Intrawest Resorts Holdings Inc. reported organic skier visits grew 2.2 percent during the fiscal second quarter ended Dec. 31, 2014, when it narrowed its loss by $90.0 million compared to the prior year period.

The Denver, CO-based resort operator said the results include Blue Mountain which was acquired in September. In the prior year period, the company’s 50 percent interest in Blue Mountain was accounted for under the equity method and results included only 50 percent of Blue’s Adjusted EBITDA and none of Blue’s skier visits or revenue.

Other results for second quarter of fiscal 2015 were:

  • Total skier visits increased 15.7 percent compared to the prior year period, or 2.2 percent excluding Blue Mountain.
  • Effective Ticket Price (ETP) increased 4.0 percent over the prior year period, excluding Blue Mountain.
  • Season pass and frequency card sales have grown 16.5 percent through February 1, 2015, relative to the same time last year.
  • Total reportable segment revenue grew by $18.6 million or 18.3 percent compared to the same period in the prior year, or 3.5 percent excluding Blue Mountain, despite challenging early season conditions in the East.
  • Adjusted EBITDA was $0.1 million compared to $1.7 million in the same period in the prior year.
  • Net loss attributable to Intrawest Resorts Holdings, Inc. improved $90.0 million to a loss of $31.1 million, or $0.69 per diluted share. This improvement was largely a result of lower interest expense due to our restructuring and refinancing in Dec.  of 2013.
  • Revised fiscal 2015 guidance range to reflect changes to the US to Canadian dollar exchange rate.

“Overall, we are pleased with our fiscal second quarter results. We enjoyed a strong opening in Colorado and achieved revenue and skier visit growth despite some challenging early season weather and conditions in the East,” stated Tom Marano, Chief Executive Officer. “Our same store Mountain revenue and skier visit growth was largely due to our successful season pass and pricing strategies.”

Marano said the year-to-date results jibed with previous guidance, and on a local currency basis, the company's outlook for the remainder of the fiscal year remains within original fiscal 2015 guidance.

“Yet with approximately 46 percent of our operations conducted in Canada, we are now providing revised fiscal year 2015 guidance to reflect the significant decline in the value of the Canadian dollar relative to the US dollar,” Marano said. 

Mountain segment

  • Mountain revenue, which includes revenues from lifts, retail and rental operations, but exclude revenues from lodging and real estate development activities, increased $18.7 million, or 24.6 percent, to $94.7 million, primarily due to the inclusion of revenue from Blue Mountain.
  • Excluding Blue Mountain, Mountain revenue increased $3.6 million, or 4.7 percent, primarily due to increases in lift revenue, revenue from guest services and skier visits of 2.2 percent.
  • Mountain Adjusted EBITDA decreased $0.6 million, or 20.3 percent, to $2.5 million, primarily due to higher general and administrative expenses.
  • Adventure Segment
  • Adventure revenue, which includes a heli-skiing business  declined $1.3 million, or 11.2 percent, to $10.2 million, primarily due to poor early season snowfall and warm temperatures at CMH, which resulted in postponed trips.
  • Adventure Adjusted EBITDA loss increased $1.7 million, or 56.2 percent, to a loss of $4.8 million, primarily due to higher helicopter maintenance expenses and general and administrative expenses.

Fiscal 2015 outlook
Reflecting changes to the US to Canadian dollar exchange rate relative to the 1.10 rate used to set the original guidance, the company updated the fiscal 2015 guidance range. Adjusted EBITDA is now expected to be between $103 million and $108 million assuming a US to Canadian dollar exchange rate of 1.26 for the third and fourth quarters of the fiscal 2015 year. The company's third fiscal quarter is its largest quarter and historically accounts for approximately 140 percent of Adjusted EBITDA.

For the full fiscal year 2015, the company expects:

  • Total Reportable Segment Revenue in the range of $552 million to $577 million*
  • Mountain Segment Revenue in the range of $402 million to $418 million
  • Adventure Segment Revenue in the range of $95 million to $99 million
  • Real Estate Segment Revenue in the range of $55 million to $60 million
  • Total Segment Adjusted EBITDA in the range of $103 million to $108 million*
  • Mountain Adjusted EBITDA in the range of $82 million to $86 million
  • Adventure Adjusted EBITDA in the range of $11 million to $13 million
  • Real Estate Adjusted EBITDA in the range of $8 million to $9 million
  • Net loss attributable to Intrawest Resorts Holdings, Inc. in the range of $19 million to $9 million

Mountain Segment (dollars in thousands)










 


Three Months Ended


Six Months Ended



December 31,
Change
December 31,
Change


2014
 
 
 2013
 
$
 
 %
2014
 
 
 2013
 
$
 
 %

Skier Visits

858,781
 

742,287


116,494


15.7
%

858,781


742,287


116,494


15.7
%

Revenue per Visit

$
98.75


$
94.06


$
4.69


5.0
%

$
98.75


$
94.06


$
4.69


5.0
%

ETP

$
41.36


$
41.24


$
0.12


0.3
%

$
41.36


$
41.24


$
0.12


0.3
%

RevPAR

$
56.26


$
46.25


$
10.01


21.6
%

$
50.64


$
41.66


$
8.98


21.6
%

ADR

$
171.81


$
180.78


$
(8.97
)

(5.0
)%

$
149.65


$
146.99


$
2.66


1.8
%

























 

Mountain revenue:
























Lift

$
36,254


$
31,413


$
4,841


15.4
%

$
39,541


$
34,607


$
4,934


14.3
%

Lodging

14,102


9,240


$
4,862


52.6
%

23,473


17,457


$
6,016


34.5
%

Ski School

7,872


6,592


$
1,280


19.4
%

8,371


7,125


$
1,246


17.5
%

Retail and Rental

15,035


11,316


$
3,719


32.9
%

21,197


16,906


$
4,291


25.4
%

Food and Beverage

11,501


8,672


$
2,829


32.6
%

18,868


15,021
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