Adds Premier New York Ski Area to Resort
Portfolio Investor Call/Webcast to Discuss Transaction Scheduled
for 5:30pm ET
Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner
and operator of high-quality, individually branded ski resorts in
the U.S., today announced it has entered into an agreement to
purchase Hunter Mountain, the Catskills' premier winter resort
destination, for cash consideration of $35 million plus the
assumption of two capital leases estimated at approximately $1.8
million. Hunter Mountain generates approximately $27 million
(unaudited) in annual revenue. The purchase price is slightly more
than six times Hunter Mountain's adjusted EBITDA, which is
estimated at approximately $6 million (unaudited) for its
fiscal year ended April 30, 2015.
Peak Resorts currently has preliminary lender commitments for a
first mortgage of approximately $20 million, which would be secured
by Hunter Mountain assets. The remainder of the cash requirement is
expected to be funded by tapping the line of credit the company
announced in October 2015. Peak Resorts expects to complete the
purchase of Hunter Mountain by year-end 2015.
Timothy D. Boyd, president and chief executive officer, said,
"Hunter Mountain, under the stewardship of the Slutzky families,
has become one of the iconic ski resorts in the Northeastern United
States. Its reputation as one of the premier snowmaking resorts in
the East makes it a perfect fit for our portfolio and strategy. We
look forward to continuing the rich tradition the Slutzky families
have built.
"Our roadmap for growth calls for a mix of organic growth and
resort development as well as acquisitions that will let us build
our portfolio of ski resorts in the attractive overnight and
day-drive segments of the market. We expect this transaction will
be accretive to Peak Resorts' Reported EBITDA in the third quarter
of fiscal 2016 and we will continue to evaluate other potential
value-add acquisitions," Boyd noted.
Boyd added, "Over the summer, Hunter Mountain completed a
variety of capital improvement projects to enhance the ski
experience. Among the projects were a $1.2 million investment
in new snow guns and a $500,000 investment in a state-of-the-art
compressor to improve snow-making efficiency. In addition, the
resort made trail improvements and expanded its Race Foundation
facility."
Boyd concluded, "Peak Resorts is set to become the preeminent
ski operator in the metro New York-area with the addition of Hunter
Mountain to our portfolio of resorts in New Hampshire, Vermont and
Pennsylvania. For this 2015-2016 ski season, we are planning
to offer reciprocal programs among the resorts for the season
passholders at Hunter Mountain and our current properties. Program
details will be available by phone or in person, and also will be
posted on the websites for each of the resorts in the coming
weeks."
Investor Call
Peak Resorts will hold an investor conference call/webcast on
Monday, November 30, at 5:30pm ET to discuss the transaction.
The call/webcast will be available via:
Webcast: |
ir.peakresorts.com on the
Events page |
Conference Call: |
877-292-0959 (domestic) or
412-542-4158 (international) |
A replay will be available on the Peak Resorts investor
relations website (ir.peakresorts.com) after the call
concludes.
About Hunter Mountain
The Hunter Mountain resort includes three separate mountains
catering to skiers and riders of all ability levels along with
several terrain parks and an all-ages tubing park. The Slutzky
families founded the resort in the 1950s and have been integral to
its success.
In addition, the resort offers a full complement of ski school
programs, overnight/four-season accommodations, a variety of dining
options, a conference and corporate event facilities, a
members-only lounge and a retail center. Hunter Mountain
offers a variety of summer outdoor activities including a zipline
with views of the Catskill Mountains. The resort also hosts
festivals and concerts throughout the warmer months. The resort is
located just over two hours by car from New York City and four
hours by car from Philadelphia.
Hunter Mountain has a base elevation of 1,600 ft., summit
elevation of 3,200 ft. and a vertical drop of 1,600 ft. There
are 240 skiable acres with 58 trails and 12 lifts. The terrain
is divided 30 percent Beginner, 30 percent Intermediate, 27 percent
Advanced and 13 percent Expert. Additional information on
Hunter Mountain's facilities is available at
http://www.huntermtn.com.
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 currently operates 13 ski resorts primarily
located in the Northeast and Midwest, 12 of which are company
owned.
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) for resort
updates.
Forward Looking Statements
This press release contains forward-looking statements regarding
the future outlook and performance of Peak Resorts, 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 include,
but are not limited to, risk factors that could affect the
company's ability to complete this transaction and other risks and
uncertainties that are contained in its filings with the Securities
and Exchange Commission. 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.
CONTACT: Heather Wietzel
616-233-0500
InvestorRelations@PeakResorts.com
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