modeFinance Credit Report: Spanair

Page 1

Monday, 30 January 2012

SPANAIR SA

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Company name

SPANAIR SA

Identification number If you want to know more, ASKMORE modeFinance’s credit report.

TM

Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way. TM

TM

TM

Spain

ZIP code and city

08007 - BARCELONA

Address

PS GRACIA, 2 +34 90 2131415 www.spanair.es

Legal form

Joint stock company - SA

Account

Consolidated

Incorporation date

1986

NACE 2 Sector

5110 - Passenger air transport

TM

ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

ASKMORE

Country

Listed Status

Active

MORE Credit limit

Not eligible for credit on the base of the available informations

plans 2 types of reports:

Turnover (th e)

31/12/2009

31/12/2008

31/12/2007

694,620

1,145,188

1,291,312

Rating Basic

C

C

CC

45.00%

45.00%

32.00%

100%

100%

100%

-3.22

-1.68

-2.95

0.69

0.41

0.66

Current Ratio

0.68

0.27

0.51

Quick Ratio

0.62

0.24

0.48

Probability of default

Plus TM

ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilties Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

-67.71

-57.59

-0.56

-160.86

-49.07

-75.64

2.62

3.66

3.16

Interest paid weight

-0.05

-0.09

-9.50

EBITDA/Sales

-0.23

-0.13

0.01

EBIT interest coverage ratio

-18.45

-10.79

0.24

EBITDA interest coverage ratio

-17.36

-10.06

0.75

Return on equity ROE (%) Asset turnover

Interest Coverage ratios

Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Leverage ratio

-3.22

Total asset/Total liabilties

0.69

0.56

2.40

4.74

-1.92

2.77

1.42

1.17

0.92

Current Ratio Quick Ratio

0.68

2.35

1.28

0.88

0.67

0.62

2.02

1.17

0.79

0.59

Solvency ratios

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

-67.71

20.00

6.39

1.05

-19.55

Return on equity ROE (%)

-160.86

23.37

10.40

-7.60

-108.80

Asset turnover

2.62

1.66

1.32

1.00

1.33

Interest paid weight

-0.05

0.00

0.17

0.13

-0.10

EBITDA/Sales

-0.23

0.15

0.08

0.04

-0.08

EBIT interest coverage ratio

-18.45

331.80

4.60

0.03

-8.53

EBITDA interest coverage ratio

-17.36

231.80

7.83

1.65

-5.78

Days Sales Of Inventory (DIO)

6

14

8

11

7

Days Sales Outstanding (DSO)

34

34

33

33

33

Days Payable Outstanding (DPO)

37

12

27

37

48

Cash Conversion Cycle (DIO + DSO - DPO)

3

36

20

9

-6

Numer of analyzed companies

-

70

279

227

145

C

A

BB

B

CC

Interest Coverage ratios

Cash Conversion Cycle (days)

(Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2009.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2009

31/12/2008

31/12/2007

IFRS

IFRS

Local GAAP

1

1

1

Total assets

256,876

303,148

398,170

Fixed assets

125,715

136,951

169,594

7,041

10,118

9,109

34,084

40,675

44,206

Accounting practice Exchange rate EUR - EUR

Intangible fixed assets Tangible fixed assets

84,590

86,158

116,279

131,161

166,197

228,576

Stocks

11,688

14,662

14,581

Debtors

64,314

94,126

140,909

Other current assets

55,159

57,409

73,086

21,488

15,450

50,804

-115,723

-445,070

-204,097

66,000

66,845

66,845

-181,723

-511,915

-270,942

Total liabilities

372,599

748,218

602,267

Non current liabilities

179,534

129,230

152,665

Long term debt

131,250

67,674

68,300

48,284

61,556

84,365

193,065

618,988

449,602

Other fixed assets Current assets

Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Other non-current liabilities Current liabilities

0

6,395

269,519

71,208

47,280

108,945

121,857

565,313

71,138

256,876

303,148

398,170

31/12/2009

31/12/2008

31/12/2007

Loans Creditors Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts

0

6,395

269,519

131,250

67,674

68,300

21,488

15,450

50,804

109,762

58,619

287,015

31/12/2009

Long term debt Cash & cash equivalent Net debt

Working capital Net Current Assets

31/12/2008

31/12/2007

4,794

61,508

46,545

-

-

-

31/12/2009

31/12/2008

31/12/2007

Days Sales Of Inventory (DIO)

6

5

4

Days Sales Outstanding (DSO)

34

30

40

Days Payable Outstanding (DPO)

37

15

31

3

20

13

Cash Conversion Cycle (DIO + DSO - DPO)

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2009

31/12/2008

31/12/2007

IFRS

IFRS

Local GAAP

1

1

1

673,492

1,110,248

1,258,364

-39.3

-11.8

-

21,128

34,940

32,948

Operating revenue / turnover

694,620

1,145,188

1,291,312

Total costs

852,618

1,294,619

1,275,379

Costs growth (%)

-34

1

-

Service costs

41,788

54,524

54,706

Material costs

628,657

996,435

1,001,108

Costs of employees

182,173

243,660

219,565

-157,998

-149,431

15,933

9,869

10,861

10,940

-167,867

-160,292

4,993

-15,165

-29,148

-28,356

Accounting practice Exchange rate EUR - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBITDA Depreciation EBIT Financial P/L

544

752

150,428

15,709

29,900

178,784

9,099

14,860

21,139

-183,032

-189,440

-23,363

-3,118

-

-130,127

-

-

6,715

-

-

136,842

-186,150

-

-153,490

Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period

Cash flow

-

28,941

885

-186,150

-218,381

-154,375

31/12/2009

31/12/2008

31/12/2007

-176,281

-207,520

-143,435

14,991

79,941

98,154

Added value

31/12/2009 Number of employees

2,791

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31/12/2008

31/12/2007

3,247

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

3,928


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

Spanair SA, with registered office in Palma de Mallorca, Spain, is an airline specialized in the operation of scheduled and non - scheduled passenger air transportation. It was founded in 1986 by SAS and the Spanish firm Teinver. Spanair provides a scheduled passenger network within Spain and Europe, with an extension to West Africa. Worldwide charters are also flown for tour companies. Its primary base is Son Sant Joan Airport (PMI), with hubs at Barajas International Airport (MAD) in Madrid and El Prat International Airport (BCN) in Barcelona. Spanair’s fleet comprises approximately 61 aircraft distributed as follows: 35 MD (82/83), with 120/170 seats; 16 AIRBUS 320, with 156 - 180 seats; 5 AIRBUS 321, with 212 seats; and 5 BOEING 717, with 115 seats. Spanair’s international offices are located in Germany, Austria, Denmark, Norway, Sweden, Finland, Brazil, the United States of America, Equatorial Guinea, Morocco, Algeria, Gambia and the United Kingdom. Spanair is a member of the International Air Transport Association (IATA), an international trade body that represents more than 250 airlines comprising 94% of the international scheduled air traffic, and the Star Alliance network, which is the oldest, largest and most awarded airline alliance in the world. Spanair is a subsidiary of SAS AB (Scandinavian Airlines System), the parent company of the SAS Group and the Nordic - listed airline and travel group. SAS offers air transport, airline - related services and hospitality services.

History

Founded by SAS and Teinver.

Primary business line

Operation of scheduled and non - scheduled passenger air transportation.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

Not available.

Size estimate

Not available.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

International Air Transport Association (IATA); Star Alliance.

Main brand names

Not available.

Main domestic country

Spain.

Main foreign countries or regions

West Africa; Germany; Austria; Denmark; Norway; Sweden; Finland; Brazil; United States of America; Equatorial Guinea; Morocco; Algeria; Gambia; United Kingdom.

Main production sites

Not available.

Main distribution sites

Not available.

Main sales representation sites

Not available.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Main customers

Not available.

Auditor/Advisor/Bank name

type

address

BANESTO.OF - 2446.PALMA BBVA.OF - 4907.CAN PASTILLA CAJAMADRID.OF - 896

Banker Banker Banker

-

DELOITTE S.L.

Auditor

-

Board name

date of birth

nationality

function

Mr Ferran Soriano Compte Mr Miquel Marti Escursell Mr Bo Benny Helge Zakrisson

16/06/1967 01/12/1959

Spain -

President of the Board Vice - president of the Board Vice - president of the Board; Member of the Board of Directors

Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:

INICIATIVES EMPRESARIALS AERONAUTIQUES SA Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

194 2011/03

Rating:

BB

SE -

Operating revenue (MIL $) Total Assets (MIL $)

SCANDINAVIAN AIRLINES SYSTEM AB Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

CCC

ES 85.00 -

10.90 -

Number of Employees Information date

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0 0 2011/09

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

CATALANA D’INICIATIVES S C R DE REGIMEN COMUN SA

Rating:

Country ISO code NACE Rev. 2, Core code Direct %

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address: Not available

ES -

Direct % Total % Address: Not available

Rating:

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

ES -

Operating revenue (MIL $) Total Assets (MIL $)

2009/03

Rating:

-

-

Number of Employees Information date

2011/04

Rating:

INVERSIONES EMPRESARIALES AERONAUTICAS SA Country ISO code NACE Rev. 2, Core code Direct % Total %

2009/01

ES -

FIRA DE BARCELONA Country ISO code NACE Rev. 2, Core code

0 88 11

Information date

FEMCAT FUNDACIO PRIVADA D’EMPRESARIS Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

B

-

ES -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

SE

Operating revenue (MIL $)

2011/03

Address: Not available

Rating:

SAS AB Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

CCC

-

Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct %

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address: Not available

-

Information date

Rating:

SELF OWNED

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6,069 6,234 14,862 2009/04

2011/03

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

CLUB DE VACACIONES SA Country ISO code NACE Rev. 2, Core code Direct % Total %

ES 100.00 100.00

NACE Rev. 2, Core code Direct % Total %

NACE Rev. 2, Core code Direct % Total %

NACE Rev. 2, Core code Direct % Total %

A

Operating revenue (MIL $)

100.00 100.00

-

Total Assets (MIL $) Number of Employees Information date

0 2011/05

Rating: ES

CCC

Operating revenue (MIL $)

6.00 -

1

Total Assets (MIL $) Number of Employees Information date

0 1 2011/09

Rating:

EUROPEAN AVIATION COLLEGE, SA Country ISO code

5 86 2011/09

Rating: ES

AUGUSTIN CLARKE AND ASOCIATES SL Country ISO code

10

Total Assets (MIL $) Number of Employees Information date

SPANAIR HANDLING SL Country ISO code

C

Operating revenue (MIL $)

ES

BBB

Operating revenue (MIL $)

-

Total Assets (MIL $) Number of Employees Information date

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5 7 24 2011/03

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium. Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


SPANAIR SA

Monday, 30 January 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts Company

modeFinance

Products Where

MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com +39 040 3755337

Info web Phone

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


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