Skyline Publishes Record Results For First Nine Months of 2019
$39.8M CAD, well above $19.4M CAD last year. During 9M 2019, the Company provided occupancy to 145 units at Lakeside Lodge and recognized revenue of $35.6M CAD.Same property NOI for 9M 2019 amounted to $34.7M CAD, an increase of 5.2%, compared to $32.9M CAD in the previous period. Horseshoe and Bear Valley presented the most significant NOI growth due to improved ski weather conditions, compared to the previous years and the installation of a new high-speed ski lift at each property allowed ticket prices to increase.Adjusted EBITDA for 9M 2019 increased by 20.4% to $36.2M CAD, compared to $30.1M CAD in the same period last year. This improvement is primarily attributable to an improvement in same property NOI, coupled with higher gross development profit from the sale of residential real estate.Derecognition of investment costs and other capital gains/losses for 9M 2019 of $0.6M CAD was mainly attributable to the expiration of an agreement with an unrelated third party to assume the acquisition of the Bahamas project. The Company determined that the remaining costs that were to be reimbursed by the third party were to be written off in Q1 2019. These costs were one-time in nature. This was offset by a gain on the sale of noncore land.Loss from early extinguishment of debt for 9M 2019 was $2.7M CAD. This one-time amount is attributable to the sale of the Blue 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 9M 2019 totaled $13.9M CAD, compared to $14.0M CAD in the corresponding period last year. The decrease in net financial expense is due to the increase in the amount of floating rate debt, offset by the change in fair value of financial derivatives. In addition, results for the second and third quarter of 2019 include interest from development projects for condo units that had been delivered previously. Interest rates have recently begun to decrease.Net income for 9M 2019 amounted to $4.2M CAD, compared to a net loss of $1.7M CAD in the same period last year. Excluding minority interests the Company had net income of $4.7M CAD for the nine months ended September 30, 2019, compared to a net loss of $0.8M CAD in the same period of 2018.Third Quarter ResultsTotal revenue for Q3 2019 was $59.2M CAD, compared to $53M CAD recorded last year, representing an increase of 11.5%. Revenue from hotels and resorts increased by $2.7M CAD, mainly due to an improvement of $1.3M CAD at the Courtyard portfolio and $1.3M CAD at Deerhurst, while other assets presented relatively stable results. Revenue from the sale of residential real estate increased by $3.4M CAD, primarily as a result of providing occupancy to 12 additional units at Lakeside Lodge, bringing the total units occupied to 145.Same property income-producing asset NOI for Q3 2019 was $13.2M CAD, compared to $12.1M CAD last year. NOI for the Courtyard portfolio increased by $0.9M CAD and the Canadian Resorts delivered a combined improvement of $0.5M CAD.Adjusted EBITDA for Q3 2019 was $12.5M CAD, compared to $9.2M CAD for the comparative period in 2018. The improvement is mainly attributable to the increase in same property NOI and higher development profits.Net income for Q3 2019 was $2.6M CAD, compared to a profit of $45 thousand CAD in the same period last year. Excluding minority interests the Company had a profit of $2.2M CAD in the third quarter compared to a profit of $9 thousand CAD in the same period of 2018.Balance Sheet Highlights as at September 30, 2019Total assets as at September 30, 2019 decreased to $712M CAD from $777M CAD at the end of 2018, primarily due to the sale of Blue Mountain retail in Q1 2019, the closing of Slopeside, and delivery of Lakeside units.Cash and cash equivalents as at September 30, 2019 amounted to $19M CAD, compared to $28M CAD as at December 31, 2018. The decrease is primarily attributable to the Company using cash to reduce its debt and invest in its properties.Net financial debt as at September 30, 2019 totaled $321M CAD, constituting 46.3% of Total Assets (excluding cash).The Company’s shareholders’ equity as at September 30, 2019 was $283.2M CAD ($256.5M CAD attributable to the shareholders), representing 39.8% of total assets. As at September 30, 2019 the equity per share attributable to shareholders was 40.24 NIS ($15.31 CAD) and the share price was 28.75 NIS ($10.96 CAD).About SkylineSkyline Investments is a Canadian company that specializes in hospitality real estate investments in Canada and the US. The Company owns 18 assets in Canada and the US with 3,297 hotel rooms under management spread over 18 cities, and development lands with rights for almost 2,315 residential units in three main areas north of Toronto, Canada.The Company is traded on the Tel Aviv Stock Exchange (ticker: SKLN).For more information:Ben Novo-Shalem, Vice President, Asset Management and Investor Relations416-368-2565 / 2222 | firstname.lastname@example.orgNon-IFRS MeasuresThe 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 September 30, 2019 and available on the Company’s profile on SEDAR at www.sedar.com or MAGNA at www.magna.isa.gov.il.
Forward Looking StatementsThis 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 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.