DENVER--(BUSINESS WIRE)--Intrawest Resorts Holdings, Inc. (NYSE: SNOW), a leading North American mountain resort and adventure company, today reported results for the three and twelve months ended June 30, 2016.
Financial Highlights
- Fiscal 2016 Net income attributable to Intrawest Resorts Holdings, Inc. improved to $40.9 million versus a loss of $6.9 million in fiscal 2015.
- Fiscal 2016 Adjusted EBITDA grew by 0.4% to $113.1 million compared to the prior year, or 11.2% on a same store basis*.
- Fiscal 2016 Total segment revenue decreased by 2.4% to $568.2 million compared to the prior year, and increased 3.3% on a same store basis*.
- Sales of season pass and frequency products for the 2016/2017 season were up approximately 16% as of September 4, 2016 versus the same time last year.
- Canadian Mountain Holidays ("CMH") sales for winter reservations were up approximately 9.5% as of September 4, 2016 versus the same time last year.
“Outstanding performances at our Colorado resorts and CMH allowed us to deliver another year of double-digit Same Store Adjusted EBITDA growth despite one of the most challenging seasons on record at our Eastern resorts,” stated Tom Marano, Chief Executive Officer. “I believe our results reflect the importance and strength of our season pass and frequency product program, our ability to manage and reduce costs, and the impact of our technology and growth capital investments. We are excited for the upcoming ski season and look forward to building on the success of fiscal 2016.”
*Same store growth calculated in constant currency, as if 100% of Blue Mountain was owned during all periods, and excluding Intrawest Resort Club Group during all periods, which was sold on January 29, 2016 ("Same Store").
Fiscal Year Ended June 30, 2016
Below are the Company's
results for the fiscal year ended June 30, 2016 as compared to the prior
year:
Consolidated Results
- Consolidated revenue decreased by $16.7 million, or 2.8%, to $570.9 million.
- Net income attributable to Intrawest Resorts Holdings, Inc. improved by $47.8 million to $40.9 million, or $0.95 and $0.94 per basic and diluted share, respectively. This growth was primarily attributable to the $40.4 million gain on the sale of Intrawest Resort Club Group ("IRCG") to Diamond Resorts Corporation.
- Total Adjusted EBITDA grew by $0.4 million, or 0.4%, to $113.1 million. The increase was largely driven by growth in the Adventure Segment from higher guest nights and yields at CMH and increased fire suppression activity in ancillary aviation services. The Adventure Segment growth was partially offset by decreases in the Mountain Segment, which was largely due to unprecedented warmth and lack of snowfall at the Company’s Eastern resorts, and in the Real Estate Segment, which declined due to the sale of IRCG. On a Same Store basis, Total Adjusted EBITDA grew 11.2%.
Mountain Segment
- Mountain revenue decreased by $4.6 million, or 1.1%, to $421.3 million, primarily due to an unfavorable foreign currency adjustment of $14.9 million. Excluding the foreign currency adjustment, Mountain revenue increased $10.3 million, or 2.4%. The increase was primarily attributable to owning Blue Mountain for the entire fiscal 2016 period whereas Mountain revenue in fiscal 2015 only included 100% of Blue Mountain revenue subsequent to the Acquisition Date.
- Mountain Adjusted EBITDA decreased by $4.6 million, or 5.2%, to $84.3 million, primarily due to the $4.6 million decrease in Mountain revenue.
- On a Same Store basis, Mountain revenue was flat, and Mountain Adjusted EBITDA decreased by $2.6 million, or 2.9%.
Adventure Segment
- Adventure revenue increased by $7.6 million, or 7.9%, to $104.4 million, primarily due to an increase in guest nights, higher yields and operating one additional lodge for summer operations at CMH.
- Adventure Adjusted EBITDA increased by $8.8 million, or 66.4%, to $22.1 million, primarily due to a $7.6 million increase in Adventure revenue coupled with a $1.9 million decrease in Adventure operating expenses.
- On a Same Store basis, Adventure revenue increased by $19.1 million, or 19.7%, and Adventure Adjusted EBITDA increased by $12.0 million, or 90.5%.
Real Estate Segment
- Real Estate revenue decreased by $16.8 million, or 28.4%, to $42.4 million, largely due to the disposition of the IRCG business.
- Real Estate Adjusted EBITDA decreased by $3.8 million, or 36.4%, to $6.6 million, primarily due to a $16.8 million decrease in Real Estate revenue, partially offset by a $14.4 million decrease in Real Estate operating expenses.
- On a Same Store basis, Real Estate revenue increased by $0.3 million, or 0.9%, and Real Estate Adjusted EBITDA increased by $2.3 million, or 90.9%.
Fiscal 2017 Outlook
For the full fiscal year 2017, the
Company expects:
| For The Year Ending | |||||||||
| June 30, 2017 | |||||||||
| Fiscal 2017 Guidance |
Low End |
High End |
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| Mountain revenue | $ | 440 | $ | 460 | |||||
| Adventure revenue | 90 | 95 | |||||||
| Real Estate revenue | 25 | 30 | |||||||
| Total segment revenue * | 555 | 585 | |||||||
| Mountain Adjusted EBITDA | 106 | 112 | |||||||
| Adventure Adjusted EBITDA | 17 | 19 | |||||||
| Real Estate Adjusted EBITDA | 5 | 6 | |||||||
| Total Adjusted EBITDA * | 129 | 136 | |||||||
| Net income attributable to Intrawest Resorts Holdings, Inc. | $ | 20 | $ | 30 | |||||
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*Note: The sum of the guidance provided for the individual segments may not equal total guidance due to rounding. |
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The Company's outlook for fiscal 2017 assumes a USD/CAD exchange rate of 1.30 and average snowfall and weather conditions.
Webcast and Earnings Conference Call
The Company will host a
conference call via live webcast for investors and other interested
parties beginning at 9:00 a.m. Eastern Time on Thursday, September 8,
2016. Participants may access the live webcast by visiting the Company’s
investor relations website at ir.intrawest.com. The call can also
be accessed by dialing (877) 705-6003, or (201) 493-6725 for
international participants.
The replay of the call will be available from approximately 12:00 p.m. Eastern Time on September 8, 2016 through midnight Eastern Time on September 22, 2016. To access the replay, the domestic dial-in number is (877) 870-5176, the international dial-in number is (858) 384-5517, and the passcode is 13644372. The archive of the webcast will be available on the Company’s website for a limited time.
About Intrawest Resorts Holdings, Inc.
Intrawest is a North
American mountain resort and adventure company, delivering distinctive
vacation and travel experiences to its customers for over three decades.
The Company wholly owns six four-season mountain resorts with
approximately 8,000 skiable acres and over 1,120 acres of land available
for real estate development. Intrawest’s mountain resorts are
geographically diversified across most of North America’s major ski
regions, including the Eastern United States, the Rocky Mountains, and
Canada. The Company also operates an adventure travel business, the
cornerstone of which is Canadian Mountain Holidays, a leading
heli-skiing adventure company in North America. Additionally, the
Company operates a comprehensive real estate business through which it
manages condominium hotel properties and sells and markets residential
real estate. Intrawest Resorts Holdings, Inc. common stock is traded on
the New York Stock Exchange (NYSE: SNOW). For more information, visit www.intrawest.com.
Forward-Looking Statements
This press release includes
“forward - looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words such as “anticipate”, “believe”, “intend”, “expect”, “estimate”,
“plan”, “outlook” and “project” and other similar expressions that
predict or indicate future events or trends or that are not statements
of historical matters. We have based these forward-looking statements
largely on our current expectations and projections about future events
and trends that we believe may affect our financial condition, results
of operations, business strategy, short-term and long-term business
operations and objectives, and financial needs. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions, including weakness in general economic conditions; lack of
adequate snowfall and unfavorable weather conditions; lack of access to
adequate supplies of water to make snow and otherwise conduct our
operations; adverse events that occur during our peak operating periods;
our failure to achieve the expected benefits of our strategic alliance,
real estate development, acquisition and other growth strategies;
Steamboat Ski & Resort's dependence on contracted direct air service;
risks related to information technology; our potential failure to
maintain the integrity of our customer or employee data; risks of
foreign currency fluctuations which could reduce the U.S. dollar value
of our Canadian earnings; adverse consequences of ongoing legacy
litigation or future legal claims; our ability to monetize real estate
assets; a partial or complete loss of Alpine Helicopters’ services; the
effects of climate change on our business operations; our ability to
maintain effective internal control over financial reporting; our
substantial leverage, which could adversely affect our ability to raise
additional capital to support our growth strategy; our limited public
float and therefore trading volume; risks associated with Fortress’s
ownership of a majority of our outstanding common stock and other risks
described under the caption “Risk Factors” in Part I - Item 1A., “Risk
Factors” in our Annual Report on Form 10-K for the period ended June 30,
2016, filed with the Securities and Exchange Commission (“SEC”) on
September 8, 2016, as may be revised in our future SEC filings. We
operate in a competitive and rapidly changing environment. New risks
emerge from time to time. It is not possible for our management to
predict all risks, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in
any forward-looking statements we may make. In light of these risks,
uncertainties and assumptions, the future events and trends discussed in
this release may not occur and actual results could differ materially
and adversely from those anticipated or implied in the forward-looking
statements. We undertake no obligation to revise or publicly release the
results of any revision to these forward-looking statements, except as
required by law. Given these risks and uncertainties, readers are
cautioned not to place undue reliance on such forward-looking statements.
|
INTRAWEST RESORTS HOLDINGS, INC. Consolidated Statements of Operations (In thousands, except per share data) |
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Three Months Ended |
Year Ended June 30, | |||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
| Revenue | $ | 65,051 | $ | 70,590 | $ | 570,912 | $ | 587,589 | ||||||||||||||
| Operating expenses | 96,222 | 97,053 | 474,453 | 492,917 | ||||||||||||||||||
| Depreciation and amortization | 15,321 | 15,011 | 60,123 | 59,076 | ||||||||||||||||||
| (Gain) on sale of Intrawest Resort Club Group | 80 | — | (40,401 | ) | — | |||||||||||||||||
| (Gain) loss on disposal of assets | (1,233 | ) | (1,154 | ) | (1,926 | ) | (2,280 | ) | ||||||||||||||
| Loss on remeasurement of equity method investment | — | — | — | 1,454 | ||||||||||||||||||
| Income (loss) from operations | (45,339 | ) | (40,320 | ) | 78,663 | 36,422 | ||||||||||||||||
| Interest income | 703 | 1,009 | 2,863 | 4,185 | ||||||||||||||||||
| Interest expense on third party debt | (9,739 | ) | (10,168 | ) | (40,377 | ) | (43,891 | ) | ||||||||||||||
| Earnings (loss) from equity method investments | (2,086 | ) | (3,505 | ) | 1,933 | (3,810 | ) | |||||||||||||||
| Loss on extinguishment of debt | — | (676 | ) | — | (676 | ) | ||||||||||||||||
| Other income (expense), net | (2,269 | ) | (461 | ) | 1,757 | (1,231 | ) | |||||||||||||||
| Income (loss) before income taxes | (58,730 | ) | (54,121 | ) | 44,839 | (9,001 | ) | |||||||||||||||
| Income tax expense (benefit) | 244 | (1,516 | ) | 1,773 | (3,902 | ) | ||||||||||||||||
| Net income (loss) | (58,974 | ) | (52,605 | ) | 43,066 | (5,099 | ) | |||||||||||||||
| Income attributable to noncontrolling interest | 246 | 961 | 2,193 | 1,821 | ||||||||||||||||||
| Net income (loss) attributable to Intrawest Resorts Holdings, Inc. | $ | (59,220 | ) | $ | (53,566 | ) | $ | 40,873 | $ | (6,920 | ) | |||||||||||
| Weighted average shares of common stock outstanding: | ||||||||||||||||||||||
| Basic | 39,736 | 45,183 | 43,236 | 45,099 | ||||||||||||||||||
| Diluted | 39,736 | 45,183 | 43,270 | 45,099 | ||||||||||||||||||
| Net income (loss) attributable to Intrawest Resorts Holdings, Inc. per share: | ||||||||||||||||||||||
| Basic | $ | (1.49 | ) | $ | (1.19 | ) | $ | 0.95 | $ | (0.15 | ) | |||||||||||
| Diluted | $ | (1.49 | ) | $ | (1.19 | ) | $ | 0.94 | $ | (0.15 | ) | |||||||||||
Statement Concerning Non-GAAP Financial Measures
We use
Adjusted EBITDA as a measure of our operating performance. Adjusted
EBITDA is a supplemental non-GAAP financial measure.
Our board of directors and management team focus on Adjusted EBITDA as a key performance and compensation measure. Adjusted EBITDA assists us in comparing our performance over various reporting periods because it removes from our operating results the impact of items that our management believes do not reflect our core operating performance. The compensation committee of our board of directors will determine the annual variable compensation for certain members of our management team, based in part, on Adjusted EBITDA.
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA to compare the performance of those companies to our performance. Adjusted EBITDA should not be considered as a measure of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to our GAAP results and using Adjusted EBITDA as a supplemental measure.
|
Mountain Segment (dollars in thousands) |
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|
Three Months Ended |
Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | Change |
% |
2016 | 2015 | Change |
% |
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| Skier Visits | 185,802 | 202,400 | (16,598 | ) | (8.2 | )% | 3,606,394 | 4,192,492 | (586,098 | ) | (14.0 | )% | |||||||||||||||||||||||||||
| Revenue per Visit | $ | 95.46 | $ | 87.93 | $ | 7.53 | 8.6 | % | $ | 94.92 | $ | 86.03 | $ | 8.89 | 10.3 | % | |||||||||||||||||||||||
| ETP | $ | 41.49 | $ | 39.03 | $ | 2.46 | 6.3 | % | $ | 48.18 | $ | 42.21 | $ | 5.97 | 14.1 | % | |||||||||||||||||||||||
| RevPAR | $ | 33.52 | $ | 32.68 | $ | 0.84 | 2.6 | % | $ | 61.88 | $ | 62.79 | $ | (0.91 | ) | (1.4 | )% | ||||||||||||||||||||||
| ADR | $ | 125.92 | $ | 127.56 | $ | (1.64 | ) | (1.3 | )% | $ | 151.56 | $ | 158.02 | $ | (6.46 | ) | (4.1 | )% | |||||||||||||||||||||
| Mountain Revenue: | |||||||||||||||||||||||||||||||||||||||
| Lift | $ | 9,087 | $ | 9,195 | $ | (108 | ) | (1.2 | )% | $ | 179,841 | $ | 182,286 | $ | (2,445 | ) | (1.3 | )% | |||||||||||||||||||||
| Lodging | 9,353 | 9,276 | 77 | 0.8 | % | 60,129 | 57,814 | 2,315 | 4.0 | % | |||||||||||||||||||||||||||||
| Ski School | 928 | 1,324 | (396 | ) | (29.9 | )% | 30,974 | 33,086 | (2,112 | ) | (6.4 | )% | |||||||||||||||||||||||||||
| Retail and Rental | 3,750 | 4,329 | (579 | ) | (13.4 | )% | 51,984 | 56,125 | (4,141 | ) | (7.4 | )% | |||||||||||||||||||||||||||
| Food and Beverage | 6,472 | 6,432 | 40 | 0.6 | % | 57,234 | 56,726 | 508 | 0.9 | % | |||||||||||||||||||||||||||||
| Other | 7,191 | 6,313 | 878 | 13.9 | % | 41,170 | 39,892 | 1,278 | 3.2 | % | |||||||||||||||||||||||||||||
| Mountain revenue | $ | 36,781 | $ | 36,869 | $ | (88 | ) | (0.2 | )% | $ | 421,332 | $ | 425,929 | $ | (4,597 | ) | (1.1 | )% | |||||||||||||||||||||
| Mountain Adjusted EBITDA | $ | (26,447 | ) | $ | (25,222 | ) | $ | (1,225 | ) | 4.9 | % | $ | 84,334 | $ | 88,972 | $ | (4,638 | ) | (5.2 | )% | |||||||||||||||||||
|
Adventure Segment (dollars in thousands) |
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|
Three Months Ended |
Year Ended June 30, | |||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | Change |
% |
2016 | 2015 | Change |
% |
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| Adventure revenue | $ | 18,939 | $ | 19,362 | $ | (423 | ) | (2.2 | )% | $ | 104,405 | $ | 96,799 | 7,606 | 7.9 | % | ||||||||||||||||||||||
| Adventure Adjusted EBITDA | $ | (471 | ) | $ | 538 | $ | (1,009 | ) | (187.5 | )% | $ | 22,146 | $ | 13,305 | 8,841 | 66.4 | % | |||||||||||||||||||||
|
Real Estate Segment (dollars in thousands) |
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|
Three Months Ended |
Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | Change |
% |
2016 | 2015 | Change |
% |
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| Real Estate revenue | $ | 9,245 | $ | 11,416 | $ | (2,171 | ) | (19.0 | )% | $ | 42,433 | $ | 59,274 | $ | (16,841 | ) | (28.4 | )% | |||||||||||||||||||||
| Real Estate Adjusted EBITDA | $ | (191 | ) | $ | 966 | $ | (1,157 | ) | (119.8 | )% | $ | 6,625 | $ | 10,423 | $ | (3,798 | ) | (36.4 | )% | ||||||||||||||||||||
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Total Segment Revenue and Adjusted EBITDA (dollars in thousands) |
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|
Three Months Ended |
Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | Change |
% |
2016 | 2015 | Change |
% |
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| Total segment revenue | $ | 64,965 | $ | 67,647 | $ | (2,682 | ) | (4.0 | )% | $ | 568,170 | $ | 582,002 | $ | (13,832 | ) | (2.4 | )% | |||||||||||||||||||||
| Total Adjusted EBITDA | $ | (27,109 | ) | $ | (23,718 | ) | $ | (3,391 | ) | 14.3 | % | $ | 113,105 | $ | 112,700 | $ | 405 | 0.4 | % | ||||||||||||||||||||
The following tables present segment revenue reconciled to consolidated revenue and net income (loss) attributable to the Company reconciled to Adjusted EBITDA and Adjusted EBITDA by segment, (in thousands):
|
Three Months Ended |
Year Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||
| Mountain | |||||||||||||||||||||||||
| Lift | $ | 9,087 | $ | 9,195 | $ | 179,841 | $ | 182,286 | |||||||||||||||||
| Lodging | 9,353 | 9,276 | 60,129 | 57,814 | |||||||||||||||||||||
| Ski School | 928 | 1,324 | 30,974 | 33,086 | |||||||||||||||||||||
| Retail and Rental | 3,750 | 4,329 | 51,984 | 56,125 | |||||||||||||||||||||
| Food and Beverage | 6,472 | 6,432 | 57,234 | 56,726 | |||||||||||||||||||||
| Other | 7,191 | 6,313 | 41,170 | 39,892 | |||||||||||||||||||||
| Total Mountain revenue | 36,781 | 36,869 | 421,332 | 425,929 | |||||||||||||||||||||
| Adventure revenue | 18,939 | 19,362 | 104,405 | 96,799 | |||||||||||||||||||||
| Real Estate revenue | 9,245 | 11,416 | 42,433 | 59,274 | |||||||||||||||||||||
| Total segment revenue | 64,965 | 67,647 | 568,170 | 582,002 | |||||||||||||||||||||
| Legacy, non-core and other revenue | 86 | 2,943 | 2,742 | 5,587 | |||||||||||||||||||||
| Total revenue | $ | 65,051 | $ | 70,590 | $ | 570,912 | $ | 587,589 | |||||||||||||||||
| Net income (loss) attributable to Intrawest Resorts Holdings, Inc. | $ | (59,220 | ) | $ | (53,566 | ) | $ | 40,873 | $ | (6,920 | ) | ||||||||||||||
| Legacy and other non-core expenses, net | 1,767 | 919 | 6,226 | 3,663 | |||||||||||||||||||||
| Other operating expenses | 2,921 | 2,327 | 8,074 | 9,789 | |||||||||||||||||||||
| Depreciation and amortization | 15,320 | 15,011 | 60,123 | 59,076 | |||||||||||||||||||||
| (Gain) on sale of Intrawest Resort Club Group | 80 | — | (40,401 | ) | — | ||||||||||||||||||||
| Loss (gain) on disposal of assets | (1,233 | ) | (1,154 | ) | (1,926 | ) | (2,280 | ) | |||||||||||||||||
| Loss on remeasurement of equity method investment | — | — | — | 1,454 | |||||||||||||||||||||
| Interest income, net | (701 | ) | (102 | ) | (936 | ) | (274 | ) | |||||||||||||||||
| Interest expense on third party debt | 9,738 | 10,168 | 40,377 | 43,891 | |||||||||||||||||||||
| (Earnings) loss from equity method investments | 2,086 | 3,505 | (1,933 | ) | 3,810 | ||||||||||||||||||||
| Pro rata share of Adjusted EBITDA related to equity method investments | (94 | ) | (85 | ) | 3,570 | 3,252 | |||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | (532 | ) | (1,324 | ) | (3,151 | ) | (2,484 | ) | |||||||||||||||||
| Loss on extinguishment of debt | — | 676 | — | 676 | |||||||||||||||||||||
| Other (income) expense, net | 2,269 | 462 | (1,757 | ) | 1,128 | ||||||||||||||||||||
| Income tax expense (benefit) | 244 | (1,516 | ) | 1,773 | (3,902 | ) | |||||||||||||||||||
| Income attributable to noncontrolling interest | 246 | 961 | 2,193 | 1,821 | |||||||||||||||||||||
| Total Adjusted EBITDA | $ | (27,109 | ) | $ | (23,718 | ) | $ | 113,105 | $ | 112,700 | |||||||||||||||
| Mountain Adjusted EBITDA | $ | (26,447 | ) | $ | (25,222 | ) | $ | 84,334 | $ | 88,972 | |||||||||||||||
| Adventure Adjusted EBITDA | (471 | ) | 538 | 22,146 | 13,305 | ||||||||||||||||||||
| Real Estate Adjusted EBITDA | (191 | ) | 966 | 6,625 | 10,423 | ||||||||||||||||||||
| Total Adjusted EBITDA | $ | (27,109 | ) | $ | (23,718 | ) | $ | 113,105 | $ | 112,700 | |||||||||||||||