Intrawest reports fiscal 2005 first quarter results Listed: NYSE
TSX Symbols: IDR (NYSE) ITW (TSX) VANCOUVER, Nov. 8
/PRNewswire-FirstCall/ -- Intrawest Corporation, one of the world's
leading destination resort and adventure-travel companies,
announced today its results for the fiscal 2005 first quarter ended
September 30, 2004. Total revenue for the quarter was $206.5
million compared with $276.6 million for the same period last year.
The company incurred a net loss of $6.7 million or $0.14 per share
compared with net income of $0.9 million or $0.02 per share in
2003. Total Company EBITDA (earnings before interest, income taxes,
non- controlling interest, depreciation and amortization) was $16.1
million compared with $25.5 million in 2003. The decline in
revenue, net income and Total Company EBITDA was expected and due
mainly to the timing of construction completions. The company
delivered significantly more real estate units in the first quarter
last year compared with the first quarter this year. Resort and
travel operations revenue and profit contribution increased to
$129.3 million and $7.1 million, respectively, from $54.4 million
and $3.5 million, due mainly to the acquisition in July 2004 of a
67% interest in Abercrombie & Kent, the world's leading luxury
adventure-travel company. Abercrombie & Kent had a strong first
quarter, generating revenue of $70.5 million. Excluding Abercrombie
& Kent, resort and travel operations revenue increased 8% over
the first quarter last year, led primarily by growth at Whistler
Blackcomb and Sandestin. "We are extremely pleased with the
addition of Abercrombie & Kent," said Joe Houssian, Intrawest's
chairman, president and chief executive officer. "The
adventure-travel company has made a significant contribution in the
first quarter which helps balance the seasonality of our mountain
resorts." Management services revenue and profit contribution
increased to $35.1 million and $5.7 million, respectively, from
$24.5 million and $2.6 million primarily as a result of increased
real estate development and sales services fees and higher property
rental management fees. Occupied room nights in the first quarter
increased five per cent over the first quarter last year and
average daily rates increased seven per cent. Revenue from real
estate development decreased, as expected, to $39.6 million from
$193.3 million in 2003 as 42 units were closed compared with 317
units last year. The timing of unit deliveries is tied to
construction completion and two major projects at Sandestin and
Lake Las Vegas completed construction during the quarter ended
September 30, 2003, allowing the delivery of 229 units. In
addition, one project was sold to Leisura for $5.3 million in the
first quarter of fiscal 2005 compared with four projects for $48.8
million in the first quarter last year. The decline in revenue
decreased the profit contribution from real estate development to
$5.5 million from $14.5 million in the first quarter last year.
Intrawest's Board of Directors today declared a dividend of
Cdn$0.08 per common share payable on January 26, 2005 to
shareholders of record on January 12, 2005. 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 included below. A conference call is scheduled
for Tuesday, November 9, 2004 at 11:00am ET (8:00am PT) to review
Intrawest's fiscal 2005 first quarter results. To access the call
dial 1-877-691-0878 before the scheduled start time. A playback
version of the conference call will be available until November 16,
2004 at 1-877-519-4471 with password 5359201. The call will also be
webcast live on http://www.intrawest.com/. For additional
information, please contact Mr. John Currie, chief financial
officer, at (604) 669-9777 or Mr. Tim McNulty, director, investor
relations at (604) 623-6620 or at INTRAWEST CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the
three months ended September 30 (in thousands of United States
dollars, except per share amounts) (unaudited) 2004 2003
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RESORT AND TRAVEL OPERATIONS: Revenue $ 129,300 $ 54,351 Expenses
122,224 50,893
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Resort and travel operations contribution 7,076 3,458
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MANAGEMENT SERVICES: Revenue 35,080 24,484 Expenses 29,370 21,867
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Management services contribution 5,710 2,617
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REAL ESTATE DEVELOPMENT: Revenue 39,621 193,288 Expenses 34,550
178,745
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5,071 14,543 Income from equity accounted investments 460 -
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Real estate development contribution 5,531 14,543
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Income before undernoted items 18,317 20,618 Interest and other
income 2,045 4,453 Interest expense (11,372) (9,894) Corporate
general and administrative expenses (4,453) (4,114) Depreciation
and amortization (11,337) (10,083)
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Income (loss) before income taxes and non-controlling interest
(6,800) 980 Provision for income taxes 1,001 (147) Non-controlling
interest (879) 105
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Net income (loss) for the period (6,678) 938 Retained earnings,
beginning of period 318,883 264,640
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Retained earnings, end of period $ 312,205 $ 265,578
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Income (loss) per common share Basic and diluted $ (0.14) $ 0.02
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Weighted average number of common shares outstanding (in thousands)
Basic 47,622 47,575 Diluted 47,622 47,732
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INTRAWEST CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of
United States dollars) SEPTEMBER 30, 2004 JUNE 30, 2004 (UNAUDITED)
(AUDITED)
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ASSETS CURRENT ASSETS: Cash and cash equivalents $ 93,148 $ 109,816
Amounts receivable 143,949 142,427 Other assets 138,879 94,105
Resort properties 454,142 412,343 Future income taxes 18,645 18,638
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848,763 777,329 Resort and travel operations 986,838 940,949 Resort
properties 394,982 368,309 Amounts receivable 58,630 52,958
Investment in and advances to Leisura 49,920 50,899 Other assets
72,476 65,306 Goodwill 32,491 -
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$ 2,444,100 $ 2,255,750
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LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Amounts
payable $ 217,437 $ 209,037 Deferred revenue and deposits 166,455
87,649 Bank and other indebtedness 456,903 109,685
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840,795 406,371 Bank and other indebtedness 587,029 849,132
Deferred revenue and deposits 78,128 82,211 Future income taxes
84,496 87,461 Non-controlling interest in subsidiaries 43,422
43,266
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1,633,870 1,468,441 SHAREHOLDERS' EQUITY: Capital stock 464,245
463,485 Retained earnings 312,205 318,883 Foreign currency
translation adjustment 33,780 4,941
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810,230 787,309
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$ 2,444,100 $ 2,255,750
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INTRAWEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS For the
three months ended September 30 (in thousands of United States
dollars)(unaudited) 2004 2003
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CASH PROVIDED BY (USED IN): OPERATIONS: Net income (loss) from
operations $ (6,678) $ 938 Items not affecting cash: Depreciation
and amortization 11,337 10,083 Income from equity accounted
investments (460) - Amortization of financing costs 590 785
Stock-based compensation 210 - Amortization of benefit plan 277 484
Non-controlling interest 879 (105) Loss on asset disposals - 676
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Funds from operations 6,155 12,861 Recovery of costs through real
estate sales 34,550 178,745 Acquisition and development of
properties held for sale (77,033) (153,545) Changes in long-term
amounts receivable, net (5,085) 2,316 Changes in non-cash operating
working capital (25,088) (21,927)
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(66,501) 18,450
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FINANCING: Bank and other borrowings, net 60,767 (42,920) Issue of
common shares for cash 274 218 Distributions to non-controlling
interests (2,315) (1,800)
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58,726 (44,502)
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INVESTMENTS: Proceeds from (expenditures on): Resort and travel
operations assets (17,422) (15,393) Investment in Leisura (1,903)
(6,597) Other assets (5,245) (3,764) Cash acquired in acquisition,
net of acquisition costs 15,677 - Asset disposals - 14,222
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(8,893) (11,532)
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Decrease in cash and cash equivalents (16,668) (37,584) Cash and
cash equivalents, beginning of period 109,816 126,832
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Cash and cash equivalents, end of period $ 93,148 $ 89,248
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INTRAWEST CORPORATION FIRST QUARTER STATISTICAL SUPPLEMENT Three
months ended September 30 2004 2003 Change $000's $000's GENERAL
Calculation of Total Company EBITDA Cash flow provided by (used in)
operating activities (66,501) 18,450 Add (deduct): Changes in
non-cash operating assets and liabilities 72,656 (5,589) Current
income tax expense (1,001) 147 Interest expense 11,372 9,894
Interest in real estate costs 2,202 9,002 ---------------------
18,728 31,904 Interest and other income, net of non-cash items
(2,662) (6,398) -------------------------------- Total Company
EBITDA 16,066 25,506 -37% --------------------------------
-------------------------------- RESORT AND TRAVEL OPERATIONS
Revenue from mountain resorts 43,517 40,109 8% Revenue from
warm-weather resorts 15,301 14,242 7%
-------------------------------- Total (same-resort basis) 58,818
54,351 8% Revenue from A&K 70,482 - n/a
-------------------------------- 129,300 54,351 138%
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Breakdown of resort and travel operations revenue Mountain
operations 11,729 11,691 0% Retail and rental shops 10,569 9,893 7%
Ski school 1,083 766 41% Food and beverage 13,446 11,722 15% Golf
11,374 11,741 -3% Travel tours 66,324 - n/a Other 14,775 8,538 73%
-------------------------------- 129,300 54,351 138%
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MANAGEMENT SERVICES Breakdown of management services revenue
Lodging and property management 17,558 16,121 9% Other management
services 17,522 8,363 110% -------------------------------- 35,080
24,484 43% --------------------------------
-------------------------------- REAL ESTATE DEVELOPMENT Breakdown
of real estate development revenue Resort development group 23,061
132,105 -83% Project sales to Leisura 5,293 48,812 n/a Resort Club
group 11,267 12,371 -9% -------------------------------- Total real
estate development revenue 39,621 193,288 -80%
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Intrawest units closed 42 317 -87% --------------------------------
-------------------------------- Intrawest Corporation (IDR:NYSE;
ITW:TSX) is one of the world's leading destination resort and
adventure-travel companies. Intrawest has interests in 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 owns a 67% interest in Abercrombie &
Kent, the world leader in luxury adventure travel and a 45%
interest in Canadian Mountain Holidays, the largest heli-skiing
operation in the world. The Intrawest network also includes
Sandestin Golf and Beach Resort in Florida and Club Intrawest - a
private resort club with its ninth location in Zihuatanejo, Mexico
opening in December 2004. Intrawest is developing five additional
resort village developments at locations in North America and
Europe. Intrawest is headquartered in Vancouver, British Columbia.
For more information, visit 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.
DATASOURCE: Intrawest Corporation CONTACT: Mr. John Currie, chief
financial officer, at (604) 669-9777 or Mr. Tim McNulty, director,
investor relations at (604) 623-6620 or at ; If you would like to
receive future news releases by email, please contact ; 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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