Whistler Blackcomb Holdings Inc. Reports Fiscal 2014 First Quarter Results and Announces Dividend and Capital Investments

Whistler Blackcomb Holdings Inc. Reports Fiscal 2014 First Quarter Results and
                  Announces Dividend and Capital Investments

PR Newswire

WHISTLER, BC, Feb. 4, 2014

WHISTLER, BC, Feb. 4, 2014 /PRNewswire/ - Whistler Blackcomb Holdings Inc.
(TSX: WB) (the "Corporation") today reported financial results for the three
months ended December 31, 2013. The Corporation holds a 75% interest in the
entities that operate Whistler Blackcomb, the largest four-season mountain
resort in North America.

Highlights for the Three Months Ended December 31, 2013

  *Revenue decreased by $0.4 million to $49.8 million and Adjusted EBITDA
    decreased by $0.8 million to $9.5 million as a result of reduced
    visitation to 426,000 total visits from 489,000 total visits in the
    comparative quarter last year. Snowfall for the ski season to December 31,
    2013 was 186 centimeters compared to the 10-year average snowfall for the
    same period of 472 centimeters and 560 centimeters for the same period in
    the prior year. Adjusted EBITDA is a non-GAAP measure and is defined
    below.
  *Revenue per total visit increased 14% compared to the same period in the
    prior year, reflecting strong growth in effective ticket price ("ETP" -
    see definition below) and guest spending in the Corporation's ancillary
    businesses.
  *Skier visits for the ski season to December 31, 2013 were comprised of 38%
    destination visits compared to 24% for the equivalent period in the prior
    year, based on the Corporation's estimates.
  *Refinancing of the Corporation's $261 million of senior secured and second
    lien debt with a new $300 million five-year senior secured revolving
    credit facility with a significantly reduced interest rate and increased
    flexibility.
  *Completion of construction and opening of the new Harmony 6 Express and
    Crystal Ridge Express ski lifts, as well as additional snowmaking
    infrastructure and terrain improvements on Blackcomb mountain, on time and
    on budget.

Dave Brownlie, the Corporation's President and Chief Executive Officer
commented: "We are pleased that our revenue and Adjusted EBITDA held up well
in spite of the lower than expected visitation, which demonstrates our pricing
power and the resiliency of our business. Our snowmaking infrastructure
allowed us to open more skiable terrain than any other resort in North America
for the holiday period and the success of our pre-commitment sales program
contributed positively to our results during the quarter."

Revenue, Visits and Pricing

  *Total revenue was $49.8 million for the quarter ended December 31, 2013, a
    decrease of $0.4 million or 1% compared to the same period in the prior
    year. The decrease in total revenue was primarily a result of lower lift
    revenue, because of lower skier visits, offset by higher ETP and revenue
    from the Corporation's ancillary businesses.
  *Total visits for the quarter ended December 31, 2013 were 426,000, a
    decrease of 63,000 visits, or 13%, compared to the same period in the
    prior year. Skier visits for the fiscal 2014 first quarter decreased by
    15% to 391,000, which was partially offset by a 25% increase in other
    visits to 35,000.
  *ETP and revenue per total visit for the quarter ended December 31, 2013
    were $53.52 and $116.99, respectively, an increase of $4.30 or 8.7% and
    $14.17 or 13.8%, respectively, over the comparative quarter in the prior
    year. ETP is total ski-related lift revenue divided by skier visits. This
    growth reflected increases in lift ticket prices, as well as increased
    guest spending in the Corporation's ancillary businesses. The Corporation
    experienced a higher proportion of destination visits in the first quarter
    of fiscal 2014, which contributed to the increase in revenue per visit.

Adjusted EBITDA and Loss per Share

  *Adjusted EBITDA decreased 7% to $9.5 million for the quarter ended
    December 31, 2013 compared to the same quarter in the prior year. The
    decrease in Adjusted EBITDA was driven primarily by lower revenue compared
    to the prior year.
  *Net loss per common share for the quarter was $0.19 (basic and diluted)
    compared to net loss per common share of $0.07 (basic and diluted) in the
    prior year. The increase in net loss per common share was principally
    attributable to the $5.5 million prepayment penalty and $2.8 million
    write-off of unamortized debt issuance costs in connection with the
    refinancing of the Corporation's long-term debt during the quarter.

Financial Position

  *As at December 31, 2013, the Corporation had $43.3 million of cash and
    cash equivalents, an increase of $1.9 million, or 5%, compared to $41.4
    million at September 30, 2013. The increase in cash was mainly
    attributable to season pass and frequency card sales, offset in part by
    capital spending on the new Harmony and Crystal chairlifts and the $5.5
    million penalty on the repayment of the Corporation's second lien debt
    during the quarter.
  *During the quarter, the Corporation entered into a new $300 million
    five-year senior secured revolving credit facility and repaid the first
    and second lien facilities in full. The Corporation's new credit facility
    will have an interest rate of 2.50% over the one-month banker's acceptance
    rate ("BA rate") until May 2014 and a rate of 2.25% over the BA rate
    thereafter, based on the Corporation's current leverage ratio.
  *Subsequent to quarter end, the Corporation applied $10 million of its cash
    balance against the new revolving credit facility and reduced the
    principal amount outstanding to $251 million.

Outlook

  *As at February 2, 2014, skier visits were 846,000, a decrease of 8.6%
    compared to the same period in the prior year.
  *Management estimates that total skier visits to date were comprised of 60%
    regional guests and 40% destination guests, compared to 70% and 30%,
    respectively, for the prior year.
  *As at February 2, 2014, the Corporation's 2013-14 seasons pass and
    frequency cards sales were $41.4 million, a 3% increase over season pass
    and frequency cards sales at the same time during the 2012-13 season.

Capital Investments

The Corporation also announced the following strategic capital investments
that are expected to be substantially completed in the 2014 fiscal year:

  *$6.0 million for a major upgrade of the Whistler Village Gondola,
    including the replacement of the original cabins with 160 new eight
    passenger seated cabins. The Village Gondola is the primary access point
    to Whistler Mountain from Whistler Village and the new cabins will
    dramatically improve guest experience and increase capacity by 12%.
  *$5.9 million for several information technology initiatives, including a
    new enterprise resource planning ("ERP") system and radio-frequency
    identification ("RFID") system with lift access control gates on most
    mountain lifts. The ERP system is one of the final steps for the
    Corporation to bring its IT infrastructure in-house from a third-party
    service provider. The installation of the RFID gates is expected to reduce
    lift ticket fraud and will provide the Corporation with the infrastructure
    required to offer enhanced guest engagement and marketing opportunities.

In respect of these investments, Dave Brownlie commented: "These capital
projects represent the first phase of investment after our debt refinancing
and are designed to improve guest experience and provide us with the necessary
infrastructure and capacity to continue to grow our ski and non-ski
businesses."

Dividend

The Corporation's Board of Directors has declared a dividend of $0.24375 per
common share for the first quarter, to be paid on February 19, 2014 to
shareholders of record on February 14, 2014. This dividend will be an eligible
dividend for Canadian income tax purposes.

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 is defined as consolidated loss from operations before
depreciation and amortization, as well as items that management does not
consider part of the Corporation'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 or restructuring 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
Corporation's results of operations from management's perspective. It is also
a supplemental measure of performance that highlights trends in the
Corporation's business that may not otherwise be apparent when relying solely
on GAAP financial measures. The closest GAAP measure is net loss 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 Corporation's annual
information form dated December 20, 2013 (the "AIF") and management's
discussion and analysis ("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 Loss to Adjusted EBITDA

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

                                                       
                                                 Three          Three
                                                months           months
                                                 ended            ended
                                              December         December
(In thousands)                              31, 2013        31, 2012
                                                       (Recast)^1
Net loss                                    $ (12,296)   $    (5,613)
Depreciation and amortization                  10,524        10,646
Finance expense, long term debt                11,967         4,251
Finance expense, Limited Partner's interest     1,925         1,900
Income tax benefit                            (2,601)         (942)
Non-cash loss on disposal of fixed assets           1            11
Adjusted EBITDA                             $   9,520   $     10,253

^1Refer to the Corporation's MD&A for the 3 months ended December 31, 2013 for
a description of the recast.

Conference Call Information

Management will conduct a conference call on February 4, 2014 at 6:00 a.m.
Pacific Time / 9:00 a.m. Eastern Time to review the Corporation's fiscal 2014
first 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 archived for 30 days on the Presentations
section of the Corporation's website.

ABOUTWHISTLERBLACKCOMB 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 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 1,180
centimetres (465 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 Corporation's website at
www.whistlerblackcombholdings.com or 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, which may prove to be
incorrect. The forward-looking statements and information contained in this
press release include comments about interest cost savings, investments in ski
and non-ski businesses, positioning for the 2013-14 ski season, principal
outstanding on credit facilities, lift ticket fraud reduction, replacement of
the Whistler Village Gondola cabins, among others, and are based on certain
factors and assumptions made by management of the Corporation including, but
not limited to: business conditions, guest visitation, weather, macroeconomic
and currency influences, and interest rates, among others.

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, 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 most
recently filed annual information form, 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.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)

(in thousands, except per share amounts)

                                                          
                                            Three months    Three months
                                                      ended              ended
                                               December 31,       December 31,
                                                       2013               2012
                                                             (recast)^1
                                                                      
Resort revenue                              $       49,837   $       50,281
                                                                      
Operating expenses                                 32,870          32,670
Depreciation and amortization                      10,524          10,646
Selling, general and administrative                 7,447           7,358
                                                  50,841          50,674
                                                                      
Loss from operations                              (1,004)           (393)
                                                                      
Disposal losses                                       (1)            (11)
Finance expense, long term debt                  (11,967)         (4,251)
Finance expense, Limited Partner's                (1,925)         (1,900)
interest
                                                                      
Net loss before income tax                       (14,897)         (6,555)
                                                                      
Income tax benefit                                  2,601             942
                                                                      
Net loss and comprehensive loss             $     (12,296)   $      (5,613)
                                                                      
Net loss and comprehensive loss:                                       
  Attributable to Whistler Blackcomb       $      (7,302)   $      (2,585)
   Holdings Inc. shareholders
  Attributable to Limited Partner's              (4,994)         (3,028)
   non-controlling interest
                                           $     (12,296)   $      (5,613)
                                                                      
Loss per share                                                         
  Basic                                    $       (0.19)   $       (0.07)
  Diluted                                  $       (0.19)   $       (0.07)
                                                                      
Weighted average number of common shares                               
outstanding
  Basic                                           37,961          37,912
  Diluted                                         38,018          37,967
                                                          

Consolidated Statements of Financial Position

(in thousands)

                                                         
                                                   December    September
                                                      31, 2013        30, 2013
                                                                      
Assets                                                                 
                                                                      
Current assets:                                                        
   Cash and cash equivalents                      $   43,254   $    41,353
   Accounts receivable                                9,819        3,323
   Income taxes receivable                            1,660            -
   Inventory                                         17,055       15,856
   Prepaid expenses                                   3,519        2,727
   Notes receivable                                     456          311
                                                     75,763       63,570
Notes receivable                                       2,458        2,636
Property, buildings and equipment                    324,528      322,316
Property held for development                          9,244        9,244
Intangible assets                                    308,269      311,428
Goodwill                                             137,259      137,259
                                                  $  857,521   $   846,453
                                                                      
Liabilities and Shareholders' Equity                                   
                                                                      
Current liabilities:                                                   
   Accounts payable and accrued liabilities       $   31,746   $    24,927
   Income taxes payable                                   -        1,645
   Provisions                                         2,823        2,858
   Deferred revenue                                  51,444       22,347
                                                     86,013       51,777
Long-term debt                                       258,452      258,042
Deferred income tax liability                         19,820       20,690
Limited Partner's interest                            72,796       72,796
Total liabilities                                    437,081      403,305
                                                                      
Equity                                                                 
   Whistler Blackcomb Holdings Inc.                          
    shareholders' equity
      Common shares; no par value; unlimited                
        number authorized;
      37,997 outstanding (Sept 30, 2013 -         442,531      442,080
        37,958)
            Additional paid-in capital                697          913
            Deficit                              (71,335)     (54,781)
Total Whistler Blackcomb Holdings Inc.               371,893      388,212
shareholders' equity
   Limited Partner's non-controlling interest        48,547       54,936
                                                    420,440      443,148
                                                  $  857,521   $   846,453
                                                         

Condensed Interim Consolidated Statements of Cash Flows

(in thousands)

                                                           
                                            Three months    Three months
                                                      ended              ended
                                               December 31,       December 31,
                                                       2013               2012
                                                             (recast)^1
Cash provided by (used in)                                             
                                                                      
Operations                                                             
                                                                      
Net loss                                    $     (12,296)   $      (5,613)
                                                                      
Adjustments for:                                                       
       Income tax benefit                        (2,601)           (942)
       Interest expense on long-term debt         11,967           4,251
       Interest expense on Limited                 1,925           1,900
        Partner's interest
       Depreciation and amortization              10,524          10,646
       Disposal losses                                 1              11
       Share-based compensation                      235             192
                                                   9,755          10,445
                                                                      
Interest paid on long-term debt                   (3,431)         (3,885)
Prepayment penalty paid on second lien            (5,500)               -
facility repayment
Interest paid on Limited Partner's                (1,925)         (1,900)
interest
Income taxes paid                                 (1,573)           (215)
Changes in non-cash operating working              27,394          21,534
capital
                                                                      
                                                  24,720          25,979
                                                                      
Financing                                                              
Dividends paid on common shares                   (9,252)         (9,240)
Distributions to Limited Partner's                (1,395)         (1,413)
non-controlling interest
Repayment of long-term debt                     (261,000)               -
Draws on revolving credit facility                261,000               -
Debt issuance costs                               (2,627)               -
                                                (13,274)        (10,653)
                                                                      
Investing                                                              
Expenditures on property, buildings,              (9,683)         (2,673)
equipment and intangibles
Proceeds from sale of property and                    105              41
equipment
Repayment of notes receivable                          33               4
                                                 (9,545)         (2,628)
                                                                      
Cash and cash equivalents, end of period                               
Increase in cash and cash equivalents               1,901          12,698
Cash and cash equivalents, beginning of            41,353          43,634
period
                                           $       43,254   $       56,332

^1Refer to the Corporation's MD&A for the 3 months ended December 31, 2013 for
a description of the recast.









SOURCE Whistler Blackcomb

Contact:

David Wilcox
Manager, Finance & Investor Relations
Whistler Blackcomb Holdings Inc.
dwilcox@whistlerblackcomb.com
ph: 604-938-7376
 
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