Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner
and operator of high-quality, individually branded ski resorts in
the U.S., today reported results for the first quarter of its 2018
fiscal year.
First-Quarter 2018 Highlights and Outlook:
- Revenue of $7.5 million, an increase of 6% over the prior year
period
- Net loss was $8.6 million, or 64 cents per share (basic and
diluted)
- Reported EBITDA* was ($8.3) million
- Cash and cash equivalents of $26.9 million
- Commitment for renewed $15 million acquisition and new $10
million working capital lines of credit
- West Lake Water project on track for 2017/2018 ski season
opening
Timothy D. Boyd, president and chief executive officer,
commented, “Fiscal year 2018 is off to a solid start. We achieved
6% revenue growth in our slowest season and continued to deliver on
our promise to expand Mount Snow’s skiable acres and develop other
important organic growth opportunities.”
Boyd continued, “I’m pleased to report that our EB-5 funded West
Lake Water project at Mount Snow is running ahead of schedule and
the new reservoir is expected to be completely filled by early
November. With adequate weather, this project will enable us to
open the resort with significantly more terrain than in previous
seasons. Our Carinthia Ski Lodge project at Mount Snow also remains
on track to be completed for the 2018/2019 ski season, and we are
awaiting permits for our two latest projects – the Hunter Mountain
expansion and the zip tour at Hidden Valley, which are expected to
begin construction this fall.”
“In conjunction with our succession planning efforts, we
recently announced the promotion of Chris Bub, chief accounting
officer, to CFO, effective October 3. Steve Mueller, our long time
CFO, will remain with the company and on the board, to assist with
the transition and help with special projects and growth
initiatives,” Boyd said.
First Quarter Operating ResultsStephen J.
Mueller, Peak Resorts’ chief financial officer, noted, “We achieved
organic revenue growth of 6% in the first quarter as a result of
stronger food and beverage sales at summer concerts and conferences
held at our resorts. Reported EBITDA* was down $1.4 million largely
due to resort maintenance projects returning to historical
levels. Comparability to fiscal year 2017 is skewed by strict
cost control procedures implemented in fiscal 2017 as we were
awaiting the release of our EB-5 escrow funds.”
*See page 3 for Definitions of Non-GAAP Financial Measures
|
|
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|
|
|
|
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|
|
(dollars in thousands except per share data) |
|
|
Three months ended July 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
7,520 |
|
|
$ |
7,126 |
|
|
Loss from operations |
|
|
$ |
(11,449 |
) |
|
$ |
(10,117 |
) |
|
Net loss |
|
|
$ |
(8,595 |
) |
|
$ |
(7,904 |
) |
|
Loss per share (basic and diluted) |
|
|
$ |
(0.64 |
) |
|
$ |
(0.56 |
) |
|
Weighted average shares outstanding |
|
|
|
13,982 |
|
|
|
13,982 |
|
|
Vested restricted stock units |
|
|
|
50 |
|
|
|
39 |
|
|
Reported EBITDA* |
|
|
$ |
(8,304 |
) |
|
$ |
(6,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
Three months ended July 31, |
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|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Food and beverage |
|
|
$ |
2,830 |
|
|
$ |
2,487 |
|
|
Hotel/lodging |
|
|
$ |
1,841 |
|
|
$ |
1,808 |
|
|
Retail |
|
|
$ |
241 |
|
|
$ |
149 |
|
|
Summer activities |
|
|
$ |
1,881 |
|
|
$ |
1,864 |
|
|
Other |
|
|
$ |
727 |
|
|
$ |
818 |
|
|
Total |
|
|
$ |
7,520 |
|
|
$ |
7,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
Three months ended July 31, |
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2017 |
|
|
|
2016 |
|
|
|
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|
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|
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|
|
|
Resort operating expenses: |
|
|
|
|
|
|
|
|
|
|
Labor and labor related expenses |
|
|
$ |
8,611 |
|
|
$ |
7,707 |
|
|
Retail and food and beverage cost of sales |
|
|
$ |
752 |
|
|
$ |
761 |
|
|
Power and utilities |
|
|
$ |
789 |
|
|
$ |
588 |
|
|
Other |
|
|
$ |
3,387 |
|
|
$ |
2,708 |
|
|
Total |
|
|
$ |
13,539 |
|
|
$ |
11,764 |
|
|
|
|
|
|
|
|
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|
Financial Position Mueller continued, “As
recently announced, we received a commitment from Royal Banks of
Missouri, our primary banking partner, to renew our $15 million
acquisition line of credit and enter into a new $10 million working
capital line of credit that we intend to close this fall. We
intend to roll all amounts currently outstanding under existing
credit facilities with Royal Banks into the renewed acquisition
line. These actions will bolster our strong liquidity
position going into the 2017/2018 ski season and improve
shareholder value.”
Quarterly Investor Call and WebcastPeak Resorts
will hold its first quarter fiscal 2018 investor conference
call/webcast on Thursday, September 7, 2017 at 11 a.m. ET.
The call/webcast will be available via:
Webcast: ir.peakresorts.com on the Events pageConference Call:
844-526-1518 (domestic) or 647-253-8644 (international)
A replay will be available on the Peak Resorts investor
relations website (ir.peakresorts.com) after the call
concludes.
Definitions of Non-GAAP Financial Measures
Reported EBITDA is not a measure of financial performance under
U.S. generally accepted accounting principles (“GAAP”). The company
defines Reported EBITDA as net income before interest, income
taxes, depreciation and amortization, gain on sale/leaseback, other
income or expense and other non-recurring items. The following
table includes a reconciliation of Reported EBITDA to the GAAP
related measure of net loss:
|
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|
Three months ended |
|
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|
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July 31, |
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|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(8,595 |
) |
|
$ |
(7,904 |
) |
|
Income tax benefit |
|
|
(5,727 |
) |
|
|
(5,176 |
) |
|
Interest expense,
net |
|
|
3,011 |
|
|
|
3,048 |
|
|
Depreciation and
amortization |
|
|
3,145 |
|
|
|
3,217 |
|
|
Other income |
|
|
(55 |
) |
|
|
(2 |
) |
|
Gain on
sale/leaseback |
|
|
(83 |
) |
|
|
(83 |
) |
|
|
|
$ |
(8,304 |
) |
|
$ |
(6,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
We have specifically chosen to include Reported EBITDA (which we
define as net income before interest, income taxes, depreciation,
amortization, gain on sale/leaseback, other income and expense and
other non-recurring items) as a measurement of our results of
operations because we consider this measurement to be a significant
indication of our financial performance and available capital
resources. Because of large depreciation and other charges relating
to our ski resorts operations, it is difficult for management to
fully and accurately evaluate our financial performance and
available capital resources using net income alone. In addition,
the use of this non-U.S. GAAP measure provides an indication of our
ability to service debt, and we consider it an appropriate measure
to use because of our highly leveraged position. Management
believes that by providing investors with Reported EBITDA, they
will have a clearer understanding of our financial performance and
cash flows because Reported EBITDA: (i) is widely used in the ski
industry to measure a company’s operating performance without
regard to items excluded from the calculation of such measure; (ii)
helps investors to more meaningfully evaluate and compare the
results of our operations from period to period by removing the
effect of our capital structure and asset base from our operating
results; and (iii) is used by our board of directors, management
and our lenders for various purposes, including as a measure of our
operating performance and as a basis for planning.
Reported EBITDA is not a measure of performance defined by GAAP.
The items we exclude from net income to arrive at Reported EBITDA
are significant components for understanding and assessing our
financial performance and liquidity. Reported EBITDA should not be
considered in isolation or as alternative to, or substitute for,
net income, net change in cash and cash equivalents or other
financial statement data presented in the company’s condensed
consolidated financial statements as indicators of financial
performance or liquidity. Because Reported EBITDA is not a
measurement determined in accordance with U.S. GAAP and is
susceptible to varying calculations, Reported EBITDA as presented
may not be comparable to other similarly titled measures of other
companies, limiting its usefulness as a comparative measure.
About Peak ResortsHeadquartered in Missouri,
Peak Resorts, Inc. is a leading owner and operator of high-quality,
individually branded ski resorts in the U.S. The company operates
14 ski resorts primarily located in the Northeast and Midwest, 13
of which are company owned.
The majority of the resorts are located within 100 miles of
major metropolitan markets, including New York, Boston,
Philadelphia, Cleveland and St. Louis, enabling day and overnight
drive accessibility. The resorts under the company’s umbrella offer
a breadth of activities, services and amenities, including skiing,
snowboarding, terrain parks, tubing, dining, lodging, equipment
rentals and sales, ski and snowboard instruction and mountain
biking and other summer activities. To learn more, visit the
company’s website at ir.PeakResorts.com, or follow Peak Resorts on
Facebook (https://www.facebook.com/skipeakresorts) for resort
updates.
Forward Looking StatementsThis news release
contains forward-looking statements including statements regarding
the future outlook and performance of Peak Resorts, Inc., and other
statements based on current management expectations, estimates and
projections. These statements are subject to a variety of risks and
uncertainties, are not guarantees and are inherently subject to
various risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. These risks
and uncertainties include, without limitation, those discussed
under the caption “Risk Factors” in the company’s Annual Report on
Form 10-K for the year ended April 30, 2017, filed with the
Securities and Exchange Commission, and as updated from time to
time in the company’s filings with the SEC. The
forward-looking statements included in this news release are only
made as of the date of this release, and Peak Resorts disclaims any
obligation to publicly update any forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
|
Consolidated Statements of
Operations |
(in thousands, except share and per share
amounts) |
(Unaudited) |
|
|
|
|
Three months ended July 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
7,520 |
|
|
$ |
7,126 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Resort
operating costs |
|
|
13,539 |
|
|
|
11,764 |
|
Depreciation and amortization |
|
|
3,145 |
|
|
|
3,217 |
|
General
and administrative |
|
|
1,248 |
|
|
|
1,372 |
|
Real
estate and other non-income taxes |
|
|
684 |
|
|
|
563 |
|
Land and
building rent |
|
|
353 |
|
|
|
327 |
|
Loss from
Operations |
|
|
(11,449 |
) |
|
|
(10,117 |
) |
|
|
|
|
|
|
|
Other (expense)
income: |
|
|
|
|
|
|
Interest,
net of amounts capitalized of $431 and $384 in 2017 |
|
|
|
|
|
|
and 2016,
respectively |
|
|
(3,011 |
) |
|
|
(3,048 |
) |
Gain on
sale/leaseback |
|
|
83 |
|
|
|
83 |
|
Other
income |
|
|
55 |
|
|
|
2 |
|
|
|
|
(2,873 |
) |
|
|
(2,963 |
) |
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(14,322 |
) |
|
|
(13,080 |
) |
Income tax benefit |
|
|
(5,727 |
) |
|
|
(5,176 |
) |
Net loss |
|
$ |
(8,595 |
) |
|
$ |
(7,904 |
) |
|
|
|
|
|
|
|
Less accretion of
Series A preferred stock dividends |
|
|
(400 |
) |
|
|
- |
|
Net loss attributable
to common shareholders |
|
$ |
(8,995 |
) |
|
$ |
(7,904 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per common share |
|
$ |
(0.64 |
) |
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
Cash
dividends declared per common share |
|
$ |
0.07 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|
(dollars in thousands, except share and per
share amounts) |
|
|
|
|
|
|
July 31, |
|
|
|
April 30, |
|
|
|
|
|
2017 |
|
|
|
2017 |
|
|
Assets |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
26,869 |
|
|
$ |
33,665 |
|
|
Restricted cash balances |
|
|
7,079 |
|
|
|
11,113 |
|
|
Income
tax receivable |
|
|
5,727 |
|
|
|
- |
|
|
Accounts
receivable |
|
|
1,625 |
|
|
|
5,083 |
|
|
Inventory |
|
|
2,395 |
|
|
|
2,215 |
|
|
Deferred
income taxes |
|
|
591 |
|
|
|
591 |
|
|
Prepaid
expenses and deposits |
|
|
2,541 |
|
|
|
2,183 |
|
|
Total
current assets |
|
|
46,827 |
|
|
|
54,850 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
193,644 |
|
|
|
188,143 |
|
|
Land held for
development |
|
|
37,592 |
|
|
|
37,583 |
|
|
Restricted cash,
construction |
|
|
26,156 |
|
|
|
33,700 |
|
|
Goodwill |
|
|
4,825 |
|
|
|
4,825 |
|
|
Intangible assets,
net |
|
|
774 |
|
|
|
788 |
|
|
Other assets |
|
|
661 |
|
|
|
648 |
|
|
Total
assets |
|
$ |
310,479 |
|
|
$ |
320,537 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Acquisition line of credit |
|
$ |
2,750 |
|
|
$ |
4,500 |
|
|
Accounts
payable and accrued expenses |
|
|
13,842 |
|
|
|
12,371 |
|
|
Accrued
salaries, wages and related taxes and benefits |
|
|
1,092 |
|
|
|
1,035 |
|
|
Unearned
revenue |
|
|
14,762 |
|
|
|
14,092 |
|
|
EB-5
investor funds in escrow |
|
|
- |
|
|
|
500 |
|
|
Current
portion of deferred gain on sale/leaseback |
|
|
333 |
|
|
|
333 |
|
|
Current
portion of long-term debt and capitalized lease obligation |
|
|
3,622 |
|
|
|
3,592 |
|
|
Total
current liabilities |
|
|
36,401 |
|
|
|
36,423 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
174,716 |
|
|
|
174,785 |
|
|
Capitalized lease
obligations |
|
|
2,343 |
|
|
|
2,708 |
|
|
Deferred gain on
sale/leaseback |
|
|
2,762 |
|
|
|
2,845 |
|
|
Deferred income
taxes |
|
|
12,474 |
|
|
|
12,474 |
|
|
Other liabilities |
|
|
531 |
|
|
|
540 |
|
|
Total
liabilities |
|
|
229,227 |
|
|
|
229,775 |
|
|
|
|
|
|
|
|
|
|
Series A preferred
stock, $.01 par value per share, $1,000 liquidation |
|
|
|
|
|
|
|
preference per share, 40,000 shares authorized, 20,000 shares |
|
|
|
|
|
|
|
issued
and outstanding |
|
|
17,401 |
|
|
|
17,001 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
Common stock, $.01 par
value per share, 20,000,000 shares |
|
|
|
|
|
|
|
authorized, 13,982,400 shares issued and outstanding |
|
|
140 |
|
|
|
140 |
|
|
Additional paid-in capital |
|
|
86,435 |
|
|
|
86,372 |
|
|
Accumulated deficit |
|
|
(22,724 |
) |
|
|
(12,751 |
) |
|
Total
stockholders' equity |
|
|
63,851 |
|
|
|
73,761 |
|
|
Total
liabilities and stockholders' equity |
|
$ |
310,479 |
|
|
$ |
320,537 |
|
|
|
|
|
|
|
|
|
|
|
|
For Further Information:
Jennifer Childe, 312-690-6003
InvestorRelations@PeakResorts.com
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