Intrawest Reports 2002 Second Quarter Results Real Estate Drives Revenue And EBITDA Growth

Intrawest Corporation, the leading operator and developer of village-centered resorts across North America, today announced results for its fiscal 2002 second quarter ended December 31, 2001.

Revenue for the second quarter was $231.4 million compared with $207.0 million for the quarter ended December 31, 2000. Total company EBITDA (earnings before interest, taxes, non-controlling interest, depreciation and amortization) increased 15 per cent to $40.0 million from $34.7 million in the same period last year. Income from continuing operations for the quarter was $6.0 million or $0.14 per share, on a fully diluted basis, compared with $10.7 million (including a one-time, non-cash income tax recovery of $5.3 million) or $0.24 per share in the same quarter fiscal 2001. Excluding this non-recurring income tax recovery, income from continuing operations would have been $5.4 million or $0.12 per share in the second quarter last year.

“Contrary to some expectations, the weak North American economy and the events of September 11 have not had a dramatic impact on our business,” said Joe Houssian, Intrawest`s chairman, president and chief executive officer.

Revenue and total company EBITDA for the six months ended December 31, 2001 were $325.1 million and $47.2 million, respectively, compared with $336.9 million and $50.3 million, respectively, in the same period last year. Intrawest incurred a loss from continuing operations of $3.7 million for the six months compared with income from continuing operations of $7.5 million ($2.2 million excluding the one-time income tax recovery) last year.

Ski and resort operation revenue was $87.5 million in the second quarter, down from $94.3 million in the same quarter of fiscal 2001 due to late season openings at the eastern resorts caused by unusually warm weather conditions in November and December. This decline in revenue decreased ski and resort operations EBITDA for the quarter to $14.1 million from $15.7 million last year. Tight control over costs, and the delayed hiring of seasonal staff as planned, reduced the impact on earnings of the late start to the season in the East and changes in leisure travel patterns following September 11.


“Solid results at our western resorts tempered the effects of the slow start to the season at our eastern resorts,” said Daniel Jarvis, executive vice president and chief financial officer. “Our performance during these exceptionally challenging times reflects the success of our early cost-control measures and the strength of our resort network.”

Real estate revenue was $141.0 million for the second quarter, an increase of 27 per cent from $110.8 million reported in the same quarter last year. Intrawest closed 450 units during the quarter compared with 343 in the same quarter last year. Real estate profit was $21.1 million compared with $14.7 million in the same period last year. Resort Club sales in the quarter were $7.2 million, six per cent more than the second quarter last year.