Press release 18 May 2016
SnowWorld satisfied with winter season 15/16
SnowWorld achieves 12% increase in net profit in first half-year
Key points 2015/2016:
SnowWorld Zoetermeer invests in new refrigeration system and extension of current third ski slope
Increase in turnover by 4.1% to €18.7 million
Increase in gross margin by 3.8% to €17.0 million
Increase in EBITDA by 7.1% to €8.9 million
Increase in net profit by 11.7% to €4.7 million
Increase in group equity vis-à-vis 31 March 2015 by 27.9% to €15.2 million
Decrease in interest-bearing debt (excluding interest rate swaps) by 4.8 million (13.3%) to €31.2 million
Increase in guarantee capital vis-à-vis 31 March 2015 by 3.8% to 26.9%
SnowWorld expects a higher EBITDA and higher net profit for the full financial year 2015/2016
General developments
The previously announced conversion of the refrigeration system of the SnowWorld location in Zoetermeer took place
in the first half of financial year 2015/2016. The 20-year-old system, which still made use of the refrigerant R22,
which is being phased out, has been replaced by an efficient new system which has since been put into use. The first
indications of the expected savings in operating costs are encouraging.
In 2015/2016, major steps were taken regarding the extension of the third run of the SnowWorld Zoetermeer
location. The municipality of Zoetermeer already issued the permit for this project in September 2015. Given that
proceedings on the merits before the Council of State have been requested by a party concerned, the permit was not
yet irrevocable. At the end of April 2016, the Council of State declared the objection filed unfounded, meaning the
permit has since become irrevocable. The spectacular expansion is therefore already fully underway. It is expected
that the extended third ski run will be opened to the public in September 2016.
The further development of the Wilhelminaberg (the hill upon which SnowWorld Landgraaf was built), which was
started in fiscal year 2014/2015 in cooperation with a number of parties, including the municipality of Landgraaf, is
progressing steadily. The preliminary plans consist of constructing a tower which may become the highest point in the
Netherlands, as well as placing a large number of solar panels on the roofs of SnowWorld Landgraaf.
As a result of local political developments, progress in the projects in Paris and Barcelona has been limited.
SnowWorld continues to exert pressure on local political parties to convince them that an indoor ski complex in global
cities like Paris and Barcelona will be an asset.
The proposal to distribute an optional dividend of €0.18 per share was unanimously approved at the shareholders
meeting on 11 March 2016. This dividend distribution was effected on 31 March 31 2016.
Higher net operating profit first half-year 2015/2016
SnowWorld is very pleased with the operating result over the first six months of the financial year 2015/2016. Total
ticket sales are equal to the same period last year. However, the average ticket revenue increased slightly due to a
slightly increased length of stay. Revenue for the first six months of the financial year amounts to €18.7 million (€18.0
million in the first half-year 2014/2015), which amounts to an increase of 4.1%.
The company’s gross margin increased compared to last year, by 3.8%, to €17.0 million. Operating expenses rose by
only 1.0% to €9.9 million, resulting in an increase of EBITDA by €0.6 million and 7.1% to an amount of €8.9 million.
As a result of lower interest expenditure, net profit rose by 11.7% to €4.7 million compared to the previous year (it
was €4.2 the previous year).
Strengthened balance sheet ratios
By adding the positive result after taxes to the reserves, and two small direct changes in equity, group equity rose by
45.1% from €10.4 million as at 30 September 2015 to €15.2 million as at 31 March 2016. A comparison of the group
equity at 31 March 2016 to that of 31 March 2015 shows an increase of 27.9%. Because of this, the guarantee capital
increased by 31 March 2016 to 26.9%. Group equity and guarantee capital disregard any hidden reserve in the land
and buildings of €23.5 million (book value at 31 March 2016 €46.1 million and calculated value as at September 2015
€69.6 million).
The interest-bearing debt (excluding interest rate swaps) decreased by €4.8 million (13.3%) to €31.2 million
Outlook
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.
Given the developments during the first half-year, we are positive about the full financial year 2015/2016. For the full
financial year 2015/2016 we expect to arrive at a higher EBITDA and higher net profit than in the previous financial
year. Earnings per share is expected to also be higher than last year.
Investment is expected to amount to more than €10 million this year. SnowWorld Leisure N.V. expanded its credit
arrangement with ABN AMRO Bank to finance these investments.
According to the policy adopted by the General Meeting of Shareholders on 12 March 2015, a dividend payment of
30% to 50% of net profit will be sought for the financial year 2015/2016.
For more information on this press release or additional information, please contact:
Koos Hendriks (CEO), +31 (0)6 51837518 or [email protected]
Wim Moerman (CFO), +31 (0)6 41219496 or [email protected]
Profile SnowWorld
SnowWorld N.V. is a listed company based in Zoetermeer. With its two indoor ski facilities in the Netherlands,
SnowWorld is one of the world’s leading companies in this sector. 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.
2
KEY POINTS 2015/2016
General
Efficient new refrigeration system in SnowWorld Zoetermeer
Start construction spectacular extension third slope in SnowWorld Zoetermeer
Financial
Number of slope tickets sold stable, slight increase in average revenue per visitor
Increase in turnover by 4.1% to €18.7 million and gross margin by 3.8% to €17.0 million
Increase in EBITDA by 7.1% to €8.9 million
Increase in net profit by 11.7% to €4.7 million
Increase in cash flow from operating activities by 16.0% to €8.0 million
Increase in group equity vis-à-vis 31 March 2015 by 27.9% to €15.2 million
Increase in guarantee capital vis-à-vis 31 March 2015 by 3.8% to 26.9%
Decrease in interest-bearing debt (excluding interest rate swap) by €4.8 million (13.3%) to €31.2 million
SnowWorld expects a higher EBITDA and higher net profit for the full financial year 2015/2016
GENERAL DEVELOPMENTS
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 construction 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 10 December 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.
The previously announced conversion of the refrigeration system of the SnowWorld location in Zoetermeer took place
in the first half of financial year 2015/2016. The 20-year-old system, which still made use of the refrigerant R22,
which is being phased out, has been replaced by an efficient new system which has since been put into use. The new
installation, which includes heat recovery, required an investment of approximately €2.0 million and is expected to
provide €0.2 million in EBITDA savings annually. The first indications of the expected savings in operating costs
(energy, water, chemicals and maintenance) are encouraging. The investment in the new refrigeration system is
separately funded by company bank ABN AMRO.
In 2015/2016, major steps were taken, in particular regarding the development of the extension of the third ski run of
SnowWorld Zoetermeer. The municipality of Zoetermeer already issued the permit for this project in September 2015.
Given that proceedings on the merits before the Council of State have been requested by a party concerned, the
permit was not yet irrevocable. At the end of April 2016, the Council of State declared the objection filed unfounded,
meaning the permit has since become irrevocable. The spectacular extension is currently fully underway. It is
expected that the extended third ski run will be opened to the public in September 2016.
The extension of the third run in Zoetermeer involved a total investment of €10.0 million. Part of this was already
charged and paid in the run-up to the actual construction (as of financial year 2008/2009). The other part, still to be
invoiced and paid, will be fully financed by company bank ABN AMRO. A new credit arrangement has been concluded
to this end.
3
As a result of local political developments, progress in the projects in Paris and Barcelona has been limited.
SnowWorld continues to exert pressure on local political parties to convince them that an indoor ski complex in global
cities like Paris and Barcelona will be an asset.
The further development of the Wilhelminaberg (the hill upon which SnowWorld Landgraaf was built), which was
started in fiscal year 2014/2015 in cooperation with a number of parties, including the municipality of Landgraaf, is
progressing steadily. The preliminary plans consist of constructing a tower which may become the highest point in the
Netherlands, as well as placing a large number of solar panels on the roofs of SnowWorld Landgraaf.
FINANCIAL DEVELOPMENT
General
The proposal to distribute an optional dividend of €0.18 per share was unanimously approved at the shareholders
meeting on 11 March 2016. The majority of the shareholders opted to pay out a stock dividend (35 existing shares
entitled one to acquire one new share). Since only a small portion of the shareholders opted for a dividend in cash, a
limited amount of cash was paid out. The dividend distribution was effected on 31 March 2016 and is therefore fully
included in the figures for the first half-year 2015/2016.
Performance first half-year 2015/2016
The consolidated results for the first half of the financial year 2015/2016 (1 October 2015 to 31 March 2016), can be
represented as follows:
(in € x 1,000)
Net revenue
Gross profit
EBITDA
Operating result (EBIT)
Result after tax
1st half year
2015/2016
1st half year
2014/2015
18,685
16,598
8,881
7,120
4,652
17,951
16,027
8,294
6,591
4,164
4
The development of gross profit by segment/site can be shown as follows:
(in € x 1,000)
Ski
Hospitality
1st half year 2015/2016
1st half year 2014/2015
difference
revenue
costgross
price margin
revenue
costgross
price margin
gross
margin
11,464
544 10,920
10,780
493 10,287
6,2%
4,829
1,500
3,329
4,863
1,395
3,468
-4,0%
Fitness
794
3
791
784
2
782
1,2%
Hotel
979
40
939
902
34
868
8,2%
96
-
96
111
-
111
-13,5%
523
-
523
511
-
511
2,3%
2,087 16,598
17,951
1,924 16,027
3,6%
Outdoor
Other
18,685
Zoetermeer
Landgraaf
7,607
886
6,721
7,361
887
6,474
3,8%
11,078
1,201
9,877
10,590
1,037
9,553
3,4%
18,685
2,087 16,598
17,951
1,924 16,027
3,6%
Revenue for the first half of financial year 2015/2016 rose by 4.1% compared to the same period last year to an
amount of €18.7 million. The company’s gross margin also increased compared to last year, by as much as 3.8%, to
€17.0 million. Revenue mainly increased in the ‘Ski’ segment (consisting of revenue from slope tickets sold, revenue
from lessons and revenue from the rental of ski and snowboard equipment). This is the direct result of increased
revenue per visitor. Although the number of slope tickets sold remained stable, the average length of stay increased.
Revenues from the rental of ski and snowboard equipment increased by 7.2%. Revenue from lessons also increased,
namely by 5.2%.
The positive turnover development of the hotel is also noteworthy. In the first six months of financial year 2015/2016,
both occupancy and average room revenue increased compared to the same period last year, which has resulted in a
sales increase of 8.5%.
The higher revenues have meant that staffing levels rose slightly. In addition, staff costs rose slightly per FTE. Staff
costs rose overall by 3.6%, while turnover increased by 4.1%. Other operating expenses fell by 3.3%, mainly due to
lower accommodation costs (energy and maintenance). EBITDA for the first six months of the financial year of €8.9
million was €0.6 million (7.1%) higher than for last year over the same period.
Depreciation charges were in line with last year’s charges. EBIT for the first six months of the financial year
2015/2016 increased compared to the previous financial year by 8.0% to €7.1 million. Due to the decrease in
interest-bearing debt and slightly lower average interest rate, interest expenses decreased by 14.0% compared to last
year. Net profit for the same period rose by as much as 11.7% to €4.7 million.
Earnings per share for the first half of financial year 2015/2016 amounted to €1.54. This is an increase of €0.16
(11.6%) per share compared to the same period last year. The total result per share rose by 9.8% from €1.43 in the
first half of 2014/2015 to €1.57 in the first half of 2015/2016.
5
Balance sheet as at 31 March 2016
The consolidated balance sheet at the end of March is as follows:
(in € x 1,000)
Intangible non-current assets
Property, plant and equipment
Financial non-current assets
Working capital
Non-current liabilities
Current assets / Payable to shareholder
Debts to credit institutions / cash and cash equivalents
Group equity
31 March
2016
30 September
2015
1,044
53,435
9
-4,838
1,044
51,969
26
-3,235
49,650
-38,336
16
3,820
49,804
-40,833
-42
1,509
15,150
10,438
Solvency
By adding the positive result after taxes to the reserves, and two small direct changes in equity, group equity rose by
45.1% from €10.4 million as at 30 September 2015 to €15.2 million as at 31 March 2016. A comparison of the group
equity at 31 March 2016 to that of 31 March 2015 shows an increase of 27.9%.
Solvency thus increased from 18.5% at 30 September 2015, to 25.3% on 31 September 2016. The guarantee capital
rose in the same period from 20.2% to 26.9%. It should be noted that the tangible fixed assets, mainly land and
buildings, are valued at cost price, less straight line depreciation. The actual value of the land and buildings as
assessed at September 2015 amounted to €69.6 million (derived from the 2014/2015 financial statements). That is
€23.5 million higher as at 31 March 2016 than the valuation based on historical cost. Solvency and guarantee capital
do not consider these potential hidden reserves.
Operating capital
The traditional negative operating capital follows a seasonal pattern. At 31 March, the operating capital is usually
more negative than at 30 September. The operating capital is further impacted as of 31 March 2016 due to the high
payables (due to the many investments).
Interest-bearing debt
Mainly due to the achieved cash flow from operating activities over the first six months of financial year 2015/2016,
interest-bearing debt (excluding interest rate swap) decreased by €4.8 million (13.3%) from €36.0 million to €31.2
million. In the coming months the interest-bearing debt will increase as a result of the investment in the extension of
the third run.
6
The interest-bearing debt is made up as follows:
(in € x 1,000)
31 March
2016
30 September
2015
Non-current liabilities
Repayment obligation on non-current liabilities
Current liabilities / Receivable from shareholder
Debts to credit institutions / Cash and cash equivalents
34,216
4,120
-16
-3,820
36,584
4,249
42
-1,509
Less: interest-rate swap liability
34,500
-3,296
39,366
-3,390
31,204
35,976
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
Total net debt / EBITDA ratio and minimum Debt Service Capacity Ratio (DSCR). As at 31 March 2016, SnowWorld
satisfies the above ratios.
SnowWorld Leisure N.V. has entered into a new credit arrangement with ABN AMRO Bank to finance the extension of
the third run in Zoetermeer. The figures as at 31 March 2016, take account of the new arrangements with the bank
with respect to the repayment obligation.
The share
As a result of a stock dividend, 79,687 new shares were issued during the first six months of the financial year
2015/2016. The number of shares outstanding is therefore 3,029,850 as at 31 March 2016.
The closing price on 30 September 2015 amounted to €7.00. As at 31 March 2016, this was €6.77.
As at 31 March 2016, major shareholders in the share capital of SnowWorld were J.H.M. Hendriks
Beheermaatschappij B.V. with 66%, Value8 N.V. with 15% and Mr J.P. Visser with 5%.
OUTLOOK
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.
Given the developments during the first half-year, we are positive about the full financial year 2015/2016. For the full
financial year 2015/2016 we expect to arrive at a higher EBITDA and higher net profit than in the previous financial
year. Earnings per share is expected to also be higher than last year.
Investment is expected to amount to more than €10 million this year. SnowWorld Leisure N.V. expanded its credit
arrangement with ABN AMRO Bank to finance these investments.
According to the policy adopted by the General Meeting of Shareholders on 12 March 2015, a dividend payment of
30% to 50% of net profit will be sought for the financial year 2015/2016.
7
For more information on this press release or additional information, please contact:
Koos Hendriks (CEO), +31 (0)6 51837518 or [email protected]
Wim Moerman (CFO), +31 (0)6 41219496 or [email protected]
SnowWorld Profile
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.
8
CONSOLIDATED INCOME STATEMENT
(in € x 1,000)
Net revenue
Cost of goods sold and services provided
1st half year 2015/2016
18,685
-2,087
Gross profit
Other operating income
Gross margin
Wages and salaries
Social insurance payments
Depreciation of property, plant and equipment
Other operating expenses
1st half year 2014/2015
17,951
-1,924
16,598
16,027
382
324
16,980
16,351
3,920
685
1,761
3,494
3,789
657
1,703
3,611
Total operating expenses
9,860
9,760
Operating result
7,120
6,591
-928
-1,079
6,192
5,512
-1,540
-1,348
4,652
4,164
8,881
8,294
+7.1%
+0.0%
7,120
6,591
+8.0%
+0.8%
4,652
4,164
+11.7%
+3.7%
Financial income and expenses
Result before tax
Tax
Result after tax
EBITDA
Mutation compared to the same period last year
EBIT
Mutation compared to the same period last year
Result after tax
Mutation compared to the same period last year
__________________________
Unaudited
9
CONSOLIDATED INCOME STATEMENT
(in € x 1,000)
1st half year 2015/2016
Result after tax
Items to be recognised in the income statement
in future years:
Movement in valuation of interest-rate swap
Effect on corporate income tax
Total direct changes in Group equity
1st half year 2014/2015
4,652
94
-24
4,164
210
-53
70
157
4,722
4,321
Earnings per share
Diluted earnings per share
1.54
1.54
1.38
1.38
Total result per share
Diluted total result per share
1.57
1.57
1.43
1.43
Total result
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.
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.
The average number of outstanding shares of both 2014/2015 and for 2015/2016 is, in accordance with IAS 33,
adjusted for, with the payment of the stock dividend, issued new shares.
__________________________
Unaudited
10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(before profit appropriation)
A s s e t s
(in € x 1,000)
31 March 2016
30 September 2015
Non-current assets
Intangible non-current assets
Property, plant and equipment
Land and buildings
Machinery and installations
Other equipment
Assets in production
1,044
46,053
47
2,643
4,692
Financial non-current assets
1,044
47,119
60
2,363
2,427
53,435
51,969
9
26
378
525
Current assets
Inventory
Accounts receivable
Trade receivable
Receivable from shareholder
Tax and social Insurance contributions
Other receivables, accrued income
and prepaid expenses
Cash and cash equivalents
Total assets
659
16
-
692
217
596
376
1,271
1,285
3,820
1,509
59,957
56,358
__________________________
Unaudited
11
E q u i t y
(in € x 1,000)
a n d
31 March 2016
l i a b i l i t i e s
30 September 2015
Group equity
15,150
10,438
Non-current liabilities
34,216
36,584
Current liabilities
Repayment obligation on
non-current liabilties
Payable to suppliers and
trading credits
Payable to shareholder
Tax and social insurance contributions
Other payable and accruals
Total equity and liabilities
4,120
4,249
2,126
1,795
2,550
1,526
42
1,042
2,477
10,591
9,336
59,957
56,358
__________________________
Unaudited
12
CONSOLIDATED STATEMENT OF CASH FLOW
(in € x 1,000)
Cash flow from operating activities
Operating result
Adjusted for:
Depreciation and amortisation
Movement in deferred tax credit
(excluding interest-rate swap)
Movements in working capital:
Movement in inventory
Movement in receivables
Movement in current liabilities (excluding
credit institutions)
1st half year 2015/2016
1st half year 2014/2015
7,120
6,591
1,761
1,703
-7
-20
147
14
-29
-149
635
449
796
Cash flow from business operation
Interest paid
Income tax paid
9,670
-928
-790
Cash flow from operating activities
Cash flow from investment activities
Investments in property, plant and equipment
Divestments of property, plant and equipment
Cash flow from investment activities
271
8,545
-1,079
-608
-1,718
-1,687
7,952
6,858
-3,227
-1,020
-3,227
-1,020
-3,227
-1,020
16
-26
30
-
Cash flow from financing activities
Proceeds of share
Dividend
Drawdown of non-current liabilities
(excluding interest-rate swap)
Repayment of non-current liabilities
(excluding interest-rate swap)
201
242
-2,605
-6,116
Cash flow from financing activities
-2,414
-5,844
2,311
-6
Net cash flow
13
(in € x 1,000)
Situation cash at 1 October
Situation credit institutions at 1 October
1st half year 2015/2016
1,509
-
1st half year 2014/2015
399
-216
Situation cash and cash equivalents at 1 October
1,509
183
Net cash flow
2,311
-6
Situation cash at 31 March
Situation credit institutions at 31 March
Situation cash and cash equivalents at 31 March
3,820
-
347
-170
3,820
177
__________________________
Unaudited
14
CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY
(in € x 1,000)
Share
premium
reserve
Hedge
reserve
Other
reserves
5,900
12,687
-2,542
-7,933
2,326
10,438
-
-
-
-
4,652
4,652
160
-
-186
-
-
2,326
16
-2,326
-
-26
16
-
-
70
-
-
70
6,060
12,501
-2,472
-5,591
4,652
15,150
Issued
capital
Situation at 1 October 2015
Result for the year
Processing of result from
Previous year
Change in statutes
Costs of share options
Movements in valuation
interest-rate swap
Situation at 31 March 2016
Result for
the year
Total
Group
equity
__________________________
Unaudited
15