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Press Release: Intrawest Corporation
November 13, 2002
VANCOUVER, BC -- Intrawest Corporation, the leading operator and developer of village-centered resorts across North
America, yesterday announced results for its fiscal 2003 first quarter ended September 30, 2002. Total revenue
for the quarter was $112.7 million compared with $93.7 million for the same period last year. Net loss from continuing
operations was $11.1 million or $0.23 per share compared with a loss of $9.8 million or $0.22 per share in 2001.
Total company EBITDA (earnings before interest, income taxes, non-controlling interest, depreciation and amortization)
was $6.5 million compared with $7.2 million in 2001.
Revenue from ski and resort operations for the quarter was $65.4 million compared with $58.7 million in the same
quarter of 2001 as higher occupancy levels and room nights generated increased revenue in lodging, retail and food
and beverage. During the period the revenue contribution from warm-weather resorts increased to $19.9 million from
$17.7 million last year. Ski and resort operations EBITDA for the quarter increased to $3.2 million from $2.0 million.
Results from ski and resort operations were offset by lower real estate earnings. Revenue from real estate increased
to $47.1 million from $33.1 million in 2001 while real estate profit declined from $4.9 million to $3.9 million.
The first quarter represents just six per cent of expected closings for the year and profitability was significantly
affected by higher than expected start-up costs associated with a new Club Intrawest location at Sandestin. Resort
Club sales in the quarter were $12.1 million, up from $8.9 million last year due primarily to the opening of the
Sandestin location.
"The improvement in results from ski and resort operations for the first quarter and encouraging indicators
for the year ahead suggest that we will continue to perform well despite uncertain economic and political conditions,"
said Joe Houssian, Intrawest's chairman, president and chief executive officer. "This solid base of performance
is allowing us to maintain forward momentum for our business strategy, while at the same time moving towards our
balance sheet and cash flow objectives."
Closed real estate units and pre-sold units scheduled to close in fiscal 2003 now amount to approximately $400
million. An additional $290 million of pre-sale contracts are scheduled to close in fiscal 2004.
Intrawest's Board of Directors today declared a dividend of Cdn$0.08 per common share payable on January 22, 2003
to shareholders of record on January 8, 2003.
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 below.
A conference call is scheduled for Tuesday, November 12, 2002 at
4:00 pm ET (3:00 pm CT, 1:00 pm PT) to review Intrawest's fiscal 2003
first quarter results. The call will be webcast live on Intrawest's Web
site at 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 19, 2002 at 1-877-653-0545. The
password to access the playback version is 164584.
INTRAWEST CORPORATION
Consolidated Statements of Operations
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Three months ended
September 30
2002 2001
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(in thousands of United States dollars, except per share amounts)
(unaudited)
Revenue:
Ski and resort operations $ 65,374 $ 58,660
Real estate sales 47,052 33,066
Rental properties - 1,950
Interest and other income 306 25
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112,732 93,701
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Expenses:
Ski and resort operations 62,163 56,625
Real estate costs 43,164 28,141
Rental properties - 1,270
Interest 9,004 9,343
Depreciation and amortization 8,633 8,837
Corporate general and administrative 3,573 2,190
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126,537 106,406
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Loss before undernoted (13,805) (12,705)
Provision for income taxes (2,446) (2,779)
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Loss before non-controlling interest and
discontinued operations (11,359) (9,926)
Non-controlling interest (299) (143)
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Loss from continuing operations (11,060) (9,783)
Results of discontinued operations 75 164
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Loss for the period $ (10,985) $ (9,619)
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Loss from continuing operations per
common share
Basic and diluted $ (0.23) $ (0.22)
Loss per common share
Basic and diluted $ (0.23) $ (0.22)
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Weighted average number of common
shares outstanding (in thousands)
Basic and diluted 47,255 44,030
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INTRAWEST CORPORATION
Consolidated Balance Sheets
(in thousands of United States dollars)
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September 30 June 30
2002 2002
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(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 63,105 $ 76,689
Amounts receivable 61,571 109,948
Other assets 115,857 88,062
Resort properties 448,640 399,572
Future income taxes 12,971 7,536
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702,144 681,807
Ski and resort operations 839,198 841,841
Properties:
Resort 497,084 461,893
Discontinued operations 5,964 6,325
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503,048 468,218
Amounts receivable 73,934 64,734
Other assets 74,053 94,332
Goodwill - 15,985
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$ 2,192,377 $ 2,166,917
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Liabilities and Shareholders' Equity
Current liabilities:
Amounts payable $ 172,226 $ 195,254
Deferred revenue 96,059 99,484
Bank and other indebtedness:
Resort 261,900 279,297
Discontinued operations 2,399 2,750
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532,584 576,785
Bank and other indebtedness:
Resort 886,050 773,790
Discontinued operations 78 82
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886,128 773,872
Due to joint venture partners 1,911 3,963
Deferred revenue 25,735 23,069
Future income taxes 77,856 75,843
Non-controlling interest in subsidiaries 32,782 36,116
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1,556,996 1,489,648
Shareholders' equity:
Capital stock 467,028 466,899
Retained earnings 218,687 241,665
Foreign currency translation adjustment (50,334) (31,295)
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635,381 677,269
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$ 2,192,377 $ 2,166,917
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INTRAWEST CORPORATION
Consolidated Statement of Retained Earnings
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Three months ended
September 30
2002 2001
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(in thousands of United States dollars) (unaudited)
Retained earnings, beginning of period
(as previously reported) $ 241,665 $ 187,922
Adjustment to reflect change in accounting
for goodwill and intangibles (11,993) -
Loss for the period (10,985) (9,619)
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Retained earnings, end of period $ 218,687 $ 178,303
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INTRAWEST CORPORATION
Consolidated Statements of Cash Flows
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Three months ended
September 30
2002 2001
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(in thousands of United States dollars) (unaudited)
Cash provided by (used in)
Operations:
Loss from continuing operations $ (11,060) $ (9,783)
Items not affecting cash:
Depreciation and amortization 8,633 8,837
Non-controlling interest (299) (143)
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Funds from continuing operations (2,726) (1,089)
Recovery of costs through real
estate sales 43,164 28,141
Acquisition and development of
properties held for sale (137,414) (128,040)
Increase in long-term amounts
receivable, net (9,201) (5,781)
Changes in non-cash operating
working capital (8,695) 23,544
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Cash used in continuing
operating activities (114,872) (83,225)
Cash provided by discontinued operations 40 1,212
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(114,832) (82,013)
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Financing:
Bank and other borrowings, net 98,262 110,961
Issue of common shares for cash,
net of issuance costs 128 40
Repurchase of non-resort
preferred shares - (150)
Distributions to non-controlling
interests (1,420) (1,145)
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96,970 109,706
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Investments:
Proceeds from (expenditures on):
Revenue-producing properties - 267
Ski and resort operations assets (16,563) (21,527)
Other assets (482) (787)
Proceeds from asset disposals 21,323 -
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4,278 (22,047)
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Increase (decrease) in cash and
cash equivalents (13,584) 5,646
Cash and cash equivalents,
beginning of period 76,689 86,430
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Cash and cash equivalents, end of period $ 63,105 $ 92,076
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ADDITIONAL INFORMATION
Total Company EBITDA (see Note 1)
(in thousands of US dollars) Three months ended
September 30
2002 2001
US$000s US$000s
Loss before tax (13,805) (12,705)
Depreciation and amortization 8,633 8,837
Interest expense 9,004 9,343
Interest in real estate costs 2,984 1,721
Interest and other income (306) (25)
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Total Company EBITDA 6,510 7,171
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Note 1 - 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 this Additional
Information table.
Intrawest Corporation (IDR:NYSE; ITW:TSX) is the leading developer and operator of village-centered resorts across
North America. The company owns nine 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 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 www.intrawest.com
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, 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.
For additional information, contact Mr. Daniel Jarvis, executive vice
president and chief financial officer, at (604) 669-9777 or Stephen
Forgacs, manager, investor relations and corporate communications, at
(604) 623-6620 or at sforgacs@intrawest.com.
If you would like to receive future news releases by email, please
contact investor_relations@intrawest.com
Source: Intrawest Corporation