INTRAWEST QUARTERLY PROFIT SLIDES

Source: Intrawest

February 24, 1999
Earnings at ski resort operator Intrawest Corp. fell by more than a quarter in the September-December period as revenue slipped because of a mild winter at its key U.S. resorts.

Intrawest reported Monday that business surged at its massive Whistler-Blackcomb ski resort north of Vancouver. But the weakest snowfall in 40 years in Colorado and unseasonably warm weather in the East, plus higher depreciation and interest charges, cut net profit in the quarter to $2.7 million, from $3.7 million a year earlier. Revenue for the three months, Intrawest's fiscal second quarter, slipped more than seven per cent to $155.2 million from $167.9 million.

For the first half of its fiscal year, profits edged up to $328,000, from ayear-earlier loss of $592,000. "Despite the extremely difficult early-season weather at some of our resorts we expect an increase in total company earnings before interest, taxes, depreciation and amortization for the fiscal year in excess of 40 per cent over last year," Dan Jarvis, executive vice-president and chief financial officer, said in a news release. "We are experiencing extraordinary performance at Whistler-Blackcomb, which is up 216,000 visits season-to-date, and are seeing above-target results in our real estate operations and improving performance at our other resorts, all of which gives us confidence in our projection for the year."

Revenue from resort operations was $95 million in the second quarter, up from $80.3 million a year earlier. Revenue rose 17 per cent at Whistler-Blackcomb, while Tremblant in Quebec improved 12 per cent on higher retail and lodging revenues, the company said. Real estate revenue was $58.1 million for the quarter, compared with $84.9 million a year earlier, and operating profit in that sector slipped to $12.7 million from $13.9 million. Intrawest said it has pre-sold resort developments worth $276 million for delivery in 2000 and 2001, and it pointed to "the strength of the demographic demand for resort real estate."

The company's holdings include Panorama in B.C., Mont Ste. Marie in Quebec, Blue Mountain in Ontario, Mountain Creek in New Jersey, Mammoth in California, and Sandestin, a golf and beach resort in Florida. Intrawest also runs a timeshare business and develops villages at big U.S. ski resorts, and has a stake in Canadian Mountain Holidays in B.C., the largest heli-skiing operation in the world. Intrawest shares fell 15 cents to $24.10 on a trading volume of nearly 113,000 shares.