Booth Creek Ski Holdings third quarter resort operations revenues were $2.9 million for the fiscal quarter ended July 30, 2004, a decrease of $675,000, or 19%, from the level of revenues generated last year. The decline in resort operations revenue was primarily due to (i) a reduction in 2004 revenues of $260,000 at Northstar principally as a result of the commencement of construction of a new Village core, which has impacted certain summer lines of business including group and conference business and related lodging and banquet business, and (ii) the effect of a favorable revenue adjustment for $183,000 in the 2003 period upon the positive settlement of an earnings contingency.
Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $10,423,000 for the fiscal quarter ended July 30, 2004, an increase of $613,000, or 6%, from the 2003 period.
Operating loss for the resort segment for the fiscal quarter ended July 30, 2004, was $11,018,000 compared to an operating loss of $9,985,000 for the corresponding period in 2003. Resort operations incurred an EBITDA loss (as defined below) of $7,530,000 for the fiscal quarter ended July 30, 2004, compared with a resort operations EBITDA loss of $6,242,000 for the corresponding period in 2003.
There were no sales of real estate during the fiscal quarter ended July 30, 2004, or the corresponding period in 2003. Timber operations at Northstar contributed $63,000 in revenues in the 2004 period (none in 2003).
Cost of sales and selling, general and administrative expense for the real estate and other segment increased by $462,000 for the fiscal quarter ended July 30, 2004, primarily due to (i) final adjustments to construction cost estimates for the Unit 7A subdivision at Northstar, (ii) costs associated with timber harvesting activities, and (iii) increased administrative costs associated with the Company's real estate activities at Northstar.
Operating loss for the real estate and other segment was $661,000 for the 2004 period, as compared to an operating loss of $236,000 in the 2003 period. Real estate and other operations incurred an EBITDA loss (excluding noncash cost of real estate sales) (as defined below) of $382,000 for the fiscal quarter ended July 30, 2004, compared with an EBITDA loss (excluding noncash cost of real estate sales) from real estate and other operations of $236,000 in the 2003 period.
Interest expense was $2,963,000 for the fiscal quarter ended July 30, 2004, as compared to $3,063,000 for the 2003 period, a reduction of $100,000, or 3 percent. The decline in interest expense for the 2004 period was primarily due to reduced borrowings. The Company's total debt was $117,407,000 as of July 30, 2004, a reduction of $6,035,000 over the past year.
The Company's net loss was $14,929,000 for the fiscal quarter ended July 30, 2004, an increase of $1,386,000 from the Company's net loss in the corresponding period of 2003, primarily as a result of the factors discussed above.
Total EBITDA loss (excluding noncash cost of real estate sales) (as defined below) was $7,912,000 for the fiscal quarter ended July 30, 2004, as compared to a total EBITDA loss (excluding noncash cost of real estate sales) of $6,478,000 for the 2003 period.
Year-to-Date Results:
Revenues from resort operations for the nine months ended July 30, 2004, were $101,126,000, an increase of $612,000, 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 $22,010,000 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 $74,313,000 for the nine months ended July 30, 2004, an increase of $1,294,000, or 2 percent, compared to the 2003 period.
Operating income for the resort segment for the nine months ended July 30, 2004, was $16,156,000 compared to operating income of $16,025,000 for the corresponding period in 2003. Resort operations contributed EBITDA (as defined below) of $26,813,000 for the nine months ended July 30, 2004, compared with resort operations EBITDA of $27,495,000 for the corresponding period in 2003.
Revenues from real estate operations for the nine months ended July 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 nine months ended Aug. 1, 2003, were $646,000, due to the sale of the final lot within the Unit 7 development at Northstar. Timber operations at Northstar contributed revenues of $63,000 and $16,000 in the 2004 and 2003 periods, respectively.
Cost of sales, depletion and selling, general and administrative expense for the real estate and other segment totaled $3,140,000 for the nine months ended July 30, 2004, as compared to $1,314,000 for the 2003 period. The results for the 2004 and 2003 periods included noncash cost of real estate sales (as defined below) of $1,850,000 and $190,000, respectively, related to the real estate sales described above.
Operating income for the real estate and other segment was $5,601,000 for the 2004 period, as compared to an operating loss of $652,000 in the 2003 period. Real estate and other operations generated EBITDA (excluding noncash cost of real estate sales) (as defined below) of $7,477,000 for the nine months ended July 30, 2004, compared with an EBITDA loss (excluding noncash cost of real estate sales) from real estate and other operations of $455,000 in the 2003 period.
Interest expense was $8,912,000 for the nine months ended July 30, 2004, as compared to $9,523,000 for the 2003 period, a reduction of $611,000 or 6 percent.
The Company's net income totaled $12,089,000 for the nine months ended July 30, 2004, an increase of $6,529,000 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 $34,290,000 for the nine months ended July 30, 2004, as compared to total EBITDA (excluding noncash cost of real estate sales) of $27,040,000 for the 2003 period.
Booth Creek Ski Holdings, Inc.
Consolidated Condensed Financial and Operating Information
(Dollars in thousands, except revenue per skier visit)
(Unaudited)
Three Months Ended Nine Months Ended
------------------- ---------------------
July 30, Aug. 1, July 30, Aug. 1,
2004 2003 2004 2003
--------- --------- ---------- ----------
Statement of Operations Data:
Revenue:
Resort Operations $2,893 $3,568 $101,126 $100,514
Real Estate and Other 63 - 8,741 662
--------- --------- ---------- ----------
Total Revenue 2,956 3,568 109,867 101,176
Operating Expenses:
Cost of Sales - Resort
Operations 6,250 5,872 56,932 56,566
Cost of Sales - Real Estate
and Other 323 11 2,153 229
Depreciation and Depletion 3,514 3,743 10,683 11,477
Selling, General and
Administrative Expense 4,548 4,163 18,342 17,531
--------- --------- ---------- ----------
Total Operating Expenses 14,635 13,789 88,110 85,803
--------- --------- ---------- ----------
Operating Income (Loss) (11,679) (10,221) 21,757 15,373
Other Income (Expense):
Interest Expense (2,963) (3,063) (8,912) (9,523)
Amortization of Deferred
Financing Costs (312) (276) (869) (839)
Gain on Early Retirement of
Debt - - - 506
Other Income 25 17 113 43
--------- --------- ---------- ----------
Other Income (Expense), Net (3,250) (3,322) (9,668) (9,813)
--------- --------- ---------- ----------
Net Income (Loss) $(14,929) $(13,543) $12,089 $5,560
========= ========= ========== ==========
Other Financial and Operating
Data:
Total Skier Visits - - 1,981,000 1,953,000
Revenue per Skier Visit (a) NM NM $51.05 $51.47
Capital Expenditures for
Property and Equipment $(1,743) $(931) $(4,257) $(4,158)
Net Cash Provided By (Used
In):
Operating Activities $(7,556) $(8,204) $14,246 $9,135
Investing Activities $(3,165) $(1,765) $(6,202) $(5,422)
Financing Activities $11,088 $9,769 $(8,078) $(3,662)
Total EBITDA (Loss) $(8,165) $(6,478) $32,440 $26,850
Noncash Cost of Real Estate
Sales $253 $- $1,850 $190
Total EBITDA (Loss)
(Excluding Noncash Cost of
Real Estate Sales) $(7,912) $(6,478) $34,290 $27,040
Resort Operations EBITDA
(Loss) $(7,530) $(6,242) $26,813 $27,495
Real Estate and Other EBITDA
(Loss) (Excluding Noncash
Cost of Real Estate Sales) $(382) $(236) $7,477 $(455)
