Peak Resorts Reports Results for First-Quarter FY2018 WILDWOOD, Mo., Sept. 06, 2017 (GLOBE NEWSWIRE) -- Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today reported results for the first quarter of its 2018 fiscal year. First-Quarter 2018 Highlights and Outlook: o Revenue of $7.5 million, an increase of 6% over the prior year period o Net loss was $8.6 million, or 64 cents per share (basic and diluted) o Reported EBITDA* was ($8.3) million o Cash and cash equivalents of $26.9 million o Commitment for renewed $15 million acquisition and new $10 million working capital lines of credit o West Lake Water project on track for 2017/2018 ski season opening Timothy D. Boyd, president and chief executive officer, commented, “Fiscal year 2018 is off to a solid start. We achieved 6% revenue growth in our slowest season and continued to deliver on our promise to expand Mount Snow’s skiable acres and develop other important organic growth opportunities.” Boyd continued, “I’m pleased to report that our EB-5 funded West Lake Water project at Mount Snow is running ahead of schedule and the new reservoir is expected to be completely filled by early November. With adequate weather, this project will enable us to open the resort with significantly more terrain than in previous seasons. Our Carinthia Ski Lodge project at Mount Snow also remains on track to be completed for the 2018/2019 ski season, and we are awaiting permits for our two latest projects – the Hunter Mountain expansion and the zip tour at Hidden Valley, which are expected to begin construction this fall.” “In conjunction with our succession planning efforts, we recently announced the promotion of Chris Bub, chief accounting officer, to CFO, effective October 3. Steve Mueller, our long time CFO, will remain with the company and on the board, to assist with the transition and help with special projects and growth initiatives,” Boyd said. First Quarter Operating Results Stephen J. Mueller, Peak Resorts’ chief financial officer, noted, “We achieved organic revenue growth of 6% in the first quarter as a result of stronger food and beverage sales at summer concerts and conferences held at our resorts. Reported EBITDA* was down $1.4 million largely due to resort maintenance projects returning to historical levels. Comparability to fiscal year 2017 is skewed by strict cost control procedures implemented in fiscal 2017 as we were awaiting the release of our EB-5 escrow funds.” *See page 3 for Definitions of Non-GAAP Financial Measures (dollars in thousands except per share Three months ended July 31, data) 2017 2016 Revenues $ 7,520 $ 7,126 Loss from operations $ (11,449 ) $ (10,117 ) Net loss $ (8,595 ) $ (7,904 ) Loss per share (basic and diluted) $ (0.64 ) $ (0.56 ) Weighted average shares outstanding 13,982 13,982 Vested restricted stock units 50 39 Reported EBITDA* $ (8,304 ) $ (6,900 ) (dollars in thousands) Three months ended July 31, 2017 2016 Revenues: Food and beverage $ 2,830 $ 2,487 Hotel/lodging $ 1,841 $ 1,808 Retail $ 241 $ 149 Summer activities $ 1,881 $ 1,864 Other $ 727 $ 818 Total $ 7,520 $ 7,126 (dollars in thousands) Three months ended July 31, 2017 2016 Resort operating expenses: Labor and labor related expenses $ 8,611 $ 7,707 Retail and food and beverage cost of sales $ 752 $ 761 Power and utilities $ 789 $ 588 Other $ 3,387 $ 2,708 Total $ 13,539 $ 11,764 Financial Position Mueller continued, “As recently announced, we received a commitment from Royal Banks of Missouri, our primary banking partner, to renew our $15 million acquisition line of credit and enter into a new $10 million working capital line of credit that we intend to close this fall. We intend to roll all amounts currently outstanding under existing credit facilities with Royal Banks into the renewed acquisition line. These actions will bolster our strong liquidity position going into the 2017/2018 ski season and improve shareholder value.” Quarterly Investor Call and Webcast Peak Resorts will hold its first quarter fiscal 2018 investor conference call/webcast on Thursday, September 7, 2017 at 11 a.m. ET. The call/webcast will be available via: Webcast: ir.peakresorts.com on the Events page Conference Call: 844-526-1518 (domestic) or 647-253-8644 (international) A replay will be available on the Peak Resorts investor relations website (ir.peakresorts.com) after the call concludes. Definitions of Non-GAAP Financial Measures Reported EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (“GAAP”). The company defines Reported EBITDA as net income before interest, income taxes, depreciation and amortization, gain on sale/leaseback, other income or expense and other non-recurring items. The following table includes a reconciliation of Reported EBITDA to the GAAP related measure of net loss: Three months ended July 31, 2017 2016 Net loss $ (8,595 ) $ (7,904 ) Income tax benefit (5,727 ) (5,176 ) Interest expense, net 3,011 3,048 Depreciation and amortization 3,145 3,217 Other income (55 ) (2 ) Gain on sale/leaseback (83 ) (83 ) $ (8,304 ) $ (6,900 ) We have specifically chosen to include Reported EBITDA (which we define as net income before interest, income taxes, depreciation, amortization, gain on sale/leaseback, other income and expense and other non-recurring items) as a measurement of our results of operations because we consider this measurement to be a significant indication of our financial performance and available capital resources. Because of large depreciation and other charges relating to our ski resorts operations, it is difficult for management to fully and accurately evaluate our financial performance and available capital resources using net income alone. In addition, the use of this non-U.S. GAAP measure provides an indication of our ability to service debt, and we consider it an appropriate measure to use because of our highly leveraged position. Management believes that by providing investors with Reported EBITDA, they will have a clearer understanding of our financial performance and cash flows because Reported EBITDA: (i) is widely used in the ski industry to measure a company’s operating performance without regard to items excluded from the calculation of such measure; (ii) helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure and asset base from our operating results; and (iii) is used by our board of directors, management and our lenders for various purposes, including as a measure of our operating performance and as a basis for planning. Reported EBITDA is not a measure of performance defined by GAAP. The items we exclude from net income to arrive at Reported EBITDA are significant components for understanding and assessing our financial performance and liquidity. Reported EBITDA should not be considered in isolation or as alternative to, or substitute for, net income, net change in cash and cash equivalents or other financial statement data presented in the company’s condensed consolidated financial statements as indicators of financial performance or liquidity. Because Reported EBITDA is not a measurement determined in accordance with U.S. GAAP and is susceptible to varying calculations, Reported EBITDA as presented may not be comparable to other similarly titled measures of other companies, limiting its usefulness as a comparative measure. About Peak Resorts Headquartered in Missouri, Peak Resorts, Inc. is a leading owner and operator of high-quality, individually branded ski resorts in the U.S. The company operates 14 ski resorts primarily located in the Northeast and Midwest, 13 of which are company owned. The majority of the resorts are located within 100 miles of major metropolitan markets, including New York, Boston, Philadelphia, Cleveland and St. Louis, enabling day and overnight drive accessibility. The resorts under the company’s umbrella offer a breadth of activities, services and amenities, including skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction and mountain biking and other summer activities. To learn more, visit the company’s website at ir.PeakResorts.com, or follow Peak Resorts on Facebook (https://www.facebook.com/skipeakresorts) for resort updates. Forward Looking Statements This news release contains forward-looking statements including statements regarding the future outlook and performance of Peak Resorts, Inc., and other statements based on current management expectations, estimates and projections. These statements are subject to a variety of risks and uncertainties, are not guarantees and are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, without limitation, those discussed under the caption “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended April 30, 2017, filed with the Securities and Exchange Commission, and as updated from time to time in the company’s filings with the SEC. The forward-looking statements included in this news release are only made as of the date of this release, and Peak Resorts disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) Three months ended July 31, 2017 2016 Net revenue $ 7,520 $ 7,126 Operating expenses: Resort operating costs 13,539 11,764 Depreciation and amortization 3,145 3,217 General and administrative 1,248 1,372 Real estate and other non-income taxes 684 563 Land and building rent 353 327 Loss from Operations (11,449 ) (10,117 ) Other (expense) income: Interest, net of amounts capitalized of $431 and $384 in 2017 and 2016, respectively (3,011 ) (3,048 ) Gain on sale/leaseback 83 83 Other income 55 2 (2,873 ) (2,963 ) Loss before income taxes (14,322 ) (13,080 ) Income tax benefit (5,727 ) (5,176 ) Net loss $ (8,595 ) $ (7,904 ) Less accretion of Series A preferred stock (400 ) - dividends Net loss attributable to common shareholders $ (8,995 ) $ (7,904 ) Basic and diluted loss per common share $ (0.64 ) $ (0.56 ) Cash dividends declared per common share $ 0.07 $ - Consolidated Balance Sheets (dollars in thousands, except share and per share amounts) July 31, April 30, 2017 2017 Assets (Unaudited) Current assets: Cash and cash equivalents $ 26,869 $ 33,665 Restricted cash balances 7,079 11,113 Income tax receivable 5,727 - Accounts receivable 1,625 5,083 Inventory 2,395 2,215 Deferred income taxes 591 591 Prepaid expenses and deposits 2,541 2,183 Total current assets 46,827 54,850 Property and equipment, net 193,644 188,143 Land held for development 37,592 37,583 Restricted cash, construction 26,156 33,700 Goodwill 4,825 4,825 Intangible assets, net 774 788 Other assets 661 648 Total assets $ 310,479 $ 320,537 Liabilities and Stockholders' Equity Current liabilities: Acquisition line of credit $ 2,750 $ 4,500 Accounts payable and accrued expenses 13,842 12,371 Accrued salaries, wages and related taxes 1,092 1,035 and benefits Unearned revenue 14,762 14,092 EB-5 investor funds in escrow - 500 Current portion of deferred gain on 333 333 sale/leaseback Current portion of long-term debt and 3,622 3,592 capitalized lease obligation Total current liabilities 36,401 36,423 Long-term debt 174,716 174,785 Capitalized lease obligations 2,343 2,708 Deferred gain on sale/leaseback 2,762 2,845 Deferred income taxes 12,474 12,474 Other liabilities 531 540 Total liabilities 229,227 229,775 Series A preferred stock, $.01 par value per share, $1,000 liquidation preference per share, 40,000 shares authorized, 20,000 shares issued and outstanding 17,401 17,001 Commitments and contingencies Stockholders' equity: Common stock, $.01 par value per share, 20,000,000 shares authorized, 13,982,400 shares issued and 140 140 outstanding Additional paid-in capital 86,435 86,372 Accumulated deficit (22,724 ) (12,751 ) Total stockholders' equity 63,851 73,761 Total liabilities and stockholders' equity $ 310,479 $ 320,537 For Further Information: Jennifer Childe, 312-690-6003 InvestorRelations@PeakResorts.com Primary Logo
Peak Resorts Reports Results for First-Quarter FY2018
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