Intrawest Resorts Holdings, Inc. reported total skier visits increased 26.8 percent in the fiscal third quarter ended March 31 compared to the prior year period, or 2.6 percent on a “same-store,” or like-for-like basis. Lift revenue increased 21.1 percent compared to the prior year period, or 8.2 percent on a same-store basis.
Intrawest reported “same-store” results to reflect its acquisition last September of the 50 percent of Bue Mountain resort it did not already own. Intrawest calculates same-store metrics in currency-neutral terms and as if it owned 100 percent of the Blue Mountain in both periods. In the year earlier quarter, Intrawest had accounted for its 50 percent interest in the Ontario, Canada resort under the equity method and results included only 50 percent of Blue’s Adjusted EBITDA and none of Blue’s skier visits or revenue.
Intrawest also owns controlling interest in five other North American mountain resorts, including Steamboat and Winter Park in Colorado, Stratton in Vermont, Snowshoe in West Virginia and Mont Tremblant in Montreal.
Intrawest reported that its total same-store revenue from the Mountain Segment increased $43.0 million, or 20 percent, to $258.1 million. That translated to a 6.5 percent increase in same-store revenues, which Intrawest attributed primarily to increases in season pass and frequency product revenue and revenue from guest services, including retail/rental sales. Mountain segment revenues include results from its ski lifts, ski school, retail/rental shops and restaurants. On a same-store basis, Mountain revenue increased $16.4 million, or 6.5 percent, primarily due to increases in season pass and frequency product revenue and revenue from guest services.
Mountain Adjusted EBITDA increased $16.5 million, or 13.9 percent, to $135.7 million, primarily due to the $43.0 million increase in Mountain revenue, partially offset by an $18.4 million increase in Mountain operating expenses. On a same-store basis, Mountain Adjusted EBITDA increased $12.6 million, or 9.9 percent, as the result of revenue growth and strong flowthrough.
Adventure segment revenues sag on weaker Canadian dollar
Revenue at the company's Adventure segment, which operates one of North America's largest heli-skiing operations, declined $5.8 million, or 11.5 percent, to $44.6 million, primarily due to a $5.5 million unfavorable foreign currency translation adjustment. Adventure Adjusted EBITDA decreased $3.4 million, or 17.9 percent, to $15.4 million, primarily due to a $2.3 million unfavorable foreign currency translation adjustment and a decline at CMH. On a constant currency basis, Adventure Adjusted EBITDA decreased by only $1.1 million, or 5.8 percent, despite challenging weather.
“Overall, we are very pleased with our fiscal third quarter results. We experienced strong growth in our Mountain segment largely due to the power of our season pass and frequency product program, successful pricing initiatives, and the impact of our growth capital investments,” stated Tom Marano, Chief Executive Officer. “While preliminary industry reports indicate an overall decline in skier visits, we drove skier visit growth across all regions and overcame challenging weather conditions.”
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INTRAWEST RESORTS HOLDINGS, INC. |
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Condensed Consolidated Statements of Operations |
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(In thousands, except share and per share data) |
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Three Months Ended March 31, |
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Nine Months Ended March 31, | ||||||||||||
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2015 | 2014 |
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2015 | 2014 | ||||||||||
Revenue |
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$ |
321,824 |
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$ |
285,852 |
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$ |
516,999 |
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$ |
468,341 |
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Operating expenses |
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169,523 |
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157,474 |
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395,864 |
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369,478 |
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Depreciation and amortization |
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14,767 |
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13,969 |
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44,065 |
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41,111 |
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(Gain) loss on disposal of assets and impairment of real estate |
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(1,083 |
) |
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212 |
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(1,126 |
) |
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632 |
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Loss on remeasurement of equity method investment |
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– |
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– |
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1,454 |
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– |
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Income from operations |
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138,617 |
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114,197 |
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76,742 |
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57,120 |
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Interest expense, net |
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(10,731 |
) |
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(10,134 |
) |
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(30,547 |
) |
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(157,413 |
) |
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Earnings (loss) from equity method investments |
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2,452 |
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6,670 |
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(305 |
) |
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3,127 |
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Loss on extinguishment of debt |
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– |
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– |
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– |
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(35,480 |
) |
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Other (expense) income, net |
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(315 |
) |
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336 |
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(770 |
) |
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(644 |
) |
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Income (loss) before income taxes |
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130,023 |
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111,069 |
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45,120 |
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(133,290 |
) |
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Income tax expense (benefit) |
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230 |
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77 |
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(2,386 |
) |
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374 |
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Net income (loss) |
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129,793 |
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110,992 |
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47,506 |
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(133,664 |
) |
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Income attributable to noncontrolling interest |
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1,099 |
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1,514 |
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860 |
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860 |
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Net income (loss) attributable to Intrawest Resorts Holdings, Inc. |
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$ |
128,694 |
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$ |
109,478 |
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$ |
46,646 |
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$ |
(134,524 |
) |
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Weighted average shares of common stock outstanding: |
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Basic |
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45,143,142 |
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43,791,722 |
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45,070,917 |
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42,509,281 |
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Diluted |
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45,143,142 |
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43,896,000 |
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45,144,260 |
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42,509,281 |
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Net income (loss) attributable to Intrawest Resorts Holdings, Inc. per share: |
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Basic |
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$ |
2.85 |
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$ |
2.50 |
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$ |
1.03 |
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$ |
(3.16 | |
