Whistler Blackcomb Holdings Inc. reports results for quarter ended June 30, 2013

WHISTLER, BC, Aug. 7, 2013 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Corporation") today reported financial results for the three and nine months ended June 30, 2013. The Corporation holds a 75% interest in the entities that operate Whistler Blackcomb, the largest mountain resort in North America.

Year to Date Highlights:

  • Revenue and Adjusted EBITDA (defined below) increased as a result of strong Effective Ticket Price ("ETP") growth and higher revenue per visit.

  • Season pass and frequency card sales achieved a record of $44.5 million for the 2012-13 ski season.

  • Cash and cash equivalents increased 10% to $58.8 million at June 30, 2013 compared to June 30, 2012.

The Corporation's spring campaign for its 2013-14 season passes and frequency cards generated $12.1 million in sales, which represents a 8% increase over the spring campaign for the 2012-13 season and a 17% increase over the spring campaign for the 2011-12 season.

Dave Brownlie, President and Chief Executive Officer of the Corporation, stated "As expected, we experienced a decline in skier visits during the third quarter as a result of the timing of the Easter holiday compared to 2012. However, we were pleased to see strong growth in our effective ticket price and revenue per visit for the third quarter and 2012-13 ski season, which resulted in increased revenue and adjusted EBITDA for the nine months ended June 30, 2013. We are currently experiencing positive momentum in our summer business and the construction of our new Crystal and Harmony high-speed chairs is progressing well. The projects are on budget and we are on track to have these exciting new lifts open for the 2013-14 ski season."

FISCAL 2013 THIRD QUARTER AND NINE MONTH FINANCIAL RESULTS

Revenue, Visits and Effective Ticket Price

  • Revenue reached $29.7 million and $212.2 million for the three and nine months ended June 30, 2013, respectively, which represent a decrease of $4.7 million, or 14%, and an increase of $3.2 million, or 2%, respectively, over the same periods in the prior year. The increase for the nine months ended June 30, 2013 was primarily a result of increased pricing of lift products and ancillary services, as well as a higher spend per visit. The decrease for the three months ended June 30, 2013 was due to a reduction in skier visits in the quarter compared to the same period in the prior year.
  • As of the end of the 2012-13 ski season, total pass and card sales reached $44.5 million, representing a new record for Whistler Blackcomb and exceeding last season's record sales by 5%.
  • Skier visits were 249,000 and 2.04 million for the three and nine months ended June 30, 2013, which represent decreases of 83,000, or 25%, and 91,000, or 4%, respectively, over the same periods in the prior year. The reduction in skier visits for both periods was primarily a result of a loss of momentum the Corporation experienced during the third quarter of 2013 as a result of the timing of the Easter holiday compared to 2012. The Easter holiday fell in the second quarter in 2013 versus the third quarter in 2012.
  • ETP was $46.81 and $51.68 for the three and nine months ended June 30, 2013, respectively, which represent increases of $4.23, or 10%, and $2.45, or 5%, respectively, over the same periods in the prior year. The increase in ETP was driven primarily by increased pricing.
  • Revenue per visit was $104.53 and $95.59 for the three and nine months ended June 30, 2013, respectively, which represent increases of $12.19, or 13%, and $5.25, or 6%, respectively, over the same periods in the prior year. The increase in revenue per visit was driven by increased pricing and increased spend per guest in the Corporation's ancillary businesses

Expenses

  • Operating expenses were $22.0 million and $105.0 million for the three and nine months ended June 30, 2013, respectively, which represent a decrease of $2.0 million, or 8%, and an increase of $1.8 million, or 2%, respectively, over the same periods in the prior year.

Adjusted EBITDA and Earnings (Loss) Per Share

  • Adjusted EBITDA was $1.9 million and $85.9 million for the three and nine months ended June 30, 2013, respectively, which represent a decrease of $3.0 million, or 61%, and an increase of $0.9 million, or 1%, respectively, over the same periods in the prior year. The reduction in Adjusted EBITDA for the quarter ended June 30, 2013 resulted primarily from lower skier visits in connection with the timing of the Easter holiday compared to 2012.
  • Net earnings (loss) per common share (basic and diluted) were ($0.19) and $0.61 for the three and nine months ended June 30, 2013, respectively, compared to net earnings (loss) per common share (basic and diluted) of ($0.14) and $0.62 for the three and nine months ended June 30, 2012. The increase in net loss for the three months ended June 30, 2013 was due to a reduction in skier visits and a disposal loss (see below).

Cash and Cash Equivalents

  • The Corporation had $58.8 million of cash and cash equivalents at June 30, 2013, an increase of $5.2 million, or 10%, compared to the balance of $53.6 million at June 30, 2012.

Dividend

The Corporation's Board of Directors has declared a dividend of $0.24375 per common share for the third quarter, payable on August 22, 2013 to holders of record on August 19, 2013. Whistler Blackcomb Holdings Inc. designates this dividend to be an "eligible dividend" for purposes of the Income Tax Act (Canada) and similar provincial and territorial legislation.

NON-GAAP MEASURES

This press release makes reference to Adjusted EBITDA, which is a measure not prescribed by Canadian generally accepted accounting principles, or "GAAP." This non-GAAP measure does not have a standardized meaning and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA, which is defined as consolidated net earnings (including net earnings attributable to the non-controlling interest) before finance expense, net, income tax expense, depreciation and amortization, and non-cash loss or gain on disposal of fixed assets, is provided to the reader as additional information to complement GAAP measures and to further understand the Corporation's results of operations from management's perspective and as a supplemental measure of performance that highlights trends in the business that may not otherwise be apparent when relying solely on GAAP financial measures. The closest GAAP measure is net earnings and reconciliation is provided below. Non-GAAP measures should not be considered in isolation or as a substitute for analysis of financial information reported in accordance with GAAP. Readers should refer to the Corporation's annual information form dated December 12, 2012 (the "AIF") and MD&A, which are available on the Corporation's website and on SEDAR at www.sedar.com, for additional details regarding non-GAAP measures.

Reconciliation of Net Earnings to Adjusted EBITDA

The following table reconciles Adjusted EBITDA to the Corporation's most directly comparable GAAP measure, net earnings (loss):

(In thousands) 

  Nine
months
ended
June 30,
2013
Nine
months
ended
June 30,
2012
Three
months
ended
June 30,
2013
Three
months
ended
June 30,
2012
         
Net earnings (loss) $ 33,881 $ 34,666 $ (10,374) $ (7,376)
Depreciation and amortization 30,805 28,865 10,016 9,598
Finance expense, net 12,494 13,276 4,164 4,285
Income tax expense 7,973 8,208 (2,629) (1,572)
Non-cash loss (gain) on disposal of fixed assets 749 22 749 (4)
Adjusted EBITDA $ 85,902 $ 85,037 $ 1,926 $ 4,931

The Corporation's Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for the three and nine months ended June 30, 2013 can be found on SEDAR at www.sedar.com and the Corporation's website at www.whistlerblackcombholdings.com.

Conference Call Information

Management will conduct a conference call on August 7, 2013 at 10:30am (Eastern Time) to review the Corporation's fiscal 2013 third quarter results. The call can be accessed by dialing 1.800.319.4610 (Canada and US) or 1.604.638.5340 (International) prior to the start of the call. A replay of the call will be available for a period of 30 days following the call in the Quarterly Financials section of the Corporation's website at www.whistlerblackcombholdings.com.

ABOUT WHISTLER BLACKCOMB HOLDINGS INC.

Whistler Blackcomb Holdings Inc. owns a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership, which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia.  Whistler Blackcomb, the official alpine skiing venue for the Olympic Winter Games, is situated in the Resort Municipality of Whistler located in the Coast Mountains of British Columbia 125 kilometres (78 miles) from Vancouver, British Columbia. North America's premier four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offer over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls, three glaciers, receive on average over 1,174 centimetres (462 inches) of snow annually, and offer one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB".  For more information, visit www.whistlerblackcombholdings.com. Additional information related to the Corporation is available on SEDAR at www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements or information, within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to the timing of the completion of the Harmony and Crystal lift installations, which may prove to be incorrect. The forward-looking statements and information contained in this press release are based on certain factors and assumptions made by management of the Corporation including, but not limited to: assurances from suppliers, previous lift installations and there being no unforeseen obstructions to the construction of the project.

The forward-looking statements and information contained in this press release are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated including, but not limited to, risks relating to unfavourable weather conditions, availability of capital, supply and installation of equipment, environmental laws and regulations, the impact of any occurring natural disasters and economic, business and market conditions. A more detailed description of these risks is available in the Corporation's annual information form dated December 12, 2012, which is available on the Corporation's website and on SEDAR at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein. Although the Corporation believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements or information because the Corporation can give no assurance that such expectations will prove to be correct.

These forward-looking statements and information are made as of the date of this press release, and the Corporation has no intention and assumes no obligation to update or revise any forward-looking statements or information to reflect new events or circumstances, except as required by applicable Canadian securities laws.


Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Comprehensive Income
For the three and nine months ended June 30, 2013
(in thousands, except per share amounts)
 
 
    Nine months    Nine months   Three months   Three months
    ended   ended   ended   ended
    June 30,   June 30,   June 30,   June 30,
    2013   2012   2013   2012
                 
Resort revenue    $  212,219 209,017  $  29,740 34,422
                 
Operating expenses     105,008   103,201   22,024   24,012
                 
Depreciation and amortization     30,805   28,865   10,016   9,598
                 
Selling, general and administrative     21,309   20,779   5,790   5,479
                 
    157,122   152,845   37,830   39,089
                 
Earnings from operations     55,097   56,172   (8,090)   (4,667)
                 
Disposal gains (losses)    (749)   (22)    (749)    4
                 
Finance expense, net     (12,494)   (13,276)   (4,164)   (4,285)
                 
Net earnings before income tax     41,854   42,874   (13,003)   (8,948)
                 
Income tax benefit (expense)     (7,973)    (8,208)   2,629   1,572
                 
Net earnings (loss) and comprehensive income (loss)   33,881  $  34,666 (10,374) (7,376)
                 
Net earnings (loss) and comprehensive income (loss):                
  Attributable to Whistler Blackcomb Holdings Inc. shareholders    23,234 23,639 (7,272) (5,202)
  Attributable to non-controlling interest     10,647   11,027   (3,102)   (2,174)
  33,881 34,666 (10,374) (7,376)
                 
Earnings (loss) per share                
  Basic    $  0.61 0.62 (0.19) (0.14)
  Diluted     0.61 0.62 (0.19) (0.14)
                 
Weighted average number of common shares outstanding                
  Basic     37,940   37,892   37,958   37,908
  Diluted     37,992   37,953   37,998   37,954


Whistler Blackcomb Holdings Inc.        
Condensed Interim Consolidated Statement of Financial Position        
As at June 30, 2013        
(in thousands)        
             
    June 30,   September 30,
    2013    2012
         
Assets        
         
Current assets:        
  Cash and cash equivalents      $  58,845  $  43,634
  Accounts receivable      2,624   3,481
  Income taxes receivable      -    240
  Inventory      9,125   13,788
  Prepaid expenses      3,365   3,104
  Notes receivable       311   303
    74,270    64,550
         
Notes receivable       2,642   2,792
         
Property, buildings and equipment      318,946   328,414
         
Property held for development      9,244    9,244
         
Intangible assets      314,157   324,028
         
Goodwill      135,574   135,574
  $  854,833  $  864,602
         
Liabilities and Shareholders' Equity        
         
Current liabilities:        
  Accounts payable and accrued liabilities       $  17,425  $  24,060
  Income taxes payable      2,749   153
  Provisions      2,798   2,903
  Deferred revenue      12,439   20,718
    35,411   47,834
         
Long-term debt      257,729    256,800
         
Deferred income tax liability       20,447   15,489
         
Equity        
  Whistler Blackcomb Holdings Inc. shareholders' equity        
    Preferred shares; no par value; unlimited
  number authorized; nil outstanding
       
    Common shares; no par value; unlimited
  number authorized; 37,958 outstanding
  (September 30, 2012 - 37,908) 
   442,080   441,476
    Additional paid-in capital      695   721
    Deficit      (36,397)   (31,887)
    Total Whistler Blackcomb Holdings Inc.
  shareholders' equity   
  406,378   410,310
  Non-controlling interest      134,868   134,169
    541,246    544,479
  $  854,833  $  864,602



Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Cash Flows
For the three and nine months ended June 30, 2013
(in thousands)
 
 
    Nine months    Nine months    Three months   Three months
    ended    ended   ended    ended
    June 30,   June 30,    June 30,   June 30,
    2013   2012    2013   2012
                 
Cash provided by (used in):                
                 
Operations:                
  Net earnings (loss)    $  33,881  $  34,666   $  (10,374)  $  (7,376)
  Items not involving cash:                
    Depreciation and amortization     30,805    28,865    10,016   9,598
    Disposal losses (gains)     749    22    749    (4)
    Share-based compensation     578    422    147   96
    Amortization of debt issuance costs     929    949    310   315
    Deferred income tax expense (benefit)     4,958    6,500   (2,932)    (2,605)
    71,900    71,424   (2,084)    24
  Changes in non-cash operating working capital     (6,924)    (3,625)    62    (2,182)
    64,976    67,799    (2,022)   (2,158)
                 
Financing:                
  Dividends paid on common shares     (27,744)    (27,710)   (9,252)   (9,240)
  Distributions to non-controlling interest     (9,948)    (9,936)    (3,317)    (3,313)
  Proceeds on issuance of long-term debt     -    (269)   -   (269)
    (37,692)   (37,915)    (12,569)    (12,822)
                 
Investing:                
  Expenditures on property, buildings and equipment     (12,373)    (6,796)    (3,696)   (1,861)
  Proceeds from sale of property and equipment     158    393   16   29
  Repayment of notes receivable     142   134   4    4
    (12,073)    (6,269)    (3,676)    (1,828)
                 
Increase in cash and cash equivalents     15,211    23,615    (18,267)   (16,808)
Cash and cash equivalents, beginning of period     43,634    30,023   77,112   70,446
Cash and cash equivalents, end of period    $  58,845  $  53,638   $  58,845  $  53,638
 

SOURCE Whistler Blackcomb




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