Intrawest Resorts Holdings, Inc. (NYSE: SNOW), a
leading North American mountain resort and adventure company, today
reported results for the three and six months ended December 31,
2016.
Second Quarter Highlights
- Net loss attributable to Intrawest
Resorts Holdings, Inc. improved to $18.7 million compared to a net
loss of $27.3 million in the second quarter of fiscal 2016.
- Adjusted EBITDA improved by $14.0
million to $7.1 million compared to a loss of $6.9 million in the
prior year period.
- Total segment revenue increased by
$17.4 million, or 16.8%, to $120.6 million compared to the prior
year period.
- Sales of season pass and frequency
products for the 2016/2017 season were up approximately 12.5% as of
January 29, 2017 versus the same time last year.
- Canadian Mountain Holidays ("CMH")
sales for winter reservations were up approximately 6.6% as of
January 29, 2017 versus the same time last year.
"We are very pleased with our fiscal 2017 second quarter
results, which represent not only significant growth over the prior
year period, which was impacted by below average conditions in the
East, but also a new Company record Adjusted EBITDA for the second
quarter since fiscal 2011, the first year for which we provided
results publicly. Our previous best was in fiscal 2014, and this
quarter's Adjusted EBITDA exceeded that period by more than $6.7
million,” stated Tom Marano, Chief Executive Officer. “We are now
in peak ski season and remain encouraged by conditions at our
resorts, our performance to date, and the continued strength of our
season pass and frequency product sales and CMH reservations. Based
on these factors, I am confident we are well positioned for the
remainder of the ski season."
Three Months Ended December 31, 2016
Below are the Company's results for the three months ended
December 31, 2016 as compared to the prior year period:
Consolidated Results
- Consolidated revenue increased by $17.2
million, or 16.6%, to $121.2 million, primarily driven by a $19.6
million increase in Mountain revenue.
- Net loss attributable to Intrawest
Resorts Holdings, Inc. improved by $8.6 million, or 31.5%, to $18.7
million, or $(0.47) per diluted share. This growth was primarily
attributable to the $17.2 million increase in revenue, offset by a
$2.8 million increase in operating expenses and a $5.4 million
decrease in other income due to a favorable legal settlement in the
prior year period that did not recur in the current year
period.
- Total Adjusted EBITDA improved by $14.0
million to $7.1 million. The increase was largely driven by the
Mountain Segment due to increased Skier Visits.
Mountain Segment
- Mountain revenue increased by $19.6
million, or 24.7%, to $99.0 million, primarily due to a 27.1%
increase in Skier Visits driven by the Company's Eastern resorts,
which were impacted by unseasonably warm temperatures in the prior
year period, and a 23.0% increase in season pass and frequency
product revenue recognized during the period.
- Mountain Adjusted EBITDA improved by
$13.6 million to $8.5 million, primarily due to a $19.6 million
increase in Mountain revenue, partially offset by a $6.0 million
increase in Mountain operating expense primarily related to
variable costs associated with the higher visitation volume.
Adventure Segment
- Adventure revenue increased by $0.9
million, or 7.5%, to $13.3 million, primarily due to an increase in
ancillary aviation services revenue driven by the Company's MRO
services, which experienced higher billable hours and helicopter
part sales.
- Adventure Adjusted EBITDA improved by
$0.6 million, or 17.8%, to a loss of $2.9 million, primarily due to
the $0.9 million increase in Adventure revenue partially offset by
a $0.6 million increase in Adventure operating expenses.
Real Estate Segment
- Real Estate revenue decreased by $3.2
million, or 27.9%, to $8.2 million, largely due to the sale of IRCG
in the prior year. Excluding IRCG, Real Estate revenue increased by
$1.0 million, or 13.7%, due to higher occupancy at our IHM
properties.
- Real Estate Adjusted EBITDA decreased
by $0.2 million, or 13.4%, to $1.5 million, primarily due to a $0.8
million decrease of interest income earned from receivables related
to IRCG as a result of the disposition in the prior year and a $3.2
million decrease in Real Estate revenue, partially offset by a $3.9
million decrease in Real Estate operating expenses. Excluding IRCG,
Real Estate Adjusted EBITDA grew by $0.5 million, or 54.5%.
Fiscal 2017 Outlook
For the full fiscal year 2017, the Company expects Total Segment
Revenue in the range of $555 to $585 million, Adjusted EBITDA in
the range of $129 to $136 million, and Net income attributable to
Intrawest Resorts Holdings, Inc. in the range of $20 to $30
million. The Company's outlook for fiscal 2017 assumes a USD/CAD
exchange rate of 1.30 and average snowfall and weather
conditions.
Additionally, the Company plans to invest between $46 million
and $50 million in capital expenditures in Calendar Year 2017,
including an expected $10 million to $12 million of growth and
discretionary capital and $36 million to $38 million of maintenance
capital.
Webcast and Earnings Conference Call
The Company will host a conference call via live webcast for
investors and other interested parties beginning at 9:00 a.m.
Eastern Time on Thursday, February 2, 2017. Participants may
access the live webcast by visiting the Company’s investor
relations website at ir.intrawest.com. The call can also be
accessed by dialing (877) 705-6003, or (201) 493-6725 for
international participants.
The replay of the call will be available from approximately
12:00 p.m. Eastern Time on February 2, 2017 through midnight
Eastern Time on February 15, 2017. To access the replay, the
domestic dial-in number is (844) 512-2921, the international
dial-in number is (412) 317-6671, and the passcode is 13653866. The
archive of the webcast will be available on the Company’s website
for a limited time.
About Intrawest Resorts Holdings, Inc.
Intrawest is a North American mountain resort and adventure
company, delivering distinctive vacation and travel experiences to
its customers for over three decades. The Company wholly owns
and/or operates six four-season mountain resorts with approximately
8,000 skiable acres and over 1,100 acres of land available for real
estate development. Intrawest’s mountain resorts are geographically
diversified across most of North America’s major ski regions,
including the Eastern United States, the Rocky Mountains, and
Canada. The Company also operates an adventure travel business, the
cornerstone of which is Canadian Mountain Holidays, a leading
heli-skiing adventure company in North America. Additionally, the
Company operates a comprehensive real estate business through which
it manages condominium hotel properties and sells and markets
residential real estate. Intrawest Resorts Holdings, Inc. common
stock is traded on the New York Stock Exchange (NYSE: SNOW). For
more information, visit www.intrawest.com.
Forward-Looking Statements
This press release includes “forward - looking statements”
within the meaning of the “safe harbor” provisions of the United
States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “anticipate”, “believe”, “intend”, “expect”, “estimate”,
“plan”, “outlook” and “project” and other similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. We have based these
forward-looking statements largely on our current expectations and
projections about future events and trends that we believe may
affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and
objectives, and financial needs. These forward-looking statements
are subject to a number of risks, uncertainties and assumptions,
including weakness in general economic conditions; lack of adequate
snowfall and unfavorable weather conditions; lack of access to
adequate supplies of water to make snow and otherwise conduct our
operations; adverse events that occur during our peak operating
periods; our failure to achieve the expected benefits of our
strategic alliance, real estate development, acquisition and other
growth strategies; Steamboat Ski & Resort’s dependence on
contracted direct air service; risks related to information
technology; our potential failure to maintain the integrity of our
customer or employee data; adverse consequences of ongoing legacy
litigation or future legal claims; our ability to monetize real
estate assets; a partial or complete loss of Alpine Helicopters
Inc.’s services; the effects of climate change on our business
operations; our ability to maintain effective internal control over
financial reporting; risks of foreign currency fluctuations which
could reduce the U.S. dollar value of our Canadian earnings; risks
associated with the ownership of a majority of our outstanding
common stock by entities managed or controlled by Fortress
Investment Group, LLC (collectively "Fortress"), including
potential sales of shares held by Fortress, governance rights in
our stockholders' agreement with Fortress and potential conflicts
of interest; our leverage, which could adversely affect our ability
to raise additional capital to support our growth strategy; our
limited public float and therefore trading volume and other risks
described under the caption “Risk Factors” in Part I - Item 1A.,
“Risk Factors” in our Annual Report on Form 10-K for the year ended
June 30, 2016, filed with the Securities and Exchange Commission
(“SEC”) on September 8, 2016, as amended, and as may be revised in
our future SEC filings. We operate in a competitive and rapidly
changing environment. New risks emerge from time to time. It is not
possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. In light of these risks, uncertainties and
assumptions, the future events and trends discussed in this release
may not occur and actual results could differ materially and
adversely from those anticipated or implied in the forward-looking
statements. We undertake no obligation to revise or publicly
release the results of any revision to these forward-looking
statements, except as required by law. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements.
INTRAWEST RESORTS HOLDINGS,
INC.
Condensed Consolidated Statements of
Operations
(In thousands, except per share
data)
Three Months Ended December 31, Six Months
Ended December 31, 2016 2015 2016
2015 Revenue $ 121,161 $ 103,951 $ 201,641 $ 190,155
Operating expenses 119,916 117,074 217,984 220,322 Depreciation and
amortization 14,220 14,496 29,390 29,538 Loss (gain) on disposal of
assets 1,480 (1,638 ) 1,139 (2,327 ) Loss from
operations (14,455 ) (25,981 ) (46,872 ) (57,378 ) Interest
expense, net (9,009 ) (9,384 ) (18,847 ) (18,618 ) Earnings (loss)
from equity method investments 4,175 1,702 2,787 (1,382 ) Loss on
extinguishment of debt (820 ) — (820 ) — Other (expense) income,
net (256 ) 5,131 218 5,210 Loss before income
taxes (20,365 ) (28,532 ) (63,534 ) (72,168 ) Income tax (benefit)
expense (623 ) (519 ) 317 1,268 Net loss (19,742 )
(28,013 ) (63,851 ) (73,436 ) (Loss) income attributable to
noncontrolling interest (1,037 ) (708 ) (750 ) 912 Net loss
attributable to Intrawest Resorts Holdings, Inc. $ (18,705 ) $
(27,305 ) $ (63,101 ) $ (74,348 ) Weighted average shares of
common stock outstanding: Basic and diluted 39,762 45,230 39,762
45,230 Net loss attributable to Intrawest Resorts Holdings, Inc.
per share: Basic and diluted $ (0.47 ) $ (0.60 ) $ (1.59 ) $ (1.64
)
Statement Concerning Non-GAAP Financial Measures
We use Adjusted EBITDA as a measure of our operating
performance. Adjusted EBITDA is a supplemental non-GAAP financial
measure.
Our board of directors and management team focus on Adjusted
EBITDA as a key performance and compensation measure. Adjusted
EBITDA assists us in comparing our performance over various
reporting periods because it removes from our operating results the
impact of items that our management believes do not reflect our
core operating performance. The compensation committee of our board
of directors will determine the annual variable compensation for
certain members of our management team, based in part, on Adjusted
EBITDA.
Adjusted EBITDA should not be considered an alternative to, or
more meaningful than, net income (loss) or other measures of
financial performance or liquidity derived in accordance with GAAP.
There are limitations to using non-GAAP measures such as Adjusted
EBITDA. Although we believe that Adjusted EBITDA can make an
evaluation of our operating performance more consistent because it
removes items that do not reflect our core operations, other
companies in our industry may define Adjusted EBITDA differently
than we do. As a result, it may be difficult to use Adjusted EBITDA
to compare the performance of those companies to our performance.
Adjusted EBITDA should not be considered as a measure of the income
generated by our business or discretionary cash available to us to
invest in the growth of our business. Our management compensates
for these limitations by reference to our GAAP results and using
Adjusted EBITDA as a supplemental measure.
Mountain Segment (dollars in thousands
except for Key Business Metrics)
Three Months Ended December 31,
Change Six Months Ended December 31, Change
2016 2015 $
% 2016
2015 $
% Skier Visits 797,794 627,810 169,984
27.1 % 797,794 627,810 169,984 27.1 % Revenue per Visit $ 110.35 $
111.29 $ (0.94 ) (0.8 )% $ 110.35 $ 111.29 $ (0.94 ) (0.8 )% ETP $
50.92 $ 49.72 $ 1.20 2.4 % $ 50.92 $ 49.72 $ 1.20 2.4 % RevPAR $
57.82 $ 43.97 $ 13.85 31.5 % $ 63.46 $ 53.06 $ 10.40 19.6 % ADR $
176.77 $ 152.12 $ 24.65 16.2 % $ 157.13 $ 140.74 $ 16.39 11.6 %
Mountain revenue: Lift $ 41,527 $ 31,937 $ 9,590 30.0 % $
46,278 $ 35,941 $ 10,337 28.8 % Lodging 14,006 11,547 2,459 21.3 %
30,967 26,866 4,101 15.3 % Ski School 7,949 6,662 1,287 19.3 %
8,622 7,272 1,350 18.6 % Retail and Rental 15,050 11,195 3,855 34.4
% 22,653 18,652 4,001 21.5 % Food and Beverage 12,356 10,338 2,018
19.5 % 22,709 19,970 2,739 13.7 % Other 8,157 7,757
400 5.2 % 21,811 20,493 1,318 6.4 %
Total Mountain revenue $ 99,045 $ 79,436 $ 19,609
24.7 % $ 153,040 $ 129,194 $ 23,846
18.5 % Mountain Adjusted EBITDA $ 8,484 $ (5,136 ) $ 13,620 n/m $
(9,588 ) $ (25,923 ) $ 16,335 (63.0 )%
Adventure Segment (dollars in
thousands)
Three Months Ended December 31,
Change Six Months Ended December 31, Change
2016 2015 $ % 2016
2015 $ % Adventure revenue $
13,291 $ 12,368 $ 923 7.5 % $ 31,237 $ 36,630 $ (5,393 ) (14.7 )%
Adventure Adjusted EBITDA $ (2,867 ) $ (3,489 ) $ 622 (17.8 )% $
(722 ) $ 1,371 $ (2,093 ) (152.7 )%
Real Estate Segment (dollars in
thousands)
Three Months Ended December 31,
Change Six Months Ended December 31, Change
2016 2015 $ % 2016
2015 $ % Real Estate revenue $
8,226 $ 11,403 $ (3,177 ) (27.9 )% $ 16,505 $ 23,216 $ (6,711 )
(28.9 )% Real Estate Adjusted EBITDA $ 1,469 $ 1,697 $ (228 ) (13.4
)% $ 3,468 $ 3,468 $ 0 0.0 %
Total Segment Revenue and Adjusted
EBITDA (dollars in thousands)
Three Months Ended December 31,
Change Six Months Ended December 31, Change
2016 2015 $ % 2016
2015 $ % Total segment revenue $
120,562 $ 103,207 $ 17,355 16.8 % $ 200,782 $ 189,040 $ 11,742 6.2
% Total Adjusted EBITDA $ 7,086 $ (6,928 ) $ 14,014 (202.3 )% $
(6,842 ) $ (21,084 ) $ 14,242 (67.5 )%
The following tables present segment revenue reconciled to
consolidated revenue and net income (loss) attributable to the
Company reconciled to Adjusted EBITDA and Adjusted EBITDA by
segment (in thousands):
Three Months Ended December 31, Six Months Ended
December 31, 2016 2015 2016
2015 Revenue: Mountain Lift $ 41,527 $ 31,937 $ 46,278 $
35,941 Lodging 14,006 11,547 30,967 26,866 Ski School 7,949 6,662
8,622 7,272 Retail and Rental 15,050 11,195 22,653 18,652 Food and
Beverage 12,356 10,338 22,709 19,970 Other 8,157 7,757
21,811 20,493 Total Mountain revenue 99,045
79,436 153,040 129,194 Adventure revenue 13,291 12,368 31,237
36,630 Real Estate revenue 8,226 11,403 16,505
23,216 Total segment revenue 120,562 103,207 200,782 189,040
Legacy, non-core and other revenue 599 744 859
1,115 Total revenue $ 121,161 $ 103,951 $
201,641 $ 190,155 Net loss attributable to
Intrawest Resorts Holdings, Inc. $ (18,705 ) $ (27,305 ) $ (63,101
) $ (74,348 ) Legacy and other non-core expenses, net 814 2,092
1,617 4,442 Other operating expenses 2,942 1,401 5,049 2,552
Depreciation and amortization 14,220 14,496 29,390 29,538 Loss
(gain) on disposal of assets 1,480 (1,638 ) 1,139 (2,327 ) Interest
income (50 ) (65 ) (120 ) (136 ) Interest expense 9,059 10,269
18,967 20,431 (Earnings) loss from equity method investments (4,175
) (1,702 ) (2,787 ) 1,382 Loss on extinguishment of debt 820 — 820
— Pro rata share of Adjusted EBITDA related to equity method
investments 716 853 1,836 1,545 Adjusted EBITDA attributable to
noncontrolling interest 1,369 1,029 999 (1,133 ) Other expense
(income), net 256 (5,131 ) (218 ) (5,210 ) Income tax (benefit)
expense (623 ) (519 ) 317 1,268 (Loss) income attributable to
noncontrolling interest (1,037 ) (708 ) (750 ) 912 Total
Adjusted EBITDA $ 7,086 $ (6,928 ) $ (6,842 ) $ (21,084 )
Mountain Adjusted EBITDA $ 8,484 $ (5,136 ) $ (9,588 ) $
(25,923 ) Adventure Adjusted EBITDA (2,867 ) (3,489 ) (722 ) 1,371
Real Estate Adjusted EBITDA 1,469 1,697 3,468
3,468 Total Adjusted EBITDA $ 7,086 $ (6,928 ) $
(6,842 ) $ (21,084 )
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Intrawest Resorts Holdings, Inc.Investor Relations, (303)
749-8370InvestorRelations@intrawest.com
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