PRNewswire-FirstCall VANCOUVER Nov. 10 :
Intrawest Corporation, the world`s leading operator and developer of
village-centered resorts, announced today its results for the fiscal 2004
first quarter ended September 30, 2003. Total revenue for the quarter was
$227.8 million compared with $114.5 million for the same period last year.
Income from continuing operations was $0.9 million or $0.02 per share
compared with a loss of $11.1 million or $0.23 per share in 2002. Total
Company EBITDA (earnings before interest, income taxes, non-controlling
interest, depreciation and amortization) was $25.5 million compared with
$6.5 million in 2002.
Cash flow from continuing operating activities was $18.0 million in the
first quarter of fiscal 2004 compared with negative cash flow of $114.9
million in the same period last year. This positive swing in cash of
$132.8 million was mainly due to increased real estate closings and the
impact of selling the first four projects to Leisura.
“Our successful migration to a less capital-intensive model is reflected
in the positive swing in cash flow this quarter,” said Joe Houssian,
Intrawest`s chairman, president and chief executive officer.
The format of the statement of operations has been changed 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 and profit contribution increased to $54.4
million and $3.5 million, respectively, from $49.1 million and $1.7
million due mainly to strong summer results from mountain operations and
food and beverage. Management services revenue and profit contribution
increased to $24.5 million and $2.6 million, respectively, from $18.1
million and $2.4 million primarily as a result of higher lodging and
property management fees and increased real estate development and sales
services fees. While occupied room nights in the first quarter were
approximately the same as the first quarter last year, average daily rates
increased five per cent.
Revenue from real estate development increased to $144.5 million from
$47.1 million in 2002 as 317 units were closed compared with 87 units last
year. The timing of unit closings is tied to a significant degree to
construction completion and two major projects at Sandestin and Lake Las
Vegas completed construction during the first quarter, allowing the
closing of 229 units. The profit contribution from real estate development
increased to $14.5 million from $3.1 million last year. Resort Club sales
in the quarter were $12.4 million, up from $12.1 million last year.
Closed real estate units and pre-sold units scheduled to close in fiscal
2004 now amount to approximately $480 million. In addition, Leisura has
pre- sales of approximately $280 million due to close in fiscal 2004 and
2005. The Leisura partnerships were established earlier in 2003 with
Manulife Capital in Canada and JPMorgan Fleming in the U.S. to take on the
production phase of Intrawest`s real estate development business.
Intrawest`s Board of Directors today declared a dividend of Cdn$0.08 per
common share payable on January 21, 2004 to shareholders of record on
January 7, 2004.
The term EBITDA does not have a standardized meaning prescribed by
generally accepted accounting principles (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 Additional Information table
A conference call is scheduled for Monday, November 10, 2003 at 4:00 pm ET
(3:00 pm CT, 1:00 pm PT) to review Intrawest`s fiscal 2004 first 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 November 17, 2003 at 1-877-653-0545. The password
to access the playback version is 200319.
Intrawest Corporation (IDR:NYSE; ITW:TSX) is the world`s leading developer
and operator of village-centered resorts. The company owns or controls 10
mountain resorts, including Whistler Blackcomb, North America`s most
popular mountain resort. Intrawest also owns Sandestin Golf and Beach
Resort in Florida and has a premier vacation ownership business, Club
Intrawest. The Company is developing additional resort villages at six
resorts in North America and Europe. The Company has a 45 per cent
interest in Alpine Helicopters Ltd., owner of Canadian Mountain Holidays,
the largest heli-skiing operation in the world. Intrawest is headquartered
in Vancouver, British Columbia and is located on the World Wide Web at
Statements contained in this release that are not historical facts 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,
Intrawest`s ability to implement its business strategies, 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