Whistler Blackcomb Holdings Inc. Reports Record 2014 Fourth Quarter and Year End Results

WHISTLER, BC, Dec. 10, 2014 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Company") today reported financial results for the fourth quarter and year ended September 30, 2014. The Company holds a 75% interest in and manages the entities that operate Whistler Blackcomb, the largest four-season mountain resort in North America.

Highlights

• Strong growth in the Company's non-ski business and higher revenue per visit contributed to a three-fold increase in Adjusted EBITDA (defined below) for the fourth quarter to a record of $2.2 million and 7% growth for the year ended September 30, 2014 to a record of $92.7 million.

• Completion of the Crystal Ridge Express and Harmony 6 Express chairlifts in the first quarter of fiscal 2014 and the Whistler Village Gondola upgrade and radio frequency gated access, strategic capital projects subsequent to year end. These capital projects were completed on time and on budget and are contributing to a much improved guest experience.

• Whistler Blackcomb was recently rated the # 1 ski resort in North America by Ski Magazine's reader poll and Freeskier Magazine, with top marks in terrain variety, off-hill activities, lifts and après-ski categories.

Dave Brownlie, President and Chief Executive Officer of the Company commented: "Our performance in fiscal 2014 clearly reflects the strength of our business as we generated meaningful EBITDA growth during the summer on top of a strong performance for the ski season.  I am particularly pleased with the continued momentum in our summer visits, which demonstrates the potential of our non-ski growth opportunity."  Mr. Brownlie continued: "We are very appreciative of the #1 ranking by Ski Magazine and excited about the significant capital improvements that we have made over the past two years.  We are looking forward to delivering an exceptional experience for our guests this season."

Financial & Operating Results Overview
(In thousands, except Effective Ticket Price ("ETP" as described below) and per visit amounts)

Visit, Pricing and Financial Results Summary

• The increase in visits for the three months ended September 30, 2014 was attributable to growth in summer visits, while the decrease in total visits for the 2014 fiscal year was attributable to fewer skier visits from the Company's regional market during the first and second quarters due to challenging early season weather conditions. Destination skier visits comprised approximately 41% of skier visits for the 2013-14 ski season compared to 38% during the prior year.

• The increase in revenue per visit for the year reflects growth in ETP due to increased lift ticket prices and lower pass and card utilization for the ski season combined with improved pricing and guest spending in the Company's ancillary businesses. The Affinity Sports acquisition in September 2013 also contributed to increased revenue from the Company's retail and rental businesses. Guest spending in the Company's ancillary businesses improved in part because of the higher destination skier visits in 2014 compared to 2013.

• The increase in Adjusted EBITDA for both the quarter and year ended September 30, 2014 was driven primarily by higher revenue per visit compared to the prior periods, as described above, offset partially by higher labour, and retail and food and beverage cost of sales compared to the prior periods.
  

Treasury Summary

• As at September 30, 2014, the Company had long-term debt outstanding of $232.0 million, a decrease of $29.0 million, or 11%, compared to $261.0 million at September 30, 2013. The Company's cash balance at September 30, 2014 was $8.4 million compared to $41.4 million at September 30, 2013. The decrease in cash was mainly attributable to $29.0 million in net debt repayments during fiscal 2014.

• Cash interest paid during the year ended September 30, 2014 decreased by 39.9% to $9.7 million from $16.1 million in the prior year due to the lower interest rate on the Company's credit facility, as a result of the refinancing in November 2013, and the net debt repayments during the year as described above.

• During September 2014, the Company entered into a four-year, $125 million interest rate swap with a Canadian bank, which has the effect of fixing the underlying floating interest rate on a portion of the principal amount outstanding under the Company's credit facility. The Company's effective interest rate on the $125 million amount swapped was 3.9% based on its leverage ratio at September 30, 2014.

• Subsequent to year end, the Company extended the maturity its credit facility by one year to November 12, 2019.

Outlook

• As at December 7, 2014, the Company's 2014-15 season pass and frequency card sales were $36.9 million, an increase of 2% over season pass and frequency card sales at the same time in the prior year.

• Hotel bookings in Whistler's accommodation sector as of December 7, 2014 were pacing 2% ahead of bookings at the same time in the prior year. Indications from our resort partners suggest strength in destination hotel bookings for the winter season compared to last year.

Dividend

The Company's Board of Directors declared a dividend of $0.24375 per common share for the fourth quarter, to be paid on December 29, 2014 to shareholders of record on December 22, 2014.  This dividend will be an eligible dividend for Canadian income tax purposes.

Non-GAAP Measures

This press release makes reference to Adjusted EBITDA and ETP, which are measures not prescribed by Canadian generally accepted accounting principles, or GAAP. These non-GAAP measures do not have standardized meanings and are therefore unlikely to be comparable to similar measures presented by other companies.

Adjusted EBITDA is defined as net earnings before interest, taxes, depreciation and amortization, as well as items that management does not consider part of the Company's normal operations, examples of which include significant non-cash gains or losses on disposal of property, buildings and equipment, acquisition or disposal expenses and gains or losses or restructuring expenses relating to acquisitions or disposals of businesses, impairment, restructuring or refinancing charges and reversals and other significant event-driven amounts as applicable. Adjusted EBITDA is provided as additional information to complement GAAP measures and to further understand the Company's results of operations from management's perspective. It is also a supplemental measure of performance that highlights trends in the Company's business that may not otherwise be apparent when relying solely on GAAP financial measures. The closest GAAP measure is net earnings and a reconciliation is provided below.

ETP is defined as the Company's ski ticket yield-per-skier visit calculated as total ski-related lift revenue divided by total skier visits. Ski-related lift revenue and skier visits exclude revenue and visits from summer glacier skiing and other revenue amounts. The Company believes ETP is an important measure of operating performance because it allows management, investors and others to evaluate and compare the yield generated by ski lift tickets from period to period, and ski tickets are the Company's largest source of revenue and the core of its operations. The closest GAAP measure is revenue and a 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 Company's annual information form dated December 10, 2014 and its most recent Management's Discussion & Analysis, which are available on the Company's website and under the Company's SEDAR profile at www.sedar.com, for additional details regarding non-GAAP measures.

Reconciliation of Net Earnings (Loss) to Adjusted EBITDA

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

The following table reconciles ETP to our most directly comparable GAAP measure, revenue:

Conference Call Information

Management will conduct a conference call on December 10, 2014 at 7:30 a.m. Pacific Time / 10:30 a.m. Eastern Time to review the Company's fiscal 2014 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 live webcast and 30 day replay of the conference call will be available in the Presentation & Webcasts section of the Company's website.

ABOUT WHISTLER BLACKCOMB HOLDINGS INC.

The Company holds a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (the "Partnerships"), which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia (the "Resort Business"). The Company is the operating general partner of the Partnerships and as such manages the Resort Business. Whistler Blackcomb, the official alpine skiing venue for the 2010 Olympic Winter Games, is situated in the Coast Mountains of British Columbia, 125 kilometres (78 miles) north of Vancouver, British Columbia. North America's largest 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 1,165 centimetres (459 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".  Additional information is available on the Company's website at www.whistlerblackcomb.com/holdings or under the Company's SEDAR profile at www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release and the associated conference call and webcast, which include a business update, fourth quarter and annual results and question and answer session, may contain certain forward-looking statements or information, within the meaning of applicable Canadian securities laws, which reflect the current view of the Company with respect to future events and financial performance. Forward-looking statements can often be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. All forward-looking statements made by the Company are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable. The forward-looking statements and information contained in this press release and the associated conference call and webcast include comments about the Company's 2014-15 season pass and frequency card sales and the ERP, RFID and Whistler Village Gondola capital projects, hotel bookings, among others, and are based on certain factors and assumptions made by management of the Company including, but not limited to: business conditions, guest visitation, weather, macroeconomic and currency influences, and interest rates, among others. These forward-looking statements and information contained 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, competition from other ski and four season resorts, changes in laws, regulations and policies and failure to comply with any legal requirements, the Company's reliance on its agreements with the Province of British Columbia to operate Whistler Blackcomb, the impact of any occurring natural disasters, insufficient insurance against material claims or losses and negative economic, business and market conditions. A more detailed description of these risks is available in the Company's most recently filed annual information form and management's discussion and analysis, which is available on the Company's website and at www.sedar.com under the Company's SEDAR profile.

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 Company 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 Company 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 Company 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.
Consolidated Statements of Comprehensive Income
For the years ended September 30, 2014 and 2013
(in thousands, except per share amounts)

Whistler Blackcomb Holdings Inc.
Consolidated Statements of Financial Position
For the years ended September 30, 2014 and 2013
(in thousands)

Whistler Blackcomb Holdings Inc.
Consolidated Statements of Cash Flows
For the years ended September 30, 2014 and 2013
(in thousands)

SOURCE Whistler Blackcomb

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