Press Release: Intrawest Corporation
September 11, 2001
VANCOUVER, BC -- Intrawest Corporation, the leading operator and developer of village-centered resorts across North
America, yesterday announced record results for the fiscal year ended June 30, 2001, marking eight consecutive
years of earnings growth. Driven by strong performances in resort operations and real estate, income per share
from continuing operations increased by 20.8 per cent to $1.45 from $1.20 in 2000 as income grew to $63.5 million
from $52.1 million. Total revenue for the year increased 13.9 per cent to $922.8 million from $810.5 million. Total
Company EBITDA increased 21.1 per cent to $200.3 million from $165.4 million.
``We have had an excellent year on all fronts,'' said Joe Houssian, chairman, president and chief executive officer.
``Our core businesses, real estate and resort operations, are performing well in spite of the current economic
slowdown. Barely into the new fiscal year, we already have real estate pre-sales worth $620 million due to close
in 2002 and 2003. This provides a solid foundation for another successful year of growth ahead.''
For the 12 months ended June 30, 2001, revenue and operating profit from real estate sales increased 21.6 per cent
and 28.3 per cent, respectively, compared with last year. Ski and resort revenue and EBITDA were both records for
the Company, increasing 10.0 per cent and 15.6 per cent, respectively, from the prior year. Full-year resort operations
margins increased to 22.0 per cent from 20.9 per cent in 2000, and real estate margins increased to 18.4 per cent
from 17.5 per cent.
``Once again we have achieved record annual results in both revenue and EBITDA,'' said Daniel Jarvis, executive
vice president and chief financial officer. ``At the same time we have improved margins in both real estate and
resort operations, which speaks to the success of our business model and cost- management initiatives.''
Income from continuing operations for the fourth quarter ended June 30, 2001 was $6.0 million, or 14 cents per
share compared with $3.3 million or eight cents per share for the three-month period ended June 30, 2000. Revenue
for the quarter increased 5.2 per cent to $246.1 million from $234.0 million last year. Total Company EBITDA for
the period increased by 11.1 per cent to $42.9 million from $38.6 million.
Real estate revenue in the fourth quarter was $175.4 million, an increase of 9.9 per cent over the same quarter
in 2000. Although fewer units were closed during the quarter (496 in 2001 compared with 649 in 2000), average revenue
per unit was significantly higher, reflecting unit type and resort mix as well as price escalation. In addition,
revenue from the Resort Club increased 14.7 per cent in the quarter to $7.8 million. Operating profit from real
estate was $37.7 million in the fourth quarter compared with $26.8 million last year.
For the fourth quarter, resort operations revenue was $66.8 million, down from $72.8 million in the comparable
2000 period. The decline was mainly due to a slower end to the season at Whistler Blackcomb, particularly compared
with the very strong season ending last year, and reduced early season golf revenue. In addition, the timing of
recognition of season pass revenue was more accelerated in 2001 than in 2000 because of the stronger start to the
season. The decrease in revenue for the quarter caused ski and resort operation EBITDA to fall to a loss of $2.2
million compared with income of $6.0 million last year.
A conference call is scheduled for Monday, September 10, 2001 at 4:00 pm EDT (3:00 pm CDT, 1:00 pm PDT) to review
Intrawest's fiscal 2001 year-end results. Access to the call may be obtained by calling 1-888-303-1861 (media and
retail investors) and 1-888-413-1986 (analysts and institutional investors) before the scheduled start time. A
playback version of the conference call will be available until September 14, 2001 at 1-800-558-5253. The password
to access the playback version is 19650076. A live webcast can be accessed from Intrawest's Web site at www.intrawest.com
under About Us/Investor Relations/Webcasts.
INTRAWEST CORPORATION
Consolidated Statements of Operations
Three months ended Year ended
June 30 June 30
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2001 2000 2001 2000
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(in thousands of US dollars, except per share amounts)
Revenue:
Ski and
resort operations $ 66,793 $ 72,849 $ 492,202 $ 447,350
Real estate sales 175,367 159,585 415,336 341,455
Rental properties 3,022 1,944 8,935 6,905
Income from equity
accounted investment 731 (998) 3,547 12,449
Interest and other
income 976 633 2,790 2,333
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246,889 234,013 922,810 810,492
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Expenses:
Ski and resort
operations 68,960 66,821 383,864 353,662
Real estate costs 137,694 132,769 338,856 281,845
Rental properties 1,515 1,199 4,426 3,641
Interest 12,835 11,205 44,490 35,217
Depreciation and
amortization 14,224 12,877 57,934 51,399
General and
administrative 2,818 2,542 9,793 7,985
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238,046 227,413 839,363 733,749
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Income before
undernoted 8,843 6,600 83,447 76,743
Provision for
income taxes 1,446 1,647 10,014 15,394
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Income before
non-controlling
interest and
discontinued
operations 7,397 4,953 73,433 61,349
Non-controlling
interest 1,419 1,621 9,904 9,258
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Income from continuing
operations 5,978 3,332 63,529 52,091
Results of discontinued
operations (2,899) (634) (2,942) (99)
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Income for the
period $ 3,079 $ 2,698 $ 60,587 $ 51,992
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Income per common
share:
Income from
continuing
operations $ 0.14 $ 0.08 $ 1.45 $ 1.20
Net income $ 0.14 $ 0.08 $ 1.45 $ 1.20
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Weighted average
number of common
shares outstanding
(in thousands) 43,891 43,448 43,665 43,362
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INTRAWEST CORPORATION
Consolidated Balance Sheets
As at June 30
(in thousands of US dollars)
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2001 2000
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Assets
Current assets:
Cash and cash equivalents $ 86,430 $ 78,985
Amounts receivable 82,536 72,233
Other assets 105,545 78,966
Properties:
Resort 329,177 254,801
Discontinued operations - 103
Future income taxes 4,168 4,445
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607,856 489,533
Ski and resort operations 813,741 784,725
Properties:
Resort 371,451 314,481
Discontinued operations 7,080 9,521
Amounts receivable 50,416 35,262
Other assets 86,640 67,999
Goodwill 19,128 15,834
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$ 1,956,312 $ 1,717,355
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Liabilities and Shareholders' Equity
Current liabilities:
Amounts payable $ 146,464 $ 146,648
Deferred revenue 81,537 70,832
Bank and other indebtedness,
current portion:
Resort 201,558 158,144
Discontinued operations 82 84
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429,641 375,708
Bank and other indebtedness:
Resort 804,991 670,539
Discontinued operations 3,363 4,394
Due to joint venture partners 8,818 16,963
Deferred revenue 26,750 26,974
Future income taxes 83,771 82,522
Non-controlling interest
in subsidiaries 30,616 28,983
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1,387,951 1,206,083
Shareholders' equity:
Capital stock 414,220 413,719
Retained earnings 187,922 131,953
Foreign currency
translation adjustment (33,780) (34,400)
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568,362 511,272
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$ 1,956,312 $ 1,717,355
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INTRAWEST CORPORATION
Consolidated Statements of Retained Earnings
Three months ended Year ended
June 30 June 30
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2001 2000 2001 2000
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(in thousands of US dollars)
Retained earnings,
beginning of period $ 187,138 $ 123,979 $ 131,953 $ 77,088
Income for the period 3,079 2,698 60,587 51,992
Reduction in
redemption price
of non-resort
preferred shares - 7,588 - 7,588
Dividends (2,295) (2,312) (4,618) (4,715)
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Retained earnings,
end of period $ 187,922 $ 131,953 $ 187,922 $ 131,953
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INTRAWEST CORPORATION
Consolidated Statements of Cash Flows
Three months ended Year ended
June 30 June 30
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2001 2000 2001 2000
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(in thousands of US dollars)
Cash provided by (used for)
Operations:
Income from
continuing
operations $ 5,978 $ 3,332 $ 63,529 $ 52,091
Items not affecting
cash:
Depreciation and
amortization 14,224 12,877 57,934 51,399
Future income
taxes 6,303 12,109 1,027 12,109
Income from equity
accounted
investment (976) (633) (2,790) (2,333)
Net gain on asset
disposals and
write-offs (2,671) (5,777) (2,671) (5,777)
Non-controlling
interest 1,419 1,621 9,904 9,258
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Funds from continuing
operations 24,277 23,529 126,933 116,747
Recovery of costs
through real
estate sales 137,694 132,769 338,856 281,845
Acquisition and
development of
properties held
for sale (132,123) (125,766) (469,816) (365,249)
Increase in amounts
receivable, net (5,067) (3,610) (13,670) (8,890)
Changes in non-cash
operating working
capital (27,320) 265 (29,948) 34,385
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Cash provided by
(used for)
continuing
operating
activities (2,539) 27,187 (47,645) 58,838
Cash provided by
(used for)
discontinued
operations (1,642) 2,892 2,323 10,699
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(4,181) 30,079 (45,322) 69,537
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Financing:
Bank and other
borrowings, net 24,770 (31,230) 184,565 97,088
Issue of capital
stock 1,748 (211) 4,289 1,254
Redemption of
non-resort
preferred shares - (3,575) (3,788) (19,520)
Dividends paid (2,295) (2,312) (4,618) (4,715)
Distributions to
non-controlling
interests (4,490) (1,932) (5,773) (3,234)
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19,733 (39,260) 174,675 70,873
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Investments:
Proceeds from
(expenditures on)
revenue-producing
properties, net (1,481) (2,127) (5,642) 1,315
Expenditures on ski
and resort operation
assets, net (17,912) (15,887) (93,986) (119,133)
Expenditures on
other assets, net (6,122) (4,928) (19,545) (11,026)
Proceeds from asset
disposals 8,216 4,243 8,216 4,243
Expenditures on
business
acquisitions,
net of cash
acquired (4,541) (376) (10,951) (19,281)
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(21,840) (19,075) (121,908) (143,882)
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Increase (decrease)
in cash and cash
equivalents (6,288) (28,256) 7,445 (3,472)
Cash and cash
equivalents,
beginning of
period 92,718 107,241 78,985 82,457
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Cash and cash
equivalents, end
of period $ 86,430 $ 78,985 $ 86,430 $ 78,985
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INTRAWEST CORPORATION
ADDITIONAL INFORMATION
Total Company EBITDA
Three months ended 12 months ended
June 30 June 30
2001 2000 2001 2000
US$000s US$000s US$000s US$000s
Income before tax 8,844 6,600 83,447 76,743
Depreciation and
amortization 14,224 12,877 57,934 51,399
Interest expense 12,835 11,205 44,490 35,217
Interest in real
estate costs 8,755 7,588 20,722 16,767
Less interest and
other income (1,708) 365 (6,337) (14,782)
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Total Company EBITDA 42,950 38,635 200,256 165,344
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Breakdown of Ski and Resort Operations Revenue
Three months ended 12 months ended
June 30 June 30
2001 2000 2001 2000
US$000s US$000s US$000s US$000s
Mountain operations 18,116 20,407 192,142 177,060
Retail and rental 10,087 12,557 84,040 72,854
Ski school 3,279 3,413 29,782 25,791
Food and beverage 10,046 10,860 64,144 60,105
Lodging and property
management 7,708 9,242 58,013 48,726
Golf 9,695 10,890 32,992 30,899
Other 7,862 5,480 31,089 31,915
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66,793 72,849 492,202 447,350
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Intrawest is the leading developer and operator of village-centered resorts across North America. The company owns
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 has a significant investment in Compagnie des Alpes, the largest ski company in the world in terms
of skier visits and a 45 per cent interest in Alpine Helicopters Ltd., owner of Canadian Mountain Holidays, the
largest heli-skiing operation in the world. Intrawest Corporation's shares are listed on the New York (IDR) and
Toronto (ITW) stock exchanges. The company 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.
SOURCE: Intrawest Corporation