COMPAGNIE DES ALPES (EPA:CDA) - CDA - HY results 2019 2020
Transparency directive : regulatory news
26/05/2020 20:07
Click here to download pdf version
Press Release1ST HALF 2019/2020
FIRST SIX MONTHS IMPACTED BY CLOSURE IN MID-MARCH OF ALL SITES DUE TO COVID-19
Paris, May 26, 2020 - 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
2019/2020.
1st half 1st half Change
(in EURM) 2019/2020 2018/2019 Comparable
* ** Change scope***
Group Sales 470.5 498.2 -5.6% -6.2%
of which Ski Area sales 350.2 384.7 -9.0% -9.0%
of which Leisure Park sales 103.2 93.1 +10.8% +7.2%
of which Holdings & Support 17.2 20.4 -15.9% -15.9%
Group EBITDA 148.2 165.4 -10.4% -9.7%
EBITDA/Sales 31.5% 33.2% -170 bp
of which Ski Areas 175.6 194.7 -9.8% -9.8%
of which Leisure Parks -13.3 -15.7 +15.1% +22.8%
of which Holdings & Support -14.1 -13.6 -3.2% -3.2%
Operating Income 74.5 105.7 -29.6%
Net Attributable Income, Group Share 47.7 64.6 -26.2%
Free cash flow from operations(1) 58.6 61.2 -4.7%
* Since October 1, 2019, Compagnie des Alpes applies IFRS 16 (relative to
leases) in the preparation of its financial statements using a simplified
retrospective approach. In this case, IFRS does not require the restatement of
previous years' leases. See additional information section.
** Excluding IFRS 16 - as explained above, 1st half 2018/2019 statements were
not restated.
*** The change on a comparable scope basis excludes sales and EBITDA for
Familypark (leisure parks), consolidated as of April 1, 2019.
Commenting on the results for the first half, Group Chairman and CEO Dominique
Marcel said: "Our financial statements for the first half reflect a completely
unprecedented situation. And our business indicators since the start of this
financial year had been particularly dynamic until the confinement measures
that were adopted to help slow the spread of COVID-19 caused us to abruptly
close our various sites in mid-March, a move that cut our first half short by
two-and-a-half weeks.
We immediately shifted our priority to the safety of our guests and our
employees, and we also turned our attention to the long-term survival and
economic balance of our Group. A plan designed to adjust our structural and
operating costs was thus rapidly rolled out and we decided to adjust our
investment plans as well. All of these decisions were made in compliance with
our standing commitments and taking into account the best interests of our
employees and our stakeholders without compromising the quality of the product
we strive to offer our clients.
(1) See glossary
All of our attention and all of our energy are now focused on preparing for the
gradual reopening of our sites so that we will be ready to welcome our guests
as rapidly as possible and under suitable public safety conditions, in
compliance with the guidance issued by public policymakers in the various
countries in which we operate.
The crisis we are experiencing is major, but we are confident in our ability to
get through it, because the fundamentals of the Compagnie des Alpes are solid
and our strategy is both clear and value creating for all."
Consolidated sales for the Group reached EUR470.5M for the first half of
financial year 2019/2020, a decline of 5.6% (-6.2% on a comparable scope basis)
compared with the same period one year earlier.
Ski Area sales were cut short by two-and-a-half normally very busy weeks due to
the early closure of ski resorts on March 14 in connection with the mandatory
lockdown measures. The total for the period, EUR350.2M, was a significant drop
of 9.0% compared to the first half of the previous year. Before this event, the
season was going well, thanks in particular to a very good second week of the
Christmas holidays. Through March 14, sales had increased by around 2.5%
compared to the same period last year.
Despite the closure in mid-March of the handful of sites that were open,
Leisure Park sales reached EUR103.2M for the period, a significant increase of
10.8% (+7.2% on a comparable scope basis) thanks in particular to the
acquisition of Familypark and the strategic actions taken by the Group. This
sales dynamic reflects an increase in the number of guests (+9.9%)(2) as well
as another increase in spending per guest (+2.5%)(3). Through mid-March, sales
were up by +15.9% (+12.1% on a comparable scope basis) compared with the same
period last year.
Holdings & Support sales totaled EUR17.2M for the period, versus EUR20.4M for
the same period one year earlier. Sales for Travelfactory and the real estate
agencies suffered due to the lockdown measures put in place in most European
countries, while the decline in sales from the consulting business reflected
the timing of the contracts.
EBITDA for the Group of EUR148.2M. EBITDA was understandably impacted by the
abrupt shutdown of businesses, especially for the Ski Area division. Excluding
the impact of IFRS 16, it would have been EUR141.8M, a decrease of 14.3%
compared with the same period last year. EBITDA margin excluding IFRS 16 was
down by 300 basis points, to 30.2%.
For Ski Areas, EBITDA for the first half of the financial year came to
EUR175.6M (EUR174.1M ex IFRS 16) versus EUR194.7M for the same period last
year. This decline in Ski Area EBITDA of EUR20.6M excluding IFRS 16 should be
analyzed in light of the sales decline of EUR34.5M for this BU, demonstrating
that the cost adjustment plan rolled out by the Group the day after March 14
offset 40% of the lost sales. The EBITDA margin excluding IFRS 16 was down by
90 basis points to 49.7%.
As a reminder, Leisure Park EBITDA is structurally negative in the first half
of the year due to the highly seasonal nature of this business. The second half
of the year represents, on average, around 75% of annual sales. For the period
under review, it was -EUR13.3M compared to -EUR15.7M over the same period the
previous year (-EUR17.4M excluding IFRS 16). Compared to the first half of last
year, new expenses had an adverse impact, reflecting in particular the
integration of Familypark (consolidated in April of 2019) and operating
expenses for the Bellewaerde Aquapark (which opened in July of 2019), but also
expenses related to Parc Astérix pertaining to the opening of the second hotel
and to the facility being open to the general public, for the first time,
during the Christmas holidays. The non-IFRS 16 EBITDA margin was little changed
compared to the first half of the previous year, at -16.9%.
(2) And not + 7.4% as was erroneously indicated in the 1st half sales press
release published on April 23, 2020.
(3) And not + 3.4% as was erroneously indicated in the 1st half sales press
release published on April 23, 2020.
EBITDA for Holdings & Support came to -EUR14.1M (-EUR14.8M excluding IFRS 16),
compared with -EUR13.6M for the same period the previous year, with the slight
negative change mainly due to the impacts of the COVID- 19 crisis on this BU.
Also, like last year, the Compagnie des Alpes Group covered the cost, for
eligible employees, of the Exceptional Purchasing Power Bonus, representing a
total amount of EUR2.7M (compared to EUR2.4M the previous financial year).
Lastly, the Group continues to invest in the development of its marketing and
digital strategy, which should prove to be an important asset for the Group,
particularly when business resumes after the crisis.
Operating Income (OI) for the period came to EUR74.5M, a decline of 29.6%
compared with the same period last year (-30.2% excluding IFRS 16). This
decrease is attributable mainly to the decline in sales. In addition, the Group
recorded an increase in depreciation and provisions (EUR11.9M), reflecting the
Group's proactive investment strategy and a depreciation expense linked to the
application of IFRS 16 for EUR 5.8 million. In addition, given the
uncertainties weighing on business forecasts in the context of Covid-19, the
Group recorded an amortization of tangible assets for Grévin Montréal of
EUR2.4M and partial depreciation of Travelfactory goodwill for EUR2.8M.
The Group's net cost of debt rose by EUR1.6M, reaching EUR5.5M. This increase
is due in part to expenses related to the implementation of the USPP for the
acquisition de Familypark and also includes the expensing of financial costs on
lease liabilities pursuant to IFRS 16, for a total of EUR1.2M.
In addition, including other financial income and expense, which include a
capital gain on the sale of a non- consolidated subsidiary for EUR1.5M, the
financial result for the period was -EUR5.1M.
Tax expense decreased by EUR9.1M, reaching EUR27.3M. As a result, the tax
bracket changed from 34.4% to 34.9%.
The income share of companies accounted for using the equity method rose by
EUR2.8M to EUR8.6M, due to Compagnie du Mont-Blanc (+EUR3.0M), which booked an
insurance claim settlement the previous year.
Net attributable income, Group share, was EUR47.7M, down EUR16.9M (-26.2%)
compared with March 31, 2019. Excluding IFRS 16, the decrease in net
attributable income was -25.7%.
Net industrial investments(4) came to EUR91.4M, a decrease of 15.6% compared
with the same period the previous year.
In the Ski Area division, investments were down for the period, mainly due to
different phasing than last year for the same period.
For Leisure Parks, investments were unchanged at EUR38.8M for the period, while
the commitments made prior to the COVID-19 crisis will be accounted for in the
second half of the year.
Despite the decrease in net industrial investments, Free Cash Flow from
Operations(5) for the first half of the year totaled EUR58.6M, compared with
EUR61.2M for the same period one year ago. This decline is primarily
attributable to the decrease in self-funding capacity due to the COVID-19
crisis and the closure of our facilities in mid-March 2020.
After accounting for a lease liability of EUR112.6M as per IFRS 16, net debt
was EUR577.9M on March 31, 2020. Excluding IFRS 16, the Group's net financial
debt as of March 31 was EUR465.3M, versus EUR380.5M on March 31, 2019.
Accordingly, the net debt / EBITDA (excluding IFRS 16) ratio over 12 months, on
which our bank covenants are assessed, were 2.23 on March 31, 2020, versus 1.74
on March 31, 2019.
(4) See glossary
(5) See glossary
At the end of the period under review, the Group has EUR300M in cash resources,
credit lines, and unused overdraft facilities, and has no significant debt
repayment obligations between now and the end of its financial year.
The rest of financial year 2019/2020
- Ski Areas
The Group hopes to be able to open its ski resorts in June, provided that the
lifting of the lockdown rolls out under good conditions. However, given that
all the ski areas have been closed since March 14 and that the 4th quarter is
generally slow compared to the others, the Group confirms it is anticipating,
for the 2019/2020 financial year, a decrease in annual sales for this division
of approximately 20% (EUR85 to 90M).
The day after its ski resorts closed, the Group implemented an adjustment plan
targeting structural and operating costs. Thanks to these efforts, the Group
now expects the Ski Area EBITDA margin on sales of slightly more than 30%,
excluding IFRS 16, confirming its ability to continue to compensate for just
over 40% of the sales lost due to the closure of its ski resorts near the end
of the first half of this year.
Lastly, due to the crisis and its substantial impacts, the Group plans to
postpone certain investment projects, while respecting its obligations and
taking the needs of its stakeholders into account, reducing the annual budget
to nearly EUR80M.
- Leisure Parks
Like the Ski Areas, a plan to adjust the structural and operating costs for the
Leisure Parks is also in place to offset just over 40% of sales losses caused
by site closures.
To date, a great deal of uncertainty persists with regard to the impact of
COVID-19 on results for the second half of the year. This impact will depend on
the dates our facilities will be allowed to reopen, and for most of them,(6)
these dates are not yet known; the pace of the business recovery, which could
be slow and gradual; operating constraints linked to efforts to comply with
public health measures, which could weigh on sales; and an adjustment to
variable expenses that cannot be maintained indefinitely at the current
level.
In order to prepare for these reopenings, the Group has been working with
industry professionals in all the countries where it operates, drawing up
health and safety plans that have been sent to various government authorities.
The aim of these plans is to identify operating procedures that adapt the
offering to the public health crisis in order to guarantee the health and
safety of employees and visitors. Thus, a number of concrete operating and
health measures will be put in place when the sites reopen.
Concerning investments, for Leisure Parks, which were already mostly completed
or committed prior to the initial date of opening for the sites, a reduction is
nonetheless necessary for the budgeted amount, which will be reduced to a total
slightly above EUR85M for this year.
(6) Walibi Holland site reopened on May 25.
- Group
In total, the investment budget was set for around EUR175M. Lastly, given the
structure of its long-term financing, the adaptive measures taken, and the
option of accessing additional lines of credit, the Group remains confident in
its ability to over its liquidity needs until the end of the civil year,
including under a worst-case scenario.
In the crisis environment created by COVID-19, the Group faces a large number
of uncertainties that make it extremely difficult to assess the various impacts
on the Group's results over the very short term or even medium term. These
impacts will depend on multiple factors and, in particular, on the date that we
are able to resume operations, as well as on the preventive measures adopted by
government policymakers in the countries where the Group operates, and the
short- term impact that this crisis will have on consumer behavior. As a
reminder, the Group has decided in light of this unprecedented situation to
abandon the 2019-2020 EBITDA margin objectives for Ski Areas and Leisure Parks
that were communicated last December.
Upcoming events:
- 3rd quarter 2019/2020 sales:
Thursday, July 23, 2020, after stock market closes
- Full year 2019/2020 sales:
Thursday, October 22, 2020, after stock market closes
- Full year 2019/2020 results:
Tuesday, December 8, 2020, before stock market opens
www.compagniedesalpes.com
Additional information
1 - Consolidated results, 1st half of 2019-2020 through March 31, 2020 (After
IFRS 16)
1st half 1st half 1st half % Change 1st half % Change
(in EURM) 2019/2020 2019/2020 2018/2019 Comparable 2018/2019 Actual
Actual Comparable Comparable scope Actual scope
scope scope scope scope (1)-(4)/
(1) (2) (3) (2)-(3)/(3) (4) (4)
Sales 470,5 467,2 498,2 -6,2% 498,2 -5,6%
EBITDA 148,2 149,5 165,4 -9,7% 165,4 -10,4%
EBITDA/
SALES 31,5% 32,0% 33,2% -3,7% 33,2% -5,1%
Operating
Income 74,5 77,5 105,7 -26,7% 105,7 -29,6%
Net cost -5,1
of debt
and
miscellaneous -5,7 -11,4%
Tax expense -27,3 -36,4 -25,1%
Equity
method
investees 8,6 5,8 47,8%
Net Income 50,8 69,5 -26,9%
Minority
interests -3,1 -4,8 -35,8%
Net
attributable
income,
group share 47,7 64,6 -26,2%
2 - Sales by division, 1st half of 2019-2020 through March 31, 2020
1st half 1st half 1st half % Change 1st half %
Change
(in EURM) 2019/2020 2019/2020 2018/2019 Comparable 2018/2019 Actual
Actual Comparable Comparable scope Actual scope
scope scope scope scope (1)-(4)/
(1) (2) (3) (2)-(3)/(3) (4) (4)
Ski Areas 350,2 350,2 384,7 -9,0% 384,7 -9,0%
Leisure
Parks 103,2 99,9 93,1 7,2% 93,1 10,8%
Holdings
& Support 17,2 17,2 20,4 -15,9% 20,4 -15,9%
SALES 470,5 467,2 498,2 -6,2% 498,2 -5,6%
3 - EBITDA by division, 1st half of 2019-2020 through March 31, 2020 (After
IFRS 16)
1st half 1st half % SALES 1st half
(in EURM) 2019/2020 2019/2020 2018/2019 2018/2019
Actual Comparable Comparable Comparable
scope scope scope scope
(1) (2) (3)
Ski Areas 175,6 175,6 50,1% 194,7
Leisure
Parks -13,3 -12,1 -12,1% -15,7
Holdings
& Support -14,1 -14,1 -13,6 -3,2%
EBITDA 148,2 149,5 32,0% 165,4
% SALES % Change 1st half % Change
2018/2019 Comparable 2018/2019 Actual
Comparable scope Actual scope scope
scope (2)-(3)/(3) (4) (1)-(4)/(4)
50,6% -9,8% 194,7 -9,8%
-16,8% 22,8% -15,7 15,1%
-3,2% -13,6 -3,2%
33,2% -9,7% 165,4 -10,4%
4 - Impacts of IFRS 16 on 1st half 2019/2020 income statement
19/20 19/20
BEFORE AFTER
1st half (in EURM) IFRS 16 IFRS 16
Sales 470.5 470.5
EBITDA 141.8 148.2
Of which EBITDA SA 174.1 175.6
Of which EBITDA LP (17.4) (13.3)
Of which EBITDA H&S (14.8) (14.1)
Depreciation and amortization -65.9 -71.6
Operating Income 73.8 74.5
Net cost of debt and other financial expenses -3.9 -5.1
Taxes -27.4 -27.3
Consolidated net income 51.2 50.8
Net attributable income, group share 48.0 47.7
5 - Impacts of IFRS 16 on net debt
18/19
Not
19/20 restated
after for IFRS
1st half (in EURM) IFRS 16 16 Change
Net financial debt and lease liabilities 577.9 380.5
Net debt excluding IFRS 16 465.3 380.5 -
Net debt / EBITDA excluding IFRS 16
(over 12 months) 2.23 1.74 -
Glossary
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 2018/2019, the reconciliation of ROOC is as follows:
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 854.0MEUR.
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-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
Corpus:
Xavier YVON
+33.6 88 29 72 37
xavier.yvon@corp-us.fr
COMPAGNIE DES ALPES's latest news
14/03/2024 20:17
13/03/2024 19:26
25/01/2024 19:02
23/01/2024 17:48
15/01/2024 12:57
21/12/2023 20:15
05/12/2023 07:35
24/10/2023 17:47
04/10/2023 10:01
25/07/2023 17:46
Other stories
19/04/2024 21:31
19/04/2024 22:57
19/04/2024 21:18
19/04/2024 15:18
19/04/2024 19:51
19/04/2024 19:14
19/04/2024 17:45
19/04/2024 20:28
19/04/2024 18:45
19/04/2024 20:52
19/04/2024 21:39
19/04/2024 20:46
19/04/2024 16:05
19/04/2024 20:22
19/04/2024 17:00
19/04/2024 16:55
19/04/2024 15:24
19/04/2024 17:51
18/04/2024 15:58
19/04/2024 00:00
19/04/2024 12:00
19/04/2024 16:00
19/04/2024 16:28
19/04/2024 19:29
19/04/2024 18:22
19/04/2024 15:29
19/04/2024 21:52
19/04/2024 23:05
19/04/2024 19:47
19/04/2024 18:30
19/04/2024 20:51
18/04/2024 07:11
19/04/2024 14:04
19/04/2024 15:09
19/04/2024 18:01
18/04/2024 00:30
19/04/2024 20:37
19/04/2024 15:00