Autogrill Spa 1000 ITL (CE) (ATGSF) Quote

ATGSF: CUSIP suspended. FINRA deleted symbol:

https://otce.finra.org/otce/dailyList?viewType=Deletions

Autogrill ends 2016 with a net result up 54% to €98m (3/09/17)

Revenues of over €4.5 billion, up 4.6%[1] (up 3.1% like-for-like[2])

Consolidated EBITDA: €411.6m (up 10.5%1)

Net result: €98.2m (up 53.9%1)

Earnings per share (EPS): €0.39m (up 53.9%1)

Net cash flows after capex: €103.9m (up € 28m)

Proposed dividend: €0.16 per share (up 33.3% on €0.12 in 2015), with a payout of 41%

New contract wins and renewals worth €7.9 billion[3] in 2016; the overall portfolio is worth €34 billion[4], with an average maturity of over 7 years

Outlook

Compound annual growth rate (CAGR)[5] for sales in the period 2016-2019 expected to be between 5% and 7%[6]

Compound annual growth rate (CAGR) for EPS in the period 2016-2019: 15%[7]

Shareholder remuneration policy

A dividend distribution policy based on a payout of between 40% and 50% of consolidated profits has been approved.

[1] At constant exchange rates.

[2] The change in “like for like” sales is the change at constant exchange rates excluding the effects of new openings and closures and acquisitions and disposals.

[3] Overall value of the contracts calculated as the sum of expected sales of each contract for its entire duration. Conversion to € is at 2016 current exchange rates. The amount also includes contracts consolidated with the equity method.

[4] The total Group portfolio is the sum of all existing contracts defined as the actual sales of each contract for the reference year multiplied by its residual duration.

[5] Compound annual growth rate (CAGR) is the average annual growth rate over a given period

[6] Growth rate calculated on the basis of sales in 2016 less the contribution of businesses disposed of during the year (French railway stations). Rebased sales in 2016 amounts to €4.49 billion (€4.51 billion including the contribution of the businesses disposed of). Growth rate is calculated at current rates: the average €/$ rate for 2016 was 1.1069, whereas the €/$ rate assumed for years 2017-2019 is 1.06.

[7] Growth rate calculated on the basis of EPS in 2016 less the contribution of businesses disposed of during the year (French railway stations and Dutch motorways). Rebased EPS in 2016 therefore amounts to €0.33 (against €0.39 including the contribution of the businesses disposed of). Growth rate is calculated at current rates: the average €/$ rate for 2016 was 1.1069, whereas the €/$ rate assumed for years 2017-2019 is 1.06.

Meeting today, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated financial statements and the Company’s draft financial statements for 2016 a long with the corporate governance report and the remuneration report for 2016.

Autogrill CEO Gianmario Tondato Da Ruos commented on the results for the year as follows: “2016 was a positive year. The Company posted excellent financial results thanks to the contribution of all the regions where we operate. In North America, where we are the undisputed leader, we saw growth in sales, especially in the airport sector. In the International area we saw double-digit growth for the third year running and in Europe we continued to rationalize our contracts portfolio and made important improvements to margins”.

Tondato then added: “Over the year we recorded excellent results in terms of contract renewals and the winning of new contracts in all geographies, amounting to around 8 billion euros, thus bringing the total portfolio to 34 billion and increasing average maturity. We were also able to define a stable dividend policy for the coming years tied to a clear investment strategy, which reflects our commitment to all the shareholders. So we can affirm that we now have a solid base for continuing to grow in the future”.

Financial key performance indicators

Revenues in 2016 rose 4.6% at constant exchange rates, to over €4.5 billion, thanks in particular to the contributions of North America and the International area. Like-for-like sales grew by a significant 3.1%.

EBITDA amounts to €411.6m, up 10.5% at constant rates on €373.5m in 2015. The result includes the capital gain from the disposal of the French railway station business (€14.7m). Excluding such capital gain and the contribution of the business disposed of, the EBITDA margin moved up 20 basis points, to 8.8% from 8.6% the previous year. The improvement in profitability was due to the increase in sales, costs efficiencies and rationalization of business in Europe, which made it possible mitigate the effect of pressure on labour costs in North America.

There was a marked improvement in EBIT (€201.0m), up 32.5% at constant rates, thanks to the improvement in profitability and the reduction in amortization and depreciation.

Net profit for the year amounted to €98.2m (up 53.9% at constant rates), meaning an EPS of €0.39.

Contracts portfolio

At the end of 2016 the portfolio stood at €34 billion, with an average maturity of 7.3 years. In 2016, contracts renewals were worth around €6.3 billion and newly won contracts around €1.6 billion.

In North America, where the Company is the undisputed leader and partner of choice for major airports, contract renewals included Charlotte-Douglas Airport (renewed well in advance and for 10 years) and Orlando. New contracts won in Northern Europe include Bergen and Rotterdam airports, and expansion continued in emerging markets like the Middle East (Abu Dhabi and Doha) and Asia (Beijing). In Italy, there were satisfying results in renewals in the current tender campaign: contracts renewals were worth €190m[1].

In addition to newly won contracts and contract renewals, 2016 saw the completion of a number of acquisitions and disposals that further improved the portfolio: in the USA with the acquisitions of CMS, which strengthened the position at Los Angeles and Las Vegas, and Stellar Partners, a well-reputed and innovative retail operator in the convenience sector, which opens up interesting growth prospects for the Group in a market worth $1.5 billion.

In Europe, business optimization continued with the disposal of operations in French railway stations and motorway service areas in The Netherlands, the latter including important hotel operations, a trade not deemed of strategic interest to the Group.

Outlook

In the period 2016-2019, the compound annual growth rate (CAGR)4 of revenues is expected to be between 5% and 7%, while the CAGR5 of EPS is expected to be 15% (assuming organic growth only and a euro/dollar exchange rate of 1.06[2] in the period 2017-2019).
The CAGRs[3] of sales and EPS are calculated on the basis of the figures for 2016 adjusted to exclude the effects of the disposals made in 2016. After these adjustments, the rebased figures for 2016 are equal to a 4.49 billion Euros revenue (compared to the reported figure of €4.52 billion) and a €0.33 EPS (compared to the reported figure of €0.39).

The additional contribution of the businesses acquired in North America in 2016 on FY2017 results is expected to be of around €58m - €62m revenues and around €0.5 cents - €1 cent EPS.
In 2017, the Group expects good growth in revenues in North America, thanks in part to the full impact of the two acquisitions made in 2016. The Group will remain strongly focused on profitability, given the persistent pressure on labour costs.
Sustained growth in sales continues to be the trend in International area, also due to completion of the openings following the contracts the Group has won over the last wto years, with absolute margins rising as a result.
In Europe, lastly, the strategy of selective renewals and the focus on efficiency will be maintained to carry forward the process begun two years ago to recover margins.

[1] Meaning a retention rate of over 80% of sales from contracts nearing maturity.

[2] A change of 0.01 in the €/$ rate has:
an impact of around €20m-30m in annualized revenues for 2017-2019
an impact of around €0.3 cents on annual EPS for 2017-2019


[3] Growth rate is calculated at current rates: the average €/$ rate for 2016 was 1.1069, whereas the €/$ rate assumed for years 2017-2019 is 1.06.

http://www.autogrill.com/en/press-releases/autogrill-ends-2016-net-result

Autogrill: net profits up 75% in nine months (11/10/16)

Results for first nine months of 2016[1]

- Consolidated revenues: €3,281.5m vs €3,147.7m in first nine months 2015, up 4.3% (up 4.9% at constant rates)

- Consolidated EBITDA: €320.2m vs €287.6m in first nine months 2015, up 11.4% (up 12.1% at constant rates); EBITDA margin: 9.8% vs 9.1% in the first nine months 2015

- Consolidated EBIT: €179.3m vs €134.8m in first nine months 2015, up 33% (up 33.6% at constant rates)

- Net result: €97.6m, vs €56.2m in first nine months 2015, up 73.6% (up 75.1% at constant rates)

- Net cash flow generation after investments: €149.1m vs €109.4m in first nine months 2015, up 36.3%

Results for 3rd quarter 2016[2]

- Consolidated revenues: €1,241m vs €1,196.9m in 3rd quarter 2015, up 3.7% (up 4.1% at constant rates)

- Consolidated EBITDA: €166.5m vs €164.2m in 3rd quarter 2015, up 1.4% (up 2.0% at constant rates)

- Ebitda margin: 13.4% vs 13.7% in 3rd quarter 2015
Consolidated EBIT: €118.9m vs €112.6m in 3rd quarter 2015, up 5.6% (up 6.2% at constant rates)

- Net result: €80.8m vs €71.8m in 3rd quarter 2015, up 12.4% (up 13.3% at constant rates)

Outlook for 2016

In the first 43 weeks[3]of the year sales[4] were up 4.3% (up 4.9% at constant rates) compared to the same period in 2015
The Group confirms its guidance for 2016

Milan, 10 November 2016 - Meeting today, the board of directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated results as of 30 September 2016.

The Group achieved significant growth in sales in the first nine months of 2016 thanks to excellent performance in the airport channel in North America and the International area. Consolidated revenues were up 4.3% (4.9% at constant rates) compared to the same period the previous year, at nearly €3.3 billion, with EBITDA at €320.2m[1] up 11.4% (up 12.1% at constant rates).

The EBITDA margin moved up from 9.1% in the first nine months of 2015 to 9.8%[2] in 2016 thanks to the significant improvement in Europe. The net result reached €97.6m, up by over 70%.

Net cash flow generation after investments amounted to €149.1m, up 36.3% on the same period the previous year. A dividend pay-out of over €30m was made to shareholders in June 2016.

Over the period, the Group closed a series of operations that brought about a further improvement to its portfolio. In North America, it strengthened its leadership in the concession foodservice sector with new contracts and renewals and the acquisition of CMS[3], and entered the airport convenience sector by completing its acquisition of Stellar Partners in October. In the International area, the Group secured a number of new contracts in the airport channel. In Europe, it continued to optimize its business by disposing of its French railway station operations and starting to negotiate the sale (completed in November) of its motorway service areas in The Netherlands, which included important hotel business which was “non-core” for Autogrill. In Italy, lastly, it continued its renewal of motorway sub-concessions and recorded a retention rate, with renewals and new contracts to date, of over 80% of sales with respect to contracts up for tender and already re-assigned by concessionaires.

Outlook for 2016

In the first 43 weeks[4] of the year sales[5] were up 4.3% (up 4.9% at constant rates) on the same period in 2015.

In October 2016, in the United States the Group finalized its acquisition of Stellar Partners, an operator of retail points of sale in various US airports, while at the beginning of November it completed the disposal of Autogrill Nederland BV, the company that managed its operations on Dutch motorways.

The Group confirms the guidance issued to the market. Assuming a euro/US dollar rate of 1.10, it expects revenues for full-year 2016 to be between €4,465m and €4,565m, EBITDA[6] between €411m and €426m and capital expenditure of around 5% of revenues.

http://www.autogrill.com/en/press-releases/autogrill-net-profits-75-nine-months

Autogrill sells its hotel and restaurant operations in Dutch motorway service areas for €22.7m (11/04/16)

Autogrill (Milan: AGL IM) and Gr8 Investments B.V. announce the closing today of a transaction transferring to the latter the Autogrill’s entire participation in Autogrill Nederland B.V., a company that operates hotels and restaurants in a number of Dutch motorway service areas, with annual revenues of around €33m.

The value of the transaction is €22.7 million.

On 30 August, Autogrill announced that it had received from Gr8 Investments B.V. an offer to buy the aforementioned business. Following completion of disclosure to and consultation with employee representatives, the transaction was approved by the Board of Directors of Autogrill S.p.A.

http://www.autogrill.com/en/press-releases/autogrill-sells-its-hotel-and-restaurant-operations-dutch-motorway-service-areas

HMSHost extends its contract at Savannah/Hilton Head International Airport (Georgia, USA) to 2032 (7/20/16)

Through its subsidiary HMSHost, Autogrill Group (Milan: AGL IM) has won a tender for the 10-year extension (to 2032) of the contract at Savannah/Hilton Head International Airport, in Georgia (USA). Estimated revenue for the period is around 85 million dollars. HMSHost will widen its current offering in the airport by opening the PGA TOUR Grill, a golf-themed restaurant. The f&b offering will also be enriched by Service Brewing Taphouse, a craft brewery, alongside the Auntie Anne’s concept and The Great American Bagel. These four new points of sale will be added to those already being operated by the Group – under the Burger King and Starbucks’s brands – between the end of this year and the beginning of 2017.

Savannah/Hilton Head International Airport served over two million passengers and more than 88,000 flights last year.

http://www.autogrill.com/en/press-releases/hmshost-extends-its-contract-savannahhilton-head-international-airport-georgia-usa

HMSHost extends its restaurant contract at Norfolk International Airport (7/11/16)

Revenues from extension of the contract for a further five years (2021-2026) and widening of the offering are expected to be around 60 million dollars.

Milan, 11 July 2016 - Autogrill (Milan: AGL IM) announces that it has obtained through its subsidiary HMSHost, in partnership with FDY Inc., an extension of its contract with Norfolk International Airport, Virginia, worth around 60 million dollars in estimated additional revenues. HMSHost is to open three new restaurants in addition to the seven already in service. HMSHost’s current concession, originally awarded in 1999, has been extended for another five years beyond the scheduled term of 2021.

Norfolk International Airport is the main airport serving the coastal zone of Virginia and the north-east of North Carolina. In 2015 it moved three million passengers and 70,000 flights.

The new restaurants HMSHost is to open include The Local@ORF, a gastropub that will source products from local farms and brewers to offer the best of the territory’s culinary resources. Travellers will also be able to wander round the new ORF MKT, featuring market-style counters (delicatessen, salads, etc.) specializing in dishes prepared in front of the customer using fresh, local organic and sustainable ingredients. HMSHost, along with partner AB InBev, has also created a new restaurant called Here’s To Heroes, in honour of all the United State’s armed forces.

Under the terms of the new concession, HMSHost will continue to manage its existing restaurants at Norfolk International Airport: the three Starbucks points of sale, as well as Burger King, Back Bay Bistro, James River Grille and The Great American Bagel.

http://www.autogrill.com/en/press-releases/hmshost-extends-its-restaurant-contract-norfolk-international-airport

Autogrill: Board’s resolution on the buyback programme (6/30/16)

Pursuant to article 144-bis, clause 3, of the Consob Regulation no. 11971/1999 (“Issuers’ Regulation”), Autogrill S.p.A. (Milan: AGL IM) (the “Company”) announces that the Board of Directors resolved to adopt a buyback programme to purchase up to 12,720,000 of its ordinary shares (5% of share capital) pursuant to the authorization given by the Shareholders’ Meeting on 26 May 2016.

http://www.autogrill.com/en/press-releases/autogrill-boards-resolution-buyback-programme

Autogrill: EBITDA up by over 60% (5/12/16)

http://www.autogrill.com/sites/autogrill14corp/files/1q2016_en_12052016.pdf

Benettons Said to Weigh Autogrill M&A Options for Expansion (2/10/16)

Autogrill has held preliminary meetings with advisers

Benetton family open to reducing Autogrill stake in deal

Italy’s billionaire Benetton family is searching for a partner for its Autogrill SpA restaurant chain, which has held preliminary meetings with advisers to explore its growth options, people familiar with the matter said.

The advisers have pitched several merger and acquisition options for Autogrill, the world’s biggest manager of highway restaurants, to the Italian clan, said the people, who asked not to be named as the talks are private. The Benettons, who are open to reducing their 50 percent holding in the company, are still reviewing proposals and may decide on a deal this year, the people said. Representatives for the Benetton family and Autogrill declined to comment.

The Benettons are seeking partners for businesses ranging from their eponymous clothing chain to highway restaurants and airport operations as they revamp their $12 billion Edizione Srl investment vehicle. The holding company is also evaluating purchases after boosting its cash pile by 1.3 billion euros ($1.45 billion) with the sale of a majority stake in airport retailer World Duty Free to Dufry AG in March.


Chairman Gilberto Benetton has turned down proposals from bankers pitching investments ranging from stakes in Italian cooperative banks to a paper producer as he wants Edizione to transform itself into a “sovereign fund” that manages minority holdings in diversified industries. At the same time, the family is restructuring its flagship apparel maker before looking for an fashion-industry partner by the end of next year.

Autogrill’s talks with advisers could lead to small bolt-on acquisitions or partnerships for the parent company or its subsidiaries, the people said. The main alternatives would involve either buying a competitor or seeking a deal with a restaurant chain outside the highway service-area concession business, they said.

Autogrill was temporarily suspended in Milan trading after rising as much as 10 percent to 6.84 euros, giving it a market value of 1.74 billion euros. The stock was up 11 percent to 6.88 euros at 1:50 p.m.

The family is open to acquisitions for Autogrill, Gilberto Benetton told La Repubblica in an interview in November.

http://www.bloomberg.com/news/articles/2016-02-10/benettons-said-to-weigh-autogrill-s-m-a-options-for-expansion

Autogrill: profits and cash flow generation double (3/10/16)

Profitability improves in North America and Europe

Consolidated revenues: €4,369.2m, up 11.2% on €3,930.2m in 2014 (up 2.0% at constant rates)

Consolidated Ebitda: €376.2m, up 19% on €316.2m in 2014 (up 6.0% at constant rates)

Net result: €64.2m against €25.1 m in 2014 (up 99,1% at constant rates)

Net cash flow generation: €101.5m against €51.8m in 2014

Net financial indebtedness: €644.4m against €693.3m in 2014

Proposed dividend of €0,12 per share, ex-dividend date 6 June 2016 and payment from 8 June 2016

Outlook for 2016

Sales in the first eight weeks of 2016 were up 4.9% at constant exchange rates compared to the same period of the previous year (up 6.5% at current rates).

Meeting today, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated financial statements and the Company’s draft financial statements for 2015.

2015 saw strong growth in passenger traffic (6.1%) in the world’s airports, the highest rate since 2010. Passenger traffic in North America and Europe was up 5.6% and 5,0%4 respectively.

In the motorway channel there was sustained growth in the United States (4.3%[5]) on 2014 compared to. In Italy too, 2015 saw good growth in traffic (3.2%) thanks to initial signs of a recovery of the domestic economy and falling fuel costs.

Over the year, Autogrill made further, marked progress with its growth strategy in the airport channel by strengthening its leadership in the United States, by expanding in certain European markets, such as Germany and the UK, and by entering new markets like Norway, at Oslo and Bergen airports (the latter awarded in 2016) and China, at Beijing and Sanya airports.

Sales in the airport channel were up 20.2% (up 5.3% at constant rates) driven mainly by the increase in US airport revenues, new openings and entry to new markets.

Revenues in the motorway channel were up 3.4% (down 0.4% at constant rates) compared to the previous year thanks to excellent performance on US motorways, which offset lower sales in Italy following selective renewals in the 2013/2014 tender season.

“Autogrill posted excellent results in 2015.We further strengthened our concessions portfolio and stepped up our operations in the airport and railway station channels. In particular, we took up significant growth opportunities in North Europe and Asia, where we opened over 100 new stores. Profitability rose in all our operating areas: North America, Europe and International[4],” said Autogrill CEO Gianmario Tondato Da Ruos. “They’re results that enable us to look at the future with optimism, a future we’re working hard for by widening our contracts portfolio and by developing powerful and innovative house brands – Bistrot is a good example – that are appreciated and competitive in Italy and have been successfully exported to international markets," concluded Tondato.

Outlook 2016

Sales in the first eight weeks of 2016 were up 4.9% at constant rates [8] compared to the same period the previous year (up 6.5% at current rates).

Revenues in North America rose 3.8% overall.

Excellent performance was seen in the International area, with growth of 23%, partly due to new openings.

In Europe, the trend towards recovery continued, with revenues growing both in Italy (2.4%) and Other European countries (3.9%).

In 2016, the Group will aim to boost sales and profitability in North America by leveraging favourable traffic trends, commercial initiatives and efficient resources management programmes.

In the International area, the focus will be on achieving capacity operation in the numerous contracts awarded in 2014 and 2015, as well as following up further development opportunities in countries in where the Group is already active.

In Italy, Autogrill aims to increase sales and margins through optimum exploitation of the signs of recovery in traffic and spending seen in 2015.

The Group’s strategy in Other European countries is similarly geared to a possible recovery in spending and to maintaining a selective approach to evaluating investment opportunities.

[1] Source: ACI - Airports Council International – Flash December 2015

[2] Source: Group estimates based on official figures.

[3] Source: AISCAT, January-September 2015.

[4] The area includes a series of locations in North Europe (Schiphol Airport in Amsterdam, Dutch railway stations, the UK, Ireland, Sweden, Denmark and Finland) and the Rest of the world (Arab Emirates, Turkey, Russia, India, Indonesia, Malaysia, Vietnam, Australia and New Zealand)..

[5] Average exchange rates used for converting amounts to the main non-euro currency: 2016 €/$ 1.0981; 2015: €/$1.1514. The changes commented on are stated at constant rates to give a clearer picture of trends.

http://www.autogrill.com/en/press-releases/autogrill-profits-and-cash-flow-generation-double

Autogrill grows in North American airports (3/01/16)

The Group is awarded two new contracts at the airports of Baltimore/Washington and Greensboro, a new entry for Autogrill
Expected total revenues in excess of 180 million dollars over the 10 year duration of the contracts

Through its subsidiary HMSHost, Autogrill (Milan: AGL IM) is strengthening its operations in the North American market having been awarded two new contracts at the airports of Baltimore/Washington (Maryland) and Greensboro (North Carolina).

Under these agreements Autogrill expects to generate total revenues of over $180m in the ten year duration of the two concessions: over $130m at Baltimore/Washington and around $50m at Greensboro.

The Group will operate 13 points of sale: four new ones in Baltimore in addition to the existing three, and six new ones in Greensboro.

Baltimore/Washington International Thurgood Marshall Airport, is the 23rd busiest airport in North America. In 2015 it set an annual record 23.8 million passengers. Its five terminals have 82 gates. In this airport the Group will offer to travellers an offering of restaurants driven by famous chefs - Family Meal, of the renowned Maryland chef Bryan Voltaggio, and Kapnos Marketa, of chef Mike Isabella – as well as the Brix & Vine wine bar and four Starbucks coffee houses.

Piedmont Triad International Airport, Greensboro is North Carolina’s 3rd airport, with around 280 departures/arrivals a day. Built in 1982, the terminal has been extended and renovated over the years and now has 26 gates moving annual traffic of nearly a million passengers. At the airport the Group will operate six point of sale and upgrade offerings with the PGA TOUR Grill concept, a restaurant that marries the world of golf with a great eating experience, and The Local @ GSO, for travellers who want to discover the authentic taste of the region. The other points of sale include The Great American Bagel, a prize-winning bagel bakery, ACC American Café, where specialities can be enjoyed in a sporting ambience, and two Starbucks coffee houses.

http://www.autogrill.com/en/press-releases/autogrill-grows-north-american-airports-0