Intrawest Corporation, the leading operator and developer of village-centered resorts across North America, today announced results for its fiscal 2002 first quarter ended September 30, 2001.
Despite the events of September 11, Intrawest`s results from ski and resort operations for the quarter exceeded those of the same quarter last year, primarily reflecting the success of cost-control measures initiated last year. These results were offset by lower real estate earnings, which were expected due to the weighting of real estate project completions more to the third and fourth quarters of this fiscal year than in the previous year. Closed units and pre-sold units scheduled to close in fiscal 2002 now amount to approximately $405 million, representing 107 per cent of real estate sales revenue (excluding Club Intrawest) reported in fiscal 2001.
“We are encouraged by our performance in the quarter in the context of the events of September 11,” said Joe Houssian, Intrawest`s chairman, president and chief executive officer. “With season pass and frequency card revenues running 27 per cent ahead of last year, destination bookings at 87 per cent of last year`s record levels, and momentum building, our outlook for the season is one of cautious optimism, recognizing the current economic uncertainty.”
Total revenue for the quarter was $93.7 million compared with $129.9 million for the same period last year. Total company EBITDA (earnings before interest, taxes, non-controlling interest, depreciation and amortization) was $7.2 million compared with $15.5 million in 2000. Net loss from continuing operations was $9.8 million or $0.22 per share compared with a loss of $3.2 million or $0.07 per share in 2000.
Ski and resort operations revenue was $58.7 million compared with $63.2 million in the same quarter of 2000, with $4.1 million of the decline accounted for by Intrawest`s decision to turn management of the waterpark at Mountain Creek over to a third-party operator. Ski and resort operations EBITDA for the quarter increased from $1.5 million to $2 million as a result of cost-control measures initiated last year. Revenue from warm-weather resorts was the same as last year at $17.7 million.
The decline in total revenue and total company EBITDA is the result of a much higher proportion of real estate project completions occurring in the second half of this fiscal year. This timing led to a decline in real estate revenue for the quarter to $33.1 million. Based on Intrawest`s current expectations for project completions in 2002, the company expects to close about 75 per cent of the units in the third and fourth quarters. Real estate profit was $4.9 million compared with $12.1 million in the same period last year. Resort Club sales in the quarter were $8.9 million, down 2.2 per cent, with the decline occurring in September.
Season pass and frequency card revenue is up 27 per cent from last year. Pass sales were higher at every one of Intrawest`s 10 mountain resorts. Room night bookings across the resorts stand at about 87 per cent of last year`s level with particular strength in our eastern North American resorts, some of which are running ahead of last year. Positive momentum in the past few weeks continues to narrow the gap relative to last year.
Intrawest`s Board of Directors today declared a dividend of Cdn$0.08 per common share payable on January 23, 2002 to shareholders of record on January 9, 2002.