Booth Creek Ski Holdings, Inc. Reports Fiscal 2003 First Quarter Results.Business Editors VAIL, Colo.--(BUSINESS WIRE)--March 17, 2003 Booth Creek Ski Holdings, Inc. ("Booth Creek" or the "Company") announced today results for the fiscal quarter ended Jan. 31, 2003. Resort operations revenues were $46,515,000 for the quarter ended Jan. 31, 2003, a reduction of $2,842,000, or 6 percent, from the level of revenues generated during the quarter ended Feb. 1, 2002. Total skier visits declined from 1,051,000 visits for the 2002 period to 913,000 visits for the 2003 period, or 13 percent, due to the following: -- Total skier visits for the Company's Lake Tahoe resorts (Northstar and Sierra) declined by 18,000 visits, or 4 percent, from the 2002 period, primarily as a result of a delayed opening at Sierra due to the lack of early season snowfall in the Lake Tahoe region. -- During the first half of the 2002/03 ski season, the northeastern United States experienced much colder temperatures and increased natural snowfall as compared to the record warm winter of 2001/02. Total skier visits for the 2003 period for the Company's New Hampshire resorts (Waterville Valley, Mt. Cranmore and Loon Mountain) were up 58,000 visits, or 21 percent, from the 2002 period. -- From the opening of the 2002/03 season through January 2003, the Pacific Northwest experienced unseasonably warm temperatures and substantially below average snowfall. The Summit commenced partial operations onDec. 27, 2002 on limited terrain, as compared to a Nov. 30, 2001 opening for the 2001/02 season. Further, operating conditions at the Summit were generally favorable throughout the 2001/02 season. Total skier visits at the Summit for the quarter ended Jan. 31, 2003 were down 178,000 visits, or 54 percent, as compared to the quarter ended Feb. 1, 2002. For the quarter ended Jan. 31, 2003, the Company realized an increase in revenue per skier visit of $3.99, or 8 percent, which partially offset the decline in skier visits. Additionally, total season pass sales for the 2002/03 season increased by approximately $4,000,000, or 28 percent, from the level of passes sold for the 2001/02 season. Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $32,617,000 for the quarter ended Jan. 31, 2003, a decrease of $235,000 from the 2002 period, due principally to reduced direct cost of sales for product sales and lower legal fees as a result of the resolution of certain legal matters involving Loon Mountain Loon Mountain is a mountain in Lincoln, New Hampshire, in Grafton County. It is in the White Mountain National Forest. The 3,065-foot mountain may be best known for Loon Mountain ski resort, which, like most New England mountain resorts, has attempted to expand into an . Resort operations contributed EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (as defined below) of $13,898,000 for the quarter ended Jan. 31, 2003, compared with EBITDA of $16,505,000 for the 2002 period. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the resort segment for the 2003 period was $10,075,000 compared to operating income of $12,234,000 for the 2002 period. Revenues from real estate operations for the three months ended Feb. 1, 2002 were $3,300,000, which was due to the close of escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. on seven lots within the Unit 7 development at Northstar. There were no real estate sales during the three months ended Jan. 31, 2003. The Company has commenced marketing activities for the 15 lot Unit 7A subdivision at Northstar, which is expected to be completed during the fourth quarter of fiscal 2003. Cost of sales, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and selling, general and administrative expense for the real estate andother segment totaled $316,000 for the quarter ended Jan. 31, 2003, as compared to $862,000 forthe 2002 period. The results for the 2002 period included noncash cost of real estate sales (as defined below) of $665,000 as a result of the sale of seven lots within the Unit 7 development at Northstar. Real estate and other operations incurred an EBITDA loss (as defined below) of $293,000 for the quarter ended Jan. 31, 2003, compared with EBITDA of $3,103,000 in the 2002 period. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the real estate and other segment was $300,000 for the 2003 period, as compared to operating income of $2,438,000 in the 2002 period. Interest expense was $3,371,000 for the quarter ended Jan. 31, 2003, as compared to $4,261,000 for the 2002 period, a reduction of $890,000, or 21 percent. The decline in interest expense for the 2003 period was primarily due to reduced borrowings and lower average interest rates. The Company's total debt, including revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility borrowings, has declined from $130,815,000 at Feb. 1, 2002 to $116,030,000 at Jan. 31, 2003, a reduction of $14,785,000, or 11 percent. The Company recognized a gain on the early retirement of debt of $506,000 for the three months ended Jan. 31, 2003, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $16,000,000 aggregate principal amount of its 12.5 percent senior notes due 2007 (the "Senior Notes"). The Company's income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $6,631,000 for the quarter ended Jan. 31, 2003, a reduction of $3,540,000 from the Company's income from continuing operations in the corresponding period of 2002, as a result of the factors discussed above. Total EBITDA (excluding the noncash cost of real estate sales) (as defined below) was $13,605,000 for the quarter ended Jan. 31, 2003, as compared to EBITDA of $19,608,000 for the 2002 period. The Company realized income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $1,538,000 during the quarter ended Feb. 1, 2002 relating to the former operations of Bear Mountain, Inc. ("Bear Mountain"), which was sold on Oct. 10, 2002. The Company's net income for the quarter ended Jan. 31, 2003 was $6,631,000, a reduction of $4,878,000 from the net income of $11,509,000 generated for the three months ended Feb. 1, 2002, primarily as a result of the real estate sales and income from discontinued operations of Bear Mountain reflected in the 2002 period and lower resort operations revenues in the 2003 period. Since Jan. 31, 2003, the Company has experienced a decline in skier visitation VISITATION. The act of examining into the affairs of a corporation. 2. The power of visitation is applicable only to ecclesiastical and eleemosynary corporations. 1 Bl. Com. 480; 2 Kid on Corp. 174. relative to prior season levels, which may be attributable to a number of factors, including the continued lack of adequate snowfall and relatively poor conditions at the Summit during February February: see month. 2003; extreme cold temperatures and the impact of disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. major storms in the northeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. during February 2003; substantially below average snowfall in the Lake Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. region during January January: see month. and February 2003; the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economy; rising gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by prices, particularly in
California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; and concerns regarding the threat of war in the Middle East
and the potential for heightened terrorist activity in the United
States.Booth Creek consists of six resorts across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , including Northstar-at-Tahoe and Sierra-at-Tahoe in the Lake Tahoe region of Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern ; Waterville Valley, Mt. Cranmore Mountain Resort Cranmore Mountain Resort is located in North Conway, New Hampshire. Currently, it is one of New Hampshire's most successful ski resorts. It was founded in 1937 by a group of businessmen, led by Harvey Dow Gibson of Fryeburg, Maine, who wanted to establish North Conway as the and Loon Mountain in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). ; and the Summit at Snoqualmie near Seattle, Wash. Booth Creek is the fourth largest ski resort operator in the country (www.boothcreek.com). Except for historical matters, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. The Company wishes to caution the reader that certain factors could significantly and materially affect the Company's actual results, causing results to differ materially from those in any forward-looking statement. Please refer to "Forward-Looking Statements" included in the Company's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended Jan. 31, 2003 on file with the Securities and Exchange Commission.
Booth Creek Ski Holdings, Inc.
Consolidated Condensed Financial and Operating Information
(Dollars in thousands, except revenue per skier visit)
(Unaudited)
Three Months Ended
---------------------
Jan. 31, Feb. 1,
2003 2002
---------- ----------
Statement of Operations Data: (a)
Revenue:
Resort Operations $46,515 $49,357
Real Estate and Other 16 3,300
---------- ----------
Total Revenue 46,531 52,657
Operating Expenses:
Cost of Sales - Resort Operations 26,096 25,518
Cost of Sales - Real Estate and Other 21 671
Depreciation and Depletion 3,830 4,271
Selling, General and Administrative Expense 6,809 7,525
---------- ----------
Total Operating Expenses 36,756 37,985
---------- ----------
Operating Income 9,775 14,672
Other Income (Expense):
Interest Expense (3,371) (4,261)
Amortization of Deferred Financing Costs (282) (239)
Gain on Early Retirement of Debt 506 -
Other Income (Expense) 3 (1)
---------- ----------
Other Income (Expense), Net (3,144) (4,501)
---------- ----------
Income from Continuing Operations Before Change
in Accounting Principle 6,631 10,171
Discontinued Operations:
Income from Discontinued Operations of Bear
Mountain Resort - 1,538
---------- ----------
Income Before Change in Accounting Principle 6,631 11,709
Change in Accounting Principle for Goodwill (b) - (200)
---------- ----------
Net Income $6,631 $11,509
========== ==========
Other Financial and Operating Data:
Total Skier Visits (c) 913,000 1,051,000
Revenue per Skier Visit (d) $50.95 $46.96
Capital Expenditures for Property and Equipment $(2,339) $(2,973)
Net Cash Provided By (Used In):
Operating Activities $14,678 $24,980
Investing Activities $(2,570) $(3,165)
Financing Activities $(10,889) $(20,034)
Total EBITDA $13,605 $18,943
Noncash Cost of Real Estate Sales $- $665
Total EBITDA (Excluding Noncash Cost of Real
Estate Sales) $13,605 $19,608
Resort Operations EBITDA $13,898 $16,505
Real Estate and Other EBITDA (Excluding the
Noncash Cost of Real Estate Sales) $(293) $3,103
Skier Visit Information:
Total skier visits generated by each of the Company's resorts for
the three months ended Jan. 31, 2003 and Feb. 1, 2002 were as follows:
Three Months Ended
-----------------------
Jan. 31, Feb. 1,
2003 2002
-----------------------
(In thousands)
Northstar 266 237
Sierra 163 210
Waterville Valley 106 95
Mt. Cranmore 51 41
Loon Mountain 174 137
The Summit 153 331
-----------------------
913 1,051
=======================
As of
-----------------------------------
Jan. 31, Nov. 1, Feb. 1,
2003 2002 2002
----------- ----------- -----------
Balance Sheet Data:
Working Capital (Deficit),
Including Revolving Credit
Facility Borrowings $(45,159) $(35,935) $(34,618)
Total Assets $169,586 $166,600 $192,123
Long-term Debt $103,066 $120,195 $128,889
Total Debt (e) $116,030 $127,157 $130,815
Common Shareholder's Equity $9,194 $2,563 $15,942
Notes to Consolidated Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Financial and Operating Information: (a) Pursuant to Statement of Financial Accounting Standards No. 144 "Accounting for the Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. or Disposal of Long-Lived Assets," the historical results of operations of the Bear Mountain resort are presented as discontinued operations in the Company's consolidated statements of operations. (b) In June 2001, the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). issued Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142"). The Company adopted SFAS No. 142 effective as of Nov. 3, 2001. Under these rules, goodwill is no longer amortized but is subject to annual impairment tests in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the pronouncement. In connection with the adoption of SFAS No. 142, the Company performed a transitional impairment test for recorded goodwill as of Nov. 3, 2001, for each resort. Based on the transitional impairment test, the Company wrote down goodwill by $200,000 for one resort, which has been reflected as the cumulative effect of a change in accounting principle for the quarter ended Feb. 1, 2002. (c) Total skier days associated with Bear Mountain's operations have been excluded from the Company's reported total skier days disclosed in Other Financial and Operating Data. (d) Reflects revenue from resort operations divided by total skier visits. (e) Includes revolving credit facility borrowings, current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The financial information presented above includes information on "Total EBITDA," "Noncash Cost of Real Estate Sales," "Total EBITDA (Excluding Noncash Cost of Real Estate Sales)," "Resort Operations EBITDA," and "Real Estate and Other EBITDA (Excluding Noncash Cost of Real Estate Sales)." "Total EBITDA" represents operating income before depreciation and depletion expense. "Noncash Cost of Real Estate Sales" represents the allocated portion of real estate development expenditures previously capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. (including acquisition costs allocated to real estate development) which relate to current real estate sales. Although EBITDA is not a measure of performance under accounting principles generally accepted in the United States ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), the information is presented because management believes it provides useful information regarding a company's ability to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt. In addition, management uses EBITDA measures to assess the Company's operating performance and to make capital investment decisions. Further, Total EBITDA (Excluding Noncash Cost of Real Estate Sales) is calculated consistent with the manner that "EBITDA" is calculated under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the Company's Senior Notes, and therefore, management believes this measure is meaningful to holders of the Senior Notes. EBITDA should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities and other income or cash flow statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. In addition, the EBITDA measures as determined by the Company may not be comparable to related or similar measures as reported by other companies and do not represent funds available for discretionary use. The following table reconciles operating income from the Company's consolidated statements of operations to the related EBITDA measures for the periods indicated:
Three Months Ended
--------------------
Jan. 31, Feb. 1,
2003 2002
--------------------
(In thousands)
Operating Income $9,775 $14,672
Depreciation and Depletion 3,830 4,271
--------------------
Total EBITDA 13,605 18,943
Noncash Cost of Real Estate Sales - 665
--------------------
Total EBITDA (Excluding Noncash Cost of Real
Estate Sales) $13,605 $19,608
====================
Operating Income for Resort Operations Segment $10,075 $12,234
Depreciation 3,823 4,271
--------------------
Resort Operations EBITDA $13,898 $16,505
====================
Operating Income (Loss) for Real Estate and Other
Segment $(300) $2,438
Depletion 7 -
Noncash Cost of Real Estate Sales - 665
--------------------
Real Estate and Other EBITDA (Excluding Noncash
Cost of Real Estate Sales) $(293) $3,103
====================
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