- Q1 2020 adjusted EBITDA was
C$9.1 million compared toC$12.6 million in Q1 2019; - Q1 2020 revenue was
C$71.7 million compared toC$56.9 million in Q1 2019, driven by completion of development projects; - Same asset NOI decreased by
C$5.3 million toC$7.5 million compared toC$12.3 million in Q1 2019, driven by the effects of COVID-19; - The Company repurchased
219.7 thousand NIS (approximatelyC$87.9 thousand ) worth of bonds at an average price of79.56 NIS subsequent to quarter end; - Total cash and available lines of credit as at
March 31, 2020 totalled approximatelyC$40 million ; and - Skyline is responding aggressively to the impact of COVID-19 and has significant cash and other resources to reasonably manage through the pandemic.
“The first quarter of 2020 presented unprecedented challenges to the world economy, which Skyline continues to manage through,” commented
COVID-19 UPDATE
At the end of 2019, the COVID-19 virus began spreading rapidly, and during Q1 2020, the virus was declared a global pandemic by the
The Company’s hotels located in
In response to the COVID-19 crisis, the Canadian and US Governments have unveiled multiple stimulus measures for which the Company qualifies or believes it qualifies. In the US, Skyline has qualified for loans under the Paycheque Protection Program (“PPP”).
In
The future effect of the COVID-19 virus on the economy and businesses, in general, remains uncertain. The path that North American governments will follow in easing restrictions on business operations is yet to be determined and could last many months. The foregoing update of the Company is based on Management’s current assessment of the business and the North American hospitality industry as a whole, and may be considered forward-looking information for purposes of applicable Canadian and Israeli securities legislation. Readers are cautioned that actual results may vary. Refer to the section “Forward-Looking Statements” below.
SUMMARY OF FINANCIAL RESULTS
C$000’s | Q1 2020 | Q1 2019 |
NOI from | 7,507 | 12,767 |
NOI from Hotels & Resorts Margin | 18.1% | 25.1% |
Same Asset NOI | 7,507 | 12,306 |
Same Asset NOI Margin | 18.1% | 24.2% |
Adjusted EBITDA | 9,091 | 12,569 |
Adjusted EBITDA Margin | 12.7% | 22.1% |
FFO | 2,752 | $7,108 |
INCOME STATEMENT HIGHLIGHTS
(All amounts in CAD millions unless otherwise stated)
- Total revenue for Q1 2020 was
$71.7 , compared to$56.9 in Q1 2019. Revenue from hotels and resorts decreased by 18.2% to$41.6 due to the impact of COVID-19. Revenue from the sale of residential real estate was$30.1 . During Q1 2020, the Company completed the sale of phases 2 and 3 of the Second Nature development project located nearBlue Mountain . Upon final closing, the Company recorded revenue of$28.9 , received net cash proceeds of$5.4 , and repaid construction debt in the amount of$2.4 . As part of the transaction, the Company gave the purchaser a 3-year vendor take back loan in the amount of$23.7 . - Same asset NOI for Q1 2020 was
$7.5 , a decrease of 39.0% compared to$12.3 in Q1 2019. The decrease was driven mainly by the impact of COVID-19 as discussed above. - Adjusted EBITDA for Q1 2020 was
$9.1 , a decrease of 27.7% compared to$12.6 in Q1 2019. The decrease is attributable to the impact of COVID-19 on the Company’s hotels and resorts, offset by an increase from the development business as a result of the sale of Second Nature. - Net financial expense for Q1 2020 totalled
$10.4 , compared to$4.7 in Q1 2019. Interest expense was$1.5 lower relative to Q1 2019 due to the repayment of construction debt and lower interest rates. Interest rates decreased during Q1 2020 due to stimulative measures taken by central banks in response to the COVID-19 pandemic. The decline in interest expense was offset by net foreign exchange movement of$6.5 , which was the result of a 9.2% depreciation of the Canadian dollar relative to the US dollar. This impacted the valuation of the Company’s bonds.$14.2 million of non-cash FX gains were also realized, however these gains are included in the Company’s other comprehensive income in accordance with IFRS. - FFO for Q1 2020 was
$2.8 compared to$7.1 in Q1 2020. The decrease was due to the impact of COVID-19 on earnings at hotels and resorts coupled with non-cash foreign exchange movement. - Net loss for Q1 2020 amounted to
$5.9 , compared to a net loss of$1.5 in Q1 2019. Excluding minority interests, the Company had a net loss of$5.4 in Q1 2020, compared to net income of$0.2 in Q1 2019. - Total comprehensive income for Q1 2020 was
$7.4 compared to a total comprehensive loss of$4.9 in Q1 2019 as net foreign exchange gains more than offset the impact of COVID-19.
BALANCE SHEET HIGHLIGHTS
- Total assets as at
March 31, 2020 increased to$703 from$676 as atDecember 31, 2019 . The increase was driven by a 9.2% depreciation of the Canadian dollar relative to the US dollar. - Cash and cash equivalents were
$37.7 as atMarch 31, 2020 compared to$26.9 as atDecember 31, 2019 . The increase is primarily driven by the Company drawing on its available lines of credit. - Net debt as at
March 31, 2020 totalled$301.3 , an increase of$25.4 compared to net debt of$275.9 as atDecember 31, 2019 , driven by FX movement in the Company’s US dollar-denominated debt. - Total Equity was
$284.3 ($259.5 attributable to shareholders), representing 40% of total assets. As atMarch 31, 2020 equity per share attributable to shareholders was38.73 NIS ($15.49 ), compared to the closing share price of15.02 NIS ($6.00 ), a discount of 61%. As of this date, the Company’s shares were trading at20.00 NIS , implying a discount of 48%.
2020 ANNUAL MEETING OF SHAREHOLDERS
After careful consideration, the Company has decided to postpone its annual meeting of shareholders to a later date in 2020. The Company intends to rely on the temporary blanket relief provided by the Canadian Securities Administrators, including the exemptive relief contained in Ontario Instrument 51-504 – “Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials” of the
About Skyline
Skyline is a Canadian company that specializes in hospitality real estate investments in
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 extent of the impact of the COVID-19 virus on our business, operations and financial performance, the imposition (or relaxation) of government restrictions (including the duration and terms of such restrictions), expected consumer and commercial behaviour, the anticipated timing of the Company’s annual shareholder meeting, as well as other risks detailed in our public filings with the Canadian and Israeli 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