- Strong Performance from Abercrombie & Kent and Maui Land Sale
Drive 47% Growth in Total Revenue VANCOUVER, Nov. 7
/PRNewswire-FirstCall/ -- Intrawest Corporation, a world leader in
destination resorts and adventure travel, announced today the
results for the first quarter of fiscal year 2006, ended September
30, 2005. All figures referred to herein are stated in US dollars
unless otherwise indicated. For the first quarter of 2006, the
company reported total revenue of $301.8 million, an increase of 47
per cent year-over-year. Net income increased significantly to $9.2
million, resulting in diluted earnings per share of $0.19. Total
Company EBITDA (earnings before interest, income taxes, non-
controlling interest, depreciation and amortization and any
non-recurring items) more than tripled to $56.6 million for the
quarter. "Our first quarter results mark an excellent start to the
fiscal year with record revenue and the unparalleled success of
Abercrombie & Kent (A&K), the world leader in luxury
adventure travel," said Joe Houssian, chairman, president and chief
executive officer. "The tremendous increase in core, recurring
revenue at A&K provides a testament to the strength of the
A&K brand and the revenue growth potential this entity provides
when combined with our existing portfolio of customer experiences."
Recent Highlights - Abercrombie & Kent reported a 30 per cent
increase in adventure-travel revenue; - Announced an agreement to
sell Mammoth Mountain Ski Area which will result in a pre-tax
profit to Intrawest of approximately $101 million; - Unveiled plans
for "The Village of Imagine," a new 30-acre resort village in
Orlando, Florida; - Completed the sale of Lot Three Ka'anapali, a
26-acre beachfront parcel in Maui, for a net profit before tax of
approximately $25 million. Finalized plans for initial launch of
the Honua Kai condo-hotel project on the adjacent site in
Ka'anapali, Maui. Houssian continued, "Our early success at
Ka'anapali provides a key example of how Placemaking, our real
estate division, delivers substantially to our bottom line by
opportunistically seeking out highly profitable real estate
transactions as well as future development opportunities. Going
forward, we remain focused on accelerating our real estate
production to maximize shareholder value." Traditionally, Intrawest
has paid a semi-annual dividend of Cdn$0.08 per common share.
Today, the Board has decided to double the dividend by declaring a
quarterly dividend of Cdn$0.08 per common share payable on January
25, 2006 to shareholders of record on January 11, 2006.
MANAGEMENT'S DISCUSSION AND ANALYSIS The following management's
discussion and analysis ("MD&A") should be read in conjunction
with the more detailed MD&A (which includes a discussion of
business risks) contained in our June 30, 2005 annual report.
Statements contained in this report that are not historical facts
are forward-looking statements that involve risks and
uncertainties. Our actual results could differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, our ability to implement our business
strategies, seasonality, weather conditions, competition, general
economic conditions, currency fluctuations, world events and other
risks detailed in our filings with the Canadian securities
regulatory authorities and the U.S. Securities and Exchange
Commission. Our financial statements are prepared in accordance
with Canadian generally accepted accounting principles ("GAAP"). We
use several non-GAAP measures to assess our financial performance,
such as EBITDA(1) and free cash flow. Such measures do not have a
standardized meaning prescribed by GAAP and they may not be
comparable to similarly titled measures presented by other
companies. We have provided reconciliations between any non-GAAP
measures mentioned in this MD&A and our GAAP financial
statements. These non-GAAP measures are referred to in this
disclosure document because we believe they are indicative measures
of a company's performance and are generally used by investors to
evaluate companies in the resort and travel operations and resort
development industries. (1) EBITDA is defined as operating revenues
less operating expenses and therefore reflects earnings before
interest, income taxes, depreciation and amortization,
non-controlling interest and any non-recurring items. Additional
information relating to our company, including our annual
information form, is available on SEDAR at http://www.sedar.com/.
The date of this interim MD&A is November 4, 2005. THREE MONTHS
ENDED SEPTEMBER 30, 2005 (THE "2005 QUARTER") COMPARED WITH THREE
MONTHS ENDED SEPTEMBER 30, 2004 (THE "2004 QUARTER") Net income was
$9.2 million ($0.19 per diluted share) in the 2005 quarter compared
with a net loss of $7.1 million ($0.15 per diluted share) in the
2004 quarter. We normally incur a loss in our first fiscal quarter
because of the seasonality of our businesses; however, we closed a
major real estate transaction (the sale of a 26-acre beachfront
property in Maui) during the 2005 quarter that generated $21.6
million of net income. Total Company EBITDA increased from $15.7
million to $56.6 million. A significant increase in EBITDA from
real estate development was partially offset by reduced EBITDA from
resort and travel operations and management services and higher
corporate general and administrative expenses. REVIEW OF RESORT AND
TRAVEL OPERATIONS Resort and travel operations revenue increased
from $129.3 million in the 2004 quarter to $166.1 million in the
2005 quarter. In December 2004 we increased our ownership in Alpine
Helicopters from 45% to 100% and the incremental revenue in the
2005 quarter from our increased ownership interest was $9.1
million. In addition, in August 2005 we entered into a lease to
operate Parque de Nieve, an indoor snowdome in Spain, and revenue
in the 2005 quarter included $1.1 million from this new business.
The rise in the value of the Canadian dollar from an average rate
of US$0.76 in the 2004 quarter to US$0.83 in the 2005 quarter
increased reported resort and travel operations revenue by $3.7
million. On a same-business (i.e., excluding 55% of Alpine
Helicopters and Parque de Nieve), constant exchange rate basis,
resort and travel operations revenue increased by $22.8 million to
$152.1 million. Adventure-travel tour revenue from Abercrombie
& Kent ("A&K") increased 30% from $66.3 million to $86.3
million as the industry continued its strong rebound. A&K saw
significant growth in tour revenues from all its major
destinations, particularly the Orient and East Africa, which
increased by 120% and 31%, respectively. A&K also earned $1.5
million of licensing fees in the 2005 quarter compared with $3.9
million in the 2004 quarter as the licensing agreement was
terminated in August 2005. Revenue from the mountain segment
increased by $5.1 million, or 12%, led primarily by Whistler
Blackcomb (due to growth in mountain bike park and sightseeing
visits), Intrawest Retail Group (due to operating eight additional
retail stores during the summer months) and Alpine Helicopters (due
to consolidating an investment that was previously accounted for on
an equity basis). Revenue from the non-mountain segment increased
by $0.3 million, or 2%, as the worst hurricane season on record in
the Gulf Coast region reduced visitors to Sandestin, restricting
revenue growth to 1% at that resort. The breakdown of resort and
travel operations revenue by major business component was as
follows: 2005 2004 INCREASE (MILLIONS) QUARTER QUARTER (DECREASE)
CHANGE(%)
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Mountain operations $ 25.8 $ 11.7 $ 14.1 121 Adventure-travel tours
86.3 66.3 20.0 30 Retail and rental shops 13.2 10.6 2.6 25 Food and
beverage 15.1 13.4 1.7 13 Ski school 0.8 1.1 (0.3) (27) Golf 11.5
11.4 0.1 1 Other 13.4 14.8 (1.4) (9)
----------------------------------------------------------- $ 166.1
$ 129.3 $ 36.8 28
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----------------------------------------------------------- The
growth in mountain operations revenue reflects our increased
ownership interest in, and revenue growth at, Alpine Helicopters,
our lease of Parque de Nieve and strong year-over-year growth in
summer lift ride revenue, particularly at Whistler Blackcomb. The
decline in other revenue was due mainly to the decrease in
licensing fees earned by A&K. Resort and travel operations
expenses increased from $122.2 million in the 2004 quarter to
$159.8 million in the 2005 quarter, of which $7.4 million and $1.5
million, respectively, were due to the acquisition of the remaining
55% of Alpine Helicopters and the lease of Parque de Nieve and $3.3
million came from the impact on reported expenses of the higher
Canadian dollar. Expenses of A&K increased by $14.9 million in
response to the higher business volumes and expenses of the
mountain and non-mountain segments increased by $6.8 million and
$1.5 million, respectively. The balance of the increase in resort
and travel operations expenses came from increased general and
administrative costs of the Leisure and Travel Group, including
$0.5 million in connection with process improvement initiatives in
our retail and food and beverage businesses, $0.4 million in call
center marketing and $0.6 million in advance sales and resort
operations information technology. Resort and travel operations
EBITDA decreased from $7.1 million in the 2004 quarter to $6.3
million in the 2005 quarter. Our additional ownership interest of
Alpine Helicopters, the lease of Parque de Nieve and the impact on
reported EBITDA of the higher Canadian dollar in aggregate
increased EBITDA by $1.7 million. EBITDA from A&K grew from
$8.2 million to $10.9 million as an increase in EBITDA from
adventure-travel tours from $4.4 million to $9.4 million was
partially offset by a decrease in EBITDA from licensing fees from
$3.9 million to $1.5 million. These positive factors were offset by
reduced EBITDA from other businesses and higher general and
administrative costs of the Leisure and Travel Group. The impact of
the hurricanes reduced EBITDA at Sandestin by $1.2 million and we
expect to recover some of this shortfall through business
interruption insurance. The EBITDA margins of 3.8% in the 2005
quarter and 5.5% in the 2004 quarter reflect the seasonality of our
mountain resort and travel operations, which generate most of their
EBITDA during our third fiscal quarter. REVIEW OF MANAGEMENT
SERVICES Management services revenue and EBITDA in the 2005 and
2004 quarters were broken down as follows: 2005 QUARTER 2004
QUARTER (MILLIONS) REVENUE EBITDA REVENUE EBITDA
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Services related to resort and travel operations Lodging and
property management $ 18.6 $ 0.8 $ 17.6 $ 0.8 Other resort and
travel fees 3.1 0.5 3.1 (0.8)
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21.7 1.3 20.7 -
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Services related to real estate development Real estate services
fees 5.7 1.1 5.1 2.0 Playground sales fees 8.6 1.5 9.3 3.7
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14.3 2.6 14.4 5.7
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$ 36.0 $ 3.9 $ 35.1 $ 5.7
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The increase in fees from lodging and property management was due
mainly to a 3% increase in occupied room nights and a 1% increase
in average daily rate across our resorts. Occupied room nights at
our mountain resorts increased 4%, however this was partially
offset by a 2% decline in occupied room nights at Sandestin due to
the hurricanes. Other resort and travel fees, which comprise
reservation fees earned by our central call center, golf course
management fees and club management fees earned by the Resort Club,
were unchanged year-over-year with an increase in Resort Club
management fees being offset by lower reservation fees. We sold our
reservations business in Colorado during the 2005 quarter and we
continue to focus on reservations to our own resorts while reducing
our third-party reservations business. The increase in real estate
services fees was due mainly to increased sales fees as several
partnership projects completed construction and closed units. The
timing of project completions and a somewhat slower re-sales market
in Sandestin, resulting from the hurricanes, reduced fees earned by
Playground, our real estate sales business. EBITDA from management
services decreased from $5.7 million in the 2004 quarter to $3.9
million in the 2005 quarter. Playground EBITDA in the 2005 quarter
was reduced by an allocation of $2.1 million of Playground general
and administrative costs to the management services segment. In
fiscal 2005 the full annual allocation of Playground general and
administrative costs to management services of $7.5 million was
made in the fourth quarter. The decline in EBITDA from real estate
services reflects the timing of expenses which we expect to reverse
in future quarters. The improvement in EBITDA from other resort and
travel fees was due mainly to reducing our third-party reservations
business, which had incurred losses in the 2004 quarter. The EBITDA
margin was 11% in the 2005 quarter compared with 16% in the 2004
quarter. For the fiscal year, we expect the EBITDA margin to be
approximately the same as the 24% we achieved in fiscal 2005.
REVIEW OF REAL ESTATE DEVELOPMENT Revenue from real estate
development increased from $38.8 million in the 2004 quarter to
$98.7 million in the 2005 quarter. Revenue generated by Intrawest
Placemaking (our resort development business) increased from $28.4
million to $88.3 million while revenue generated by Intrawest
Resort Club (our vacation ownership business) was unchanged at
$10.4 million. The majority of Intrawest Placemaking's revenue in
the 2005 quarter came from the sale of a 26-acre beachfront
property in Maui for proceeds of $73.3 million. The vendor of the
property was a partnership in which we have a 40% interest, however
the partnership is a variable interest entity ("VIE"), which we are
required to fully consolidate because we are the primary
beneficiary of the entity. Hence real estate development revenue
includes 100% of the sales proceeds to the partnership and real
estate development expenses includes 100% of the partnership's cost
of sales, being $29.4 million. The partner's share of the profit
from this transaction of $18.5 million is included in
non-controlling interest. Excluding the sale of the Maui property,
Intrawest Placemaking closed 23 units for $15.0 million in the 2005
quarter compared with 42 units for $23.1 million in the 2004
quarter. The timing of unit closings is tied to a significant
degree to construction completion so the number of closings in any
particular quarter may not be indicative of the number of closings
in a fiscal year. Two-thirds of the revenue in the 2005 quarter was
derived from high-end townhome projects and this increased the
average revenue per closed unit from $550,000 in the 2004 quarter
to $652,000 in the 2005 quarter. In addition to these unit
closings, we sold one project to real estate partnerships in which
we hold an investment for $5.3 million in the 2004 quarter. There
were no project sales to such partnerships in the 2005 quarter.
Real estate EBITDA increased from $7.3 million in the 2004 quarter
to $51.9 million in the 2005 quarter. Real estate EBITDA comprises
operating profit from real estate plus interest included in real
estate expenses. Operating profit from real estate, rather than
real estate EBITDA, factors into the computation of net income.
Operating profit from real estate development increased from $5.1
million in the 2004 quarter to $50.7 million in the 2005 quarter,
including $43.9 million from the sale of the Maui property
described above. Excluding the Maui sale, the profit margin on real
estate development increased from 13.3% to 26.6% due mainly to the
recognition of increased deferred land profit on project sales to
real estate partnerships (which is recorded as a credit to real
estate expenses) in the 2005 quarter. REVIEW OF CORPORATE
OPERATIONS Interest and other income decreased from $2.0 million in
the 2004 quarter to $0.5 million in the 2005 quarter. Interest and
other income in the 2004 quarter included $0.4 million of rental
income on a property we sold in the fourth quarter of fiscal 2005
and $0.3 million of equity income from an investment owned by
Alpine Helicopters that has now been consolidated because of the
VIE rules. The balance of the change was due mainly to lower
interest income in the 2005 quarter. Interest expense was $10.3
million in the 2005 quarter, down from $11.4 million in the 2004
quarter due mainly to the refinancing of senior notes in the second
quarter of our past fiscal year. During that quarter we redeemed
10.5% senior notes primarily by issuing 7.50% and 6.875% senior
notes. Corporate general and administrative expenses increased from
$4.5 million in the 2004 quarter to $5.4 million in the 2005
quarter due mainly to higher compensation costs resulting from
mark-to-market adjustments of long-term (stock-based) incentive
plans and increased audit and corporate governance expenses.
Depreciation and amortization expense was $12.9 million in the 2005
quarter, up from $11.3 million in the 2004 quarter. The acquisition
of the remaining 55% of Alpine Helicopters in December 2004
increased depreciation and amortization expense by $0.8 million and
the balance of the increase was due to depreciation of capital
expenditures made during fiscal 2005. We provided for $2.1 million
of income taxes, based on $32.7 million of pre-tax income in the
2005 quarter compared with a recovery of $1.0 of income taxes,
based on a pre-tax loss of $7.2 million in the 2004 quarter. We
expect our income tax rate to be in the range of 10% to 15% for the
current fiscal year. This rate will increase if we complete the
sale of the majority of our interest in Mammoth (see liquidity and
capital resources below) since the gain on sale will be taxed for
accounting purposes at about 40%. Non-controlling interest
increased from $0.9 million in the 2004 quarter to $21.4 million in
the 2005 quarter due mainly to the inclusion of $18.5 million for
our partner's profits on the sale of the property in Maui, as
described in Review of Real Estate Development above. The balance
of the increase was due to improved results of A&K in the 2005
quarter. LIQUIDITY AND CAPITAL RESOURCES Last year we completed
several important transactions, including selling the majority of
our commercial properties and extending our partnering strategy for
real estate development, and we renewed our senior credit facility
and refinanced higher interest-bearing senior notes. This put us in
a strong financial position as we entered the current fiscal year.
The normal seasonality of our businesses resulted in negative free
cash flow for the 2005 quarter and higher debt levels at the end of
the quarter, in line with our expectations. The following table
summarizes the major sources and uses of cash in the 2005 and 2004
quarters. This table should be read in conjunction with the
Consolidated Statements of Cash Flows, which are more detailed as
prescribed by GAAP. 2005 2004 (MILLIONS) Quarter Quarter Change
-------------------------------------------------------------------------
Funds from operations $43.8 $5.8 $38.0 Cash for real estate
development, including investments in partnerships (10.7) (44.3)
33.6 Cash for resort and travel operations capex and other assets
(30.4) (22.9) (7.5) Cash for long-term receivables and working
capital (42.9) (29.7) (13.2)
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Free cash flow (40.2) (91.1) 50.9 Cash from business acquisitions
and asset disposals 0.2 15.7 (15.5)
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Net cash flow from operating and investing activities (40.0) (75.4)
35.4 Net financing inflows 17.6 58.7 (41.1)
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Decrease in cash $(22.4) $(16.7) $(5.7)
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We generated $43.8 million of funds from operations in the 2005
quarter, up from $5.8 million in the 2004 quarter due mainly to
higher operating profits from real estate development. For more
details see the Review of Operations sections earlier in this
MD&A. Real estate development used $10.7 million of cash in the
2005 quarter, down from $44.3 million in the 2004 quarter due
mainly to the sale of the Maui property and the return of $12.8
million of equity invested in real estate partnerships as projects
completed construction, units closed and distributions were made to
the partners. In the 2005 quarter, we spent $7.3 million to acquire
a new property in Napa, California for the future development of
160 units. We did not acquire any new land holdings in the 2004
quarter. Expenditures on resort and travel operations assets
("capex") and other assets used $30.4 million cash in the 2005
quarter compared with $22.9 million in the 2004 quarter. The
majority of the expenditures in each period were for maintenance
capex to our mountain resort assets in advance of the winter
season. In addition, in the 2005 quarter we spent $4.6 million on
new lifts at Winter Park and $3.8 million on building a new golf
course adjacent to Blue Mountain. We expect to spend a total of
approximately $90 million on resort and travel operations capex
during fiscal 2006, comprising approximately $40 million of
maintenance capex (non-discretionary expenditures required to
maintain the existing service level of our assets) with the balance
being discretionary expansion capex. This compares with $79.4
million in fiscal 2005. Long-term receivables and working capital
used $42.9 million of cash in the 2005 quarter, up from $29.7
million in the 2004 quarter. This represents the cash flow from
changes in receivables, other assets, payables and deferred
revenue. Working capital requirements fluctuate by quarter due to
the seasonality of our businesses. We generally consume cash for
working capital in our first fiscal quarter as we prepare our
mountain resort businesses for the upcoming winter season. The
seasonality of businesses resulted in negative free cash flow of
$40.2 million in the 2005 quarter compared with negative free cash
flow of $91.1 million in the 2004 quarter. On an ongoing basis, our
goal is to manage each of our divisions (Leisure and Travel Group
and Intrawest Placemaking) to generate positive annual free cash
flow. Proceeds from asset disposals amounted to $0.2 million in the
2005 quarter. We expect this source of funds to increase
significantly since we signed an agreement in October 2005 to sell
the majority of our 59.5% interest in Mammoth for pre-tax net
proceeds of approximately $166 million, including a pre-transaction
dividend. We expect to retain an interest of approximately 15%. The
transaction is expected to close in our second or third fiscal
quarter and is subject to customary closing conditions. There are
no assurances, however, that all the closing conditions will be
satisfied or that the transaction will be completed. We are
evaluating various options for the use of the proceeds. In the 2004
quarter we acquired $15.7 million of cash on the acquisition of 67%
of A&K, net of our acquisition cost. In total, our operating
and investing activities used $40.0 million of cash in the 2005
quarter, down from $75.4 million in the 2004 quarter. In both
periods we funded these activities primarily by drawing on our $425
million senior credit facility. At September 30, 2005, we had drawn
$205.3 million under this facility and we had also issued letters
of credit for $49.8 million, leaving $169.9 million available to
cover future liquidity requirements. Several of our resorts also
have lines of credit in the range of $5 million to $10 million each
to fund seasonal cash requirements. Financing for real estate
construction is generally provided by one-off project-specific
loans. We believe that these credit facilities, combined with cash
on hand and internally generated cash flows, are sufficient to
finance all our normal operating needs. CHANGE IN ACCOUNTING POLICY
Since there is no specific Canadian GAAP guidance that deals with
accounting for timeshare operations, effective July 1, 2005 we
retroactively adopted the new U.S. GAAP guidance Financial
Accounting Standards Board Statement No. 152, "Accounting for
Real-Estate Time-Sharing Transactions: an amendment of FASB
Statements No. 66 and 67." The new standard contains specific
guidelines for assessing whether the buyers' initial and continuing
investments are adequate to demonstrate a commitment to pay for the
property. The new rules change the timing of our recognition of
revenues and selling and product costs. The impact of this change
in accounting policy on our statement of operations was to reduce
net income by $0.5 million in the 2005 quarter and increase net
loss by $0.4 million in the 2004 quarter. The information contained
in the Quarterly Financial Summary below has been restated to
reflect the retroactive application of this change. ADDITIONAL
INFORMATION TOTAL COMPANY EBITDA 2005 2004 (MILLIONS) Quarter
Quarter
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Cash flow used in operating activities $(22.6) $(66.5) Add
(deduct): Changes in non-cash operating assets and liabilities 66.4
72.3 Income tax expense 2.1 (1.0) Interest expense 10.3 11.4
Interest in real estate expenses 1.2 2.2
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57.4 18.4 Interest and other income, net of non-cash items (0.8)
(2.7)
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Total Company EBITDA $56.6 $15.7
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RESORT AND TRAVEL OPERATIONS EBITDA 2005 2004 (MILLIONS) Quarter
Quarter
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Resort and travel operations revenue $166.1 $129.3 Resort and
travel operations expenses 159.8 122.2
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Resort and travel operations EBITDA $6.3 $7.1
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MANAGEMENT SERVICES EBITDA 2005 2004 (MILLIONS) Quarter Quarter
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Management services revenue $36.0 $35.1 Management services
expenses 32.1 29.4
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Management services EBITDA $3.9 $5.7
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REAL ESTATE DEVELOPMENT EBITDA 2005 2004 (MILLIONS) Quarter Quarter
-------------------------------------------------------------------------
Real estate development contribution $50.7 $5.1 Interest in real
estate expenses 1.2 2.2
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Real estate development EBITDA $51.9 $7.3
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QUARTERLY FINANCIAL SUMMARY (Restated) (in millions, except per
share amounts) Q1-06 Q4-05 Q3-05 Q2-05 Q1-05 Q4-04 Q3-04 Q2-04
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Total revenue $301.8 $533.7 $501.0 $437.0 $205.6 $490.3 $435.4
$399.9 Net income (loss) 9.2 (19.2) 66.8 (7.7) (7.1) 3.7 55.1 1.0
Per common share: Net income (loss) Basic 0.19 (0.40) 1.40 (0.16)
(0.15) 0.08 1.16 0.02 Diluted 0.19 (0.40) 1.39 (0.16) (0.15) 0.08
1.15 0.02 Several factors impact comparability between quarters: -
The timing of acquisitions. In the first quarter of 2005 we
acquired 67% of A&K and in the second quarter of 2005 we
acquired the 55% of Alpine Helicopters that we did not already own.
- The seasonality of our resort and travel operations. Revenue and
EBITDA from this business are weighted disproportionately to our
third quarter. - The timing of project completions and real estate
closings. Generally we close more units in the fourth quarter. -
The timing of refinancings. In the second quarter of both 2004 and
2005 we redeemed senior notes and expensed call premium and
unamortized financing costs. - The timing of recording reserves and
valuation adjustments. In the fourth quarter of 2005 we wrote down
the value of our stand- alone golf courses. OUTSTANDING SHARE DATA
As at November 4, 2005, we have issued and there are outstanding
48,338,526 common shares and stock options exercisable for
3,785,600 for common shares. A conference call is scheduled for
Monday, November 7, 2005 at 4:00pm ET (1:00pm PT) to review
Intrawest's fiscal 2006 first quarter results. To access the call
dial 1-800-921-9431 before the scheduled start time. A playback
version of the conference call will be available until November 14,
2005 at 1-877-519-4471 with password 6620384. The call will also be
webcast live on http://www.intrawest.com/. Intrawest Corporation
(IDR:NYSE; ITW:TSX) is a world leader in destination resorts and
adventure travel. The company has interests in 10 resorts at North
America's most popular mountain destinations, including Whistler
Blackcomb, a host venue for the 2010 Winter Olympic and Paralympic
Games. Intrawest owns Canadian Mountain Holidays, the largest
heli-skiing operation in the world, and an interest in Abercrombie
& Kent, the world leader in luxury adventure travel. The
Intrawest network also includes Sandestin Golf and Beach Resort in
Florida and Club Intrawest - a private resort club with nine
locations throughout North America. Intrawest develops real estate
at its resorts and at other locations across North America and in
Europe. Intrawest is headquartered in Vancouver, British Columbia.
For more information, visit http://www.intrawest.com/. For
additional information, please contact Mr. John Currie, chief
financial officer, at (604) 669-9777 or Mr. Tim McNulty, director,
investor relations at (604) 623-6620 or at If you would like to
receive future news releases by email, please contact INTRAWEST
CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of United
States dollars) SEPTEMBER 30, JUNE 30, 2005 2005 (UNAUDITED)
(AUDITED)
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(Restated) ASSETS CURRENT ASSETS: Cash and cash equivalents $
118,446 $ 140,878 Amounts receivable 155,940 162,102 Other assets
224,574 188,211 Resort properties 405,747 388,510 Future income
taxes 29,938 29,927
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934,645 909,628 Amounts receivable 87,004 78,877 Resort and travel
operations 1,074,886 1,034,187 Resort properties 441,771 403,252
Other assets 87,552 85,181 Investment in and advances to
partnerships 96,658 109,037 Goodwill 24,275 27,483
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$ 2,746,791 $ 2,647,645
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LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Amounts
payable $ 277,527 $ 275,176 Deferred revenue and deposits 227,356
201,313 Bank and other indebtedness 119,095 82,144
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623,978 558,633 Deferred revenue and deposits 122,995 132,866 Bank
and other indebtedness 960,475 941,279 Future income taxes 88,514
92,010 Non-controlling interest in subsidiaries 67,662 76,339
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1,863,624 1,801,127 SHAREHOLDERS' EQUITY: Capital stock 473,608
469,162 Retained earnings 351,180 342,013 Foreign currency
translation adjustment 58,379 35,343
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883,167 846,518
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$ 2,746,791 $ 2,647,645
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INTRAWEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND
RETAINED EARNINGS FOR THE THREE MONTHS ENDED SEPTEMBER 30 (in
thousands of United States dollars except per share amounts)
(unaudited) 2005 2004
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(Restated) RESORT AND TRAVEL OPERATIONS: Revenue $ 166,083 $
129,300 Expenses 159,806 122,224
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Resort and travel operations contribution 6,277 7,076
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MANAGEMENT SERVICES: Revenue 35,968 35,080 Expenses 32,107 29,370
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Management services contribution 3,861 5,710
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REAL ESTATE DEVELOPMENT: Revenue 98,694 38,792 Expenses 48,586
34,111
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50,108 4,681 Income from equity accounted investments 589 460
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Real estate development contribution 50,697 5,141
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Income before undernoted items 60,835 17,927 Interest and other
income 479 2,045 Interest expense (10,296) (11,372) Corporate
general and administrative expenses (5,375) (4,453) Depreciation
and amortization (12,908) (11,337)
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Income (loss) before income taxes and non-controlling interest
32,735 (7,190) Provision for income taxes (2,136) 1,001
Non-controlling interest (21,432) (879)
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Net income (loss) for the period 9,167 (7,068)
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Retained earnings, beginning of period, as previously stated
345,348 318,883 Prior period adjustment (3,335) (3,536)
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Retained earnings, beginning of period, as restated 342,013 315,347
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Retained earnings, end of period $ 351,180 $ 308,279
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Income (loss) per common share: Basic $ 0.19 $ (0.15) Diluted $
0.19 $ (0.15)
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Weighted average number of common shares outstanding (in thousands)
Basic 48,151 47,622 Diluted 48,770 47,622
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INTRAWEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
THREE MONTHS ENDED SEPTEMBER 30 (in thousands of United States
dollars)(unaudited) 2005 2004
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(Restated) CASH PROVIDED BY (USED IN): OPERATIONS: Net income
(loss) $ 9,167 $ (7,068) Items not affecting cash: Depreciation and
amortization 12,908 11,337 Income from equity accounted investments
(589) (460) Amortization of financing costs 649 590 Stock-based
compensation 283 210 Amortization of benefit plan - 277
Non-controlling interest 21,432 879 Gain on asset disposals (25) -
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Funds from operations 43,825 5,765 Recovery of costs through real
estate sales 48,586 34,111 Acquisition and development of
properties held for sale (72,025) (76,594) Changes in long-term
amounts receivable, net (8,127) (5,085) Changes in non-cash
operating working capital (34,847) (24,698)
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(22,588) (66,501) FINANCING: Proceeds from bank and other
borrowings 85,627 90,458 Repayments of bank and other borrowings
(43,031) (29,691) Issue of common shares for cash 4,163 274
Distributions to non-controlling interest (29,193) (2,315)
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17,566 58,726 INVESTMENTS: Proceeds from (expenditures on): Resort
and travel operations assets (28,142) (17,422) Investment in
partnerships 12,829 (1,903) Other assets (2,271) (5,245) Cash
acquired in acquisition, net of acquisition cost - 15,677 Asset
disposals 174 -
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(17,410) (8,893)
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Decrease in cash and cash equivalents (22,432) (16,668) Cash and
cash equivalents, beginning of period 140,878 109,816
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Cash and cash equivalents, end of period $ 118,446 $ 93,148
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DATASOURCE: Intrawest Corporation CONTACT: Mr. John Currie, chief
financial officer, at (604) 669-9777 or Mr. Tim McNulty, director,
investor relations at (604) 623-6620 or at , If you would like to
receive future news releases by email, please contact
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