ALL DOLLAR AMOUNTS ARE IN U.S. CURRENCY
– Operations EBITDA finishes year at upper end of guidance
– First projects sold to Leisura Developments in August and September
– Fourth-quarter charge of $12.3 million against technology assets as Intrawest moves to standardize IT systems across resorts
– Intrawest confirms guidance of $250 million free cash flow for fiscal 2004
– Total Company EBITDA at $209.2 million compared with $211.1 million in 2002
VANCOUVER, Sept. 16 // – Intrawest Corporation, the world’s leading operator and developer of village-centered resorts, announced today its results for the fiscal year ended June 30, 2003. Income from continuing operations for the year was $34.8 million (after taking a write- down of $12.3 million against technology assets) compared with $58.6 million in 2002. Income per share from continuing operations for the year, on a fully diluted basis, was $0.73 ($0.96 before the write-down of technology assets), down from $1.31 per share in 2002.
Total revenue for the year increased 10 per cent to $1.09 billion from $986.0 million. Total Company EBITDA (earnings before interest, income taxes, non-controlling interest, depreciation and amortization) was $209.2 million compared with $211.1 million in 2002.
“Our resort performance was strong to the beginning of March at which point war in Iraq followed by the outbreak of SARS had a significant negative impact on resort visits. Our full-year operating results exceeded our guidance of last May thanks to stronger than anticipated late-season business at Whistler and Mammoth and a very busy early summer at Sandestin in Florida,” said Joe Houssian, chairman, president and chief executive officer.
The Leisura Developments partnerships were established earlier in 2003 with Manulife Capital in Canada and JPMorgan Fleming in the U.S. to take on the production phase of Intrawest’s real estate development business. The first projects were sold to the partnerships in August and September including two major projects in Whistler.
Intrawest confirmed its guidance that the impact of the Leisura partnerships, combined with cash flow from ongoing business, is expected to result in free cash flow of approximately $250 million for fiscal 2004, which will be used to pay down debt.
The $12.3 million write-down of technology assets resulted from decisions to standardize various business systems across Intrawest’s resorts, including information technology (IT) and central reservations systems, and reflects the write-off of the investment in redundant systems.
“Implementation of more cost-effective and efficient standardized IT systems across our resorts has enabled us to do away with legacy systems holding uncertain or limited future value,” said Daniel Jarvis, executive vice president and chief financial officer.
For the year ended June 30, 2003, ski and resort operations revenue was $571.5 million compared with $485.1 million in 2002. EBITDA for the year was $116.7 million compared with $107.3 million.
Real estate revenue increased 17.5 per cent to $512.7 million from $487.8 million in 2002. Intrawest delivered 1,239 real estate units in the year, compared with 1,290 in 2002, and sold the majority of its commercial properties at Tremblant. Real estate profit was $75.0 million compared with $85.1 million in 2002. Real estate margins declined to 14.6 per cent from 17.4 per cent as a result of a continued slow market for resort real estate in Colorado, construction delays experienced on several projects and reduced margins at the Intrawest Resort Club.
Currently the company has a backlog of real estate contracts with total pre-sales of over $460 million for delivery in fiscal 2004 compared with $370 million for delivery in fiscal 2003 at the same time last year. In addition, Leisura has pre-sales of approximately $260 million due to close in fiscal 2004 and 2005.
The loss from continuing operations for the fourth quarter eended June 30, 2003 was $14.5 million (after taking a write-down of $12.3 million against technology assets) compared with income of $6.1 million in the same period last year. Loss per share from continuing operations, on a fully diluted basis, was $0.30 (a loss of $0.08 before the write-down of technology assets) compared with income per share of $0.13 in the same period of 2002.
Revenue for the quarter increased to $363.2 million from $318.7 million last year. Total Company EBITDA for the period was $40.8 million compared with $50.8 million in the same quarter of 2002.
For the fourth quarter, resort operations revenue was $84.2 million, up from $65.9 million in the comparable 2002 period. The loss from ski and resort operations was $18.8 million compared with a loss of $8.5 million last year.
Real estate revenue in the fourth quarter was $279.2 million compared with $249.5 million in the same quarter in 2002. Operating profit from real estate was $45.0 million in the fourth quarter compared with $47.1 million last year.
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.