experience academy

Depot overview & individual analyses

Depot overview & individual analyses


experience academy

Update 25.05.2022

experience academy

Update 25.05.2022

business model

The adventure academy builds and operates treetop paths in Germany, France, Slovenia, Austria, Ireland and Canada. In addition to the entrance fee for the treetop pade, revenue is generated from the operation of the company's own gastronomy, merchandising sales, seminars and adventure playgrounds that are subject to a fee.

Investmentcase

In Corona times, travel was only possible with great restrictions, which often left the longing for vacation unfulfilled. With the end of numerous restrictions and large-scale vaccinations, this "holiday backlog" will be reduced in 2022. However, as many tourists will vacation domestically, whether out of fear or the inconvenience of traveling abroad, the Adventure Academy should have a very good year ahead. We had a similar situation in 2020, when enough was earned in the summer quarter alone to achieve a positive annual surplus. Also, it's entirely possible that a golden fall will provide additional yields that were missing in 2020+2021. Since I cannot imagine a complete lockdown like 2021 and 2020 in 2022 (higher vaccination rate, better medication, etc.), this is a likely scenario.

The company has done its homework to be prepared for this development: ICompared to the pre-corona year 2019, the capacity was expanded from 8 to 13 parks (+62.5%) and 3 adventure playgrounds were also completed - with a capital increase with a 20% dilution.

After all, the company writes off its parks very carefully (in some cases over 10 years, with an assumed useful life of 15-20 years), which means that the actual earning power will only really arrive in the income statement once the depreciation of the first treetop paths (from 2023) has ended. And once a path is in a lucrative position, you practically have a monopoly...

Trigger

The company has made a wide range in the forecast with 2.4-4.4 million EBIT, which is due to the corona uncertainty. I expect the forecast to be met at the higher end (my analysis shows that prices have risen by the most this year in any previous year, which is good for profitability). Should it come to a halfway normal autumn business, a surpass would also be possible. It is possible that strong half-year figures will give the share the attention it needs to leave the upward sideways trend. In the medium term I could also imagine a takeover by a large amusement park operator or similar.

risks

Corona, no ifs and buts. Even without a complete lockdown, but with measures that make it impossible to operate the parks economically (e.g. due to high distance requirements), business would be severely affected. The effects that this can have were seen in 2021, for example. Inflation and high energy prices are not direct problems. Prices have already been raised, and I'd rather assume that the "little treat", like a trip to a treetop parkbland, becomes more attractive if you save elsewhere. The sharply increased prices for wood were a problem in the meantime, but since the material was bought early, the price increases for the two most recent paths in Ireland and Canada were still manageable. In the meantime the situation has changed wood market, also due to rising costs for real estate loans, calmed down significantly.

sustainability

As a provider of natural, regional recreation, you indirectly contribute to strong CO2 savings. The sustainable construction of the paths - made entirely of wood - in combination with the sensitization of visitors to nature are further positive effects. One cooperates in its pedagogical concept, for example, with the German Federal Foundation for the Environment or the Bavarian Forest National Park.

business model

The adventure academy builds and operates treetop paths in Germany, France, Slovenia, Austria, Ireland and Canada. In addition to the entrance fee for the treetop path, revenue is generated from the operation of the company's own gastronomy, merchandising sales, seminars and adventure playgrounds that are subject to a fee.

Investmentcase

In Corona times, travel was only possible with great restrictions, which often left the longing for vacation unfulfilled. With the end of numerous restrictions and large-scale vaccinations, this "holiday backlog" will be reduced in 2022. However, as many tourists will vacation domestically, whether out of fear or the inconvenience of traveling abroad, the Adventure Academy should have a very good year ahead. We had a similar situation in 2020, when enough was earned in the summer quarter alone to achieve a positive annual surplus. Also, it's entirely possible that a golden fall will provide additional yields that were missing in 2020+2021. Since I cannot imagine a complete lockdown like 2021 and 2020 in 2022 (higher vaccination rate, better medication, etc.), this is a likely scenario.

The company has done its homework to be prepared for this development: ICompared to the pre-corona year 2019, the capacity was expanded from 8 to 13 parks (+62.5%) and 3 adventure playgrounds were also completed - with a capital increase with a 20% dilution.

After all, the company writes off its parks very cautiously (in some cases over 10 years, with an assumed useful life of 15-20 years), which means that the actual earning power will only really arrive in the income statement once the depreciation of the first treetop paths (from 2023) has ended. And once a path is in a lucrative position, you practically have a monopoly...

Trigger

The company has made a wide range in the forecast with 2.4-4.4 million EBIT, which is due to the corona uncertainty. I expect the forecast to be met at the higher end (my analysis shows that prices have risen by the most this year in any previous year, which is good for profitability). Should it come to a halfway normal autumn business, a surpass would also be possible. It is possible that strong half-year figures will give the share the attention it needs to leave the upward sideways trend. In the medium term I could also imagine a takeover by a large amusement park operator or similar.

risks

Corona, no ifs and buts. Even without a complete lockdown, but with measures that make it impossible to operate the parks economically (e.g. due to high distance requirements), business would be severely affected. The effects that this can have were seen in 2021, for example. Inflation and high energy prices are not direct problems. Prices have already been raised, and I'd rather assume that the "little treat" like a trip to a treetop parkbland, becomes more attractive if you save elsewhere. The sharply increased prices for wood were a problem in the meantime, but since the material was bought early, the price increases for the two most recent paths in Ireland and Canada were still manageable. In the meantime the situation has changed wood market, also due to rising costs for real estate loans, calmed down significantly.

sustainability

As a provider of natural, regional recreation, you indirectly contribute to strong CO2 savings. The sustainable construction of the paths - made entirely of wood - in combination with the sensitization of visitors to nature are further positive effects. One cooperates in its pedagogical concept, for example, with the German Federal Foundation for the Environment or the Bavarian Forest National Park.
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