- 2019 Adjusted EBITDA increased by 10% to
C$40.7 million compared toC$37.0 million in 2018; - 2019 Revenue increased to
C$235.2 million ; - Same asset NOI increased by 6.5% to
C$41.6 million compared toC$39.0 million in 2018; - 2019 FFO was
C$18.3 million ; - Reduced net debt to net assets ratio to 42.5% from 45.3%;
- Achieved final closing of
Lakeside Lodge at Deerhurst inDecember 2019 with 98% occupancy; - Total cash and available lines of credit as at
December 31, 2019 totaled approximatelyC$47 million ; - In
October 2019 , Midroog confirmed our Baa1 rating with stable outlook and removed the Company’s bonds from credit watch; and - Skyline is responding aggressively to the impact of COVID-19 and has significant cash resources to manage through this world-wide crisis.
“2019 was another record year for Skyline,” commented
SUMMARY OF FINANCIAL RESULTS
C$000’s | 2019 | 2018 | 2017 |
NOI from | 42,214 | 41,551 | 21,968 |
NOI from Hotels & Resorts Margin | 21.8% | 22.4% | 18.0% |
Same Asset NOI | 41,565 | 39,039 | N/A |
Same Asset NOI Margin | 21.6% | 21.4% | N/A |
Adjusted EBITDA | 40,849 | 36,983 | 20,207 |
Adjusted EBITDA Margin | 17.4% | 15.9% | 13.2% |
FFO* | 18,331 | 20,330 | 13,931 |
* 2018 and 2017 figures were restated to remove minority interests |
INCOME STATEMENT HIGHLIGHTS
(All amounts in CAD millions unless otherwise stated)
- Total revenue for 2019 was
$235.2 , compared to$232.3 in 2018. Revenue from hotels and resorts increased by 4.3% to$193.6 due to revenue growth at all hotels, with particularly strong growth from the Courtyard portfolio, coupled with a strong winter season at the Company’s ski resorts. Revenue from the sale of residential real estate was$41.7 . During 2019, the Company provided occupancy to all 147 units inLakeside Lodge that were sold as ofDecember 31, 2019 . This allowed the Company to receive$37.7 in cash and eliminate$31.2 of construction debt inDecember 2019 . - Same asset NOI for 2019 was
$41.6 , an increase of 6.5%, compared to$39.0 in 2018. The increase was primarily driven by a steady increase in performance throughout the year in the Courtyard portfolio (+4.6%), coupled with a strong winter season at our ski resorts. The recent installation of a new high-speed ski lift at Horseshoe andBear Valley allowed ticket prices to increase. - Adjusted EBITDA for 2019 was
$40.8 , an increase of 10.5% compared to$37.0 in 2018. This improvement is attributable to the improvement in same asset NOI noted above, coupled with higher gross development profit from the sale of residential real estate, and lower administrative expenses, offset by the sale of theBlue Mountain retail asset in Q1 2019. - Loss on sale of investments and other non-operating expenses for 2019 totaled $1.9, and was mainly attributable to the settlement of old legal claims as well as the expensing of certain investment due diligence costs on an investment the company did not complete. These costs were one-time in nature. This was offset by a gain on the sale of non-core lands.
- Loss from early extinguishment of debt for 2019 was
$2.7 . This one-time amount is attributable to the sale of theBlue Mountain retail asset in Q1 2019 that had a high interest loan (6.75%) for which the Company had to pay an early loan repayment fee. - Net financial expense for 2019 totaled
$17.9 , compared to$19.0 in 2018. The decrease in net financial expense was driven by a positive change in the fair value of financial derivatives. This was offset by higher interest expenses due to an increase in the amount of floating rate debt held by the Company relative to 2018, coupled with interest on development projects for condo units that had been delivered previously. Interest rates decreased during the latter part of 2019, and also in 2020 to-date. - FFO for 2019 was
$18.3 , a slight reduction relative to 2018, due to asset sales that have not yet been replaced. - Net loss for 2019 amounted to
$1.4 , compared to a net loss of$7.7 in 2018. Excluding minority interests, the Company had a net loss of$0.3 in 2019, compared to a net loss of$6.9 in 2018.
BALANCE SHEET HIGHLIGHTS
- Total assets as at
December 31, 2019 decreased to$676 from$777 as atDecember 31, 2018 . The decrease was driven by the sale ofBlue Mountain retail in Q1 2019, the closing of Slopeside, and delivery of Lakeside units. - Cash and cash equivalents were
$26.9 as atDecember 31, 2019 compared to$28.0 as atDecember 31, 2018 . The decrease is primarily attributable to the Company using cash to reduce its net debt and invest in its properties. - Net debt as at
December 31, 2019 totaled$275.9 , a decrease of$63.3 compared to net debt of$339.3 as atDecember 31, 2018 . As a result, the company’s leverage ratio decreased to 42.5% as atDecember 31, 2019 from 45.3% as atDecember 31, 2018 . As atDecember 31, 2019 , approximately 62% of the Company’s debt was issued at variable rates, which the Company expects to benefit from the recent reduction in benchmark interest rates globally. As well, inOctober 2019 , Midroog confirmed the current Baa1 rating with stable outlook and removed the Company’s bonds from credit watch. This has allowed the Company to once again consider new acquisitions. - Total Equity was
$276.8 ($252.4 attributable to shareholders), representing 41.0% of total assets. As atDecember 31, 2019 equity per share attributable to shareholders was40.00 NIS ($15.07 ), compared to the closing share price of28.56 NIS ($10.76 ), a discount of 29%.
COVID-19 Update
The COVID-19 virus is continuing to spread throughout the world, and is impacting the hotel industry. The situation is continually evolving, and we are now seeing a material impact at our properties. The majority of our properties are located in secondary markets and primarily service domestic business and transient travel, which are not directly impacted by international travel restrictions. However, as local, state, provincial and federal governments have begun to impose domestic travel and other restrictions, we are seeing a slowdown in our business, which will have a material financial impact on our first quarter 2020 net income in the range of approximately
About Skyline
The Company is traded on the Tel Aviv Stock Exchange (ticker: SKLN) and is a reporting issuer in
For more information:
Chief Financial Officer
robw@skylineinvestments.com
1 (647) 207-5312
VP, Asset Management & Investor Relations
benn@skylineinvestments.com
1 (416) 368-2565 ext 2222
Non-IFRS Measures
The Company’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). However, the following measures: NOI, NOI Margin, FFO, FFO per share and Adjusted EBITDA are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS, and should not be compared to or construed as alternatives to profit/loss, cash flow from operating activities or other measures of financial performance determined in accordance with IFRS. NOI, NOI Margin, FFO, FFO per share and Adjusted EBITDA as computed by the Company, may differ from similar measures as reported by other companies in similar or different industries. However, these non-IFRS measures are recognized supplemental measures of performance for real estate issuers widely used by the real estate industry, particularly by those publicly traded entities that own and operate income-producing properties, and the Company believes they provide useful supplemental information to both management and readers in measuring the financial performance of the Company. Further details on non-IFRS measures are set out in the Company’s Management's Discussion and Analysis for the period ended
Forward Looking Statements
This release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company. In some cases, forward-looking statements can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside our control that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include the material adverse impact of the COVID-19 virus on our business, as well as other risks detailed in our public filings with the Canadian Securities Administrators. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, we undertake no obligation to update any forward-looking or other statements herein whether as a result of new information, future events or otherwise.
Source:2020 GlobeNewswire, Inc., source