Intrawest Corporation, fiscal 2006 income from continuing operations was $55.3 million compared with $24.1 million in 2005. Income per share from continuing operations for the year, on a fully diluted basis, increased to $1.12 per share in 2006 from $0.50 per share in 2005. Total Company EBITDA increased 19% to $267.5 million from $225.1 million during the same period last year.
“Our fiscal 2006 performance was highlighted by the sale of a majority of our interests in both our real estate and mountain operations at Mammoth Mountain, California, which demonstrates our proven ability to create value through acquiring and developing world-class destination resort properties,” said Joe Houssian, chairman and chief executive officer. “We also made considerable progress during the year in strengthening our leadership position in the destination resort and adventure travel industries through the continued expansion of award-winning Abercrombie & Kent, as well as extending our business reach into Europe.”
Fiscal 2006 Highlights
- Total revenue of $1.61 billion.
- Resort and Travel Operations revenue increased 16% to
$936.1 million from $806.6 million in 2005. The increase in
revenue was led by award-winning Abercrombie & Kent which
generated $294.9 million, an increase of 18 per cent over the same
period last year. - Generated presales revenue of $534 million in December 2005 – a
record month for real estate launches. - The sale of Mammoth Mountain Ski Area generated an after-tax gain
of $61.3 million and Intrawest has retained a minority interest in
the operations of this world-class resort. - The sale of the majority of the company’s land position at Mammoth
Mountain resulted in a pre-tax profit of $56.8 million. Intrawest
has retained a minority interest in the future development of the
village center. - The sale of Lot Three Kaanapali, a 26-acre beachfront parcel in
Maui, resulted in a pre-tax profit of $25.4 million. - Strong balance sheet with year-end Net Debt to EBITDA ratio of
3.1 times, well within target leverage range. - Expanded presence in Europe by adding three village development
locations in France and one location in Switzerland.
The company also Entered into a definitive acquisition agreement with investment
funds managed by Fortress Investment Group LLC of New York for all
of Intrawest’s outstanding shares at a price of $35.00 per share
payable in cash. A special meeting of shareholders is scheduled
for Tuesday, October 17, 2006 to consider the statutory
arrangement under the Canada Business Corporations Act. The
closing is subject to the affirmative vote cast by shareholders
and other regulatory closing conditions.
“We spent the latter part of fiscal 2006 conducting an intensive and thorough review of all available strategic alternatives for creating shareholder value,” continued Mr. Houssian. “This broad, public process commenced in February 2006 and resulted in the definitive acquisition agreement with Fortress that we announced in August. We are confident that Intrawest and Fortress will make a formidable team as we embark on a new era of significant growth and expansion for the company. We look forward to working together to enhance the long-term value of Intrawest’s irreplaceable real estate and world-class brands and to achieving our goal of becoming the trusted leader in global leisure travel.”
ADDITIONAL INFORMATION
Total Company EBITDA
(MILLIONS) 2006 2005
-------------------------------------------------------------------------
Cash flow provided by (used in) continuing
operating activities $(30.5) $208.7
Add (deduct):
Changes in non-cash operating assets &
liabilities 193.4 (107.2)
Current income tax expense 38.3 27.2
Interest expense 47.6 44.2
Interest in real estate costs 27.6 35.4
Call premium and unamortized costs on senior
notes redeemed - 30.2
-------------------------------------------------------------------------
276.4 238.5
Interest and other income net of non-cash items (8.9) (13.4)
-------------------------------------------------------------------------
Total Company EBITDA $267.5 $225.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Resort and Travel Operations EBITDA
(MILLIONS) 2006 2005
-------------------------------------------------------------------------
Resort operations revenue $936.1 $806.6
Resort operations expenses 847.4 707.0
-------------------------------------------------------------------------
Resort operations EBITDA $88.7 $99.6
-------------------------------------------------------------------------
Management Services EBITDA
(MILLIONS) 2006 2005
-------------------------------------------------------------------------
Management services revenue $172.5 $176.7
Management services expenses 135.5 133.7
-------------------------------------------------------------------------
Management services EBITDA $37.0 $43.0
-------------------------------------------------------------------------
Real Estate Development EBITDA
(MILLIONS) 2006 2005
-------------------------------------------------------------------------
Real estate development contribution $147.6 $67.6
Interest in real estate expenses 27.6 35.4
-------------------------------------------------------------------------
Real estate development EBITDA $175.2 $103.0
-------------------------------------------------------------------------
