Intrawest Resorts Holdings Inc. reported strong growth in pre-season bookings at its six mountain resorts and Canadian heli-skiing business for the 2015/16 winter season.
The Denver, CO-based company reported season pass and frequency product sales for its resorts were up approximately 15 percent versus the same time last year prior to the launch of its fall sales promotions. The company's four-season mountain resorts include Steamboat and Winter Park in Colorado, Stratton in Vermont, Snowshoe in West Virginia, Tremblant in Quebecand Blue Mountain in Ontario, Canada.
Winter guest night reservations at its heli-skiing business, Canadian Mountain Holidays (CMH) for the 2015/2016 season are up approximately 8 percent versus this time last year.
Fiscal 2015 results
Intrawest released the data Sept. 9 in its latest earnings report, which shows its consolidated revenue increased $62.3 million, or 11.9 percent, to $587.6 million in the fiscal year ended June 30 due in part to the September 2014 acquisition of the Blue Mountain resort in Ontario, Canada in September, 2014.
Net loss attributable to Intrawest Resorts Holdings Inc. improved $182.5 million, or 96.3 percent, to $6.9 million, or $0.15 per diluted share thanks primarily to a $129.0 million reduction in interest expense and $34.8 million reduction in loss on extinguishment of debt. Both resulted from the restructuring and refinancing that occurred in December 2013, as well as a $19.9 million increase in income from operations.
Total Adjusted EBITDA grew $11.5 million, or 11.4 percent, to $112.7 million. The increase was largely driven by the Mountain Segment due to the Blue Mountain acquisition and organic growth across all lines of business within the Mountain Segment.
Mountain revenue, which reflects operations at the company's six, four-season mountain resorts, increased $75.1 million, or 21.4 percent, to $425.9 million, primarily due to the Blue Mountain acquisition, which was acquired in September 2014. In the prior year, 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.
For comparative purposes, Intrawest provided certain Same Store metrics calculated as if Blue was 100 percent owned in both periods and on a constant currency basis.
On a Same Store basis, Mountain revenue grew $27.4 million, or 6.4 percent, primarily due to increases in season pass and frequency product revenue and revenue from guest services.
Mountain Adjusted EBITDA improved $13.6 million, or 18.0 percent, to $89.0 million, primarily due to the $75.1 million growth in Mountain revenue, partially offset by a $55.2 million increase in Mountain operating expenses.
On a Same Store basis, Mountain Adjusted EBITDA increased $10.3 million, or 12.6 percent.
Adventure revenue, which reflects results at Canadian Mountain Holidays declined $5.3 million, or 5.2 percent, to $96.8 million, primarily due to a $10.0 million unfavorable foreign currency translation adjustment.
Adventure Adjusted EBITDA decreased $3.3 million, or 19.6 percent, to $13.3 million, primarily due to a $2.5 million unfavorable foreign currency translation adjustment.
On a constant currency basis, Adventure Adjusted EBITDA decreased by $0.8 million, or 4.6 percent.
Fiscal 2016 Outlook
For the full fiscal year 2016, Intrawest expects:
- Mountain Segment Revenue in the range of $435 million to $450 million
- Adventure Segment Revenue in the range of $85 million to $90 million
- Total Adjusted EBITDA in the range of $116 million to $121 million
- Mountain Adjusted EBITDA in the range of $96 million to $100 million
- Adventure Adjusted EBITDA in the range of $12 million to $14 million
- Net Income Attributable to Intrawest Resorts Holdings Inc., including results from its Real Estate segment, in the range of zero to $10 million.
The outlook assumes a USD/CAD exchange rate of 1.33 and average snowfall and weather conditions.
In constant currency, the Fiscal 2016 Adjusted EBITDA guidance represents growth in the range of 6 percent to 10 percent.