Euro Disney S.C.A. Reports Fiscal Year 2009 Results
MARNE-LA-VALLÔ°E,
– Attendance of 15.4 million with an 87% hotel occupancy rate
– Revenues decreased 7% to
guest spending
– Net loss of
a 2% reduction in costs and expenses
– Generated Free Cash Flow, ending the year with
and cash equivalents
– Opening of Toy Story Playland at the Walt Disney Studios(R) Park in 2010
Euro Disney S.C.A. (the “Company”), parent company of Euro Disney
Associés
results for its consolidated group (the “Group”) for the fiscal year 2009
which ended
Key Financial Highlights Fiscal Year
(EUR in millions, unaudited) 2009 2008 2007
Revenues 1,230.6 1,324.5 1,214.4
Costs and expenses (1,204.2) (1,234.0) (1,163.6)
Operating margin 26.4 90.5 50.8
Plus: Depreciation and amortization 160.8 159.0 154.9
EBITDA (1) 187.2 249.5 205.7
EBITDA as a percentage of revenues 15.2% 18.8% 16.9%
Net (loss) / profit (63.0) 1.7 (41.6)
Attributable to equity holders of
the parent (55.5) (2.8) (38.4)
Attributable to minority interests (7.5) 4.5 (3.2)
Cash flow generated by operating
activities 123.8 178.2 191.1
Cash flow used in investing
activities (71.8) (72.3) (126.9)
Free cash flow generated(1) 52.0 105.9 64.2
Cash and cash equivalents, end of
period 340.3 374.3 330.0
Key Operating Statistics(1)
Theme parks attendance (in millions) 15.4 15.3 14.5
Average spending per guest (in EUR) 44.22 46.32 44.95
Hotel occupancy rate 87.3% 90.9% 89.3%
Average spending per room (in EUR) 201.24 211.39 197.88
(1) Please refer to Exhibit 7 for the definition of EBITDA, Free cash
flow and key operating statistics.
Commenting on the results, Philippe Gas, Chief Executive Officer of Euro
Disney S.A.S, said:
“During the fiscal year, we were faced with the most challenging economic
environment in our history, which drove certain fundamental changes in
consumer behavior. These changes included booking significantly closer to
their visits, searching for promotional offers and travelling closer to their
homes. As a result, we adapted our offers to address our guests’ changing
needs. This decision delivered record park attendance of 15.4 million and an
87% hotel occupancy rate, down from last year but high by industry standards.
We saw our guest mix change, as attendance was driven by French and
Belgian markets, offsetting significant weakness from
Kingdom
lowering our revenues. Throughout the year we also balanced our promise of a
high-quality Disney entertainment experience for our guests while managing
costs.
The strength of the Disney brand and the attractiveness of our Resort as
the economies of our key markets and the leisure and tourism industry occur.
We continue to invest in the long-term growth of our Company and we look
forward to opening Toy Story Playland, inspired by the popular Disney-Pixar
Toy Story characters and films, at the Walt Disney Studios Park in summer
2010.”
Revenues by Operating Segment
Fiscal Year Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Theme parks 688.2 715.8 (27.6) (3.9)%
Hotels and Disney(R) Village 474.7 515.6 (40.9) (7.9)%
Other 49.8 52.1 (2.3) (4.4)%
Resort operating segment 1,212.7 1,283.5 (70.8) (5.5)%
Real estate development
operating segment 17.9 41.0 (23.1) (56.3)%
Total revenues 1,230.6 1,324.5 (93.9) (7.1)%
Resort operating segment revenues decreased by 6% to
from
Theme parks revenues declined by 4% to
million
average spending per guest to
attendance. The reduction in average spending per guest reflects lower
spending on admissions and merchandise. This lower spending was driven by
additional promotional offers, which reduced average admission prices, and a
higher proportion of our guests visiting from markets close to
guests generally spend less on merchandise. Theme parks attendance increased
slightly to 15.4 million. This increase was driven by higher guest visitation
from
and the
Hotels and Disney(R) Village revenues decreased by 8% to
million
in average spending per room to
decrease in hotel occupancy from 90.9% to 87.3%. The decrease in average
spending per room principally reflected more promotional offers and lower
spending on merchandise. The reduction in hotel occupancy resulted from
80,000 fewer room nights compared to the prior-year period, primarily driven
by fewer guests visiting from
partially offset by more guests visiting from
Other revenues, which include participant sponsorships, transportation
and other travel services sold to guests, decreased
49.8 million
Real estate development operating segment revenues decreased by
million
the Fiscal Year as compared to the prior-year period. Prior-year real estate
revenues also included
property in Val d’
Costs and Expenses
Fiscal Year Variance
(EUR in millions, 2009 2008 Amount %
unaudited)
Direct operating costs(1) 965.0 990.1 (25.1) (2.5)%
Marketing and sales
expenses 123.9 125.3 (1.4) (1.1)%
General and
administrative expenses 115.3 118.6 (3.3) (2.8)%
Costs and expenses 1,204.2 1,234.0 (29.8) (2.4)%
(1) Direct operating costs primarily include wages and benefits for
employees in operational roles, depreciation and amortization related
to operations, cost of sales, royalties and management fees. For the
Fiscal Year and the corresponding prior-year period, royalties and
management fees were EUR 71.3 million and EUR 74.7 million,
respectively.
Direct operating costs decreased
prior-year period, due to reduced costs associated with lower real estate
development and hotels activity, lower labor costs resulting from
management’s labor optimization initiatives and lower spending on non-vital
rehabs. This decrease was partially offset by labor rate inflation.
Marketing and sales expenses decreased
prior-year period, due to lower average advertising rates.
General and administrative expenses decreased
the prior-year period, due to lower labor costs.
Net Financial Charges
Fiscal Year Variance
(EUR in millions, 2009 2008 Amount %
unaudited)
Financial income 9.7 17.0 (7.3) (42.9)%
Financial expense (98.9) (105.4) 6.5 (6.2)%
Net financial charges (89.2) (88.4) (0.8) 0.9%
Financial income decreased
term interest rates.
Financial expense decreased
average borrowings.
Net Loss
For the Fiscal Year, net loss of the Group amounted to
compared to a net profit of
loss attributable to equity holders of the parent amounted to
million
million
operating margin compared to the prior-year period.
Cash flows
Cash and cash equivalents as of
million
decrease resulted from:
Fiscal Year Variance
(EUR in millions, unaudited) 2009 2008
Cash flow generated by operating activities 123.8 178.2 (54.4)
Cash flow used in investing activities (71.8) (72.3) 0.5
Free cash flow generated 52.0 105.9 (53.9)
Cash flow used in financing activities (86.0) (61.6) (24.4)
Change in cash and cash equivalents (34.0) 44.3 (78.3)
Cash and cash equivalents, beginning of
period 374.3 330.0 44.3
Cash and cash equivalents, end of period 340.3 374.3 (34.0)
Free cash flow generated for the Fiscal Year was
compared to
Cash generated by operating activities for the Fiscal Year totaled
123.8 million
period. This decrease resulted from the decline in operating margin, which
was partially offset by lower working capital requirements.
Cash used in investing activities for the Fiscal Year totaled
million
Cash used in financing activities for the Fiscal Year totaled
million
increase reflected the scheduled repayment of bank borrowings made by the
Group during the Fiscal Year.
For Fiscal Year 2009, the Group has unconditionally deferred payment of
(“TWDC”) and converted this amount into long-term subordinated debt.
In addition, the Group has defined performance objectives and must
respect certain financial covenant requirements under its debt agreements.
For further detailed information on this, refer to the Group’s 2008 Reference
Document (1).
For Fiscal Year 2009, the Group did not meet its performance objectives
as defined and thus deferred the following payments into long-term
subordinated debt:
- EUR 25.0 million of the Fiscal Year royalties due to TWDC,
- EUR 15.1 million of interest due to the Caisse des dépôts et
consignations ("CDC").
The Group expects to defer payment of a further
interest due to the CDC during the first quarter of fiscal year 2010.
These deferrals and the Group’s compliance with its financial covenants
requirements are subject to final third-party review as provided in the debt
agreements. Subject to this final third-party review, the Group believes that
it has complied with its financial covenant requirements for the Fiscal Year.
For fiscal year 2010, if compliance with financial performance covenants
cannot be achieved, the Group will have to appropriately reduce operating
costs, curtail a portion of planned capital expenditures and/or seek
assistance from TWDC or other parties as permitted under the debt agreements.
Although no assurance can be given, management believes the Group has
adequate cash and liquidity for the foreseeable future based on existing cash
positions, liquidity from the
TWDC, and use of the conditional deferrals.
(1) The Group's 2008 reference document was registered with the Autorité
des marchés financiers ("AMF") on December 18, 2008 under the number
D.08-0795 and is available on the Company's website
(http://corporate.disneylandparis.com) and the AMF website
(www.amf-france.org).
UPDATE ON RECENT AND UPCOMING EVENTS
New Chief Financial Officer
On
assume the responsibilities of
Euro Disney S.A.S. Greg’s appointment became effective on
For further information, please refer to the press release published on
22, 2009
Scheduled Debt Repayments
The Group plans to repay
year 2010, consistent with the scheduled maturities.
New Generation Festival
In
Festival, a celebration welcoming the most recent Disney characters into the
Parks. Remy(1) from Ratatouille,
animated feature The Princess and the Frog and many more characters arrive at
Disneyland Paris. These new characters will be showcased in the Once Upon a
Dream Parade, Disney’s Stars ‘n’ Cars and on the Disney all stars express.
During the celebration in summer 2010, the Walt Disney Studios(R) Park
will welcome three new family attractions in Toy Story Playland, inspired by
the animated Disney-Pixar feature Toy Story. With oversized decor, guests
will have the impression that they’ve been reduced to the size of Andy’s toys
as they come to life in Toy Soldiers Parachute Drop, Slinky Dog(2) Zig Zag
Spin and RC Racer.
(1) Inspired by Ratatouille (c)Disney/Pixar.
(2) Slinky(R)Dog is a registered trademark of Poof-Slinky, Inc. All
rights reserved.
Results Webcast:
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Additional Financial Information can be found on the Internet
at http://corporate.disneylandparis.com
Code ISIN: FR0010540740
Code Reuters: EDL.PA
Code Bloomberg: EDL FP
The Group operates Disneyland(R)
Park, Walt Disney Studios(R) Park, seven themed hotels with approximately
5,800 rooms (excluding approximately 2,400 additional third-party rooms
located on the site), two convention centers, Disney(R) Village, a dining,
shopping and entertainment centre, and a 27-hole golf course. The Group’s
operating activities also include the development of the approximately 2,000
hectare site, half of which is yet developed. Euro Disney S.C.A.’s shares are
listed and traded on Euronext Paris.
Attachments: Exhibit 1 - Consolidated Statements of Income
Exhibit 2 - Consolidated Segment Statements of Income
Exhibit 3 - Consolidated Statements of Financial Position
Exhibit 4 - Consolidated Statements of Cash Flows
Exhibit 5 - Consolidated Statements of Changes in Equity
Exhibit 6 - Statement of Changes in Borrowings
Exhibit 7 - Definitions
EXHIBIT 1
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
CONSOLIDATED STATEMENTS OF INCOME
Fiscal Year Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 1,230.6 1,324.5 (93.9) (7.1)%
Costs and expenses (1,204.2) (1,234.0) 29.8 (2.4)%
Operating margin 26.4 90.5 (64.1) (70.8)%
Net financial charges (89.2) (88.4) (0.8) 0.9%
Loss from equity investments (0.2) (0.4) 0.2 (50.0)%
(Loss) / profit before taxes (63.0) 1.7 (64.7) n/m
Income taxes - - - n/a
Net (loss) / profit (63.0) 1.7 (64.7) n/m
Net (loss) / profit
attributable to:
Equity holders of the parent (55.5) (2.8) (52.7) n/m
Minority interests (7.5) 4.5 (12.0) n/m
n/m: not meaningful.
n/a: not applicable.
EXHIBIT 2
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
CONSOLIDATED SEGMENT STATEMENTS OF INCOME
Resort Operating Segment
Fiscal Year Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 1,212.7 1,283.5 (70.8) (5.5)%
Costs and expenses (1,195.4) (1,207.6) 12.2 (1.0)%
Operating margin 17.3 75.9 (58.6) (77.2)%
Net financial charges (89.4) (88.6) (0.8) 0.9%
Gain / (Loss) from equity 0.1 (0.2) 0.3 n/m
investments
Loss before taxes (72.0) (12.9) (59.1) n/m
Income taxes - - - n/a
Net loss (72.0) (12.9) (59.1) n/m
n/m: not meaningful.
n/a: not applicable.
Real Estate Development Operating Segment
Fiscal Year Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 17.9 41.0 (23.1) (56.3)%
Costs and expenses (8.8) (26.4) 17.6 (66.7)%
Operating margin 9.1 14.6 (5.5) (37.7)%
Net financial charges 0.2 0.2 - n/a
Loss from equity investments (0.3) (0.2) (0.1) 50.0%
Income before taxes 9.0 14.6 (5.6) (38.4)%
Income taxes - - - n/a
Net profit 9.0 14.6 (5.6) (38.4)%
n/a: not applicable.
EXHIBIT 3
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30,
(EUR in millions) 2009 2008
(unaudited)
Non-current assets
Property, plant and equipment 2,035.5 2,128.2
Investment property 39.7 39.3
Intangible assets 54.2 53.0
Financial assets 2.2 2.1
Other 81.2 77.6
2,212.8 2,300.2
Current assets
Inventories 35.6 37.4
Trade and other receivables 111.8 138.9
Cash and cash equivalents 340.3 374.3
Other 14.6 20.4
502.3 571.0
Total assets 2,715.1 2,871.2
Shareholders' equity
Share capital 39.0 39.0
Share premium 1,627.3 1,627.3
Accumulated deficit (1,478.5) (1,423.0)
Other (1.2) 5.1
Total shareholders' equity 186.6 248.4
Minority interests 100.4 109.4
Total equity 287.0 357.8
Non-current liabilities
Provisions 17.5 18.3
Borrowings 1,880.3 1,892.8
Deferred revenues 29.1 31.4
Other 63.4 60.4
1,990.3 2,002.9
Current liabilities
Trade and other payables 275.1 336.7
Borrowings 89.9 86.2
Deferred revenues 68.9 86.7
Other 3.9 0.9
437.8 510.5
Total liabilities 2,428.1 2,513.4
Total equity and liabilities 2,715.1 2,871.2
EXHIBIT 4
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year
(EUR in millions, unaudited) 2009 2008
Net (loss) / profit (63.0) 1.7
Items not requiring cash outlays:
- Depreciation and amortization 160.8 159.0
- Net book value of investment property sold - 4.6
- Increase in valuation and reserve allowances 6.1 6.2
- Other 2.0 (2.5)
Net increase in working capital account balances:
- Change in receivables, deferred income and other
assets 5.6 (18.2)
- Change in inventories 1.4 (4.8)
- Change in payables and other liabilities 10.9 32.2
Cash flow generated by operating activities 123.8 178.2
Capital expenditures for tangible and intangible assets (71.8) (72.3)
Cash flow used in investing activities (71.8) (72.3)
Net sales / (purchases) of treasury shares 0.2 (0.8)
Repayments of borrowings (86.2) (60.8)
Cash flow used in financing activities (86.0) (61.6)
Change in cash and cash equivalents (34.0) 44.3
Cash and cash equivalents, beginning of period 374.3 330.0
Cash and cash equivalents, end of period 340.3 374.3
SUPPLEMENTAL CASH FLOW INFORMATION
Fiscal Year
(EUR in millions, unaudited) 2009 2008
Supplemental cash flow information:
Interest paid 77.5 93.3
Non-cash financing and investing transactions:
Deferral into borrowings of accrued interest under TWDC 24.8 10.8
and CDC subordinated loans
Deferral into borrowings of royalties and management fees 50.0 25.0
EXHIBIT 5
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(EUR in millions, September Net loss for Other September 30,
unaudited) 30, 2008 Fiscal Year 2009
2009
Shareholders'
equity
Share capital 39.0 - - 39.0
Share premium 1,627.3 - - 1,627.3
Accumulated deficit (1,423.0) (55.5) - (1,478.5)
Other 5.1 - (6.3) (1.2)
Total shareholders'
equity 248.4 (55.5) (6.3) 186.6
Minority interests 109.4 (7.5) (1.5) 100.4
Total equity 357.8 (63.0) (7.8) 287.0
EXHIBIT 6
STATEMENT OF CHANGES IN BORROWINGS
Fiscal Year 2009
(EUR in millions, September Increase Decrease Transfers September
unaudited) 30, (4) 30, 2009
2008
CDC senior loans 240.5 - - (1.6) 238.9
CDC subordinated loans 761.2 17.4 (1) - (1.8) 776.8
Credit Facility - Phase IA 157.9 1.8 (2) - (63.1) 96.6
Credit Facility - Phase IB 88.4 0.8 (2) - (20.2) 69.0
Partner Advances - Phase IA 304.9 - - - 304.9
Partner Advances - Phase IB 92.9 0.1 (2) - (3.2) 89.8
TWDC loans 247.0 57.3 (3) - - 304.3
Non-current borrowings 1,892.8 77.4 - (89.9) 1,880.3
CDC senior loans 1.4 - (1.4) 1.6 1.6
CDC subordinated loans 1.5 - (1.5) 1.8 1.8
Credit Facility - Phase IA 63.1 - (63.1) 63.1 63.1
Credit Facility - Phase IB 20.2 - (20.2) 20.2 20.2
Partner Advances - Phase IB - - - 3.2 3.2
Current borrowings 86.2 - (86.2) 89.9 89.9
Total borrowings 1,979.0 77.4 (86.2) - 1,970.2
(1) Increase related to the contractual deferral of interests on certain
CDC subordinated loans, of which EUR 15.1 million is related to the
conditional deferral mechanism.
(2) Effective interest rate adjustment. As part of the 2005 financial
restructuring, these loans were significantly modified. In
accordance with IAS 39, the carrying value of this debt was replaced
by the fair value after modification. The effective interest rate
adjustment has been calculated reflecting an estimated market
interest rate at the time of the modification that was higher than
the nominal rate.
(3) Increase related to the unconditional and conditional deferrals of
EUR 50.0 million of royalties and management fees of the Fiscal Year
and the contractual deferral of interest on TWDC loans.
(4) Transfers from non-current borrowings to current borrowings, based on
the scheduled repayments over the next twelve months.
EXHIBIT 7
EURO DISNEY S.C.A.
Fiscal Year 2009 Results Announcement
DEFINITIONS
EBITDA corresponds to earnings before interest, taxes, depreciation and
amortization. EBITDA is not a measure of financial performance defined under
IFRS, and should not be viewed as a substitute for operating margin, net
profit / (loss) or operating cash flows in evaluating the Group’s financial
results. However, management believes that EBITDA is a useful tool for
evaluating the Group’s performance.
Free cash flow is cash generated by operating activities less cash used
in investing activities. Free cash flow is not a measure of financial
performance defined under IFRS, and should not be viewed as a substitute for
operating margin, net profit / (loss) or operating cash flows in evaluating
the Group’s financial results. However, management believes that Free cash
flow is a useful tool for evaluating the Group’s performance.
Theme parks attendance corresponds to the attendance recorded on a “first
click” basis, meaning that a person visiting both parks in a single day is
counted as only one visitor.
Average spending per guest is the average daily admission price and
spending on food, beverage and merchandise and other services sold in the
theme parks, excluding value added tax.
Hotel occupancy rate is the average daily rooms sold as a percentage of
total room inventory (total room inventory is approximately 5,800 rooms).
Average spending per room is the average daily room price and spending on
food, beverage and merchandise and other services sold in hotels, excluding
value added tax.
Press Contact
Laurent Manologlou
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: laurent.manologlou@disney.com
Investor Relations
Olivier Lambert
Tel: +331-64-74-58-55
Fax: +331-64-74 56-36
e-mail: olivier.lambert@disney.com
Corporate Communication
Jeff Archambault
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: jeff.archambault@disney.com
SOURCE Euro Disney S.C.A.