Intrawest Corporation, the world’s leading operator and developer of
village-centered resorts, announced today its results for the fiscal 2004
second quarter ended December 31, 2003. Total revenue for the quarter was
$398.1 million compared with $212.7 million for the same period last year.
Total Company EBITDA (earnings before interest, income taxes,
non-controlling interest, depreciation and amortization) was $52.0 million
compared with $36.4 million in the same period last year. Income from
continuing operations, before the after-tax cost of expensing the call
premium and unamortized costs on bonds redeemed in the quarter, was $10.6
million or $0.22 per share compared with $3.4 million or $0.07 per share
in the same period last year. After expensing the call premium and
unamortized costs on bonds redeemed in the quarter, income from continuing
operations was $0.2 million or $0.01 per share.Cash flow from continuing operating activities was $84.7 million in the
quarter compared with negative cash flow of $8.2 million in the same
period last year. This positive swing in cash of $92.9 million was mainly
due to higher real estate closings and lower capital requirements as a
result of the Leisura partnerships. For the six months ended December 31,
2003, cash flow from continuing operations was $102.6 million compared
with negative cash flow of $123.1 million for the same period in the
previous year, or a $225.7- million positive swing.
“The significant cash flow generated in the quarter presents clear
evidence that the company’s strategy of moving towards a less capital-
intensive model is succeeding,” said Joe Houssian, Intrawest’s chairman,
president and chief executive officer.
The format of the statement of operations was changed at the beginning of
the fiscal year to reflect the company’s move to a more expertise-based
business model and the growth in management services income. Revenue and
expenses are now broken out into three primary sources: resort operations,
management services and real estate development. Management services
mainly comprise lodging and property management fees, golf course
management fees, RezRez reservations and licensing fees, and real estate
development and sales services fees.
Resort operations revenue increased to $111.3 million from $98.6 million.
This increase was due mainly to the inclusion of a full three months of
revenue from Winter Park, which Intrawest took control of on December 24,
2002, and to the favorable impact on reported revenue of a stronger
Canadian dollar. These two factors were also largely responsible for the
increase in resort operations expenses. The reduction in resort operations
profit contribution to $21.4 million from $22.2 million was primarily due
to the slow start to the season in the East compared with a very strong
start to the prior season.
Management services revenue and profit contribution increased to $24.4
million and $3.5 million, respectively, from $14.7 million and $0.6
million primarily as a result of the inclusion of management fees from
Leisura, higher lodging management fees from increased occupied room
nights, and the improved results of RezRez.
Revenue from real estate development increased to $262.5 million
(including $92.8 million from projects sold to Leisura) from $99.4 million
in the same period last year. Real estate development expenses of $244.1
million in the second quarter include $92.8 million in connection with
projects transferred to Leisura, comprising the cost of these projects and
the land profit, which under Canadian generally accepted accounting
principles (GAAP) is deferred until the units complete construction and
close. Excluding the sale of projects to Leisura, 341 units were closed in
the quarter compared with 243 last year. The profit contribution from real
estate development increased to $18.4 million from $11.8 million last year.
Closed real estate units and pre-sold units scheduled to close in fiscal
2004, including the $92.8 million of revenue for projects sold to Leisura,
now amount to approximately $603 million.
Revenue and Total Company EBITDA for the six months ended December 31,
2003 were $621.4 million and $77.4 million compared with $326.9 million
and $43.0 million, respectively, for the same period last year. Income
from continuing operations for the six months, before expensing the
after-tax cost of the call premium and unamortized costs on bonds redeemed
in the period, was $11.6 million or $0.24 per share compared with a loss
from continuing operations of $7.6 million or $0.16 per share for the same
period last year. After expensing the call premium and unamortized costs
on bonds redeemed, income from continuing operations for the six months
was $1.2 million or $0.02 per share.
The term EBITDA does not have a standardized meaning prescribed by GAAP
and may not be comparable to similarly titled measures presented by other
publicly traded companies. A reconciliation between net earnings as
determined in accordance with Canadian GAAP and EBITDA is presented in the
Statistical Supplement included below.
A conference call is scheduled for Tuesday, February 10, 2004 at 12:00 pm
ET (11:00 am CT, 9:00 am PT) to review Intrawest’s fiscal 2004 second
quarter results. The call will be webcast live on Intrawest’s Web site at
http://www.intrawest.com/. Access to the call can also be obtained by
calling 1-888- 202-2787 (media and retail investors) and 1-888-458-1598
(analysts and institutional investors), using the access code 88228,
before the scheduled start time. A playback version of the conference call
will be available until February 17, 2004 at 1-877-653-0545. The password
to access the playback version is 213186.