Moreover, all the Group's ski resorts saw their sales grow.

Leisure Destination sales were good this season, thanks in particular to a
particularly dynamic fourth quarter, boosted by the increase in the
accommodation capacity at Parc Astérix, the opening of the Aquapark at
Bellewaerde, and the inauguration of a large number of new attractions. Sales
grew by 7.0% on a like-for-like basis compared to the previous financial year.
This dynamic was driven by an increase in both attendance (+2.5%) and spending
per visitor (+4.5%). Factoring in the consolidation of Familypark on April 1,
2019, sales totaled EUR380.7M, up 12.0% on a reported basis. The growth in the
number of visitors did not detract from the Group's High Satisfaction strategy,
with customer ratings continuing to improve this season regardless of
criterion.

Holdings & Support sales totaled EUR29.5M, versus EUR32.0M the previous
financial year. The consulting business saw a drop in sales, mainly due to the
scheduled end of the project management assistance contract with the Jardin
d'Acclimatation following its reopening. This decrease was only partially
offset by Travelfactory's business growth and the consolidation of its sales
over 12 months, compared with 9 months in the previous financial year.

Group EBITDA amounted to EUR232.3M. On an actual scope basis, it grew by 6.4%.
The EBITDA to sales ratio remained virtually unchanged at 27.2%, compared to
27.3% the previous year. It was boosted by the positive contribution from
Familypark, acquired in April 2019, while the 12-month consolidation of
Travelfactory (as of January 1, 2018) had a negative impact. On a like-for-like
basis, EBITDA increased by 4.2%, in line with the increase in sales.

EBITDA for the Ski Areas was EUR165.5M, up by 3.9% versus the previous
financial year. Despite the rising cost of energy this season, efforts to
control operating expenses led to a further increase in the EBITDA to sales
ratio, which at 37.3% came in above the target that the Group had set for
itself.

For Leisure Destinations, EBITDA came to EUR97.0M. On an actual scope basis,
the increase was a significant 18.4%. However, the Group notes that, having
consolidated Familypark as of April 1, 2019, it benefited from the most
significant 6 months in terms of EBITDA, as EBITDA for the first 6 months of
the year is structurally negative. On a like-for-like basis, thanks to the
Group's efforts to boost sales and control costs, it also progressed
dynamically, registering a rise of 9.1%. Compared to the previous year, the
EBITDA to sales ratio increased by 140 basis points, to 25.5%. Excluding
Futuroscope, it reached 28.2% and exceeded the objective that the Group had
set.

Holdings & Support EBITDA for 2018/2019 amounted to -30.3 million euros
compared to -22.9 million euros for the previous financial year. As a reminder,
the first quarter of Travelfactory, structurally negative in terms of EBITDA,
was not consolidated the previous financial year, which had a negative impact
of EUR3.0M. In addition, the Group's parent company bore the full cost of the
one-off purchasing power bonus paid this year to employees by Group companies,
i.e., EUR2.4M. Lastly, the increase in costs incurred by this segment also
reflects the increase in the Group's efforts to intensify its digital
strategy.

Expenses related to fixed asset depreciation rose by 3.3% (EUR4.0M) on a
like-for-like basis, reflecting in particular the ambitious investment policy
of the last five financial years. Operating Income (OI) thus totaled EUR105.1M,
an increase of 8.4% on an actual scope basis and of 5.2% on a comparable
basis.

The Group's net cost of debt remains unchanged compared to the previous
financial year at EUR8.3M, despite the EUR104M increase in the average debt
outstanding. This stability is due to the February 2019 NEU CP program, which
made it possible to optimize the cost of financing in the short term, and to
the decline in the average bond debt (the previous year also included the cost
of the EUR200M bond from October 1 to 18, 2017).The average interest rate on
the debt thus fell from 2.24% in 2017/2018 to 1.72% in 2018/2019.

After taking into account a tax expense of EUR32.2M and a positive share in the
earnings of affiliate companies totaling EUR8.9M, net income for the year was
EUR71.4M, an increase of 13.0% compared with the previous financial year.

Minority interests in the Group's net income increased from EUR6.0M in
2017/2018 to EUR9.2M in 2018/2019, due in particular to the improved results of
Futuroscope. Net attributable income, Group share, thus came to EUR62.2M, an
8.8% increase over the previous year, which had already set a record.

Reflecting the controlled deployment strategy of its Group projects, net
industrial investments(2) amounted to EUR209.4M, up EUR23.2M from the previous
year. They represent 24.5% of the Group's annual sales, compared to 23.2% in
2017/2018. For the Ski Area division, they came to EUR101.6M (+10.6MEUR), which
is 22.9% of ski area sales. For Leisure Destinations, they were EUR102.8M,
which is 27% of sales for this and an increase of EUR11.5M compared with the
previous year. This increase is mainly attributable to the construction of
hotels at Parc Astérix and the Aquapark inaugurated this year at
Bellewaerde.

Due to this increase in investments, free cash flow from operations(2) declined
slightly to EUR27.5M, compared with EUR31.8M for the previous financial year
(-4.4MEUR).

The Group's net debt totaled EUR540.5M, versus EUR402.3M at the end of the
previous financial year. This increase mainly reflects the increase in net
industrial investments, net financial investments of EUR19.9M, and, above all,
the acquisition of Familypark for a net amount of EUR72.5M. The net debt/EBITDA
ratio also increased, to 2.33 x but remains well below the Group's covenant
(3.5 x).

ROOC,(3) which measures the profitability of capital invested in ski areas and
leisure destinations, was unchanged compared with the previous year at 8.2%. It
should be noted that some significant investments made during the financial
year generated cash flows only during a part of it (in particular the second
hotel at Parc Astérix and the Aquapark at Bellewaerde) or will not begin to
generate cash flow until 2019/2020 (the third Astérix Hotel).

Dividend recommendation
In light of the good performances recorded by the Group, the Board of Directors
will recommend that the shareholders, who will meet to approve the financial
statements on March 5, 2020, approve the distribution of a dividend up 7.69% to
EUR 0.70 per share, representing a payout ratio of around 27.5% of net
attributable income, Group share. This level of distribution strikes a good
balance for the Group between, on the one hand, the investment needed to
support its growth and, on the other hand, its desire to increase the
remuneration of its shareholders in line with the improvement in
performances.

2019/2020 outlook
This outlook is provided barring the occurrence of major unforeseen events.

Recap of sales at start of period

  * Ski Areas
The first snowfall suggests that ski resorts will open under good conditions
and in accordance with the planned schedule. In addition, to date and compared
with the same period the previous financial year, reservations are slightly
more dynamic.

  * Leisure Destinations
After a year of consolidation, this year's Halloween season went according to
expectations despite rainy weather, confirming the appeal of our sites on this
annual occasion. The Christmas period will be marked this year by the opening
of Parc Astérix, which usually only caters to BtoB customers during this
period, to the general public, as will be the case for Familypark. This
experiment is not expected to generate significant additional revenue this
year, but it illustrates the Group's strategy of developing site operations
during new periods, such as Halloween.

(2)  See glossary
(3)  See glossary

Investments, margin and profitability objectives

For the Ski Areas, the Group's objective, as was the case last year, is to
achieve an EBITDA to sales ratio of between 36% and 37% (before application of
IFRS 16). In addition, the recent renewals of Public Service Delegations (DSP),
including Peisey-Vallandry a few months ago, have increased the depth of the
DSP portfolio. The level of investment related to these renewals, in addition
to those devoted to snow level security and customer satisfaction, will be
slightly over EUR100M, an amount that is roughly the same as that expended in
2018/2019.

As for Leisure Destinations, in light of the consolidation of Familypark over
12 full months and the increase in additional operating expenses related to new
hosting capacity, the Group maintains an EBITDA margin target for 2019/2020
that is identical to that set for last year, namely, a range of between 27% and
28% (excluding Futuroscope and before application of IFRS 16). In addition, to
support sales growth for this business, the Futuroscope and Bellewaerde sites
will be equipped with major new attractions. At Parc Astérix, construction
work on the third hotel, Les Quais de Lutèce, is ongoing, with the opening
scheduled for the spring of 2020. In total, the Leisure Destination investments
are expected to reach EUR90M, a slight decrease of around EUR10M compared to
2018/2019.

For Holdings & Support, the investment allocation will be more than double that
of the 2018/2019 financial year. In fact, the Group plans to intensify its
digital strategy, with respect to Travelfactory, in order to support its growth
internationally, as well as to facilitate the ramp-up of tools for the various
sites (a data- lake common to all businesses, automated marketing tools, and
the redesign of sales tunnels for parks).

In total, given this increase in investments in digital, the Group's net
investment in 2019/2020 should be relatively close to that of 2018/2019.

Lastly, the 2022 ROOC target, in excess of the 2016/2017 level, is maintained,
with the proviso that the increase will not be linear.

Impacts of IFRS 16

IFRS 16, which pertains to accounting for leases, is applicable for the Group
as of September 30, 2020. The simplified retrospective method will be used when
the standard is applied for the first time as of October 1, 2019.

The Group estimates that the application of IFRS 16 will lead to an increase in
financial liabilities of between EUR95M and EUR100M as of October 1, 2019, and
to an improvement in EBITDA of approximately EUR13M.

This estimate is based on the facts and circumstances known to date.

Upcoming events:
* 1Q 2019/2020 sales:         Thursday, January 23, 2020, after stock market
                               closes
* Shareholders' Meeting       Thursday, March 5, 2020, in the afternoon
* 2Q 2019/2020 sales:         Thursday, April 23, 2020, after stock market
   closes
* 1H 2018/2019 results:       Tuesday, May 26, 2020, after stock market closes

www.compagniedesalpes.com

Additional information

1 - Consolidated annual results, audited - October 1, 2018 through September
30, 2019

(in EURM)              FY       FY           FY        Change %      FY
                 2018/2019  2018/2019   2017/2018   Comparable  2017/2018
               Actual scope Comparable Actual scope  scope     Actual scope
                            scope
                     (1)      (2)           (3)   (2)-(3)/(3)     (4)
Sales               854,0    835,1         801,2       4,2%      801,2
EBITDA              232,3    227,4         218,3       4,2%      218,3
EBITDA/SALES        27,2%    27,2%         27,3%      -0,1%      27,3%
Operating income    105,1    102,1          97,0       5,2%       97,0
Net cost of debt
and miscellaneous   -10,3                                        -12,3
Tax expense         -32,2                                        -29,7
Equity method         8,9                                          4,5
Net income from
ongoing businesses   71,4                                         59,5
Net income from
discontinued
businesses            0,0                                          3,7
Net income           71,4                                         63,2
Minorities           -9,2                                         -6,0
Net attributable
income, Group share  62,2                                         57,2

    Change %

  Actual scope
(1) - (4) / (4)
   6,6%
   6,4%
  -0,2%
   8,4%
-15,8%
   8,4%
  98,2%
  20,1%
-100,0%
  13,0%
  53,6%
   8,8%

2 - Sales by division

(in EURM)              FY       FY           FY        Change %      FY
                 2018/2019  2018/2019   2017/2018   Comparable  2017/2018
               Actual scope Comparable Actual scope  scope     Actual scope
                            scope
                   (1)        (2)         (3)      (2)-(3)/(3)     (4)
Ski Areas         443,8      443,8       429,3         3,4%       429,3
Leisure
Destinations      380,7      363,8       339,9         7,0%       339,9
Holdings & Support 29,5       27,5        32,0       -13,9%        32,0
SALES             854,0      835,1       801,2         4,2%       801,2

Change %
Actual scope
(1) - (4) / (4)
  3,4%
12,0%
-7,7%
  6,6%

(in EURM)              FY       FY       % of Sales      FY       % of Sales

                 2018/2019  2018/2019  2018 / 2019  2017/2018   2017 / 2018

               Actual scope Comparable  Comparable Actual scope Comparable

                             scope        scope                    scope
                   (1)        (2)                      (3)

Ski Areas         165,5     165,3        37,2%        159,3        37,1%
Leisure
Destinations       97,0      89,4        24,6%         82,0        24,1%
Holdings &
Support           -30,3     -27,3                     -22,9
EBITDA            232,3     227,4        27,2%        218,3        27,3%

Change %            FY           Change %

Comparable       2017/2018      Actual scope
scope          Actual scope
(2)-(3)/(3)         (4)       (1)-(4)/(4)
  3,8%              159,3           3,9%
  9,1%               82,0          18,4%
-19,0%              -22,9         -32,1%
  4,2%              218,3           6,4%

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 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 2018/2019, the reconciliation of ROOC is as follows:

                   Ski Areas and Leisure  Rest of the Group   Group Total
                       Destinations

Operating income          123 703           - 18 597            105 106
Theoretical income tax
(33.33%)                -  41 230              6 198           - 35 032
After tax perating
income                     82 473           - 12 399             70 074
Assets used ex-goodwill 1 011 934           - 15 431            996 503
Divisional ROOC               8,2%                                  7,0%

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.) and11 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 2013,
Chaplin's World by Grévin Prague in April 2016, and engineering and
management assistance contracts (China, Russia, Georgia, Kazakhstan, Turkey,
Morocco, Japan)). CDA also owns stakes in 4 ski areas, including Chamonix.
During the financial year ended September 30, 2019, CDA facilities welcomed
more than 23.5 million visitors and generated consolidated sales of 854.0
MEUR.
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 and 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
Corpus:              Xavier YVON      +33.6 88 29 72 37
                     xavier.yvon@corp-us.fr

COMPAGNIE DES ALPES's latest news

23/04/2024 17:50

COMPAGNIE DES ALPES (EPA:CDA) - CDA - 2018 2019 annual results

Transparency directive : regulatory news

COMPAGNIE DES ALPES's latest news

Other stories