Intrawest Corporation, the leading developer and operator of village-centered resorts across North America, today announced that income from continuing operations for the second quarter ended December 31, 2000 was $10.7 million, or 25 cents per share, compared with $4.3 million, or 10 cents per share for the quarter ended December 31, 1999. The results for the quarter included a non-cash income tax recovery of $5.2 million related to a reduction in the recorded amount of the company`s future income tax liabilities due to substantively enacted income tax rate reductions announced in the October 2000 Canadian federal budget. Revenue for the quarter increased 43% to $207.0 million, from $145.2 million in the same quarter last year. Total Company EBITDA for the period increased 33% to $34.7 million from $26.0 million in the second quarter of 1999.
Income from continuing operations for the six months ended December 31, 2000 was $7.5 million, or 17 cents per share on revenue of $336.9 million, compared with income from continuing operations of $1.1 million, or 3 cents per share, on revenue of $270.5 million, reported in the six months ended December 31, 1999.
“We are particularly pleased with the results at Tremblant, Copper, Snowshoe and Stratton where the positive impact of our village expansions confirms the strength of our strategy,” said Joe Houssian, chairman, president and chief executive officer.
Ski and resort operations revenue was $94.3 million in the second quarter, increasing 16% from the $81.6 million in the same period last year. This growth was attributed primarily to a substantial increase in the available accommodation at the company`s resorts, the impact of the large investment in facilities and villages over the past three years, and, to a lesser extent, a return to normal weather patterns after the unusual winters of the past two years. For the six month period ended December 31, 2000, ski and resort operations revenue increased 16% to $157.5 million from $136.3 million for the comparable period ended December 31, 1999.
Operating profit from ski and resort operations for the second quarter was $15.7 million, increasing 55% from $10.1 million last year. Operating leverage from the strong revenue growth improved profit margins from 12.4% to 16.7%. For the six months ended December 31, 2000, operating profit from ski and resort operations increased 85% to $17.3 million from $9.3 million in the same period last year.
Real estate revenue was $110.8 million for the second quarter, an increase of 82% from $60.9 million reported in the same quarter last year. Approximately two-thirds of the revenue was generated by the delivery of units at Copper and Mammoth. The company`s unique vacation ownership concept, Club Intrawest, had a strong second quarter with revenue increasing 31% to $6.8 million from $5.2 million in the comparable period in 1999. Operating profit from real estate sales totaled $14.7 million for the quarter, up 10% from $13.4 million last year. The profit margin of 13.3% reflects the mix of units and the relative weighting of closings from the less mature resort villages of Copper and Mammoth. For the six month period ended December 31, 2000, real estate revenue and operating profit were $174.5 million and $26.8 million respectively, compared with $128.1 million and $23.7 million in the corresponding period last year. The profit margin for the six months was 15.4%.
“These strong quarterly results provide further evidence that the company is able to sustain significant rates of growth without acquisitions,” said Daniel Jarvis, executive vice president and chief financial officer.
Intrawest is the leading developer and operator of village-centered resorts across North America. The company owns Whistler/Blackcomb, North America`s most popular mountain resort. It also owns Panorama in British Columbia, Blue Mountain in Ontario (50%), Tremblant and Mont Ste. Marie in Quebec, Copper in Colorado, Stratton in Vermont, Snowshoe Mountain in West Virginia, Mountain Creek in New Jersey, Mammoth in California (59%), and Sandestin Golf and Beach Resort in Florida. The company is creating world-class, four-season resort villages at Keystone, Colorado; Solitude, Utah; Squaw Valley near Lake Tahoe, California; Les Arcs, France; and Lake Las Vegas Resort, Nevada and has a premier vacation ownership business, Club Intrawest. Intrawest has a significant investment in Compagnie des Alpes, the largest ski company in the world in terms of skier visits, and a 45% interest in Alpine Helicopters Ltd., owner of Canadian Mountain Holidays, the largest heli-skiing operation in the world.
Intrawest Corporation`s shares are listed on the New York (IDR) and Toronto (ITW) stock exchanges. The company is headquartered in Vancouver, British Columbia and is located online at www.intrawest.com.
The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. Intrawest`s 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, seasonality, weather conditions, competition, general economic conditions, currency fluctuations and other risks detailed in the company`s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.