Peak Resorts Announces Two New Expansion Projects and Provides Preliminary Fiscal Year 2017 Results
June 21 2017 - 6:32PM
Peak Resorts Inc. (NASDAQ:SKIS), a leading owner and operator of
high-quality individually branded ski resorts in the U.S. today
announced that it intends to apply for permits for two organic
revenue growth opportunities, and has reported preliminary
financial results for the 2017 fiscal year.
Organic Growth Expansion Projects
Hunter Mountain ExpansionPeak intends to apply for construction
permits at the company’s Hunter Mountain resort in Hunter, New
York, to increase the resort’s skiable acreage by approximately
25-30%. The new area will feature a parking area and a detachable
high speed chair lift. The additional acreage will be built
on the north facing slope of Hunter Mountain, between the Main Face
and the West Side, and will be predominantly intermediate
terrain. The company’s goal is to complete the project in
time for the 2018-2019 ski season. The expansion is expected to
cost approximately $9 million and has the potential to generate
$1.5 million to $2 million in incremental EBITDA per year.
Hidden Valley Zip TourPeak also intends to apply for a permit to
construct a zip tour at its Hidden Valley resort in Wildwood,
Missouri. This investment is aligned with the company’s goal of
leveraging underutilized capacity in the spring, summer and fall to
generate additional sales and diversify its revenue base. The
company’s goal is to begin construction this fall and complete
the project for use beginning in the fall of 2018. The project is
expected to cost approximately $2.5 million and has the potential
to generate $0.5 million to $1 million in incremental EBITDA per
year.
EB-5 Capital ProjectsThe company is pleased to report that its
EB-5-funded West Lake water project and Carinthia base ski lodge
project at Mt. Snow are running within budget and on schedule for
their completions prior to the 2017-18 and 2018-19 ski seasons,
respectively.
Timothy D. Boyd, president and chief executive officer,
commented, “While expanding our portfolio through new resorts
remains a key priority for us, we also intend to build value by
investing in our current properties through expansions, new
products, and amenities that will elevate our customers’ skiing and
off-season experiences and keep them visiting more often. These
investments alone could boost our company-wide EBITDA by $2 - 3
million on an investment of approximately $11.5 million, generating
solid returns on our capital. Our previously announced 8.6%
increase in pre-season Peak Pass sales also highlights our ability
to drive organic growth at our resorts.”
Preliminary Fiscal 2017 ResultsBased on
preliminary unaudited financial results, Peak expects to report
record revenue and EBITDA for the year ended April 30, 2017.
Revenue is expected to be approximately $120 million to $125
million, which, at the midpoint of this range, reflects an increase
of 28% over fiscal 2016 revenue. EBITDA is expected to be
approximately $26 to $27 million, which, at the midpoint, reflects
an increase of 63% over fiscal 2016 EBITDA.
The company anticipates having over $30 million in operating
cash on the balance sheet at year-end, and remains in full
compliance with all debt covenants. In addition, the company
was able to pay off $10 million in debt during the third quarter of
fiscal 2017.
Boyd continued, “We are very pleased with our preliminary
revenue and EBITDA results for the fiscal year. Despite the
unusually warm weather we faced, particularly in the Midwest where
our margins are the highest, we generated record revenue and
EBITDA, which underscores the resiliency of our business model.
Importantly, our liquidity is strong, and we remain committed to
returning capital to our shareholders.”
About Peak Resorts Headquartered in Missouri,
Peak Resorts is a leading owner and operator of high-quality,
individually branded ski resorts in the U.S. The company now
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 ir.PeakResorts.com, or follow Peak
Resorts on Facebook (https://www.facebook.com/skipeakresorts) for
resort updates.
Forward Looking Statements This news release
contains forward-looking statements regarding the future outlook
and performance of Peak Resorts, Inc., within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are subject to a variety of risks and uncertainties that could
cause actual results to differ materially from current
expectations. These risks and uncertainties are 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 (the “SEC”), and as updated from time to time
in the company’s filings with the SEC. Peak Resorts
undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
Non-GAAP Financial MeasuresThe Company has
provided a preliminary estimated range of EBITDA, a non-GAAP
financial measure. The Company is unable to provide a full
quantitative reconciliation of its preliminary estimated range of
EBITDA because of the preliminary nature of certain information
affecting the non-GAAP measure. Non-GAAP measures should not
be considered in isolation from or as a substitute for financial
information presented in accordance with generally accepted
accounting principles, and may be different from non-GAAP measures
used by other companies.
For Further Information:
312-690-6003
InvestorRelations@PeakResorts.com
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