Whistler Blackcomb Holdings Inc. reported that higher ticket prices and snowmaking helped blunt the effects of one of its driest early seasons in years in the quarter ended Dec. 31, 2013.
The company reported that while snowfall through Dec. 31 was nearly 61 percent below the 10-year average, visitation declined just 13 percent, revenue declined just 1 percent, while Adjusted EBITDA declined just 7 percent.
The company holds a 75 percent interest in the entities that operate the Whistler Blackcomb resort, which is North America’s largest four-season mountain resort.
“We are pleased that our revenue and Adjusted EBITDA held up well in spite of the lower than expected visitation, which demonstrates our pricing power and the resiliency of our business,” said President and CEO Dave Brownlie. “Our snowmaking infrastructure allowed us to open more skiable terrain than any other resort in North America for the holiday period and the success of our pre-commitment sales program contributed positively to our results during the quarter.”
Revenues for the quarter decreased by $0.4 million to $49.8 million and Adjusted EBITDA decreased by $0.8 million to $9.5 million as a result of reduced visitation to 426,000 total visits from 489,000 total visits in the comparative quarter last year. Snowfall for the ski season to Dec. 31, 2013 was 186 centimeters compared to the 10-year average snowfall for the same period of 472 centimeters and 560 centimeters for the same period in the prior year.
Whistler-Blackcomb said revenue per total visit increased 14 percent compared to the same period in the prior year, reflecting strong growth in effective ticket price (ETP) and guest spending in the Corporation's ancillary businesses.
Skier visits for the ski season to Dec. 31, 2013 were comprised of 38 percent destination visits compared to 24 percent for the equivalent period in the prior year, based on corporate estimates.
Total revenue was $49.8 million for the quarter ended Dec. 31, 2013, a decrease of $0.4 million or 1 percent compared to the same period in the prior year. The decrease in total revenue was primarily a result of lower lift revenue, because of lower skier visits, offset by higher ETP and revenue from the Corporation's ancillary businesses.
Total visits for the quarter ended Dec. 31, 2013 were 426,000, a decrease of 63,000 visits, or 13 percent, compared to the same period in the prior year. Skier visits for the fiscal 2014 first quarter decreased by 15 percent to 391,000, which was partially offset by a 25 percent increase in other visits to 35,000.
ETP and revenue per total visit for the quarter ended Dec. 31, 2013 were $53.52 and $116.99, respectively, an increase of $4.30 or 8.7 percent and $14.17 or 13.8 percent, respectively, over the comparative quarter in the prior year. ETP is total ski-related lift revenue divided by skier visits. This growth reflected increases in lift ticket prices, as well as increased guest spending in the Corporation's ancillary businesses. The Corporation experienced a higher proportion of destination visits in the first quarter of fiscal 2014, which contributed to the increase in revenue per visit.
Adjusted EBITDA decreased 7 percent to $9.5 million for the quarter ended Dec. 31, 2013 compared to the same quarter in the prior year. The decrease in Adjusted EBITDA was driven primarily by lower revenue compared to the prior year.
Net loss per common share for the quarter was $0.19 (basic and diluted) compared to net loss per common share of $0.07 (basic and diluted) in the prior year. The increase in net loss per common share was principally attributable to the $5.5 million prepayment penalty and $2.8 million write-off of unamortized debt issuance costs in connection with the refinancing of the Corporation's long-term debt during the quarter.
Outlook
As at Feb. 2, 2014, skier visits were 846,000, a decrease of 8.6 percent compared to the same period in the prior year. Management estimates that total skier visits to date were comprised of 60 percent regional guests and 40 percent destination guests, compared to 70 percent and 30 percent, respectively, for the prior year. As at Feb. 2, 2014, the corporation's 2013-14 seasons pass and frequency cards sales were $41.4 million, a 3 percent increase over season pass and frequency cards sales at the same time during the 2012-13 season.
As at Feb. 2, 2014, skier visits were 846,000, a decrease of 8.6 percent compared to the same period in the prior year. Management estimates that total skier visits to date were comprised of 60 percent regional guests and 40 percent destination guests, compared to 70 percent and 30 percent, respectively, for the prior year. As at Feb. 2, 2014, the corporation's 2013-14 seasons pass and frequency cards sales were $41.4 million, a 3 percent increase over season pass and frequency cards sales at the same time during the 2012-13 season.
