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Press Release: Intrawest Corporation
September 17, 2003
VANCOUVER, BC -- Intrawest Corporation, the world's leading operator and developer of village-centered resorts,
announced yesterday its results for the fiscal year ended June 30, 2003. Income from continuing operations for
the year was $34.8 million (after taking a write- down of $12.3 million against technology assets) compared with
$58.6 million in 2002. Income per share from continuing operations for the year, on a fully diluted basis, was
$0.73 ($0.96 before the write-down of technology assets), down from $1.31 per share in 2002.
Total revenue for the year increased 10 per cent to $1.09 billion from $986.0 million. Total Company EBITDA (earnings
before interest, income taxes, non-controlling interest, depreciation and amortization) was $209.2 million compared
with $211.1 million in 2002.
"Our resort performance was strong to the beginning of March at which point war in Iraq followed by the outbreak
of SARS had a significant negative impact on resort visits. Our full-year operating results exceeded our guidance
of last May thanks to stronger than anticipated late-season business at Whistler and Mammoth and a very busy early
summer at Sandestin in Florida," said Joe Houssian, chairman, president and chief executive officer.
The Leisura Developments 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. The first
projects were sold to the partnerships in August and September including two major projects in Whistler.
Intrawest confirmed its guidance that the impact of the Leisura partnerships, combined with cash flow from ongoing
business, is expected to result in free cash flow of approximately $250 million for fiscal 2004, which will be
used to pay down debt.
The $12.3 million write-down of technology assets resulted from decisions to standardize various business systems
across Intrawest's resorts, including information technology (IT) and central reservations systems, and reflects
the write-off of the investment in redundant systems.
"Implementation of more cost-effective and efficient standardized IT systems across our resorts has enabled
us to do away with legacy systems holding uncertain or limited future value," said Daniel Jarvis, executive
vice president and chief financial officer.
For the year ended June 30, 2003, ski and resort operations revenue was $571.5 million compared with $485.1 million
in 2002. EBITDA for the year was $116.7 million compared with $107.3 million.
Real estate revenue increased 17.5 per cent to $512.7 million from $487.8 million in 2002. Intrawest delivered
1,239 real estate units in the year, compared with 1,290 in 2002, and sold the majority of its commercial properties
at Tremblant. Real estate profit was $75.0 million compared with $85.1 million in 2002. Real estate margins declined
to 14.6 per cent from 17.4 per cent as a result of a continued slow market for resort real estate in Colorado,
construction delays experienced on several projects and reduced margins at the Intrawest Resort Club.
Currently the company has a backlog of real estate contracts with total pre-sales of over $460 million for delivery
in fiscal 2004 compared with $370 million for delivery in fiscal 2003 at the same time last year. In addition,
Leisura has pre-sales of approximately $260 million due to close in fiscal 2004 and 2005.
The loss from continuing operations for the fourth quarter ended June 30, 2003 was $14.5 million (after taking
a write-down of $12.3 million against technology assets) compared with income of $6.1 million in the same period
last year. Loss per share from continuing operations, on a fully diluted basis, was $0.30 (a loss of $0.08 before
the write-down of technology assets) compared with income per share of $0.13 in the same period of 2002.
Revenue for the quarter increased to $363.2 million from $318.7 million last year. Total Company EBITDA for the
period was $40.8 million compared with $50.8 million in the same quarter of 2002.
For the fourth quarter, resort operations revenue was $84.2 million, up from $65.9 million in the comparable 2002
period. The loss from ski and resort operations was $18.8 million compared with a loss of $8.5 million last year.
Real estate revenue in the fourth quarter was $279.2 million compared with $249.5 million in the same quarter in
2002. Operating profit from real estate was $45.0 million in the fourth quarter compared with $47.1 million last
year.
A conference call is scheduled for Tuesday, September 16, 2003 at 10:30 am ET (9:30 am CT, 7:30 am PT) to review
Intrawest's fiscal 2003 fourth quarter and year-end results. The call will be webcast live on Intrawest's Web site
at www.intrawest.com.
Access to the call may be obtained by calling the numbers below before the scheduled start time:
A playback version of the conference call will be available through Sept. 23, 2003 at 1-877-653-0545. The password to access the playback version is 194876.
INTRAWEST CORPORATION
Consolidated Statements of Operations
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-------------------------------------------------------------------------
Three months ended Year ended
June 30 June 30
2003 2002 2003 2002
-------------------------------------------------------------------------
(in thousands of United States dollars, except per share amounts)(audited)
Revenue:
Ski and resort
operations $ 84,178 $ 65,856 $ 571,527 $ 485,142
Real estate sales 279,174 249,542 512,695 487,775
Rental properties - 1,393 - 8,038
Interest and other income (133) (71) 2,417 1,115
Income from equity
accounted investment - 2,024 - 3,901
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363,219 318,744 1,086,639 985,971
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Expenses:
Ski and resort
operations 102,982 74,343 454,861 377,801
Real estate costs 234,153 202,431 437,690 402,700
Rental properties - 1,427 - 4,963
Interest 13,908 11,289 47,142 43,072
Depreciation and
amortization 15,056 15,581 67,516 65,434
Corporate general
and administrative 3,835 3,354 14,889 12,175
Write-down of
technology assets 12,270 - 12,270 -
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382,204 308,425 1,034,368 906,145
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Income before undernoted (18,985) 10,319 52,271 79,826
Provision for income taxes (4,182) 1,233 6,243 9,549
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Income before non-
controlling interest
and discontinued
operations (14,803) 9,086 46,028 70,277
Non-controlling interest (344) 2,948 11,274 11,675
-------------------------------------------------------------------------
Income from continuing
operations (14,459) 6,138 34,754 58,602
Results of discontinued
operations - (105) (578) (122)
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Income for the period $ (14,459) $ 6,033 $ 34,176 $ 58,480
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Income from continuing
operations per common
share
Basic $ (0.30) $ 0.14 $ 0.73 $ 1.33
Diluted $ (0.30) $ 0.13 $ 0.73 $ 1.31
Income per common share
Basic $ (0.30) $ 0.14 $ 0.73 $ 1.33
Diluted $ (0.30) $ 0.13 $ 0.73 $ 1.31
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Weighted average number
of common shares
outstanding (in
thousands)
Basic 47,559 45,153 47,364 44,206
Diluted 47,726 45,957 47,590 44,695
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INTRAWEST CORPORATION
Consolidated Balance Sheets
(in thousands of United States dollars)(audited)
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-------------------------------------------------------------------------
June 30 June 30
2003 2002
-------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 126,832 $ 76,689
Amounts receivable 126,725 109,948
Other assets 123,610 88,062
Properties 662,197 399,572
Future income taxes 10,619 7,536
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1,049,983 681,807
Ski and resort operations 918,727 841,841
Properties 405,100 468,218
Amounts receivable 76,842 64,734
Other assets 65,070 94,332
Goodwill - 15,985
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$2,515,722 $2,166,917
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Liabilities and Shareholders' Equity
Current liabilities:
Amounts payable $ 218,444 $ 195,254
Deferred revenue 134,878 99,484
Bank and other indebtedness 287,176 282,047
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640,498 576,785
Bank and other indebtedness 973,743 773,872
Due to joint venture partners 5,388 3,963
Deferred revenue 43,609 23,069
Future income taxes 94,986 75,843
Non-controlling interest
in subsidiaries 46,359 36,116
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1,804,583 1,489,648
Shareholders' equity:
Capital stock 460,742 466,899
Retained earnings 264,640 241,665
Foreign currency
translation adjustment (14,243) (31,295)
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711,139 677,269
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$2,515,722 $2,166,917
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INTRAWEST CORPORATION
Consolidated Statement of Retained Earnings
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Three months ended Year ended
June 30 June 30
2003 2002 2003 2002
-------------------------------------------------------------------------
(in thousands of United States dollars)(audited)
Retained earnings,
beginning of period
As previously reported $ 281,720 $ 238,115 $ 241,665 $ 187,922
Adjustment to reflect
change in accounting
for goodwill and
intangibles, net
of tax - - (6,150) -
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As restated 281,720 238,115 235,515 187,922
Income for the period (14,459) 6,033 34,176 58,480
Dividends (2,621) (2,483) (5,051) (4,737)
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Retained earnings,
end of period $ 264,640 $ 241,665 $ 264,640 $ 241,665
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INTRAWEST CORPORATION
Consolidated Statements of Cash Flows
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Three months ended Year ended
June 30 June 30
2003 2002 2003 2002
-------------------------------------------------------------------------
(in thousands of United States dollars)(audited)
Cash provided by (used in)
Operations:
Income (loss) from
continuing operations $ (14,459) $ 6,138 $ 34,754 $ 58,602
Items not
affecting cash:
Depreciation and
amortization 15,056 15,581 67,516 65,434
Future income taxes (3,914) (2,873) (3,914) (2,873)
Income from equity
accounted investment - (2,024) - (3,901)
(Gain) loss on asset
disposals, net 93 (323) 858 (323)
Write-down of
technology assets 12,270 - 12,270 -
Non-controlling
interest (344) 2,948 11,274 11,675
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Funds from continuing
operations 8,702 19,447 122,758 128,614
Recovery of costs
through real estate
sales 234,153 202,431 437,690 402,700
Acquisition and
development of
properties held for
sale (175,108) (178,332) (601,524) (565,863)
Increase in long-term
amounts receivable, net (3,657) (295) (12,109) (8,936)
Changes in non-cash
operating working
capital (22,051) (9,740) 26,590 49,191
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Cash provided by
(used in) continuing
operating activities 42,039 33,511 (26,595) 5,706
Cash provided by
discontinued operations - 2,395 140 3,898
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42,039 35,906 (26,455) 9,604
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Financing:
Bank and other
borrowings, net 19,885 (96,072) 129,877 46,326
Issue of common shares
for cash, net of
issuance costs 2,104 52,924 4,782 53,037
Redemption and
repurchase of non-
resort preferred shares - (55) (6,697) (358)
Dividends paid (2,621) (2,483) (5,051) (4,737)
Distributions to non-
controlling interests (1,718) (1,733) (6,923) (6,534)
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17,650 (47,419) 115,988 87,734
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Investments:
Proceeds from
(expenditures on):
Revenue-producing
properties - (2,030) - (2,353)
Ski and resort
operations assets (19,865) (21,903) (64,546) (91,490)
Other assets (3,109) 2,362 (11,778) (8,463)
Business acquisitions - (8,876) (2,849) (8,876)
Proceeds from asset
disposals 4,895 4,103 39,783 4,103
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(18,079) (26,344) (39,390) (107,079)
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Increase (decrease) in
cash and cash equivalents 41,610 (37,857) 50,143 (9,741)
Cash and cash equivalents,
beginning of period 85,222 114,546 76,689 86,430
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Cash and cash equivalents,
end of period $ 126,832 $ 76,689 $ 126,832 $ 76,689
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ADDITIONAL INFORMATION
Total Company EBITDA (See Note 2)
(in thousands of United States dollars)
Three months ended Year ended
June 30 June 30
2003 2002 2003 2002
Income before tax (18,985) 10,319 52,271 79,826
Depreciation and
amortization 15,056 15,581 67,516 65,434
Interest expense 13,908 11,289 47,142 43,072
Interest in real
estate costs 18,382 15,592 32,453 27,839
Write-down of
technology assets 12,270 - 12,270 -
Interest and
other income 133 (1,953) (2,417) (5,016)
---------------------- ----------------------
Total Company EBITDA 40,764 50,828 209,235 211,155
---------------------- ----------------------
NOTE 1: The term Free Cash Flow does not have a standardized meaning
prescribed by generally accepted accounting principles (GAAP) and may not
be comparable to similar measures presented by other publicly traded
companies. Free Cash Flow consists of cash provided by continuing
operating activities less cash flow for investments.
NOTE 2: The term EBITDA does not have a standardized meaning prescribed
by generally accepted accounting principles (GAAP) and may not be
comparable to similar 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 included above.
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 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, 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 Exchange Commission.
If you would like to receive future news releases by email, please
contact investor_relations@intrawest.com
Source: Intrawest Corporation