– Net income matches same quarter 2002; EBITDA up 11 per cent
– Outlook revised downward for fiscal 2003 year end
– U.S. real estate development partnership formed with JPMorgan
ALL DOLLAR AMOUNTS ARE IN U.S. CURRENCY
VANCOUVER, May 13 /PRNewswire-FirstCall/ – Intrawest Corporation, the world’s leading operator and developer of village-centered resorts, announced its results for its fiscal third quarter ended March 31, 2003. Income from continuing operations was $56.8 million, up slightly from $56.2 million in the same quarter of fiscal 2002. Basic earnings per share declined from $1.28 to $1.20 and fully diluted earnings per share declined from $1.25 to $1.19.
Revenue for the quarter was $402.6 million compared with $342.1 million in the same quarter of 2002. Total company EBITDA (earnings before interest, taxes, non-controlling interest, depreciation and amortization) increased to $125.5 million from $113.2 million in the same period last year.
Intrawest also announced today in a separate news release that it has formed a partnership with global asset management leader JPMorgan Fleming Asset Management to carry out Intrawest’s production-phase real estate business in the U.S. The partnership, Leisura Developments U.S., will finance its business on its own credit. A similar Canadian partnership was announced in February 2003.
“The travel and leisure sector faced a unique convergence of challenges during the quarter including continued economic weakness, war in Iraq and publicity surrounding Severe Acute Respiratory Syndrome (SARS),” said Joe Houssian, Intrawest’s chairman, president and chief executive officer. “We did not escape the impact of these challenges and have revised our guidance downward for the year but we remain on track to achieve our goal of significant free cash flow and debt reduction in fiscal 2004.”
Income from continuing operations was $49.2 million for the nine months compared with income from continuing operations of $52.5 million in 2002. Revenue and total company EBITDA for the nine months ended March 31, 2003 were $723.4 million and $168.5 million, respectively, compared with $667.2 million and $160.3 million, respectively, in the same period last year.
Ski and resort operations revenue was $313.1 million in the third quarter, up from $273.1 million in the same quarter of fiscal 2002. Intrawest assumed control of Winter Park Resort in December 2002. Excluding Winter Park, ski and resort operations revenue was $285.8 million. Ski and resort operations EBITDA for the quarter increased to $111.6 million from $99.6 million last year. Excluding Winter Park, ski and resort operations EBITDA was $98.2 million.
Skier visits for the quarter were down two per cent over the previous year on a same-resort basis due largely to a drop-off in visits brought about by the challenging business environment in March. Excluding Winter Park, revenue per visit was up seven per cent from last year.
For the nine-month period ended March 31, 2003, ski and resort operations revenue was $487.3 million compared with $419.3 million for the period ended March 31, 2002. EBITDA from ski and resort operations for the nine-month 2003 period was $135.5 million, compared with $115.8 million in the same period last year.
Real estate revenue was $87.1 million for the third quarter compared with $64.2 million reported in the same quarter last year. Intrawest closed 242 units during the quarter compared with 126 in the same quarter last year. Operating profit from real estate sales was $12.2 million, up from $11.9 million profit in the same period last year. The margin on sales for the quarter was 14.0 per cent, below the margin last year due to product and resort mix and reduced profitability of the Resort Club. Resort Club sales were $12.6 million compared with $16.5 million last year, again reflecting the difficult business conditions.
For the nine-month period ended March 31, 20003, real estate revenue and operating profit were $233.5 million and $30.0 million, respectively, compared with $238.2 million and $38.0 million in the corresponding 2002 period.
Currently the company has a backlog of real estate contracts with total pre-sales of over $680 million of which approximately $280 million is expected to close in the fourth quarter of fiscal 2003 and the balance is expected to close in fiscal 2004 and 2005. In addition, Leisura has pre-sales of approximately $170 million due to close in fiscal 2004 and 2005.
In light of the impact of recent events on the company’s business, the company is providing revised guidance for the 2003 fiscal year end. The company now expects Resort EBITDA of $110 million to $115 million, real estate profit of $75 million to $80 million and income from continuing operations of $42 million to $47 million. Total Company EBITDA is expected to be $200 million to $210 million compared with $211.2 million last year.
The Board of Directors of the company declared a dividend of Cdn$0.08 per common share payable on July 23, 2003 to shareholders of record on July 9, 2003.
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.