Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner
and operator of high-quality, individually branded ski resorts in
the U.S., today reported results for the fourth quarter and full
year of its 2017 fiscal year ended April 30, 2017.
Annual highlights include:
- Revenue of $123.2 million, an increase of 29% over the prior
year ending April 30, 2016
- Net income increased to 3 cents per share (diluted) from a net
loss of 23 cents per share (diluted) in the prior year
- Reported EBITDA* increased 65% over the prior year to $26.8
million
- Consolidated season pass unit sales and sales revenue increased
8.6% compared to the prior year
- Permit application begun to add additional skiing terrain to
Hunter Mountain and a zip tour to Hidden Valley Resort
- Reinstated payment of common dividend in 3Q 2017
Timothy D. Boyd, president and chief executive officer,
commented, “2017 was a solid year for Peak Resorts. We achieved
solid revenue and reported EBITDA, continued to expand season pass
sales and reinstated the payment of our quarterly dividend. We
exited the year with a very strong cash position and the financial
flexibility to continue our growth organically and through
acquisition in the coming years.”
Boyd concluded, “In recent quarters, we focused on building
value through investment in our current properties to elevate our
customers’ on and offseason experiences. We began the permitting
process for two projects that will offer our Northeast skiers and
tubers more skiable acres, and our Midwest customers more
opportunities to enjoy our resorts in the spring and summer. We are
now moving forward applying for construction permits to increase
our skiable acreage at Hunter Mountain by 25-30% which we expect to
be completed for the 2018-2019 season, and to build a zip tour at
our Hidden Valley resort which we expect to be completed for the
2018 spring and summer season. We also remain on schedule with our
EB-5 funded West Lake Water and Carinthia Base Ski Lodge projects
at Mount Snow, to be completed for the 2017-2018 season, and
2018-2019 season, respectively.
* See page 3 for Definitions of Non-GAAP Financial Measures
|
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|
|
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|
|
|
(dollars in thousands except per share data) |
|
Three months ended April 30, |
|
Year ended April 30, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
51,263 |
|
$ |
45,475 |
|
$ |
123,249 |
|
$ |
95,729 |
|
Income (loss) from operations |
$ |
17,607 |
|
$ |
14,174 |
|
$ |
14,069 |
|
$ |
5,169 |
|
Net income (loss) |
$ |
8,962 |
|
$ |
7,041 |
|
$ |
1,241 |
|
$ |
(3,226 |
) |
Net income (loss) available to common shareholders for basic
EPS |
$ |
8,162 |
|
$ |
7,041 |
|
$ |
441 |
|
$ |
(3,226 |
) |
Net income (loss) available to common shareholders for diluted
EPS |
$ |
8,962 |
|
$ |
7,041 |
|
$ |
441 |
|
$ |
(3.226 |
) |
Earnings (loss) per share (basic) |
$ |
0.58 |
|
$ |
0.50 |
|
$ |
0.03 |
|
$ |
(0.23 |
) |
Weighted average shares outstanding (basic) |
|
14,031 |
|
|
13,995 |
|
|
14,018 |
|
|
13,995 |
|
Earnings (loss) per share (diluted) |
$ |
0.52 |
|
$ |
0.50 |
|
$ |
0.03 |
|
$ |
(0.23 |
) |
Weighted average shares outstanding (diluted) |
|
17,257 |
|
|
13,995 |
|
|
14,041 |
|
|
13,995 |
|
Reported EBITDA* |
$ |
20,678 |
|
$ |
17,969 |
|
$ |
26,782 |
|
$ |
16,240 |
|
|
|
|
|
|
|
|
|
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|
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Resort Operating ResultsStephen J.
Mueller, Peak Resorts’ chief financial officer, noted, “We achieved
solid levels of earnings and profitability despite the unusually
warm weather we faced, particularly in the Midwest where our
margins are the highest. Reported EBITDA grew 65% for the year, on
a revenue increase of 29%."
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|
(dollars in thousands) |
|
Three months ended April 30, |
|
Year ended April 30, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Lift and tubing tickets |
$ |
27,630 |
|
$ |
24,824 |
|
$ |
58,100 |
|
$ |
45,541 |
Food and beverage |
$ |
8,917 |
|
$ |
6,903 |
|
$ |
23,078 |
|
$ |
15,816 |
Equipment rental |
$ |
3,696 |
|
$ |
3,682 |
|
$ |
8,582 |
|
$ |
7,036 |
Ski instruction |
$ |
3,879 |
|
$ |
3,196 |
|
$ |
8,562 |
|
$ |
6,580 |
Hotel/lodging |
$ |
2,988 |
|
$ |
3,117 |
|
$ |
9,731 |
|
$ |
7,972 |
Retail |
$ |
2,460 |
|
$ |
1,972 |
|
$ |
6,196 |
|
$ |
4,560 |
Summer activities |
$ |
- |
|
$ |
- |
|
$ |
4,748 |
|
$ |
4,302 |
Other |
$ |
1,693 |
|
$ |
1,781 |
|
$ |
4,252 |
|
$ |
3,922 |
Total |
$ |
51,263 |
|
$ |
45,475 |
|
$ |
123,249 |
|
$ |
95,729 |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Three months ended April 30, |
|
|
Year ended April 30, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
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|
|
|
|
|
Resort operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Labor and labor related expenses |
$ |
14,534 |
|
$ |
12,920 |
|
$ |
48,253 |
|
$ |
39,331 |
Retail and food and beverage cost of sales |
$ |
4,271 |
|
$ |
3,042 |
|
$ |
10,820 |
|
$ |
7,735 |
Power and utilities |
$ |
2,676 |
|
$ |
3,114 |
|
$ |
7,843 |
|
$ |
6,839 |
Other |
$ |
7,390 |
|
$ |
6,803 |
|
$ |
20,403 |
|
$ |
18,310 |
Total |
$ |
28,871 |
|
$ |
25,879 |
|
$ |
87,319 |
|
$ |
72,215 |
Financial Position “The organic investments in
Hunter Mountain and Hidden Valley announced in June could boost our
company wide annual EBITDA by $2-3 million on an investment of
approximately $11.5 million, generating solid returns on our
capital. In addition, we increased our cash balances by $28.3
million during the fiscal year.
“With $33.7 million of unrestricted cash on the balance sheet,
we have the financial flexibility to continue to invest in
acquiring new properties and growing organically, while returning
capital to our shareholders. On July 12, 2017, our Board of
Directors declared a second quarter fiscal 2018 cash dividend
payable on August 11, 2017 to common shareholders of record on July
27, 2017 at a rate of $0.07 per share.
Quarterly Investor Call and WebcastPeak Resorts
will hold its year-end investor conference call/webcast on
Thursday, July 13th, 2017 at 11 am ET.
The call/webcast will be available via:
Webcast: |
ir.peakresorts.com on the Events page |
Conference Call: |
844-526-1518 (domestic)
or 647-253-8644 (international) |
A replay will be available on the Peak Resorts investor
relations website (ir.peakresorts.com) after the call
concludes.
Definitions of Non-GAAP Financial Measures
Reported EBITDA is not a measure of financial performance under
U.S. generally accepted accounting principles (“GAAP”). The company
defines reported EBITDA as net income before interest, income
taxes, depreciation and amortization, gain on sale/leaseback, other
income or expense and other non-recurring items. The following
table includes a reconciliation of reported EBITDA to the GAAP
related measure of net loss:
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|
(dollars in thousands) |
Three months ended April 30, |
Year ended April 30, |
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
|
Net income (loss) |
$ |
8,962 |
|
$ |
7,041 |
|
$ |
1,241 |
|
$ |
(3,226 |
) |
Income tax expense (benefit) |
$ |
5,805 |
|
$ |
4,486 |
|
$ |
749 |
|
$ |
(2,078 |
) |
Interest expense, net |
$ |
2,980 |
|
$ |
2,734 |
|
$ |
12,473 |
|
$ |
10,814 |
|
Depreciation and amortization |
$ |
3,071 |
|
$ |
3,238 |
|
$ |
12,713 |
|
$ |
10,709 |
|
Other income |
$ |
(57 |
) |
$ |
(4 |
) |
$ |
(61 |
) |
$ |
(8 |
) |
Gain on sale/leaseback |
$ |
(83 |
) |
$ |
(83 |
) |
$ |
(333 |
) |
$ |
(333 |
) |
Gain on involuntary conversion |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
(195 |
) |
Insurance loss |
$ |
- |
|
$ |
400 |
|
$ |
- |
|
$ |
400 |
|
Hunter Mountain season pass liability acquisition adjustment |
$ |
- |
|
$ |
157 |
|
$ |
- |
|
$ |
157 |
|
Reported EBITDA* |
$ |
20,678 |
|
$ |
17,969 |
|
$ |
26,782 |
|
$ |
16,240 |
|
We have chosen to specifically include reported EBITDA as a
measurement of our results of operations because we consider this
measurement to be a significant indication of our financial
performance and available capital resources. Because of large
depreciation and other charges relating to our ski resorts, it is
difficult for management to fully and accurately evaluate our
financial results and available capital resources using net income.
Management believes that by providing investors with reported
EBITDA, investors will have a clearer understanding of our
financial performance and cash flow because reported EBITDA: (i) is
widely used in the ski industry to measure a company’s operating
performance without regard to items excluded from the calculation
of such measure, which can vary by company primarily based upon the
structure or existence of their financing; (ii) helps investors to
more meaningfully evaluate and compare the results of our
operations from period to period by removing the effect of our
capital structure and asset base from our operating structure; and
(iii) is used by our management for various purposes, including as
a measure of performance of our operating entities and as a basis
for planning.
The Company has also provided an estimated range of EBITDA
increases in connection with certain capital improvements on a
forward-looking basis. The Company is unable to provide a full
quantitative reconciliation of its forward-looking EBITDA
estimation without unreasonable effort because of the uncertainty
regarding, and potential variability of, the amounts of interest,
income taxes, depreciation and amortization, gain on
sale/leaseback, investment income, other income or expense and
other non-recurring items that may be incurred in the
future.
Reported EBITDA is not a measure of performance defined by GAAP.
Items excluded from reported EBITDA are significant components in
understanding and assessing financial performance or liquidity.
Reported EBITDA should not be considered in isolation or as
alternative to, or substitute for, the GAAP related measure of net
income, net change in cash and cash equivalents or other financial
statement data presented in the consolidated financial statements
as indicators of financial performance or liquidity. Because
reported EBITDA is not a measurement determined in accordance with
GAAP and is susceptible to varying calculations, reported EBITDA as
presented may not be comparable to other similarly titled measures
of other companies.
About Peak ResortsHeadquartered in Missouri,
Peak Resorts, Inc. 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, 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 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.
|
Consolidated Income Statements |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Years ended April 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
123,249 |
|
|
$ |
95,729 |
|
|
$ |
104,858 |
|
Costs and
expenses |
|
|
|
|
|
|
|
|
|
Resort
operating expenses |
|
|
87,319 |
|
|
|
72,215 |
|
|
|
72,670 |
|
Depreciation and amortization |
|
|
12,713 |
|
|
|
10,709 |
|
|
|
9,450 |
|
General
and administrative expenses |
|
|
5,431 |
|
|
|
4,513 |
|
|
|
4,088 |
|
Land and
building rent |
|
|
1,395 |
|
|
|
1,386 |
|
|
|
1,440 |
|
Real
estate and other taxes |
|
|
2,322 |
|
|
|
1,932 |
|
|
|
1,828 |
|
|
|
|
109,180 |
|
|
|
90,755 |
|
|
|
89,476 |
|
Other operating
income |
|
|
|
|
|
|
|
|
|
Gain on
settlement of lawsuit |
|
|
- |
|
|
|
- |
|
|
|
2,100 |
|
Gain on
involuntary conversion |
|
|
- |
|
|
|
195 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
14,069 |
|
|
|
5,169 |
|
|
|
17,482 |
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
Interest,
net of interest capitalized of $1,545, $867, and $488 in 2017,
2016, and 2015 respectively |
|
|
(12,473 |
) |
|
|
(10,814 |
) |
|
|
(15,458 |
) |
Defeasance fee paid with debt restructure |
|
|
- |
|
|
|
- |
|
|
|
(5,000 |
) |
Gain on
sale/leaseback |
|
|
333 |
|
|
|
333 |
|
|
|
333 |
|
Other
income |
|
|
61 |
|
|
|
8 |
|
|
|
11 |
|
|
|
|
(12,079 |
) |
|
|
(10,473 |
) |
|
|
(20,114 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income tax expense (benefit) |
|
|
1,990 |
|
|
|
(5,304 |
) |
|
|
(2,632 |
) |
Income tax
expense (benefit) |
|
|
749 |
|
|
|
(2,078 |
) |
|
|
(778 |
) |
Net earnings
(loss) |
|
$ |
1,241 |
|
|
$ |
(3,226 |
) |
|
$ |
(1,854 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share |
|
$ |
0.03 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share |
|
$ |
0.03 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared per common share |
|
$ |
0.1400 |
|
|
$ |
0.4125 |
|
|
$ |
0.2466 |
|
|
Consolidated Balance Sheets |
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
April 30, |
|
|
April 30, |
|
Assets |
|
|
2017 |
|
|
|
2016 |
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
33,665 |
|
|
$ |
5,396 |
|
|
Restricted cash balances |
|
|
11,113 |
|
|
|
61,099 |
|
|
Accounts
receivable |
|
|
5,083 |
|
|
|
4,772 |
|
|
Inventory |
|
|
2,215 |
|
|
|
2,730 |
|
|
Deferred
income taxes |
|
|
591 |
|
|
|
1,092 |
|
|
Prepaid
expenses and deposits |
|
|
2,183 |
|
|
|
2,680 |
|
|
|
|
|
54,850 |
|
|
|
77,769 |
|
|
Property and
equipment-net |
|
|
188,143 |
|
|
|
192,178 |
|
|
Land held for
development |
|
|
37,583 |
|
|
|
37,542 |
|
|
Restricted
cash, construction |
|
|
33,700 |
|
|
|
- |
|
|
Intangible
assets, net |
|
|
788 |
|
|
|
846 |
|
|
Goodwill |
|
|
4,825 |
|
|
|
5,009 |
|
|
Other
assets |
|
|
648 |
|
|
|
619 |
|
|
|
|
$ |
320,537 |
|
|
$ |
313,963 |
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Acquisition line of credit |
|
$ |
4,500 |
|
|
$ |
15,500 |
|
|
Accounts
payable and accrued expenses |
|
|
12,371 |
|
|
|
18,696 |
|
|
Accrued
salaries, wages and related taxes and benefits |
|
|
1,035 |
|
|
|
919 |
|
|
Unearned
revenue |
|
|
14,092 |
|
|
|
13,233 |
|
|
EB-5
investor funds in escrow |
|
|
500 |
|
|
|
52,004 |
|
|
Current
portion of deferred gain on sale/leaseback |
|
|
333 |
|
|
|
333 |
|
|
Current
portion of long-term debt and capitalized lease obligation |
|
|
3,592 |
|
|
|
2,456 |
|
|
|
|
|
36,423 |
|
|
|
103,141 |
|
|
Long-term
debt |
|
|
174,785 |
|
|
|
118,343 |
|
|
Capitalized
lease obligation |
|
|
2,708 |
|
|
|
4,419 |
|
|
Deferred gain
on sale/leaseback |
|
|
2,845 |
|
|
|
3,178 |
|
|
Deferred income
taxes |
|
|
12,474 |
|
|
|
12,672 |
|
|
Other
liabilities |
|
|
540 |
|
|
|
576 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock, $.01 par value per share, $1,000 liquidation
preference per share, |
|
|
|
|
|
|
|
|
|
40,000 shares
authorized, 20,000 and 0 issued at April 30, 2017 and 2016,
respectively |
|
|
17,001 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
Common
stock, $.01 par value per share, 20,000,000 shares authorized,
13,982,400 shares issued |
|
|
140 |
|
|
|
140 |
|
|
Additional paid-in capital |
|
|
86,372 |
|
|
|
82,728 |
|
|
Accumulated Deficit |
|
|
(12,751 |
) |
|
|
(11,234 |
) |
|
|
|
|
73,761 |
|
|
|
71,634 |
|
|
|
|
$ |
320,537 |
|
|
$ |
313,963 |
|
|
|
|
|
|
|
|
|
|
|
|
For Further Information:
Jennifer Childe, 312-690-6003
InvestorRelations@PeakResorts.com
Peak Resorts (NASDAQ:SKIS)
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