Intrawest reports fiscal 2004 results including significant free
cash flow and debt reduction Listed: NYSE TSX Symbols: IDR (NYSE)
ITW (TSX) VANCOUVER, Sept. 14 /PRNewswire-FirstCall/ -- Intrawest
Corporation, the world's leading operator and developer of
village-centered resorts, announced today its results for the
fiscal year ended June 30, 2004. Income from continuing operations
for the year was $59.9 million compared with $34.8 million in 2003.
Income per share from continuing operations for the year, on a
fully diluted basis, was $1.25 ($1.48 before the call premium and
other costs on the redemption of bonds) compared with $0.73 ($0.96
before a write-down of technology assets) in 2003. Cash flow from
continuing operating activities for the year was $422.9 million,
compared with negative cash flow of $21.0 million last year. This
$443.9-million improvement was due mainly to significantly
increased cash flow from real estate development and management
services and the impact of selling projects to the Leisura
partnerships. Intrawest generated free cash flow (i.e., cash flow
from continuing operating activities less cash flow for
investments) of $292.9 million for the year, which was used to
reduce debt. As a result, net debt was $849.0 million at June 30,
2004, down from $1.13 billion at June 30, 2003. "With our
$285-million reduction in net debt, we have achieved a strengthened
balance sheet showing healthy liquidity and dramatically improved
leverage ratios," said John Currie, chief financial officer. Total
revenue for the year increased to $1.54 billion from $1.10 billion.
Total Company EBITDA (earnings before interest, income taxes,
non-controlling interest, depreciation and amortization) increased
28 per cent to $268.3 million from $209.2 million in 2003. "2004
was a most satisfying year indeed. We more than met our objectives
on income, EBITDA and free cash flow," said Joe Houssian, chairman,
president and chief executive officer. "We are now reaping the
rewards of our business strategy and the groundwork of the past
three years. Looking ahead, the recent creation of our Leisure and
Travel Group, including the alignment of all our non-real estate
businesses, will further strengthen our resort operations
activities and drive growth." For the year ended June 30, 2004,
resort operations revenue was $541.3 million compared with $499.9
million in 2003. Resort operations EBITDA for the year was $105.1
million compared with $112.4 million in 2003 due to reduced skier
visits resulting from a late season start and very cold weather in
January in the East, and exceptionally warm weather in Colorado in
March. Management services revenue for the year was $124.4 million
compared with $88.2 million in 2003 due to increased
lodging-management fees, fees charged to Leisura, and higher sales
fees from third-party developers to Playground, Intrawest's real
estate sales and marketing division. This higher revenue increased
the management services profit contribution for the year to $27.5
million from $11.0 million in 2003. Real estate revenue increased
from $512.7 million in 2003 to $878.2 million, including $171.5
million of revenue on the sale of 14 projects to Leisura. In
accordance with generally accepted accounting principles (GAAP) in
Canada, the profit on the sales to Leisura is initially deferred.
Real estate profit was $91.4 million compared with $68.3 million in
2003. This increase in profit included $9.2 million of combined
land profit and equity income from Leisura. Other contributing
factors were the higher number of units closed, above average
margins on certain high-end projects and improved profits from the
resort club. Intrawest delivered 1,334 real estate units in the
year compared with 1,239 in 2003. Income from continuing operations
for the fourth quarter ended June 30, 2004 was $2.6 million
compared with a loss of $14.5 million (after taking a write-down of
$12.3 million against technology assets) in the same period last
year. Income per share from continuing operations, on a fully
diluted basis, was $0.05 compared with a loss per share of $0.30 (a
loss of $0.08 before the write-down of technology assets) in the
fourth quarter of 2003. Revenue for the quarter increased to $485.1
million from $371.4 million last year. Total Company EBITDA
increased 54 per cent to $62.8 million from $40.8 million in the
same quarter of 2003 as increased EBITDA from real estate
development and management services was partially offset by reduced
EBITDA from resort operations. The terms EBITDA and free cash flow
do not have standardized meanings prescribed by GAAP and may not be
comparable to similarly titled measures presented by other publicly
traded companies. Reconciliations between net earnings and cash
flow as determined in accordance with Canadian GAAP and EBITDA are
presented in the Statistical Supplement included below. A
conference call is scheduled for Tuesday, September 14, 2004 at
11:00 am ET (10:00 am CT, 8:00 am PT) to review Intrawest's fiscal
2004 fourth quarter and year-end results. The call will be webcast
live on Intrawest's Web site at http://www.intrawest.com/. Access
to the call may be obtained by calling the numbers below before the
scheduled start time: 1-888-458-1598 (analysts and institutional
investors only) access code 88228 1-866-332-8741 (media and retail
investors) access code 88228 A playback version of the conference
call will be available through September 21, 2004 at
1-877-653-0545. The password to access the playback version is
246601. INTRAWEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
AND RETAINED EARNINGS (in thousands of United States dollars,
except per share amounts) THREE MONTHS ENDED YEAR ENDED JUNE 30
JUNE 30 (audited) 2004 2003 2004 2003
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RESORT OPERATIONS: Revenue $ 76,224 $ 68,886 $ 541,315 $ 499,885
Expenses 96,906 84,948 436,184 387,450
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Resort operations contribution (20,682) (16,062) 105,131 112,435
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MANAGEMENT SERVICES: Revenue 29,200 23,357 124,394 88,202 Expenses
23,539 23,065 96,909 77,223
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Management services contribution 5,661 292 27,485 10,979
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REAL ESTATE DEVELOPMENT: Revenue 379,707 279,174 878,195 512,695
Expenses 331,581 237,187 788,504 444,438
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48,126 41,987 89,691 68,257 Income from equity accounted
investments 837 - 1,683 -
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Real estate development contribution 48,963 41,987 91,374 68,257
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Income before undernoted items 33,942 26,217 223,990 191,671
Interest and other income (expense) 1,285 (133) 6,117 2,417
Interest expense (11,054) (13,908) (45,766) (47,142) Corporate
general and administrative expenses (6,713) (3,835) (20,369)
(14,889) Depreciation and amortization (13,908) (15,056) (68,626)
(67,516) Write-down of technology assets - (12,270) - (12,270) Call
premium and unamortized costs of senior notes redeemed - - (12,074)
-
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Income before income taxes and non-controlling interest 3,552
(18,985) 83,272 52,271 Provision for income taxes 1,063 4,182
(10,434) (6,243) Non-controlling interest (2,009) 344 (12,889)
(11,274)
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Income from continuing operations 2,606 (14,459) 59,949 34,754
Results of discontinued operations - - - (578)
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Income for the period 2,606 (14,459) 59,949 34,176 Retained
earnings, beginning of period 319,147 281,720 264,640 235,515
Dividends (2,870) (2,621) (5,706) (5,051)
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Retained earnings, end of period $ 318,883 $ 264,640 $ 318,883 $
264,640
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Income per common share Basic $ 0.05 $ (0.30) $ 1.26 $ 0.73 Diluted
$ 0.05 $ (0.30) $ 1.25 $ 0.73
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Weighted average number of common shares outstanding (in thousands)
Basic 47,591 47,559 47,588 47,364 Diluted 47,783 47,726 47,798
47,590
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INTRAWEST CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of
United States dollars) (audited) JUNE 30, 2004 JUNE 30, 2003
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ASSETS CURRENT ASSETS: Cash and cash equivalents $ 109,816 $
126,832 Amounts receivable 142,427 126,725 Other assets 94,105
123,610 Resort properties 412,343 662,197 Future income taxes
18,638 10,619
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777,329 1,049,983 Resort operations 940,949 918,727 Resort
properties 368,309 405,100 Amounts receivable 52,958 76,842
Investment in and advances to Leisura 50,899 - Other assets 65,306
65,070
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$ 2,255,750 $ 2,515,722
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LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Amounts
payable $ 209,037 $ 223,832 Deferred revenue 87,649 134,878 Bank
and other indebtedness 109,685 287,176
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406,371 645,886 Bank and other indebtedness 849,132 973,743
Deferred revenue 82,211 43,609 Future income taxes 87,461 94,986
Non-controlling interest in subsidiaries 43,266 46,359
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1,468,441 1,804,584 SHAREHOLDERS' EQUITY: Capital stock 463,485
460,742 Retained earnings 318,883 264,640 Foreign currency
translation adjustment 4,941 (14,243)
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787,309 711,139
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$ 2,255,750 $ 2,515,722
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INTRAWEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in
thousands of United States dollars) THREE MONTHS ENDED YEAR ENDED
JUNE 30 JUNE 30 (audited) 2004 2003 2004 2003
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CASH PROVIDED BY (USED IN): OPERATIONS: Income (loss) from
continuing operations $ 2,605 $ (14,459) $ 59,949 $ 34,754 Items
not affecting cash: Depreciation and amortization 13,908 15,056
68,626 67,516 Future income taxes (1,240) (3,914) (1,240) (3,914)
Income from equity accounted investments (837) - (1,683) -
Amortization of financing costs 1,566 116 6,441 3,479 Writedown of
technology assets - 12,270 - 12,270 Loss on asset disposals 717 93
1,388 858 Stock-based compensation 290 - 290 - Amortization of
benefit plan 493 1,375 1,992 2,097 Non-controlling interest 2,009
(344) 12,889 11,274
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Funds from continuing operations 19,511 10,193 148,652 128,334
Recovery of costs through real estate sales 297,966 229,474 743,405
433,011 Acquisition and development of properties held for sale
(113,916) (175,108) (487,659) (601,524) Changes in long-term
amounts receivable, net 44,289 (1,657) 42,396 (10,109) Changes in
non-cash operating working capital (7,982) (19,372) (23,929) 29,269
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Cash provided by (used in) continuing operating activities 239,868
43,530 422,865 (21,019) Cash provided by discontinued operations -
- - 140
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239,868 43,530 422,865 (20,879)
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FINANCING: Bank and other borrowings, net (180,039) 19,885
(304,046) 129,878 Issue of common shares for cash 52 729 461 2,684
Redemption and repurchase of non-resort preferred shares - - -
(6,697) Dividends paid (2,870) (2,621) (5,706) (5,051)
Distributions to non-controlling interests (5,357) (1,718) (16,543)
(6,923)
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(188,214) 16,275 (325,834) 113,891
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INVESTMENTS: Expenditures on: Resort operations assets (18,672)
(19,865) (69,342) (64,546) Investment in Leisura (20,188) -
(37,260) - Other assets (2,081) (3,225) (23,321) (15,257) Business
acquisitions, net of cash acquired - - - (2,849) Proceeds from
asset disposals 1,441 4,895 15,876 39,783
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(39,500) (18,195) (114,047) (42,869)
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Increase (decrease) in cash and cash equivalents 12,154 41,610
(17,016) 50,143 Cash and cash equivalents, beginning of period
97,662 85,222 126,832 76,689
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Cash and cash equivalents, end of period $ 109,816 $ 126,832 $
109,816 $ 126,832
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INTRAWEST CORPORATION FOURTH QUARTER STATISTICAL SUPPLEMENT Three
months ended June 30 12 months ended June 30 2004 2003 Change 2004
2003 Change $000's $000's $000's $000's GENERAL Calculation of
Total Company EBITDA Cash flow from continuing operations 239,868
43,530 422,865 (21,019) Add (deduct): Changes in non-cash operating
assets and liabilities (220,357) (33,337) (274,213) 149,353 Current
income tax expense 177 (268) 11,674 10,157 Interest expense 11,054
13,908 45,766 47,142 Interest in real estate costs 35,532 18,382
64,696 32,453 Call premium and debt redemption costs - - 12,074 -
Write-down of technology assets - 12,270 - 12,270
------------------- -------------------- 66,274 54,485 282,862
230,356 Interest and other income, net of non-cash items (3,514)
(13,721) (14,545) (21,121) -------------------------
-------------------------- Total Company EBITDA 62,760 40,764 54%
268,317 209,235 28% -------------------------
-------------------------- -------------------------
-------------------------- Calculation of Free Cash Flow Cash flow
from continuing operating activities 239,868 43,530 422,865
(21,019) Add (deduct): Expenditures on resort operations assets
(18,672) (19,865) (69,342) (64,546) Expenditures on other assets
(2,081) (3,225) (23,321) (15,257) Investment in Leisura (20,188) -
(37,260) - ------------------- -------------------- Free cash flow
198,927 20,440 292,942 (100,822) -------------------
-------------------- ------------------- --------------------
RESORT OPERATIONS Skier visits 818,000 809,000 1% 7,150,000
7,302,000 -2% ------------------------- --------------------------
------------------------- -------------------------- Revenue from
mountain resorts 56,565 52,462 8% 488,207 450,981 8% Revenue from
warm-weather resorts 19,659 16,424 20% 53,108 48,904 9%
------------------------- -------------------------- Total resort
operations revenue 76,224 68,886 11% 541,315 499,885 8%
------------------------- --------------------------
------------------------- -------------------------- Breakdown of
resort operations revenue Mountain operations 27,215 25,650 6%
250,856 228,641 10% Retail and rental 12,265 12,717 -4% 101,280
95,862 6% Ski school 4,813 4,561 6% 41,653 37,070 12% Food and
beverage 14,068 13,749 2% 81,854 74,921 9% Golf 8,252 8,100 2%
27,300 27,977 -2% Other 9,611 4,109 134% 38,372 35,414 8%
------------------------- -------------------------- 76,224 68,886
11% 541,315 499,885 8% -------------------------
-------------------------- -------------------------
-------------------------- MANAGEMENT SERVICES Breakdown of
management services revenue Lodging and property management 16,177
15,093 7% 71,192 60,810 17% Other management services 13,023 8,264
58% 53,202 27,392 94% -------------------------
-------------------------- 29,200 23,357 25% 124,394 88,202 41%
------------------------- --------------------------
------------------------- -------------------------- REAL ESTATE
DEVELOPMENT Breakdown of real estate development revenue Resort
development group 307,843 271,491 13% 662,176 472,784 40% Land
sales to Leisura 62,695 - n/a 171,500 - n/a Resort Club group 9,169
7,683 19% 44,519 39,911 12% -------------------------
-------------------------- Total real estate development revenue
379,707 279,174 36% 878,195 512,695 71% -------------------------
-------------------------- -------------------------
-------------------------- Units closed 540 667 -19% 1,334 1,239 8%
------------------------- -------------------------- Intrawest
Corporation (IDR:NYSE; ITW:TSX) is the world's leading developer
and operator of village-centered resorts. Intrawest owns or
controls 10 mountain resorts in North America's most popular
mountain destinations, including Whistler Blackcomb, a host venue
for the 2010 Winter Olympic Games. The company also owns Sandestin
Golf and Beach Resort in Florida and has a premier vacation
ownership business, Club Intrawest. Intrawest is developing an
additional five resort villages at locations 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. For more information visit
http://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. For additional information
please contact John Currie, chief financial officer, at (604)
623-6640 or at If you would like to receive future news releases by
email, please contact DATASOURCE: Intrawest Corporation CONTACT:
John Currie, chief financial officer, at (604) 623-6640 or at ; To
request a free copy of this organization's annual report, please go
to http://www.newswire.ca/ and click on reports@cnw.
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