Booth Creek Ski Holdings, Inc. Reports Fiscal 2003 Second Quarter Results.Business Editors VAIL, Colo.--(BUSINESS WIRE)--June 16, 2003 Booth Creek Ski Holdings, Inc. ("Booth Creek" or the "Company") announced today results for the second fiscal quarter ended May 2, 2003. Operating Conditions and 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. : Total skier visits for the quarter ended May 2, 2003, were 1,040,000, a decline of 63,000 visits, or 6 percent, from the quarter ended May 3, 2002. For the six months ended May 2, 2003, total skier visits were 1,953,000, a decrease of 201,000 visits, or 9 percent from the 2002 period. A general discussion of the weather and operating conditions experienced by the Company's resorts during the 2002/03 ski season The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. follows. 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 experienced relatively dry conditions and a lack of natural snowfall through mid-December Noun 1. mid-December - the middle part of December period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Dec, December - the last (12th) month of the year 2002. Due to its snowmaking snow·mak·ing n. Production of artificial snow in the form of granular ice particles for use on ski slopes. system, Northstar opened on schedule. However, Sierra did not open until Dec. 16, 2002, due to its dependence on natural snowfall. During the period from Dec. 14 to 21, the region received a number of powerful storms resulting in over 6 feet of snowfall at Northstar and Sierra. While the storms provided excellent skiing conditions for the Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). holiday season, the storms caused prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. power outages This is a list of famous wide-scale power outages. 1965
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. historical and prior season levels, which negatively impacted customers' perception of skiing conditions in Lake Tahoe. Despite these weather challenges, skier visits at Northstar for the 2002/03 season increased by 49,000 visits, or 9 percent, due to the relative competitive advantage of its snowmaking system and the introduction of new season pass products. Skier visitation at Sierra for the 2002/03 season declined by 66,000 visits, or 16 percent, due primarily to the delayed opening Delayed opening Postponement of the start of trading in a stock until correction of a gross imbalance in buy and sell orders. Such an imbalance is likely to follow on the heels of a significant event such as a takeover offer. See: Suspended trading. for the 2002/03 season and skier visit shortfalls in the latter part of January and February 2003 due to the lack of natural snowfall. During the first half of the 2002/03 ski season, 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. experienced much colder temperatures and increased natural snowfall as compared to the record warm winter of 2001/02. As a result, the Company's 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). resorts (Waterville Waterville, city (1990 pop. 17,173), Kennebec co., S Maine, at the falls of the Kennebec River; settled 1754, inc. as a city 1888. It is the trade and medical center of a lake resort area, with textile and paper and pulp mills. Valley, Mt. Cranmore and 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 ) experienced generally good operating conditions for the early part of the 2002/03 ski season. Bitterly cold temperatures during the second half of January and the first half of February 2003, as well as several major disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. storms (including over the important Presidents' Day Pres·i·dents' Day n. The third Monday in February, observed in the United States as a legal holiday in commemoration of the birthdays of George Washington and Abraham Lincoln. Noun 1. holiday) in Boston and other major cities in the Northeast, dampened mid-season skier visitation. Late season conditions at the Company's New Hampshire resorts were generally improved over the prior season. For the 2002/03 ski season, skier visits at the Company's New Hampshire resorts increased by 99,000 visits, or 16 percent, from the prior season. For the 2002/03 season, the Pacific Northwest experienced unseasonably warm temperatures and substantially below average snowfall. Snowfall at the Summit for the 2002/03 season was less than 60 percent of historical long-term averages and prior season levels. In addition, average temperatures at the Summit during the 2002/03 ski season were generally warmer than normal, and the resort experienced a number of rain events during the course of the season. The Summit commenced partial operations on Dec. 27, 2002, on limited terrain, as compared to a Nov. 30, 2001, opening for the 2001/02 ski season. Skiing conditions remained poor at the Summit throughout the 2002/03 season. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , operating conditions at the Summit were generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. throughout the 2001/02 ski season. As a result of these conditions, total skier visits at the Summit for the 2002/03 season were down 283,000 visits, or 46 percent, as compared to the 2001/02 season. Second Quarter Results: Resort operations revenues were $50,431,000 for the quarter ended May 2, 2003, a reduction of $1,472,000, or 3 percent, from the level of revenues generated during the quarter ended May 3, 2002, due principally to the 6 percent decline in skier visits. Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $30,592,000 for the quarter ended May 2, 2003, an increase of $317,000 from the 2002 period, due principally to normal inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. factors and higher insurance costs, partially offset by lower snowmaking costs, incentive compensation costs and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. provisions. 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 $15,935,000 compared to operating income of $17,332,000 for the 2002 period. 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 $19,839,000 for the quarter ended May 2, 2003, compared with EBITDA of $21,628,000 for the 2002 period, a decline of 8 percent. Revenues from real estate operations for the quarter ended May 2, 2003, were $646,000, 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 the final lot within the Unit 7 development at Northstar. Thirteen lots within the Unit 7 development closed during the 2002 period, which generated revenues of $5,600,000. 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 and other segment totaled $762,000 for the quarter ended May 2, 2003, as compared to $1,806,000 for the 2002 period. The results for the 2003 and 2002 periods included noncash cost of real estate sales (as defined below) of $190,000 and $1,464,000, respectively, due to the lot sales within the Unit 7 development at Northstar. 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 $116,000 for the 2003 period, as compared to operating income of $3,809,000 in the 2002 period. Real estate and other operations produced EBITDA (as defined below) of $74,000 for the quarter ended May 2, 2003, compared with EBITDA of $5,273,000 in the 2002 period. Interest expense was $3,089,000 for the quarter ended May 2, 2003, as compared to $3,812,000 for the 2002 period, a reduction of $723,000, or 19 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 $125,547,000 at May 3, 2002, to $113,492,000 at May 2, 2003, a reduction of $12,055,000, or 10 percent. Following the close of the second quarter, the Company received an amendment which modified certain financial covenants under its Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Restated Credit Agreement. The Company recognized a gain on the early retirement of debt of $2,761,000 for the quarter ended May 3, 2002, 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 $29,325,000 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 $12,472,000 for the quarter ended May 2, 2003, a reduction of $7,375,000 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 $19,913,000 for the quarter ended May 2, 2003, as compared to EBITDA of $26,901,000 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 $1,712,000 during the quarter ended May 3, 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 May 2, 2003, was $12,472,000, a reduction of $9,087,000 from the net income of $21,559,000 generated for the quarter ended May 3, 2002, primarily as a result of the $5,600,000 in real estate sales, $1,712,000 of income from discontinued operations of Bear Mountain and $2,761,000 gain on the early retirement of debt reflected in the 2002 period and lower resort operations revenues in the 2003 period. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results: Resort operations revenues were $96,946,000 for the six months ended May 2, 2003, a reduction of $4,314,000, or 4 percent, from the level of revenues generated during the six months ended May 3, 2002. For the six months ended May 2, 2003, the Company experienced a decline in lift ticket and other related revenue sources due primarily to a 9 percent decline in total skier visits, which was partially offset by higher season pass sales. Total season pass sales for the 2002/03 season increased by $4,650,000, or 32 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 $63,209,000 for the six months ended May 2, 2003, an increase of $82,000 from the comparable 2002 period, due principally to normal inflationary factors and higher insurance costs, partially offset by (i) lower snowmaking costs, (ii) reduced United States Forest Service “USFS” redirects here. For the figure skating organization, see U.S. Figure Skating. The USDA Forest Service is an agency of the United States Department of Agriculture that administers the nation's national forests and national grasslands. permit fees in the 2003 period, (iii) the effect of higher workers' compensation provisions in the 2002 period for exposures at the Company's Lake Tahoe and Washington resorts, (iv) reduced provisions under incentive compensation arrangements in the 2003 period, and (v) lower legal fees in the 2003 period as a result of the resolution of certain legal matters involving Loon Mountain. Operating income for the resort segment for the 2003 period was $26,010,000 compared to operating income of $29,566,000 for the 2002 period. Resort operations contributed EBITDA (as defined below) of $33,737,000 for the quarter ended May 2, 2003, compared with EBITDA of $38,133,000 for the 2002 period, a decline of $4,396,000, or 12 percent. Revenues from real estate operations for the six months ended May 2, 2003, were $646,000, due to the close of escrow on the final lot within the Unit 7 development at Northstar. Twenty lots within the Unit 7 development at Northstar closed during the 2002 period, which generated revenues of $8,900,000. Cost of sales, depletion and selling, general and administrative expense for the real estate and other segment totaled $1,078,000 for the six months ended May 2, 2003, as compared to $2,668,000 for the 2002 period. The results for the 2003 and 2002 periods included noncash cost of real estate sales (as defined below) of $190,000 and $2,129,000, respectively, due to the lot sales within the Unit 7 development at Northstar. Operating loss for the real estate and other segment was $416,000 for the 2003 period, as compared to operating income of $6,247,000 in the 2002 period. Real estate and other operations produced an EBITDA loss (as defined below) of $219,000 for the six months ended May 2, 2003, compared with EBITDA of $8,376,000 in the 2002 period. In March 2003, the Company launched the sale of the Unit 7A subdivision at Northstar, which consists of 15 ski-in/ski-out single family lots. As of June 13, 2003, the Company entered into binding contracts for the sale of 12 of the lots at an average lot price of approximately $770,000. The Company is continuing efforts to market and sell the remaining three lots within the subdivision. The close of escrow for the lots currently under contract is anticipated to occur during the Company's fourth fiscal quarter of 2003, which is subject to (i) completion of the subdivision infrastructure, (ii) certain subdivision and final permitting activities, and (iii) other normal and customary closing conditions. Interest expense was $6,460,000 for the six months ended May 2, 2003, as compared to $8,073,000 for the 2002 period, a reduction of $1,613,000, or 20 percent. The decline in interest expense for the 2003 period was primarily due to reduced borrowings and lower average interest rates. The Company recognized gains Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss on the early retirement of debt of $506,000 and $2,761,000 for the six months ended May 2, 2003, and May 3, 2002, respectively, relating to repurchases of $16,000,000 and $29,325,000 aggregate principal amount of its Senior Notes during the 2003 and 2002 periods, respectively. The Company's income from continuing operations totaled $19,103,000 for the six months ended May 2, 2003, a reduction of $10,915,000 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 $33,518,000 for the six months ended May 2, 2003, as compared to EBITDA of $46,509,000 for the 2002 period. The Company realized income from discontinued operations of $3,250,000 during the six months ended May 3, 2002, relating to the former operations of Bear Mountain. The Company's net income for the six months ended May 2, 2003, was $19,103,000, a reduction of $13,965,000 from the net income of $33,068,000 generated for the six months ended May 3, 2002, primarily as a result of the $8,900,000 in real estate sales, $3,250,000 of income from the discontinued operations of Bear Mountain and $2,761,000 gain on the early retirement of debt reflected in the 2002 period, and lower resort operations revenues in the 2003 period. 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; 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 May 2, 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 Six Months Ended
--------------------- ---------------------
May 2, May 3, May 2, May 3,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Statement of Operations
Data: (a)
Revenue:
Resort Operations $50,431 $51,903 $96,946 $101,260
Real Estate and Other 646 5,615 662 8,915
---------- ---------- ---------- ----------
Total Revenue 51,077 57,518 97,608 110,175
Operating Expenses:
Cost of Sales - Resort
Operations 24,598 24,502 50,694 50,020
Cost of Sales - Real
Estate and Other 197 1,502 218 2,173
Depreciation and Depletion 3,904 4,296 7,734 8,567
Selling, General and
Administrative Expense 6,559 6,077 13,368 13,602
---------- ---------- ---------- ----------
Total Operating Expenses 35,258 36,377 72,014 74,362
---------- ---------- ---------- ----------
Operating Income 15,819 21,141 25,594 35,813
Other Income (Expense):
Interest Expense (3,089) (3,812) (6,460) (8,073)
Amortization of Deferred
Financing Costs (281) (271) (563) (510)
Gain on Early Retirement
of Debt - 2,761 506 2,761
Minority Interest - - - (15)
Other Income (Expense) 23 28 26 42
---------- ---------- ---------- ----------
Other Income (Expense),
Net (3,347) (1,294) (6,491) (5,795)
---------- ---------- ---------- ----------
Income from Continuing
Operations Before Change
in Accounting Principle 12,472 19,847 19,103 30,018
Discontinued Operations:
Income from Discontinued
Operations of Bear
Mountain Resort - 1,712 - 3,250
---------- ---------- ---------- ----------
Income Before Change in
Accounting Principle 12,472 21,559 19,103 33,268
Change in Accounting
Principle for Goodwill (b) - - - (200)
---------- ---------- ---------- ----------
Net Income $12,472 $21,559 $19,103 $33,068
========== ========== ========== ==========
Other Financial and
Operating Data:
Total Skier Visits (c) 1,040,000 1,103,000 1,953,000 2,154,000
Revenue per Skier Visit (d) $48.49 $47.06 $49.64 $47.01
Capital Expenditures for
Property and Equipment $(888) $(1,329) $(3,227) $(4,302)
Net Cash Provided By (Used
In):
Operating Activities $2,661 $9,973 $17,339 $34,953
Investing Activities $(1,087) $(1,368) $(3,657) $(4,533)
Financing Activities $(2,542) $(3,617) $(13,431) $(23,651)
Total EBITDA $19,723 $25,437 $33,328 $44,380
Noncash Cost of Real Estate
Sales $190 $1,464 $190 $2,129
Total EBITDA (Excluding
Noncash Cost of Real
Estate Sales) $19,913 $26,901 $33,518 $46,509
Resort Operations EBITDA $19,839 $21,628 $33,737 $38,133
Real Estate and Other
EBITDA (Excluding Noncash
Cost of Real Estate Sales) $74 $5,273 $(219) $8,376
As of
--------------------------------------
May 2, 2003 Nov. 1, 2002 May 3, 2002
----------- ------------ -----------
Balance Sheet Data:
Working Capital (Deficit),
Including Revolving Credit
Facility Borrowings $(31,137) $(35,935) $(16,007)
Total Assets $160,981 $166,600 $189,133
Long-term Debt $101,332 $120,195 $121,986
Total Debt (e) $113,492 $127,157 $125,547
Shareholder's Equity $21,666 $2,563 $37,501
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 six months ended May 3, 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. . Skier Visit Information: Total skier visits generated by each of the Company's resorts for the three and six months ended May 2, 2003, and May 3, 2002, were as follows:
Three Months Ended Six Months Ended
--------------------- -------------------
May 2, May 3, May 2, May 3,
2003 2002 2003 2002
---------- ---------- --------- ---------
(In thousands)
Northstar 304 284 570 521
Sierra 190 209 353 419
Waterville Valley 117 110 223 205
Mt. Cranmore 68 55 119 96
Loon Mountain 185 164 359 301
The Summit 176 281 329 612
---------- ---------- --------- ---------
1,040 1,103 1,953 2,154
========== ========== ========= =========
Reconciliation of Non-GAAP Financial Measures: 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 Six Months Ended
--------------------- ---------------------
May 2, May 3, May 2, May 3,
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands)
Operating Income $15,819 $21,141 $25,594 $35,813
Depreciation and Depletion 3,904 4,296 7,734 8,567
---------- ---------- ---------- ----------
Total EBITDA 19,723 25,437 33,328 44,380
Noncash Cost of Real Estate
Sales 190 1,464 190 2,129
---------- ---------- ---------- ----------
Total EBITDA (Excluding
Noncash Cost of Real
Estate Sales) $19,913 $26,901 $33,518 $46,509
========== ========== ========== ==========
Operating Income for Resort
Operations Segment $15,935 $17,332 $26,010 $29,566
Depreciation 3,904 4,296 7,727 8,567
---------- ---------- ---------- ----------
Resort Operations EBITDA $19,839 $21,628 $33,737 $38,133
========== ========== ========== ==========
Operating Income (Loss) for
Real Estate and Other
Segment $(116) $3,809 $(416) $6,247
Depletion - - 7 -
Noncash Cost of Real Estate
Sales 190 1,464 190 2,129
---------- ---------- ---------- ----------
Real Estate and Other
EBITDA (Excluding Noncash
Cost of Real Estate Sales) $74 $5,273 $(219) $8,376
========== ========== ========== ==========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion