Peak Resorts, Inc. (NASDAQ:SKIS) (“Peak” or the “Company”), a
leading owner and operator of high-quality, individually branded
U.S. ski resorts, today reported financial results for its fiscal
2018 fourth quarter and year as summarized below:
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
Three months endedApril 30, |
|
|
Twelve months endedApril 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
56,032 |
|
$ |
51,263 |
|
$ |
131,662 |
|
$ |
123,249 |
Resort operating costs |
$ |
31,951 |
|
$ |
28,871 |
|
$ |
96,593 |
|
$ |
87,319 |
Income from operations |
$ |
17,413 |
|
$ |
17,607 |
|
$ |
10,219 |
|
$ |
14,069 |
Net income |
$ |
9,680 |
|
$ |
8,962 |
|
$ |
1,352 |
|
$ |
1,241 |
Net income (loss) available to common shareholders for basic
EPS |
$ |
9,280 |
|
$ |
8,162 |
|
$ |
(248 |
) |
$ |
441 |
Net income (loss) available to common shareholders for diluted
EPS |
$ |
9,680 |
|
$ |
8,962 |
|
$ |
(248 |
) |
$ |
441 |
Income (loss) per share (basic) |
$ |
0.66 |
|
$ |
0.58 |
|
$ |
(0.02 |
) |
$ |
0.03 |
Income (loss) per share (diluted) |
$ |
0.56 |
|
$ |
0.52 |
|
$ |
(0.02 |
) |
$ |
0.03 |
Weighted average common shares (basic) |
|
13,982 |
|
|
13,982 |
|
|
13,982 |
|
|
13,982 |
Vested restricted stock units (“RSUs”) |
|
102 |
|
|
49 |
|
|
78 |
|
|
35 |
Dilutive effect of conversion of preferred stock |
|
3,180 |
|
|
3,145 |
|
|
- |
|
|
- |
Dilutive effect of unvested RSUs |
|
44 |
|
|
47 |
|
|
- |
|
|
24 |
Reported EBITDA* |
$ |
21,515 |
|
$ |
20,678 |
|
$ |
25,585 |
|
$ |
26,782 |
*See pages 3-4 for Definitions of Non-GAAP
Financial Measures
Timothy D. Boyd, President and Chief Executive
Officer, commented, “Our strong fiscal fourth quarter results
complete what was a record year for Peak Resorts, as we generated
revenue growth of 9% and a 4% increase in Reported EBITDA in the
fiscal 2018 fourth quarter. Although the winter brought significant
weather-related challenges, our results from the 2017/2018 ski
season, which spanned 145 operating days from its beginning in
November to its end in April, demonstrate the value of our Peak
Pass in adding stability to our financial performance. Our results
also highlight the attractive returns we are achieving on our
ongoing investments in mountain infrastructure which enable us to
mitigate the impacts of adverse weather while providing guests with
terrific on-mountain experiences.
“For example, Mount Snow had an exceptional year
with record skier visits and increased revenue, as our expanded and
improved snowmaking capabilities resonated with guests. Skier
visits for the 2017/2018 ski season were up 14% year-over-year at
Mount Snow which compares favorably to the roughly 1.2% increase
seen across the state of Vermont according to the Vermont Ski Areas
Association. As a result, we believe our operating and financial
performance at Mount Snow outperformed the industry in both Vermont
and across the entire Northeast, demonstrating that our ongoing
efforts at Mount Snow are paying off. We believe the opening of the
new lodge at Carinthia this fall will drive further increases in
visitation and allow us to generate continued strong performance at
our flagship resort.
“Across the balance of the Northeast, the strong
appeal of our regional Peak Pass, our world-class guest experiences
and our sought after snow and riding terrain, allowed us to
outperform the broader industry despite extremely unpredictable and
variable weather. Industry-wide, season passes have become an
important part of the guest offering. We believe our Peak Pass
stands alone in that it is offered at a compelling price point for
skiers and riders of all ages, features uncomplicated and unlimited
access, and serves as the preferred way for Northeast skiers and
riders to drive to and explore our diverse mountains and resorts in
Vermont, New York, New Hampshire and Pennsylvania.
“Hunter Mountain capped off a very good season
in early April and is now a hive of activity as crews work to
implement the Hunter North expansion that will result in a 25%
increase in skiable terrain and add automated snowmaking and a
second six passenger high-speed detachable lift. Visitors to the
Hunter Mountain website and our social media followers are getting
a glimpse of the exciting progress at the resort, and we believe
this project will be well received as the 2018/2019 season gets
underway later this year.
“We also generated very strong fiscal fourth
quarter and full year results across our Midwest mountains as these
locations benefited from favorable winter weather after several
less than stellar winters and a 19% rise in visitation over the
prior year. Skiing, riding and tubing remain popular winter
pursuits in the Midwest and our guests in Ohio, Missouri and
Indiana value the offerings and continued enhancements at our
mountains.
“Finally, on the expense side, rising labor
costs are a reality in our business and for the leisure and
hospitality industry as a whole, and we are working diligently to
efficiently staff our properties and manage expenses. Our fourth
fiscal quarter was also impacted by a weather-driven shift in
walk-up demand from February to March, which resulted in some
increased investments to get guests to return to our mountains and
increased power and utility costs as we made additional snow at the
end of the season to drive more skiing availability in March.”
Fiscal Fourth Quarter Results
ReviewFiscal 2018 fourth quarter revenue increased 9.3%
year over year to $56.0 million as the Company benefited from an
11.4% rise in food and beverage revenue, a 9.9% increase in ski
instruction revenue and 9.6% growth in lift ticket and tubing
revenues, as well as 22.4% growth in other revenue.
Resort operating expenses in the fiscal 2018
fourth quarter rose 10.7% year over year to $32.0 million, with a
14.5% increase in labor expenses driven primarily by increases in
the minimum wage and labor shortages in the Northeast resulting in
increased overtime expense. Other operating expense growth in the
quarter included a 10.4% increase in retail and food and beverage
cost of sales, which rose in-line with increased revenue from these
sources, as well as a 9.6% increase in power and utility expense
driven primarily by late season snowmaking in the Northeast and
some rate increases. General and administrative expenses of $1.7
million increased by roughly $0.9 million and included the payment
of employee incentive bonuses in the fiscal 2018 fourth quarter
compared to a reversal of incentives in the prior year when
internal targets were not met.
Reported EBITDA for the fourth fiscal quarter of
2018 was $21.5 million, compared to $20.7 million in the year-ago
quarter.
Balance Sheet UpdateAs of April
30, 2018, the Company had cash and cash equivalents of $23.1
million and total outstanding debt of $180.9 million, including
$12.4 million drawn against its revolving line of credit and
long-term debt of $165.8 million, net of debt issuance costs and
current portion.
Christopher J. Bub, Chief Financial Officer,
added, “Peak Resorts’ fiscal fourth quarter, which helped drive
strong full year financial results, has positioned the Company
favorably with a stable balance sheet and healthy cash balance as
we work throughout the summer to prepare for the upcoming 2018/2019
ski season.
“We invested $4.3 million in capital
improvements in the fiscal 2018 fourth quarter and a total of $31.0
million for the full year, including nearly $22.0 million on our
West Lake and Carinthia expansions at Mount Snow. Notably, with
this spending, the majority of our deferred maintenance projects
from fiscal 2017 are now complete. As we look to fiscal 2019, we
expect to finish work on the new Carinthia Ski Lodge at Mount Snow
and the Hunter North terrain expansion projects in time for the
upcoming ski season, which we believe will drive additional growth
at both mountains. We also plan to continue to invest in and
enhance the guest experience at our resorts to help further improve
our financial results and increase shareholder value. Overall, the
team at Peak Resorts made great progress throughout fiscal 2018 and
we look forward to building on our momentum in fiscal 2019 and
beyond.”
Investor Conference Call and
Webcast The Company will host an investor conference call
and webcast to discuss its fiscal 2018 fourth quarter results today
at 9:00 a.m. ET. Interested parties can access the conference call
by dialing (844) 526-1518 or, for international callers, by dialing
(647) 253-8644; the conference ID number is 7091919. A webcast of
the conference call can also be accessed live at ir.peakresorts.com
(select “Event Calendar”). Following the completion of the call, an
archived webcast will be available for replay at the same
location.
Definitions and Reconciliations of
Non-GAAP Financial MeasuresReported 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 income (loss):
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Three months ended April 30, |
|
Twelve months ended April 30, |
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
Net income |
$ |
9,680 |
|
$ |
8,962 |
|
|
$ |
1,352 |
|
$ |
1,241 |
|
Income tax (benefit)
expense |
|
4,273 |
|
|
5,805 |
|
|
|
(3,962 |
) |
|
749 |
|
Interest expense,
net |
|
3,586 |
|
|
2,980 |
|
|
|
13,322 |
|
|
12,473 |
|
Depreciation and
amortization |
|
3,553 |
|
|
3,071 |
|
|
|
13,231 |
|
|
12,713 |
|
Restructuring and
impairment charges |
|
549 |
|
|
- |
|
|
|
2,135 |
|
|
- |
|
Other income |
|
(43 |
) |
|
(57 |
) |
|
|
(160 |
) |
|
(61 |
) |
Gain on
sale/leaseback |
|
(83 |
) |
|
(83 |
) |
|
|
(333 |
) |
|
(333 |
) |
Reported
EBITDA* |
$ |
21,515 |
|
$ |
20,678 |
|
|
$ |
25,585 |
|
$ |
26,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has specifically chosen to include
Reported EBITDA as a measurement of its results of operations
because it considers this measurement to be a significant
indication of its financial performance and available capital
resources. Because of large depreciation and other charges relating
to the Company’s ski resort operations, it is difficult for
management to fully and accurately evaluate financial performance
and available capital resources using net income alone. In
addition, the use of this non-U.S. GAAP measure provides an
indication of the Company’s ability to service debt, and management
considers it an appropriate measure to use because of the Company’s
highly leveraged position. Management believes that by providing
investors with Reported EBITDA, they will have a clearer
understanding of the Company’s financial performance and cash flows
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; (ii) helps investors
to more meaningfully evaluate and compare the results of the
Company’s operations from period to period by removing the effect
of its capital structure and asset base from operating results; and
(iii) is used by the Board of Directors, management and lenders for
various purposes, including as a measure of the Company’s operating
performance and as a basis for planning.
The items excluded from net income to arrive at
Reported EBITDA are significant components for understanding and
assessing the Company’s financial performance and liquidity.
Reported EBITDA should not be considered in isolation or as an
alternative to, or substitute for, net income, net change in cash
and cash equivalents or other financial statement data presented in
the Company’s condensed consolidated financial statements as
indicators of financial performance or liquidity. Because Reported
EBITDA is not a measurement determined in accordance with U.S. GAAP
and is susceptible to varying calculations, Reported EBITDA as
presented may not be comparable to other similarly titled measures
of other companies, limiting its usefulness as a comparative
measure.
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 operates 14 ski resorts primarily located in the Northeast
and Midwest, 13 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 ir.peakresorts.com or follow Peak
Resorts on Facebook for resort updates.
For further information, or to receive future
Peak Resorts news announcements via e-mail, please contact JCIR, at
212-835-8500 or skis@jcir.com.
Forward Looking StatementsThis
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, 2017, 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.
Investor Contact:Norberto Aja, Jim
Leahy, Joseph JaffoniJCIR212-835-8500 or skis@jcir.com
Condensed Consolidated Statements of
Operations(dollars in thousands, except per share
amounts)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, |
|
|
Twelve months ended April 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
56,032 |
|
|
$ |
51,263 |
|
|
$ |
131,662 |
|
|
$ |
123,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Resort
operating costs |
|
|
31,951 |
|
|
|
28,871 |
|
|
|
96,593 |
|
|
|
87,319 |
|
Depreciation and amortization |
|
|
3,553 |
|
|
|
3,071 |
|
|
|
13,231 |
|
|
|
12,713 |
|
General
and administrative |
|
|
1,667 |
|
|
|
749 |
|
|
|
5,797 |
|
|
|
5,431 |
|
Land and
building rent |
|
|
347 |
|
|
|
397 |
|
|
|
1,401 |
|
|
|
1,395 |
|
Real
estate and other non-income taxes |
|
|
552 |
|
|
|
568 |
|
|
|
2,286 |
|
|
|
2,322 |
|
Impairment loss |
|
|
549 |
|
|
|
- |
|
|
|
2,135 |
|
|
|
- |
|
|
|
|
38,619 |
|
|
|
33,656 |
|
|
|
121,443 |
|
|
|
109,180 |
|
Income from
operations |
|
|
17,413 |
|
|
|
17,607 |
|
|
|
10,219 |
|
|
|
14,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
net of amounts capitalized of |
|
|
|
|
|
|
|
|
|
|
|
|
$166 and
$1,256 in 2018 and $351 and |
|
|
|
|
|
|
|
|
|
|
|
|
$1,545 in
2017, respectively |
|
|
(3,586 |
) |
|
|
(2,980 |
) |
|
|
(13,322 |
) |
|
|
(12,473 |
) |
Gain on
sale/leaseback |
|
|
83 |
|
|
|
83 |
|
|
|
333 |
|
|
|
333 |
|
Other
income |
|
|
43 |
|
|
|
57 |
|
|
|
160 |
|
|
|
61 |
|
|
|
|
(3,460 |
) |
|
|
(2,840 |
) |
|
|
(12,829 |
) |
|
|
(12,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
|
|
13,953 |
|
|
|
14,767 |
|
|
|
(2,610 |
) |
|
|
1,990 |
|
Income tax expense
(benefit) |
|
|
4,273 |
|
|
|
5,805 |
|
|
|
(3,962 |
) |
|
|
749 |
|
Net income |
|
$ |
9,680 |
|
|
$ |
8,962 |
|
|
$ |
1,352 |
|
|
$ |
1,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less declaration and
accretion of Series A preferred |
|
|
|
|
|
|
|
|
|
|
|
|
stock
dividends |
|
|
(400 |
) |
|
|
(800 |
) |
|
|
(1,600 |
) |
|
|
(800 |
) |
Net income (loss)
attributable to common shareholders |
|
$ |
9,280 |
|
|
$ |
8,162 |
|
|
$ |
(248 |
) |
|
$ |
441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per common share |
|
$ |
0.66 |
|
|
$ |
0.58 |
|
|
$ |
(0.02 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per common share |
|
$ |
0.56 |
|
|
$ |
0.52 |
|
|
$ |
(0.02 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared per common share |
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.28 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared per preferred share |
|
$ |
20.00 |
|
|
$ |
- |
|
|
$ |
60.00 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets(dollars in thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
April 30, |
|
|
April 30, |
|
|
|
|
2018 |
|
|
2017 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
23,091 |
|
|
$ |
33,665 |
|
|
Restricted cash |
|
|
1,163 |
|
|
|
11,113 |
|
|
Accounts
receivable |
|
|
8,560 |
|
|
|
5,083 |
|
|
Inventory |
|
|
1,971 |
|
|
|
2,215 |
|
|
Prepaid
expenses and deposits |
|
|
12,731 |
|
|
|
2,183 |
|
|
Total
current assets |
|
|
47,516 |
|
|
|
54,259 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
204,095 |
|
|
|
188,143 |
|
|
Land held for
development |
|
|
37,634 |
|
|
|
37,583 |
|
|
Restricted cash,
construction |
|
|
12,175 |
|
|
|
33,700 |
|
|
Goodwill |
|
|
4,382 |
|
|
|
4,825 |
|
|
Intangible assets,
net |
|
|
731 |
|
|
|
788 |
|
|
Other assets |
|
|
1,797 |
|
|
|
648 |
|
|
Total
assets |
|
$ |
308,330 |
|
|
$ |
319,946 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Revolving
lines of credit |
|
$ |
12,415 |
|
|
$ |
4,500 |
|
|
Current
maturities of long-term debt |
|
|
2,614 |
|
|
|
3,592 |
|
|
Accounts
payable and accrued expenses |
|
|
12,079 |
|
|
|
12,371 |
|
|
Accrued
salaries, wages and related taxes and benefits |
|
|
922 |
|
|
|
1,035 |
|
|
Unearned
revenue |
|
|
16,084 |
|
|
|
14,092 |
|
|
Current
portion of deferred gain on sale/leaseback |
|
|
333 |
|
|
|
333 |
|
|
EB-5
investor funds in escrow |
|
|
- |
|
|
|
500 |
|
|
Total
current liabilities |
|
|
44,447 |
|
|
|
36,423 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
165,837 |
|
|
|
177,493 |
|
|
Deferred gain on
sale/leaseback |
|
|
2,512 |
|
|
|
2,845 |
|
|
Deferred income
taxes |
|
|
7,809 |
|
|
|
11,883 |
|
|
Other liabilities |
|
|
504 |
|
|
|
540 |
|
|
Total
liabilities |
|
|
221,109 |
|
|
|
229,184 |
|
|
|
|
|
|
|
|
|
|
Series A preferred
stock, $0.01 par value per share, $1,000 |
|
|
|
|
|
|
|
Liquidation preference per share, 40,000 shares authorized, |
|
|
|
|
|
|
|
20,000
shares issued and outstanding |
|
|
17,401 |
|
|
|
17,001 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
Common stock, $0.01 par
value per share, 40,000,000 shares |
|
|
|
|
|
|
|
authorized, 13,982,400 shares issued and outstanding |
|
|
140 |
|
|
|
140 |
|
|
Additional paid-in capital |
|
|
86,631 |
|
|
|
86,372 |
|
|
Accumulated deficit |
|
|
(16,951 |
) |
|
|
(12,751 |
) |
|
Total
stockholders' equity |
|
|
69,20 |
|
|
|
73,761 |
|
|
Total
liabilities and stockholders' equity |
|
$ |
308,330 |
|
|
$ |
319,946 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating
Data(dollars in
thousands)(Unaudited)
|
Three months ended April 30, |
|
Twelve months ended April 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
Lift and tubing
tickets |
$ |
30,285 |
|
$ |
27,630 |
|
$ |
61,683 |
$ |
58,100 |
Food and
beverage |
|
9,936 |
|
|
8,917 |
|
|
24,749 |
|
23,078 |
Equipment
rental |
|
3,727 |
|
|
3,696 |
|
|
9,991 |
|
8,582 |
Ski
instruction |
|
4,262 |
|
|
3,879 |
|
|
9,128 |
|
8,562 |
Hotel/lodging |
|
3,237 |
|
|
2,988 |
|
|
9,874 |
|
9,731 |
Retail |
|
2,512 |
|
|
2,460 |
|
|
6,748 |
|
6,395 |
Summer
activities |
|
- |
|
|
- |
|
|
4,459 |
|
4,549 |
Other |
|
2,073 |
|
|
1,693 |
|
|
5,030 |
|
4,252 |
Total |
$ |
56,032 |
|
$ |
51,263 |
|
$ |
131,662 |
$ |
123,249 |
|
|
|
|
|
|
|
|
|
|
|
Resort operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Labor and labor
related expenses |
$ |
16,637 |
|
$ |
14,534 |
|
$ |
53,026 |
$ |
48,253 |
Retail and food
and beverage cost of sales |
|
4,714 |
|
|
4,271 |
|
|
11,855 |
|
10,820 |
Power and
utilities |
|
2,933 |
|
|
2,676 |
|
|
8,331 |
|
7,843 |
Other |
|
7,667 |
|
|
7,390 |
|
|
23,381 |
|
20,403 |
Total |
$ |
31,951 |
|
$ |
28,871 |
|
$ |
96,593 |
$ |
87,319 |
|
|
|
|
|
|
|
|
|
|
|
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Sep 2023 to Sep 2024