Booth Creek Ski Holdings reported total skier visits for the fiscal quarter ended April 30, 2004, were 1,028,000, a decline of 12,000 visits, or 1%, from the 2003 fiscal quarter. For the six months ended April 30, 2004, total skier visits were 1,981,000, an increase of 28,000 visits, or 1 percent from the 2003 period.
“The 2003/04 ski season was challenging on several fronts. Our New Hampshire resorts faced very volatile and frustrating weather conditions for the better part of the ski season, although conditions did begin to moderate during mid-February and March,” said Betsy Cole, chief financial officer of the Company. “In Lake Tahoe, our resorts were performing well through early March. However, the Northern California region experienced the balmiest March in 70 years, with daily high temperature records set for 13 of 14 days in Sacramento. As the unseasonably warm weather continued into April, interest in skiing in Lake Tahoe waned for the last quarter of the season.
“On a positive note,” continued Cole, “we were pleased to see the expected rebound in visitation at the Summit this season, as weather and operating conditions returned to a more normal state following the 2002/03 season, which was the most difficult season in many years at the Summit and throughout the Pacific Northwest. We are also pleased with the continued success of our season pass programs and the resulting benefit of improved revenue stability. In addition, a significant step forward on the real estate front was the commencement in April of the construction of the new Village at Northstar.”
Second Quarter Results
Resort operations revenues were $50,918,000 for the fiscal quarter ended April 30, 2004, an increase of $487,000, or 1 percent, from the level of revenues generated during the fiscal quarter ended May 2, 2003. Total skier visits for the 2004 period declined by 1 percent to 1,028,000 visits. Season pass revenues, which rose 18 percent to $12,048,000 for the 2004 period, more than offset the impact of reduced lift ticket sales.
Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $30,580,000 for the fiscal quarter ended April 30, 2004, a decrease of $12,000 from the 2003 period.
Operating income for the resort segment for the fiscal quarter ended April 30, 2004 was $16,772,000 compared to operating income of $15,935,000 for the corresponding period in 2003. Resort operations contributed EBITDA (as defined below) of $20,338,000 for the fiscal quarter ended April 30, 2004, compared with resort operations EBITDA of $19,839,000 for the corresponding period in 2003.
Revenues from real estate operations for the fiscal quarter ended April 30, 2004, were $180,000, which was due to the sale of two single family lots at Loon Mountain. Revenues from real estate operations during the 2003 period were $646,000, due to the sale of the final lot within the Unit 7 development at Northstar.
Cost of sales and selling, general and administrative expense for the real estate and other segment declined by $357,000 for the fiscal quarter ended April 30, 2004 due to the effect of sales launch costs incurred in the 2003 period to market the Unit 7A development at Northstar.
Operating loss for the real estate and other segment was $225,000 for the 2004 period, as compared to an operating loss of $116,000 in the 2003 period. Real estate and other operations incurred an EBITDA loss (excluding noncash cost of real estate sales) (as defined below) of $218,000 for the fiscal quarter ended April 30, 2004, compared with EBITDA from real estate and other operations of $74,000 in the 2003 period.
Interest expense was $2,893,000 for the fiscal quarter ended April 30, 2004, as compared to $3,089,000 for the 2003 period, a reduction of $196,000, or 6 percent. The decline in interest expense for the 2004 period was primarily due to reduced borrowings and lower average interest rates. The Company's total debt was $104,773,000 as of April 30, 2004, a reduction of $8,719,000 over the past year.
The Company's net income totaled $13,381,000 for the fiscal quarter ended April 30, 2004, an increase of $909,000 from the Company's net income in the corresponding period of 2003, primarily as a result of the factors discussed above.
Total EBITDA (excluding noncash cost of real estate sales) (as defined below) was $20,120,000 for the fiscal quarter ended April 30, 2004, as compared to total EBITDA of $19,913,000 for the 2003 period.
Year to Date Results
Revenues from resort operations for the six months ended April 30, 2004 were $98,233,000, an increase of $1,287,000, or 1 percent, as compared to the 2003 period. Skier visits for the 2004 period increased by 28,000 visits, or 1 percent, from the 2003 period. Season pass revenues, which rose 11 percent to $22,011,000 for the 2004 period, as well as increased snow school, retail and food and beverage sales, offset the impact of reduced lift ticket sales.
Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $63,890,000 for the six months ended April 30, 2004, an increase of $681,000, or 1 percent, compared to the 2003 period.
Operating income for the resort segment for the six months ended April 30, 2004 was $27,174,000 compared to operating income of $26,010,000 for the corresponding period in 2003. Resort operations contributed EBITDA (as defined below) of $34,343,000 for the six months ended April 30, 2004, compared with resort operations EBITDA of $33,737,000 for the corresponding period in 2003.
Revenues from real estate operations for the six months ended April 30, 2004 were $8,678,000, which was due to (i) the sale of the final three lots within the Unit 7A subdivision at Northstar for an aggregate sales price of $2,798,000, (ii) the transfer and sale of certain development real estate at Northstar, which contributed revenues of $5,610,000 and (iii) the sale of three single family lots at Loon Mountain for $270,000. Revenues from real estate operations for the six months ended May 2, 2003 were $646,000, due to the sale of the final lot within the Unit 7 development at Northstar.
Cost of sales, depletion and selling, general and administrative expense for the real estate and other segment totaled $2,416,000 for the six months ended April 30, 2004, as compared to $1,078,000 for the 2003 period. The results for the 2004 and 2003 periods included noncash cost of real estate sales (as defined below) of $1,597,000 and $190,000, respectively, related to the real estate sales described above.
Operating income for the real estate and other segment was $6,262,000 for the 2004 period, as compared to an operating loss of $416,000 in the 2003 period. Real estate and other operations generated EBITDA (excluding noncash cost of real estate sales) (as defined below) of $7,859,000 for the six months ended April 30, 2004, compared with an EBITDA loss from real estate and other operations of $219,000 in the 2003 period.
Interest expense was $5,949,000 for the six months ended April 30, 2004, as compared to $6,460,000 for the 2003 period, a reduction of $511,000, or 8 percent.
The Company's net income totaled $27,018,000 for the six months ended April 30, 2004, an increase of $7,915,000 from the Company's net income in the corresponding period of 2003, primarily as a result of the factors discussed above.
Total EBITDA (excluding noncash cost of real estate sales) (as defined below) was $42,202,000 for the six months ended April 30, 2004, as compared to total EBITDA of $33,518,000 for the 2003 period.
Three Months Ended Six Months Ended
--------------------- ---------------------
April 30, May 2, April 30, May 2,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Statement of Operations
Data:
Revenue:
Resort Operations $50,918 $50,431 $98,233 $96,946
Real Estate and Other 180 646 8,678 662
---------- ---------- ---------- ----------
Total Revenue 51,098 51,077 106,911 97,608
Operating Expenses:
Cost of Sales - Resort
Operations 24,409 24,598 50,682 50,694
Cost of Sales - Real
Estate and Other 39 197 1,830 218
Depreciation and Depletion 3,566 3,904 7,169 7,734
Selling, General and
Administrative Expense 6,537 6,559 13,794 13,368
---------- ---------- ---------- ----------
Total Operating Expenses 34,551 35,258 73,475 72,014
---------- ---------- ---------- ----------
Operating Income 16,547 15,819 33,436 25,594
Other Income (Expense):
Interest Expense (2,893) (3,089) (5,949) (6,460)
Amortization of Deferred
Financing Costs (277) (281) (557) (563)
Gain on Early Retirement
of Debt - - - 506
Other Income 4 23 88 26
---------- ---------- ---------- ----------
Other Income (Expense),
Net (3,166) (3,347) (6,418) (6,491)
---------- ---------- ---------- ----------
Net Income $13,381 $12,472 $27,018 $19,103
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Other Financial and
Operating Data:
Total Skier Visits 1,028,000 1,040,000 1,981,000 1,953,000
Revenue per Skier Visit(a) $49.53 $48.49 $49,59 $49.64
Capital Expenditures for
Property and Equipment $(889) $(888) $(2,514) $(3,227)
Net Cash Provided By (Used
In):
Operating Activities $(1,354) $2,661 $21,802 $17,339
Investing Activities $(1,003) $(1,087) $(3,037) $(3,657)
Financing Activities $(761) $(2,542) $(19,166) $(13,431)
Total EBITDA $20,113 $19,723 $40,605 $33,328
Noncash Cost of Real Estate
Sales $7 $190 $1,597 $190
Total EBITDA (Excluding
Noncash Cost of Real
Estate Sales) $20,120 $19,913 $42,202 $33,518
Resort Operations EBITDA $20,338 $19,839 $34,343 $33,737
Real Estate and Other
EBITDA (Excluding Noncash
Cost of Real Estate Sales) $(218) $74 $7,859 $(219)
As of
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April 30, 2004 Oct. 31, 2003 May 2, 2003
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Balance Sheet Data:
Working Capital (Deficit),
Including Revolving Credit
Facility Borrowings $(22,683) $(52,233) $(31,137)
Total Assets $149,680 $154,866 $160,981
Long-term Debt $96,037 $98,382 $101,332
Total Debt (b) $104,773 $122,561 $113,492
Shareholder's Equity
(Deficit) $24,220 $(2,798) $21,666
Notes to Consolidated Condensed Financial and Operating Information:
(a) Reflects revenue from resort operations divided by total skier
visits.
(b) Includes revolving credit facility borrowings, current portion of
long-term debt and long-term debt.
Skier Visit Information
Total skier visits generated by each of the Company's resorts for the three and six month periods ended April 30, 2004 and May 2, 2003 were as follows:
Three Months Ended
---------------------- Percentage
April 30, May 2, Increase Increase
2004 2003 (Decrease) (Decrease)
--------- ------- ---------- ---------
(In thousands)
Northstar 275 304 (29) (10)%
Sierra 174 190 (16) (8)
Waterville Valley 101 117 (16) (14)
Mt. Cranmore 65 68 (3) (4)
Loon Mountain 186 185 1 1
The Summit 227 176 51 29
---------- ---------- -----------
1,028 1,040 (12) (1)
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Six Months Ended
---------------------- Percentage
April 30, May 2, Increase Increase
2004 2003 (Decrease)(Decrease)
-------- ------- ---------- ---------
(In thousands)
Northstar 535 570 (35) (6)%
Sierra 372 353 19 5
Waterville Valley 175 223 (48) (22)
Mt. Cranmore 102 119 (17) (14)
Loon Mountain 322 359 (37) (10)
The Summit 475 329 146 44
----------- ---------- -----------
1,981 1,953 28 1
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