FIT | ||
- | ||
BASIC | 2020 | |
HALF YEAR RESULTS | ||
DE HIER PLAATS
SPEAKERS: | Rene Moos, CEO & | |
Hans van der Aar, CFO |
DATE: | 31 July 2020 | |
HIGHLIGHTS
COVID-19 lockdown related club closures determining factor in H1 results
2
IN MARCH ALL CLUBS CLOSED DUE TO COVID-19 LOCKDOWN
Focus on retention and engagement of members and employees
- Clear communication
- Membership freeze and compensation
- Support for instructors and partners
Focus on cash flow and cost reduction
- Reduction of capex and operating costs
- €100 million additional bank financing and €133 million equity raise
3
ALL CLUBS OPEN ON 1 JULY 2020
New government measures and local closures remain a possibility until a COVID-19 vaccine has been found
Mid - | 29 | 2 June | 8 | June | 14 | 22 | 1 July |
March | May | June | June | ||||
Reopening | Reopening | Reopening | ||||
Basic-Fit | Reopening | clubs in | clubs in | clubs in | Reopening | Reopening |
closes al of | clubs in | France (ex. | Belgium and | Paris and | clubs in | clubs in the |
its clubs | Luxembourg | Paris/Ile-de- | Spain (ex. | Ile-de- | Madrid | Netherlands |
France) | Madrid) | France |
4
HOW WE ASSURE A SAFE AND WELCOMING FITNESS CLUB
Optimised ventilation assures ample inflow of fresh air and no recirculation
5
MEMBERS FINDING THEIR WAY BACK TO THE CLUBS
Our large clubs and reservation system prove effective
Visits at mature French clubs are close to pre-COVID-19 levels 1 month after re-opening
France: Mature club entrances per hour
5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 |
July 2020 | July 2019 | |||||||||||||||||
French clubs timeslot capacity utilisation (%) 20-24 July - ample capacity
Hour | Mon | Tue | Wed | Thu | Fri |
06:00 | 14 | 15 | 14 | 13 | 13 |
07:00 | 14 | 14 | 13 | 12 | 13 |
08:00 | 19 | 20 | 19 | 18 | 18 |
09:00 | 31 | 31 | 29 | 28 | 28 |
10:00 | 40 | 37 | 37 | 35 | 35 |
11:00 | 34 | 34 | 31 | 31 | 30 |
12:00 | 34 | 34 | 32 | 31 | 28 |
13:00 | 23 | 22 | 24 | 20 | 19 |
14:00 | 33 | 32 | 30 | 29 | 29 |
15:00 | 35 | 34 | 32 | 31 | 33 |
16:00 | 39 | 38 | 36 | 33 | 34 |
17:00 | 56 | 53 | 51 | 47 | 41 |
18:00 | 70 | 68 | 64 | 60 | 47 |
19:00 | 64 | 61 | 58 | 54 | 42 |
20:00 | 51 | 48 | 46 | 43 | 34 |
21:00 | 45 | 43 | 40 | 39 | 30 |
6
STRONG MEMBERSHIP DEVELOPMENT PRE AND POST CLOSURES
More joiners in June and July than in same period in 2019
Group: joiners between Jan-Jul in 2019 and 2020
June 2020 recorded more joiners than last year in spite of Dutch closures and other countries not open for the entire month
Jul '20
up 70%
YoY
July 2020 joiners per club shows an increase of 70% compared to July last year
Number of leavers similar in July 2020 vs July 2019
Jan | Mar | May | Jul |
2019 2020
7
LONG-TERM GROWTH STRATEGY UNCHANGED
Restart club construction after positive membership development
Increased availability of sites at better terms, pandemic clause in new property lease contracts
Strengthened balance sheet enables reignition of club rollout plan
Around 100 club openings planned for 2020 1,250 clubs target for 2022 maintained
Club openings pipeline (# clubs)
300 | > 250 | |||
200 | 145 | 170 | ||
100 | 52 | |||
47 | ||||
0 | ||||
Net openings | Under | Contracts signed | Contracts being | Sites being |
construction | negotiated | researched |
8
EEN HIER PLAATS
FINANCIAL REVIEW
INCOME STATEMENT
Underlying (club) results
In € millions | H1 2020 | H1 2019 | |||
Total revenue | 182.5 | 240.0 | |||
Club revenue | 181.7 | 239.1 | |||
Non-club revenue | 0.8 | 0.9 | |||
Club operating costs | (85.2) | (86.7) | |||
Total overhead | (26.6) | (32.9) | |||
International overhead | (12.3) | (14.6) | |||
Country overhead (incl. marketing) | (14.3) | (18.3) | |||
EBITDA | 69.9 | 119.5 | |||
Cash rent costs clubs and overhead, incl. car leases | (49.1) | (52.4) | |||
Exceptional items | 41.4 | 1.2 | |||
Underlying EBITDA | 62.2 | 68.3 | |||
In € millions | H1 2020 | H1 2019 | |||
Total club revenue | 181.7 | 239.1 | |||
Fitness revenue | 178.4 | 233.5 | |||
Other club revenue | 3.3 | 5.6 | |||
Club operating costs | (85.2) | (86.7) | |||
Personnel costs | (22.1) | (34.9) | |||
Other | (63.2) | (51.8) | |||
Club EBITDA | 96.5 | 152.4 | |||
Open clubs Cash rent costs | (46.4) | (49.2) | |||
Clubs Exceptional items | 41.4 | 0.7 | |||
Underlying Club EBITDA (open clubs) | 91.5 | 103.9 |
2.5 to 3.5 months in membership fees lost this year due to COVID-19 lockdown related closures in H1 2020
Lower overhead expenses due to cost savings and lower marketing spend Lower cash rent costs reflect support from our landlords
€41.4 million exceptional costs related to COVID-19
Similar level of club operating costs in spite of more clubs mainly as a result of government compensation schemes
Higher other club costs due to network growth of 149 clubs year on year Lower club EBITDA reflects loss in revenue
Underlying club EBITDA decreases by 12% year on year
10
INCOME STATEMENT
Net income impacted by COVID-19
In € millions | H1 2020 | H1 2019 | ||||
EBITDA | 69.9 | 119.5 | ||||
D&A | (125.1) | (97.9) | ||||
Depreciation | (55.2) | (43.0) | ||||
Amortisation | (7.8) | (6.2) | ||||
Depreciation right-of-use assets | (62.1) | (48.7) | ||||
Lease concessions | 8.6 | 0.0 | ||||
EBIT | (46.6) | 21.6 | ||||
Finance costs | (6.8) | (8.2) | ||||
Interest lease liabilities | (14.0) | (12.0) | ||||
Corporation tax | 15.4 | (0.6) | ||||
Net result | (51.9) | 0.9 |
Underlying net loss of €2.7 million entirely due to impact COVID-19 lockdown related club closures
Lease concessions relate to the property rent discounts received from landlords which did not entail an amendment of lease contracts
Corporation tax income of €15.4 million; ETR 23%
In € millions | H1 2020 | H1 2019 | |||
Net result | (51.9) | 0.9 | |||
Amortisation | 5.4 | 5.6 | |||
Valuation differences IRS | 0.6 | 3.6 | |||
Exceptional items | 41.4 | 1.2 | |||
IFRS 16 adjustments | 26.9 | 8.2 | |||
Lease concessions | (8.6) | - | |||
Tax effects (25%) | (16.4) | (4.6) | |||
One-off tax effects | 0.0 | (1.3) | |||
Underlying net result | (2.7) | 13.5 |
11
MATURE CLUB DEVELOPMENT
Mature clubs account for 62% of total clubs and 75% of total club revenue
513 mature clubs compared to 405 at the end of 2019, with 323 (+16) in Benelux and 190 (+92) in France and Spain
Average number of members per mature club decreased by 9% to 3,078 from 3,329 a year ago
Number of leavers similar compared to last year; no joiners during club closures
12
CAPITAL EXPENDITURE
In € millions | H1 2020 | H1 2019 |
Maintenance capex | (17.8) | (11.9) |
Expansion capex | (67.5) | (80.0) |
Other capex | (6.9) | (7.0) |
Total capex | (92.3) | (98.9) |
Maintenance capex
€22 thousand per club
FY20 expected around €50 thousand per club
Expansion capex
H1 2019 included €10 million prepayment for the Fitland acquisition
Includes €9.6 million investments in acquisitions, yet to open clubs and expansion of existing clubs €1.23 million spent on average per newly built club.
Other capex
We acquired full IP rights of our exclusive membership administration software
Around €10 million other capex expected in 2020
13
BALANCE SHEET
Net debt* of €399 million (FY 2019: €451 million)
- Leverage ratio of 2.3 versus 2.5 in 2019 (bank covenants definition)
NWC of - €108 million (FY 2019: - €111 million)
- NWC is - 24% of revenue compared to - 21% in 2019
€189 million cash at hand (FY 2019: €66.5 million)
- €30 million from bank facility still available for draw down
*Note: net debt is calculated on a frozen GAAP basis, i.e. excluding the adoption of IFRS 16
14
LONG-TERM GROWTH STRATEGY UNCHANGED
Restart club construction after positive membership development
Increased availability of sites at better terms, pandemic clause in new property lease contracts
Strengthened balance sheet enables reignition of club rollout plan
Around 100 club openings planned for 2020 1,250 clubs target for 2022 maintained
Club openings pipeline (# clubs)
300 | > 250 | |||
200 | 145 | 170 | ||
100 | 52 | |||
47 | ||||
0 | ||||
Net openings | Under | Contracts signed | Contracts being | Sites being |
construction | negotiated | researched |
15
DISCLAIMER
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Basic Fit N.V. and its subsidiaries (referred to as 'the company') and certain of the plans and objectives of the company with respect to these items.
The words "believes", "expects", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned" or "anticipates" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the company's intentions, beliefs or current expectations concerning, among other things, the company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the company operates. The forward-looking statements in this presentation are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the company's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the company operates or in economic or technological trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance.
This presentation contains statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data pertaining to the company's business and markets. Unless otherwise indicated, such information is based on the company's analysis of multiple sources, as well as information obtained from (i) experts, industry associations and data providers; and (ii) publicly available information from other sources, such as information publicly released by our competitors. To the extent available, any industry, market and competitive position data contained in this presentation has come from official or third party sources. While the company believes that each of these publications, studies and surveys has been prepared by a reputable source, the company has not independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this presentation come from the company's own internal research and estimates based on the knowledge and experience of the company's management in the markets in which the company operates. While the company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance.
The forward-looking statements contained refer only to the date in which they are made, and the company does not undertake any obligation to update any forward-looking statements.
By attending the meeting where this presentation is made or by accepting a copy of this presentation, you agree to be bound by the foregoing limitations.
16
16
THANK | YOU |
FOR YOUR ATTENTION |
Attachments
- Original document
- Permalink
Disclaimer
Basic Fit NV published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2020 01:01:01 UTC