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 2019 fourth quarter and full year as summarized below:

(in thousands, except per share data) Three months ended April 30,  Year ended April 30,
  2019  2018  2019 2018 
Revenues$ 85,458 $ 56,032 $ 184,426$ 131,662 
Resort operating costs$ 42,699 $ 31,951 $ 119,737$ 96,593 
Income from operations$ 30,402 $ 17,413 $ 28,916$ 10,219 
Net income$ 18,083 $ 9,680 $ 8,916$ 1,352 
Net income (loss) available to common shareholders for basic EPS$17,283 $ 9,280 $ 6,596$ (248)
Net income (loss) available to common shareholders adjusted for diluted EPS$ 18,083 $ 9,680 $6,596$(248)
Income (Loss) per share (basic)$ 1.13 $ 0.66 $ 0.45$(0.02)
Income (Loss) per share (diluted)$ 0.83 $ 0.56 $ 0.45$(0.02)
Weighted average common shares outstanding 15,166  13,982  14,504 13,982 
Vested restricted stock units (“RSUs”) 155  102  133 78 
Dilutive effect of conversion of preferred stock 6,359  3,180  - - 
Dilutive effect of unvested RSUs 36  44  39 - 
Reported EBITDA*$ 36,898 $ 21,515 $ 49,769$ 25,585 
*See page 3 for Definitions of Non-GAAP Financial Measures

Timothy D. Boyd, President and Chief Executive Officer, commented, “Fiscal 2019 was a record year for Peak Resorts as we completed several transformational initiatives that drove robust year over year growth. We generated record revenue and Reported EBITDA of $184.4 million and $49.8 million, respectively, thanks to our successful Snow Time acquisition and the fantastic execution of our resort operating teams who provided our guests with great conditions throughout a season of variable weather. We also delivered double-digit growth across our season pass offerings, saw continued strength across key revenue streams including food and beverage, ski school and retail, and benefited from our geographic and market diversification and ongoing customer outreach initiatives.

“Revenue and Reported EBITDA grew 53% and 72% year over year in the fiscal 2019 fourth quarter, respectively, as we generated organic revenue and Reported EBITDA growth of a respective 11% and 14%. Many of our resorts benefited from our continued strategic investments, including at Mount Snow where we saw the benefit of the new Carinthia Base Lodge and at Hunter where we debuted a significant terrain expansion, contributing to increased visitation of 6% and 12%, respectively, at these resorts. In addition, consistent investments in snowmaking capacity and efficiency allowed us to ensure that our growing visitor base was able to access more terrain and more often throughout the season, even when challenged by variable weather.

“As expected, the Snow Time portfolio delivered strong results in the fiscal 2019 fourth quarter and throughout the season despite nearly 20 fewer operating days during the season. The initial implementation of our operating strategies at Liberty, Whitetail and Roundtop allowed us to more than offset the shorter season at each of the three resorts as we drove a significant improvement in profitability across the portfolio. Given that we completed the acquisition of Snow Time right before the start of the 2018-19 season, we expect to see added benefits going forward as we further refine operations at these resorts.

“As announced in early May, 2019-20 season pass sales were very strong through the discounted sales window and we expect this momentum to continue. Sales of season passes, including our Peak Pass, which allows for unlimited access to 14 of our resorts across the Northeast, Mid-Atlantic and Midwest, were up 20.8% on a unit basis and 19.8% on a dollar basis over the prior year, inclusive of Snow Time pass sales in both periods. Pass sales momentum has continued and we are well positioned heading into what we believe will be yet another great winter season in 2019-20. We see clear signs that our season pass offerings have become the leading choice for skiers and riders who make the East Coast their home.

“With a strong finish to the 2018-19 season and strong season pass sales for the upcoming 2019-20 season, Peak Resorts is positioned for further growth in fiscal 2020. We are already working on roughly $3.5 million in snowmaking upgrades at Liberty, Whitetail and Roundtop, and expect to see a full year of benefit from our recently awarded liquor license at Whitetail and our continued efforts to enhance our food and beverage operations. We also expect to see further benefits from investments in our resorts, including at Mount Snow, Hunter and more recently at Hidden Valley. Looking at the summer and fall seasons, we expect to benefit from a packed event schedule that will leverage our amazing resorts to generate revenue during our seasonally slow periods, including food and beer festivals, concerts, outdoor entertainment events and on-mountain activities such as zip lining and mountain biking.”

Fiscal Fourth Quarter Results ReviewFiscal 2019 fourth quarter revenue increased 52.5% year over year to $85.5 million as the Company benefited from the addition of Snow Time for the full quarter as well as organic revenue growth of roughly 11.1% over the prior year period. For the quarter, the Company recorded an 81.1% increase in ski instruction revenue, a 34.4% rise in food and beverage revenue and 57.8% growth in lift ticket and tubing revenues.

Resort operating expenses in the fiscal 2019 fourth quarter rose 33.6% year over year to $42.7 million due to the addition of Snow Time in the quarter as the Company managed its labor and other expenses in-line with its expectations. Power and utilities expenses were up 21.1% year over year on the addition of Snow Time as well as increased snowmaking activity. Other operating expenses increased during the quarter due to the inclusion of the Snow Time resorts and organic spending on IT projects, repairs and maintenance and insurance costs. General and administrative expenses were up 184.3% to $4.7 million driven primarily by increased compensation expense as a result of the Company’s strong fiscal 2019 fourth quarter performance and additional professional service fees associated with the Snow Time acquisition.

Reported EBITDA for the fourth fiscal quarter of 2019 was $36.9 million, compared to $21.5 million in the year-ago quarter. The 71.5% year over year increase in Reported EBITDA was driven primarily by the inclusion of a full quarter of operations from Snow Time as well as organic growth of roughly 14.3% over the prior year period.

Balance Sheet UpdateAs of April 30, 2019, the Company had cash and cash equivalents of $30.2 million and total outstanding debt of $229.8 million, including $12.4 million drawn against its revolving line of credit and short and long-term debt of $217.4 million.

Christopher J. Bub, Chief Financial Officer, added, “Peak Resorts exited fiscal 2019 positioned for further growth as we continue to integrate the Snow Time resorts and benefit from improved operations and greater scale across our resort portfolio. Our operating teams remain focused on managing costs and driving increased efficiency and enhanced profitability across each area of our business even as we maintain our commitment of providing the highest level of guest service possible.

“As our attention turns to fiscal 2020 and beyond, we believe we have the needed financial flexibility to continue to improve existing operations while also exploring opportunities to drive cash flow and improve our capital structure. With our focus on the continued improvement across the entirety of our business, we are excited by what the future holds and for the opportunities ahead.”

Investor Conference Call and Webcast The Company will host an investor conference call and webcast to discuss its fiscal 2019 fourth quarter and full year results today at 10:00 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 8294865. A webcast of the conference call can also be accessed live at (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 loss:

(dollars in thousands)Three months ended April 30, Year ended April 30,
 2019 2018  2019 2018 
Net income$ 18,083 $ 9,680  $ 8,916 $ 1,352  
Income tax expense (benefit)  7,987   4,273    4,704   (3,962) 
Interest expense, net  4,505   3,586   15,788   13,322  
Depreciation and amortization  6,077   3,553    19,618   13,231  
Acquisition related costs 419   -   1,045  -  
Restructuring and impairment charges -  549    190   2,135  
Other income  (90)  (43)   (159) (160) 
Gain on sale/leaseback  (83)  (83)   (333) (333) 
Reported EBITDA$ 36,898 $ 21,515  $ 49,769 $ 25,585  

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 resorts 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 17 ski resorts primarily located in the Northeast, Mid-Atlantic and Midwest, 16 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, Baltimore, Washington D.C., Cleveland, Kansas City 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, golf and other summer activities. To learn more, visit the Company’s website at 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

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. The forward-looking statements contained in this news release include, without limitation, statements related to: the expected impact of the acquisition of Snow Time on the Company’s overall business, operations and results of operations; expectations regarding the sustained effect of the acquisition on the Company’s season pass sales; and the realization of anticipated cost and operating synergies. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: risks associated with acquisitions generally; failure to retain key management and employees; unfavorable weather conditions and the impact of any natural disaster; difficulties or delays in the successful transition of the operations, systems and personnel of Snow Time; future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; unfavorable reaction to the acquisition by resort visitors, competitors, vendors and employees; conditions affecting the industry generally; local and global political and economic conditions; conditions in the securities market that are less favorable than expected; and other risks described in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Investor Contact:Norberto Aja, Jim Leahy, Joseph JaffoniJCIR212-835-8500 or Condensed Consolidated Statements of Operations(dollars in thousands, except share and per share amounts)

   Three months ended April 30,  Year ended April 30,
   2019   2018   2019   2018 
Net revenue $ 85,458  $ 56,032  $ 184,426  $ 131,662 
Operating expenses:            
Resort operating costs   42,699    31,951    119,737    96,593 
Depreciation and amortization   6,077    3,553    19,618    13,231 
General and administrative   4,740    1,667    11,221    5,797 
Land and building rent   369    347    1,393    1,401 
Real estate and other taxes   1,171    552    3,351    2,286 
Restructuring and impairment charges  -    549    190    2,135 
Income from operations   30,402    17,413    28,916    10,219 
Other (expense) income:            
Interest, net of amounts capitalized of            
$267 and $783 in 2019 and $206 and            
$1,256 in 2018, respectively   (4,505)   (3,586)   (15,788)   (13,322)
Gain on sale/leaseback   83    83    333    333 
Other income   90    43    159    160 
    (4,332)   (3,460)   (15,296)   (12,829)
Income (loss) before income taxes   26,070    13,953    13,620    (2,610)
Income tax expense (benefit)  7,987   4,273    4,704    (3,962)
Net income $ 18,083  $ 9,680  $ 8,916  $ 1,352 
Less declaration and accretion of Series A preferred            
stock dividends   (800)   (400)   (2,320)   (1,600)
Net income (loss) attributable to common shareholders $ 17,283  $ 9,280  $ 6,596  $(248)
Basic earnings (loss) per common share $ 1.13  $ 0.66  $ 0.45  $ (0.02)
Diluted earnings (loss) per common share $ 0.83  $ 0.56  $ 0.45  $ (0.02)
Cash dividends declared per common share $ 0.07  $ 0.07  $ 0.28  $ 0.28 
Cash dividends declared per preferred share $ 20.00  $ 20.00  $ 80.00  $ 60.00 

Consolidated Balance Sheets(dollars in thousands)

   April 30,  April 30, 
   2019  2018 
Current assets:       
Cash and cash equivalents $ 30,194  $ 23,091  
Restricted cash   5,240    1,163  
Accounts receivable   9,514    8,560  
Inventory   2,544    1,971  
Prepaid expenses and other current assets   14,984    12,731  
Total current assets   62,476    47,516  
Property and equipment, net   287,121    204,095  
Land held for development   38,657    37,634  
Restricted cash, construction  -    12,175  
Goodwill   18,173    4,382  
Intangible assets, net   3,106    731  
Other assets   1,115   1,797  
Total assets $ 410,648  $ 308,330  
Liabilities and Stockholders' Equity       
Current liabilities:       
Revolving lines of credit $ 12,415  $ 12,415  
Current maturities of long-term debt   1,513    2,614  
Accounts payable and accrued expenses   14,207    12,079  
Accrued salaries, wages and related taxes and benefits   6,281    922  
Unearned revenue   22,153    16,084  
Current portion of deferred gain on sale/leaseback   333    333  
Total current liabilities   56,902    44,447  
Long-term debt, including related party debt of       
$50,058 and $0, less current maturities   215,869    165,837  
Deferred gain on sale/leaseback   2,180    2,512  
Deferred income taxes   18,384    7,809  
Other liabilities   770    504  
Total liabilities   294,105    221,109  
Series A preferred stock, $0.01 par value per share, $1,000 liquidation       
preference per share, 40,000 shares authorized, 40,000 and 20,000       
shares issued and outstanding   34,318    17,401  
Commitments and contingencies       
Stockholders' equity:       
Common stock, $0.01 par value per share, 40,000,000 shares       
authorized, 15,165,832 and 13,982,400 shares issued and outstanding   152    140  
Additional paid-in capital   96,557    86,631  
Accumulated deficit   (14,484)   (16,951) 
Total stockholders' equity   82,225    69,820  
Total liabilities and stockholders' equity $ 410,648  $ 308,330  

Supplemental Operating Data(dollars in thousands)(Unaudited)

 Three months ended April 30, Year ended April 30,
  2019  2018  2019 2018
  Lift and tubing tickets$47,796 $30,285 $ 93,168$ 61,683
  Food and beverage 13,358  9,936   32,210  24,749
  Equipment rental  7,623   3,727   15,065  9,991
  Ski instruction  7,717   4,262   15,256  9,128
  Hotel/lodging  3,035   3,237   8,909  9,874
  Retail 3,422  2,512   9,277  6,748
  Summer activities  291   -   4,727  4,459
  Other  2,216   2,073   5,814  5,030
  Total$ 85,458 $ 56,032 $ 184,426$ 131,662
Resort operating expenses:          
  Labor and labor related expenses$ 21,709 $ 16,637 $ 61,440$ 53,026
  Retail and food and beverage cost of sales  6,034   4,714   14,903  11,855
  Power and utilities  3,551   2,933   11,417  8,331
  Other  11,405   7,667   31,977  23,381
  Total$ 42,699 $ 31,951 $ 119,737$ 96,593

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