Peer Group Analysis June 2013 - tmr.sk€¦ · Recent Events – CDA 5 Events of 2012: Highest...
Transcript of Peer Group Analysis June 2013 - tmr.sk€¦ · Recent Events – CDA 5 Events of 2012: Highest...
Peer Group Analysis June 2013
General Overview
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Company Sub-
Industry
Country of
Origin
Business
Segments Listing
Market
Cap. in
EUR mil.*
TMR Travel services Slovakia
-3 ski resorts & aqua
park
-9 hotels
-real estate projects
BSE 302.83
CDA Resorts/Theme
Parks France
-ski resorts
-leisure parks
-subsidiaries in
France, Netherlands
Germany, Belgium
-15 leisure parks
sites
Paris SE - 1995 370.08
SkiStar Resorts/Theme
Parks Sweden -ski resorts
Stockholm SE
353.15
** as of 03/06/13
General Overview
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Company Sub-
Industry
Country of
Origin
Business
Segments Listing
Market
Cap. in
EUR mil.*
Vail resorts Resorts/Theme
Parks
USA
-ski mountain
complex
-6 mountain resorts
NY SE 1 768.54
Cedar Fair Resorts/Theme
Parks
USA
-11 amusement
parks
-6 outdoor water
parks
-1 indoor water
park
-5 hotels
NY SE 1 733.83
** as of 03/06/13
Recent Events – TMR
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Events of 2011/12:
8.9% increase in the total number of visitors to our resorts
New synergies – free entry pass to Aqupark Tatralandia with purchase of a more-day ski pass
First year of all-year operation of Aquapark Tatralandia under our management
Launch of a new 8-seat cableway in the High Tatras
Construction of a cableway system – Funitel – to link Chopok North and South
TMR shares succesfully dual-listed on exchanges in Warsaw and Prague
CAPEX budget of EUR 44 mil.
Winter of 2012/13:
Capitalized on the investments of 2011/12 and abundance of natural snowfall
Successful lunch of Funitel cableway in Jasná Nízke Tatry and Tropical Paradise in Aquapark Tatralandia
Acquisition of a 50% stake in the company Interhouse Tatry, s.r.o. and thus becoming a sole proprietor of the company operating the Grand Hotel Starý Smokovec in Vysoké Tatry
39%
10% 10%
9%
9%
8%
6% 5%
4%
Shareholder Structure
Small shareholders J&T BANKA, a.s.CLEARSTREAM BANKING S.A. KEY DEE LIMITEDEGNARO INVESTMENTS LIMITED Poštová banka, a.s.Patria Finance, a.s. Privatbanka, a.s.TATRY INVESTMENT LIMITED
70,3%
29,4% 0,3%
Business segments
Mountain and leisure Hotels Real estate projects
Recent Events – CDA
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Events of 2012:
Highest performing sites were Parc Astérix, Grévin and Walibi parks
Strong rebranding of Wailibi park
More than 23 million visitors to the 26 sites
Excellent natural snow in the season
Unfortunate timing of holiday, particularly in France
Winter of 2011/12:
Ski area activity represented up to 56% of total sales
Growth in skier days by 2%
Ski areas sales increase 3.2% year on year
Strengthening consumer spending pattern
11,9% 4,6% 0,6%
0,4%
0,2%
82,3%
Shareholder structure
M&G Investment Managemeng Ltd. DNCA Finance SA
Tocqueville Finance SA Groupe MACSF
Palatine Asset Management SA Small shareholders
56%
44%
Business segments
Ski areas Leisure parks
Recent Events – SkiStar
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Events of 2011/12:
Negative effect on the booking volume due to the uncertainty in the financial markets during autumn 2011
CAPEX of MSEK 38 into increasing the capacity of the snow-making systems
Investments focused on train traffic were made in Vemdalen
Continuing of development of the Park Inn Trysil Mountain Resort hotel
SkiStar and Swiss resort Andermatt/Sedrun have signed a one-year management agreement
The lack of holidays around Christams and late Easter negatively influenced the number of ski days
Winter of 2012/13:
Greater number of visiting guests during the initial part of the winter season
Improved booking volumes by 1% over the previous year
Advantageous calendar over the Christmas and New Year period and ideal skiing conditions
3,48% 1,91%
1,88%
1,48% 1,11%
0,78%
89,36%
Shareholder structure
Lannebo Fonder AB SEB Investment Management AB
Norges Bank Investment Management Swedbank Robur Fonder AB
Handelsbanken Fonder AB Tredje AP-fonden
Small shareholders
97%
3%
Business segments
Destinations Property development
Recent Events– Vail resorts
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Events of 2012:
Acquisition of the capital stock of Skiinfo, Norwegian company operating ski related websites
Acquisiton of Kirkwood Mountain Resort in California, Afton Alps in Minnesota and Mount Brighton in Michigan
Winter of 2012/13:
51% of skier visits were out-of-state and international
Pass sales increasing approximately by 9.9%
Total Mountain net revenue increased by 14.5%
Enhanced consumer spending in the luxury segment
Real Estate revenue driven by the closing of four condominium units
14,82%
9,95%
8,51%
7,07%
5,62% 5,48%
48,55%
Shareholder structure
BAMCO, Inc. Southeastern Asset Management, Inc.
T. Rowe Price Associates, Inc. Advisory Research, Inc.
Goldman Sachs Asset Management LP The Vanguard Group, Inc.
Small shareholders
75%
21% 4%
Business segments
Mountain Lodging Real Estate
Recent Events – Cedar Fair
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Events of 2012:
Total attendance of 23 million guests
Average in-park guest per capita spending increase by 5% ($1.92)
New e-commerce and mobile platform
Less than 1% decrease in attendance (0.1 million)
Growth in the number of season passes sold, as well as pass visits
CAPEX of $96.2 mil.
12,94%
3,65%
3,39% 3,28%
2,65%
2,61%
71,48%
Shareholder structure
Neuberger Berman LLC MSDC Management LP
Sarbit Asset Management, Inc. Credit Suisse Securities (USA) LLC
Goldman Sachs & Co. Peter B. Cannell & Co., Inc.
Small shareholders
93%
7%
Business segments
Amusement parks Hotels
Financial Overview – Market Statistics
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Market Overview **
Company Share Price (EUR) 1-yr Return (%) Market Cap. (EUR m) Enterprise Value (EUR
m)
Beta
TMR 45.15 +5.96 302.83 317.77 0.50
CDA 15.30 21.43 370.08 803.94 0.35
SkiStar 9.01 4.63 353.15 566.20 0.51
Vail resorts 49.27 +52.22 1 768.54 2 041.92 1.53
Cedar Fair 31.02 +69.09 1 733.83 2 851.10 1.32
* as of 03/06/13, source: www.bloomberg.com
Financial Results
LTM Financial Statistics FY 2011/2012 Financial Statistics
Company Sales
(EUR m)
EBITDA
(EUR m) **
EBIT
(EUR m)
Net Profit
(EUR m)
Sales
(EUR m)
EBITDA
(EUR m)
EBIT
(EUR m)
Net Profit
(EUR m)
TMR 39 12 2 9 39 12 2 9
CDA 680 160 60 27 680 160 60 27
SkiStar 200 64 25 19 189 48 21 17
Vail
resorts 837 161 59 20 799 146 46 13
Cedar
Fair 833 299 181 79 833 299 181 79
* ltm – last twelve months
** adjusted for non-recurring items 10
Financial Overview – Margins & Ratios
LTM Profitability Return on Investment LTM
Earnings
LTM Valuation
Multiples
LTM
Leverage
Company EBITDA
Margin
(%) **
EBIT
Margin
(%)
Net Profit
Margin
(%)
ROE (%) ROA (%) Div. Yield
(%)
EPS
(EUR)
P/E EV/
EBITDA
Debt/Total
Capital
TMR 32 10 11 1.5 1.3 2.1 1.37 29.7x 26.0x 5.8%
CDA 24 9 4 3.9 1.9 4.6 1.10 13.6x 5.0x 35.9%
SkiStar 32 19 16 17.9 6.4 3.6 0.44 11.3x 8.9x 56.2%
Vail
resorts 19 7 2 3.2 1.3 1.4 0.36 88.8x 12.9x 38.1%
Cedar
Fair 36 24 11 72.7 5.6 6.2 1.41 19.4x 9.6x 90.6%
11 * ltm – last twelve months
** adjusted for non-recurring items
Key Performance Indicators
FY 2011/2012
Company Occupancy rate (%) Average revenue per customer
(EUR)
Visit rate (mil.)
TMR 51.3 12.22 1.7
CDA N/A 27.52 23
SkiStar 70 N/A 4.1
Vail resorts 56 42.70 6.1
Cedar Fair N/A 32.72 23.3
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Financial Results – FY 2011/12
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0
10
20
30
40
2011 2012
24.3
38.8
5.7 9.1
6.6 12.2
In E
UR
mil.
Revenues
Net Income
EBITDA
Revenues increased by 59.7%
Net income increased by 59.7%
EBITDA increased by 84.9%
Positive results thanks to:
Number of visitors up by 63% at 1.7m
CAPEX in amount of EUR 44m
Financial Results – FY 2011/12
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Revenues increased by 5.9% due to the Group’s sound
investment policy
Net income decreased by 36.8%
EBITDA decreased by 4.8%
0
200
400
600
800
2011 2012
642.7 680.3
41.3 26.5
168.3 160.3
In E
UR
mil.
Revenues
Net Income
EBITDA
Financial Results – FY 2011/12
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Revenues decreased by 1.1% due to unfavourable calendar over the Christmas and New Year period
Net income decreased by 20.2%
EBITDA decreased by 12% due to increased costs of associated companies, declining sales of Skistar Vacation Club and lower capital gains from real estate sales
0,0
50,0
100,0
150,0
200,0
2011 2012
191.3 189.1
21.6 17.3
54.5 47.9
In E
UR
mil.*
Revenues
Net Income
EBITDA
* Converted from SEK
Financial Results – FY 2011/12
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Revenues decreased by 12.2% due to the record low
snowfall
Net income decreased by 52.4%
EBITDA decreased by 12.4% due to the acquisition of
Northstar-at-Tahoe
0
200
400
600
800
1000
2011 2012
910.3 799.0
26.9 12.8
166.5 145.9
In E
UR
mil.*
Revenues
Net Income
EBITDA
* Converted from USD
Financial Results – FY 2011/12
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Revenues increased by 3.9% due to increase in average in-
park guest per capita spending
Net income increased by 33.4% despite the slight decrease
in attendance
EBITDA increased by 3.6%
0
200
400
600
800
1000
2011 2012
802.2 833.4
59.2 79
289 299.3
In E
UR
mil.
Revenues
Net Income
EBITDA
* Converted from USD
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Competitiveness
Company Shareholders’ benefits Competitive advantages
TMR
25 shares – 6 entries 250 shares – 2x season ticket
40 shares – 12 entries 500 shares – VIP club
80 shares – 25 entries 750 shares – GOLD VIP club
130 shares – season ticket
• Unique geographical position of the resorts – the
closest alpine mountain range from the east – high
altitude and long history of tourism in TMR resorts
• Potential client base of 7,5 mil within 200 km radius
• Low competition to the east of TMR resorts
• Intense capital investment strategy – over EUR100 mil
in last 5 years
CDA
• Min. investment 3,500 EUR
• Min. 200 shares = 3,500 EUR / 400 shares
• Either winter season: 2 respectively 6 daily tickets
• Or summer season: 2 respectively 6 free entries
• Ski area´s altitude guarantees quality snow cover and
season that lasts over 20 weeks
• The portion of foreign customers offers high growth
potential
• Local vacation destination – favored in times of crisis
• Assets have long useful lives and depreciation, usually
over 20 years
SkiStar • Min. 200 shares: e-card
• 15% discount for chair lifts, ski rentals, ski school
• Valid for the whole family
SkiStar Vacation Club:
• holiday concept, which includes sale of week units
• connection to the world‘s largest organization for the
exchange of vacation housing
• membership involves a variety of benefits during the
stay
• the possibility to exchange the vacation week with
more than 5,000 resorts around the world
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Competitiveness
Company Shareholders’ benefits Competitive advantages
Vail resorts N/A
Epic Mix:
• First-of-its-kind online and mobile application
launched for the 2010-2011 ski season which allows
utilizing technology to digitally capture their ski and
ride experience and share it with friends and family
• Nearly 100,000 Vail Resorts guests activated Epic Mix
accounts this season
• The most visited ski resort in U.S. in 2010/2011
Cedar Fair N/A
• Operations located in 13 of the 25 largest
metropolitan areas in the U.S. and Toronto, Canada
• 4 of the most highly acclaimed regional parks in
North America
• Cedar Point, the Comapny’s flagship, has consistently
been voted the „Best Amusement Park in the World“
by the Amusement Today newspaper
Summary
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All of the mentioned companies operate in the sector of Recreational activities, but Cedar Fair does not
operate in the mountain tourism.
Vail resorts is the company with highest market capitalization in the amount of EUR 1 768.54 mil. among
the peer group, TMR has the lowest market capitalization in the amount of EUR 302.83 mil.
CDA reached the highest dividend yield of 6.2% among its peers.
The best company in return on equity is Cedar Fair, also with the best EBITDA margin (36%) and EBIT
margin (24%).
TMR has the second best Net profit margin (11%).
TMR has the lowest debt to total capital ratio (5.8%) whereas Cedar Fair has the highest level of debt
(90.6%).
TMR has the highest EV/EBITDA multiple of 26,8 and CDA has the lowest multiple of 5
The highest P/E ratio of 89 belongs to Vail resorts, while CDA has the lowest, 11.4
Cedar Fair is the company with the best stock and financial performance for the last twelve months in the
peer group, with the highest 1-year stock return (47.57%), EBITDA (EUR 299 mil.), net profit (EUR 79 mil.),
ROE (72.7%) and EPS (1.41)
CDA has the highest ROA (6.4%)
Abbreviations Used
BSE – The Bratislava Stock Exchange
SE – Stock Exchange
CAPEX – Capital Expenditures
EBIT – Earnings Before Interest and Taxes
EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
EPS – Earnings per share
FY – Fiscal year
mil. – Million
km – Kilometers
yr – Year
p.p. – Percentage Points
TMR – Tatry Mountain Resorts, a.s.
LTM – Last Twelve Months
thous. – Thousand
ROA – Return on Assets
ROE – Return on Equity
P/E – Price to Earnings
EV – Enterprise Value
div. – Dividend
Aktualizovat
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Sources
1. Tatry Mountain Resorts – annual and interim reports
2. Compagnie des Alpes – annual and interim reports
3. SkiStar – annual and interim reports
4. Vail Resorts – annual and interim reports
5. Cedar Fair – annual and interim reports
6. Televerbier – annual and interim reports
7. Financial Times at www.ft.com
8. Bloomberg at www.bloomberg.com
9. Reuters at www.reuters.com
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Disclaimer
This material is exclusively for informational and promotional purposes. Its intention is to inform
about the business strategy of the company Tatry mountain resorts, a.s., with its registered office at
Demänovská Dolina 72, Liptovský Mikuláš 031 01, Identifications Number: 31 560 636, registered in
the Commercial Registry of District Court of Žilina, Section: Sa, Insertion No. 62/L (hereinafter
referred to as „the TMR Company“).
TMR Company shares are traded at the parallel market of stock-exchange listed securities. The
company´s share capital consists of 6 707 198 bearer shares booked on the bearer with a nominal
value of € 33 per stock. Emission has been allocated ISIN SK11 20010287. In order to make the
above emission public at the parallel market of stock-exchange listed securities, there was an
elaborated prospectus for the securities of share emissions, ISIN SK11 20010287, as of October 10,
2009. The prospectus is published on the following website of the parallel market on Bratislava Stock
Exchange: www.bsse.sk and on the website of the TMR Company www.tmr.sk.
This material is owned exclusively by the TMR Company. Any distribution, duplication, publishing,
copy or record of this information, or any part of it contained in this material is forbidden without
the prior approval by the TMR Company. Any distribution of this presentation or any part of it
beyond the territory of the Slovak Republic can be either restricted, or prohibited by law order of
the third state.
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