Peak Resorts Announces Reinstatement of Quarterly Cash Dividend
February 16 2017 - 8:30AM
Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner
and operator of high-quality, individually branded ski resorts,
today announced that its Board of Directors has approved the
reinstatement of a quarterly cash dividend of $0.07 per share on
its outstanding common stock, or $0.28 per share on an annualized
basis. The cash dividend is payable on March 13, 2017, to common
shareholders of record as of February 27, 2017. Future dividend
declarations are subject to approval of the Company’s Board of
Directors and compliance with its loan covenants.
In announcing the reinstatement of a regular quarterly dividend,
Tim Boyd, President and CEO, said, "The 2016/2017 ski season is off
to a strong start. Key performance indicators, including
skier visits and season pass sales, are trending above 2015/2016
levels. The first full year of Hunter results confirm this was a
highly strategic and accretive acquisition for Peak.”
“As a result of the aforementioned, Peak is back in compliance
with its debt covenants and can resume paying a dividend to common
shareholders once our fiscal third-quarter results are announced,”
added Stephen Mueller, CFO. “Peak management and the Board feel it
is prudent to reinstate the dividend at a level that provides a
favorable yield to shareholders, is well funded in a
range of weather scenarios, and affords the company internally
generated growth capital.
“Following extensive analysis of the impact historically poor
weather seasons can have on our operations, the new dividend rate
should provide the necessary capital to return to shareholders
while positioning Peak for future growth opportunities,” continued
Mueller. “Further, the company expects to generate excess free cash
flow above the base dividend in most years. The priority for those
cash flows, subject to Board discretion, are first, to grow the
company through accretive acquisitions and redevelopment, second,
to improve capital structure, and third, to return capital to our
shareholders. The company expects this total return approach, which
encompasses a base dividend, capital appreciation via deploying
excess free cash flow, and potential return of capital, will
provide solid returns for our shareholders.”
The company expects to exit the ski season in a solid cash
position as a result of the strong season, release of EB-5 funds,
and the Summer Road preferred stock transaction.
About Peak ResortsHeadquartered in Missouri,
Peak Resorts is a leading owner and operator of high-quality,
individually branded ski resorts in the U.S. The company currently
operates 14 ski resorts primarily located in the Northeast and
Midwest, 13 of which are company owned, including Hunter Mountain,
the Catskills' premier winter resort destination.
The majority of the resorts are located within 100 miles of
major metropolitan markets, including New York City, Boston,
Philadelphia, Cleveland and St. Louis, enabling day and overnight
drive accessibility. The resorts under the company's umbrella offer
a breadth of activities, services and amenities, including skiing,
snowboarding, terrain parks, tubing, dining, lodging, equipment
rentals and sales, ski and snowboard instruction and mountain
biking and other summer activities. To learn more, visit the
company’s website at PeakResorts.com, or follow Peak Resorts on
Facebook (https://www.facebook.com/skipeakresorts), Twitter or
Instagram for resort updates.
Forward-Looking StatementsThis news release
contains forward-looking statements including statements regarding
the future outlook and performance of Peak Resorts, Inc., and other
statements based on current management expectations, estimates and
projections. These statements are subject to a variety of risks and
uncertainties, are not guarantees and are inherently subject to
various risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. These risks
and uncertainties include, without limitation, those discussed
under the caption “Risk Factors” in the company’s Annual Report on
Form 10-K for the year ended April 30, 2016, filed with the
Securities and Exchange Commission, and as updated from time to
time in the company’s filings with the SEC. The
forward-looking statements included in this news release are only
made as of the date of this release, and Peak Resorts disclaims any
obligation to publicly update any forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
For Further Information:
616-233-0500
InvestorRelations@PeakResorts.com
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Apr 2023 to Apr 2024