Press release 14 January 2015
SnowWorld sells 2.8% more ski passes
Net operating profit SnowWorld rises to €1.8 million
Key points 2013/2014:
Obtained listing on NYSE Euronext Amsterdam in December 2013 and share issue in February 2014
Increase in number of ski passes sold by 2.8%
Increase in net revenue by 1.5% to €25.8 million and gross margin by 0.8% to €23.3 million
Increase in net operating profit (excluding non-recurring costs relating to reverse takeover) by 3.3% to €1.8
million
Increase in net operating profit per share from €0.56 to €0.68
Group equity rose by 91.6%
Interest-bearing debt (excluding interest-rate swap) decreased by 13.0% to €39.4 million
Important year
Last year was strategically significant for SnowWorld. In December 2013, SnowWorld obtained a listing on NYSE
Euronext Amsterdam via a reverse takeover, after which new shares were issued in February 2014. In addition, in the
spring of 2014, the company decided to abandon the previously announced acquisition of SnowPlanet in
Spaarnwoude. The planned extension of the third slope in Zoetermeer and the new indoor ski resorts in Paris and
Barcelona were further developed during 2013/2014.
In operating and financial terms, 2013/2014 was a good year. 2.8% more ski passes were sold than last year. Despite
slightly higher operating expenses related to the listing, net operating profit increased by 3.3% to €1.8 million.
Higher net operating profit 2013/2014
Compared to last year, net revenue for the financial year has increased by 1.5% to €25.8 million, mainly due to the
increase in the number of ski passes sold. The company’s gross margin also increased compared to last year, by as
much as 0.8%, to €23.3 million. Partly because of the listing of SnowWorld, operating expenses increased slightly,
causing the operating EBITDA (excluding non-recurring costs relating to reverse takeover) for the financial year to
decrease by 3.9% to €8.2 million, compared to in the previous financial year. Because of lower depreciation, EBIT
rose over the financial year compared to in the previous year by 2.7% to €4.7 million. Net operating profit eventually
rose 3.3% to €1.8 million.
The one-off effect of the reverse takeover and the share issue of €1.9 million on group equity (€0.5 million) and profit
(€1.4 million), of which €0.3 million were ultimately cash outflow, was not included in the net operating profit.
Higher profit per share
Net operating profit per share, excluding the effect of the listing, amounted to €0.68 in 2013/2014, an increase
compared to the €0.56 in the previous financial year. As previously communicated, SnowWorld will propose a dividend
policy at the Annual General Meeting of Shareholders on 12 March 2015, that provides a future dividend payout ratio
of 30% to 50% of net profit.
Strengthened balance sheet ratios
The processing of the reverse takeover and the proceeds of the share issue, after deduction of the one-off
(theoretical) cost of both of these transactions as well as the results achieved for the financial year resulted in
SnowWorld being able to strengthen its shareholders’ equity by 91.6% to €7.5 million. As a result the guarantee
capital increased to 15.4%. This does not take into account the possible hidden reserves in land and buildings (€49.0
million bookvalue at year-end and assessed in June 2014 at €76.7 million).
As from 30 September 2014, the interest-bearing debt (excluding interest-rate swap) was reduced by 13.0% to €39.4
million.
SnowWorld optimistic about 2014/2015
We are positive about the financial year 2014/2015. We believe that the effect of the difficult economic conditions on
SnowWorld are now behind us. In addition, we have increased our rates for ski passes for the first time in years. This
price increase and a strong focus on controlling personnel and marketing costs, lower depreciation and interest
expenses, provide a solid foundation for the expected performance in 2014/2015.
For more information on this press release or additional information, please contact:
Koos Hendriks (CEO), +31 (0)6 51837518 or corporate@snowworld.com
Wim Moerman (CFO), +31 (0)6 41219496 or corporate@snowworld.com
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’s leading companies 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.
2
KEY POINTS 2013/2014
General
Obtained a listing on NYSE Euronext Amsterdam in December 2013 through a reverse takeover
Issue of new shares in February 2014 to the sum of more than €6 million
Dispense with the previously announced acquisition of SnowPlanet in Spaarnwoude
Further development of extension existing ski resorts and new indoor ski resorts (third slope in Zoetermeer,
Paris, Barcelona)
Financial
Increase in number of ski passes sold by 2.8%
Increase in net revenue by 1.5% to €25.8 million and gross margin by 0.8% to €23.3 million
Decrease in operating EBITDA (excluding non-recurring costs of reverse takeover) by 3.9% to €8.2 million, partly
due to higher recurring operating expenses related to the listing
Increase in net operating profit (excluding non-recurring costs relating to reverse takeover) by 3.3% to €1.8
million
Increase in net operating profit per share from €0.56 to €0.68
One-off effect of the reverse takeover and share issue of €1.9 million on equity (€0.5 million) and profit (€1.4
million). Of this, €0.3 million is cash outflow
Decrease in operating cash flow (excluding effects of processing the reverse takeover) by 8.3% to €5.4 million
Increase in equity by 91.6% to €7.5 million (€2.54 per share)
Increase in guarantee capital to 15.4%
Decrease in interest-bearing debt (excluding interest rate swap) by €5.9 million to €39.4 million
GENERAL DEVELOPMENTS
With its two indoor ski resorts in the Netherlands, SnowWorld is one of the world’s leading 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 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 entrance 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 December 10, 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.
In the spring of 2014, SnowWorld examined the possibility of acquiring SnowPlanet in Spaarnwoude. It was
concluded that the acquisition would not deliver the intended contribution to shareholder value. SnowWorld therefore
decided not to pursue the acquisition.
In 2013/2014, SnowWorld continued its development of three new construction projects, consisting of the extension
of the current third slope in SnowWorld Zoetermeer and the development of new SnowWorld ski resorts in Paris and
Barcelona. Development planning was further advanced and the zoning plan procedure begun for all three projects.
3
FINANCIAL DEVELOPMENT
As of September 30, 2013, the SnowWorld group consisted of SnowWorld Leisure N.V. and its 100% subsidiary,
SnowWorld International B.V. Because of the reverse takeover on 10 December 2013, the SnowWorld group was
extended to include SnowWorld N.V. (formerly Fornix BioSciences NV) from that date. The consolidated balance sheet
as at September 30, 2014, therefore includes SnowWorld N.V, with its 100% subsidiaries, SnowWorld Leisure N.V.
and SnowWorld International B.V. The comparative figures concern the consolidated figures of SnowWorld Leisure
N.V., which have been prepared based on IFRS principles.
Profit trend
The consolidated results for the financial year 2013/2014 (October 1, 2013, to September 30, 2014), can be
represented as follows:
(in € x 1,000)
Performance
2013/2014
Net revenue
Gross margin
EBITDA
Operating result (EBIT)
Result after tax
25,759
23,280
6,770
3,308
386
Listing
expenses
1,437
1,437
1,381
Operating result
2013/2014
2012/2013
25,759
23,280
8,207
4,745
1,767
25,378
23,090
8,542
4,619
1,710
Application of the International Financial Reporting Standards (IFRS) in the processing of the reverse takeover and
share issue has resulted in a one-off cost item of €1.9 million. Of this, €1.4 million was allocated to the result and
€0.5 million to the company’s equity. Of these total costs, €0.3 million is an actual cash outflow.
Compared to the previous year, net revenue for the financial year has increased by 1.5%, to €25.8 million. The
company’s gross margin also increased compared to last year, by as much as 0.8%, to €23.3 million. The number of
ski passes sold increased by 2.8%. This has resulted in an increase in revenue from ski activities, consisting of
revenue from ski pass sales, revenue from lessons and revenue from the rental of ski and snowboard equipment.
A slight increase in the number of staff and the cost of a share option scheme led to an increase in personnel costs.
Sales and distribution costs increased slightly during the year. In contrast, accommodation costs declined. A number
of cost items increased structurally this year as a result of the listing. This primarily involves costs relating to Euronext
and AFM, audit fees and costs relating to the Board of Supervisory Directors. On balance, the operating EBITDA for
the year compared to the previous year decreased by 3.9% to €8.2 million.
Because of lower depreciation, EBIT rose over the financial year compared to in the previous year by 2.7% to €4.7
million. Net operating profit eventually rose 3.3% to €1.8 million.
4
Year-end balance sheet
The consolidated balance sheet at the end of the financial year is as follows:
(in € x 1,000)
30 September 30 September
2014
2013
Intangible non-current assets
Property, plant and equipment
Financial non-current assets
Working capital
Non-current liabilities
Shareholders’ current assets/liabilities
Current account banks / Cash and cash equivalents
Group equity
1,044
53,057
180
-3,279
1,044
55,109
49
-3,150
51,002
-43,621
-67
183
53,052
-49,199
13
47
7,497
3,913
Solvency
By adding the result to the reserves, the issue of 753,255 shares at an issue price of €8 per share on 19 February
2014 and the processing of the reverse takeover, shareholders’ equity increased from €3.9 million as at 30 September
2013 to €7.5 million as at 30 September 2014.
Solvency thus increased from 6.7% at September 30, 2013, to 13.3% on September 30, 2014. The guarantee capital
rose from 7.8% to 15.4%. It should be noted that the property, plant and equipment, mainly land and buildings, are
valued at cost price, less straight-line depreciation. The current value of the land and buildings, as assessed as at
June 2014, amounted to €76.7 million. That is €27.7 million higher than the valuation based on historical cost. The
solvency does not consider these potential hidden reserves.
Working capital
The traditional negative working capital at year-end is in line with that of last year.
Interest-bearing debt
The reverse takeover, the issue of new shares, and the operating cash flow achieved over the past financial year have
caused the interest-bearing debt (excluding interest-rate swap) to decrease by €5.9 million (13%) from €45.3 million
to €39.4 million.
5
The interest-bearing debt is made up as follows:
(in € x 1,000)
30 September 30 September
2014
2013
Non-current liabilities
Repayment obligation on non-current liabilities
Shareholders’ current assets/liabilities
Current account banks / Cash and cash equivalents
39,346
4,275
67
-183
44,530
4,669
-13
-47
Less: interest rate swap liability
43,505
-4,140
49,139
-3,865
39,365
45,274
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). SnowWorld met these ratios at the
end of financial year 2013/2014.
Higher profit per share
The average number of outstanding shares of SnowWorld N.V. for the year 2013/2014 amounted to 2,587,265. This
number of shares is used as a basis for calculating the figures per share. Net operating profit per share, excluding the
effect of the listing, amounted to €0.68 in 2013/2014, an increase compared to the €0.56 in the previous financial
year. Operating cash flow per share amounted to €2.10. Group equity per share (based on 2,950,163 shares
outstanding at year-end) amounted to €3.20 at year-end 2013/2014. As previously communicated, there will be no
dividend proposal for the financial year 2013/2014. A dividend policy is proposed for the agenda of the Annual
General Meeting of Shareholders on March 12, 2015, that provides a future dividend payout ratio of 30% to 50% of
result after tax.
The share
Until 10 December 2013, Fornix Biosciences N.V. held 8,047,688 shares with a nominal value of €0.15. Through a
reverse share split on 10 December 2013, this was reduced by a factor of 25 to 321,908 shares with a nominal value
of €3.75. Through the issuance of 1,875,000 shares in connection with the reverse takeover of SnowWorld on 10
December 2013, and the share issue on 19 February 2014 (753,255), the number of shares outstanding as at 30
September 2014 was 2,950,163.
Prior to the announcement of the reverse takeover by SnowWorld, the share price of Fornix BioSciences N.V.
(adjusted for the reverse share split) amounted to €8 per share. This rate was also used by SnowWorld as issue price,
both for the shares issued in connection with the reverse takeover and for the shares issued in the offering of 19
February 2014. On 30 September 2014, the closing price was also €8.
As at 1 October 2014, current major shareholders in the share capital of SnowWorld were J.H.M. Hendriks
Beheermaatschappij B.V. with 68%, Value8 N.V. with 15% and Mr J.P. Visser with 3%.
6
PROSPECTS
We are positive about the financial year 2014/2015. We believe that the effect of the difficult economic conditions on
SnowWorld are now behind us. In addition, we have increased our rates for ski passes for the first time in years. This
price increase and a strong focus on controlling personnel and marketing costs, lower depreciation and interest
expenses, provide a solid foundation for the expected performance in 2014/2015.
The financial statements included in this press release are derived from the Annual Report 2013/2014, dated January
14, 2015. This Annual Report can be downloaded at www.snowworld.com/corporate.
For more information on this press release or additional information, please contact:
Koos Hendriks (CEO), +31 (0)6 51837518 or corporate@snowworld.com
Wim Moerman (CFO), +31 (0)6 41219496 or corporate@snowworld.com
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’s leading companies 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.
7
CONSOLIDATED INCOME STATEMENT
(in € x 1,000)
2013/2014
2012/2013
Net revenue
25,759
25,378
Cost of goods sold and services provided
-3,223
-3,146
Gross profit
Other operating income
Gross margin
22,536
22,232
744
858
23,280
23,090
Wages and salaries
6,786
6,560
Social insurance payments
1,209
1,160
Depreciation of property, plant and equiment
3,462
3,923
Other operating expenses
8,515
6,828
Total operating expenses
19,972
18,471
3,308
4,619
-2,285
-2,343
1,023
2,276
-637
-566
386
1,710
EBITDA
Adjusted for flotation cost
6,770
8,207
8,542
8,542
EBIT
Adjusted for flotation cost
3,308
4,745
4,619
4,619
Result after tax
Adjusted for flotation cost
386
1,767
1,710
1,710
Operating result
Financial income and expenses
Result before tax
Tax
Result after tax
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
8
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EARNINGS PER SHARE
(in € x 1,000)
2013/2014
Result after tax
2012/2013
386
1,710
Items to be recognised in the income
statement in future years:
Movement in valuation of interestrate swap
Effect on corporate income tax
-275
1,129
69
-282
Total direct movements in
Group equity
-206
847
180
2,557
Earnings per share
0.15
0.56
Earnings per share (adjusted for flotation costs)
0.68
0.56
Diluted earnings per share
0.15
0.56
Total result per share
0.07
0.83
Total result per share (adjusted for flotation costs)
0.60
0.83
Diluted total result per share
0.07
0.83
Total result
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
9
CONSOLIDATED BALANCE SHEET
(before appropriation of results)
A s s e t s
(in € x 1,000)
30 September 2014
30 September 2013
Non-current assets
Intangible non-current assets
1,044
1,044
Property, plant and equipment
Land and buildings
49,038
51,231
112
221
Other non-current assets
2,321
2,415
Assets in production
1,586
1,242
Machinery and equipment
Financial non-current assets
53,057
55,109
180
49
312
398
Current assets
Inventory
Accounts receivable
Trade receivables
Receivable from shareholder
Tax and social insurance contributions
551
513
-
13
69
51
368
363
Other receivables, accrued income and
prepaid expenses
Cash and cash equivalents
Total assets
988
940
399
327
55,980
57,867
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
10
E q u i t y
(in € x 1,000)
a n d
30 September 2014
Group equity
Non-current liabilities
l i a b i l i t i e s
30 September 2013
7,497
3,913
39,346
44,530
Current liabilities
Repayment obligation on non-current
liabilities
Debts to credit institutions
4,275
4,669
216
280
1,420
1,627
67
-
Payable to suppliers and
trading credits
Payable to shareholder
Tax and social insurance contributions
Other payables and accruals
842
472
2,317
2,376
Total equity and liabilities
9,137
9,424
55,980
57,867
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
11
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)
Costs of reverse takeover (non cash items)
Movements in working capital:
Movement in inventory
Movement in receivables
Movement in current liabilities
(excluding credit institutions)
2013/2014
2012/2013
3,308
4,619
3,462
3,923
-131
1,242
483
-
86
-48
187
220
-74
-1,063
-36
Cash flow from business operation
Interest paid
Income tax paid
7,845
-2,250
-358
Cash flow from operating activities
Cash flow from investment activities
Reverse takeover:
Cash acquired
Assets/liabilities acquired
-656
8,369
-2,366
-82
-2,608
-2,448
5,237
5,921
1,233
-1
1,232
Investments of property, plant and equipment
Divestments of property, plant and equipment
Cash flow from investment activities
Cash flow from financing activities
Proceeds of share issue
Buy-back of own shares
Drawdown of non-current liabilities
(excluding interest-rate swap)
Repayment of non-current liabilities
(excluding interest-rate swap)
Cash flow from financing activities
Net cash flow
-1,523
113
-1,126
19
-1,410
-1,107
-178
-1,107
5,930
-
-5,600
400
5,355
-11,253
-4,580
-4,923
-4,825
136
-11
12
(in € x 1,000)
2013/2014
Situation cash at 1 October
Situation credit institutions at 1 October
327
-280
Situation cash and cash equivalents at 1 October
Net cash flow
Situation cash at 30 September
Situation credit institutions at 30 September
2012/2013
426
-368
47
58
136
-11
399
-216
Situation cash and cash equivalents at 30 September
327
-280
183
47
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
13
CONSOLIDATED STATEMENT OF MOVEMENTS IN GROUP EQUITY
(in € x 1,000)
Total
Share
Premium
Hedge
Other
Result for
Group
capital
reserve
reserve
reserves
the year
equity
1,207
10,326
-3,746
-1,915
1,084
6,956
Result for the year
-
-
-
-
1,710
1,710
Processing of result from previous year
-
-
-
1,084
-1,084
-
Buy-back of own shares
-
-292
-
-5,308
-
-5,600
-
-
847
-
-
847
Situation at 30 September 2013
1,207
10,034
-2,899
-6,139
1,710
3,913
Situation at 1 October 2013
Situation at 1 October 2012
Movement in valuation
interest-rate swap
1,207
10,034
-2,899
-6,139
1,710
3,913
Result for the year
-
-
-
-
386
386
Processing of result from previous year
-
-
-
1,710
-1,710
-
Reverse takeover
-
-
-
2,474
-
2,474
-
-
-
-5,000
-
-5,000
2,825
3,201
-
-
-
6,026
Vendor loan
Proceeds of share issue
Issue of shares due to reverse takeover 7,031
-
-
-7,031
-
-
Costs of share issue
-
-548
-
-
-
-548
Costs of share options
-
-
-
452
-
452
-206
-
-
-206
-3,105
-13,534
386
7,497
Movement in valuation
interest-rate swap
Situation at 30 September 2014
11,063
12,687
_________________________
Derived from the Annual Report of SnowWorld N.V. dated January 14, 2015
14