Booth Creek Ski Holdings, Inc. Reports Fiscal 2004 First Quarter Results.Business Editors VAIL, Colo.--(BUSINESS WIRE)--March 15, 2004 Booth Creek Ski Holdings, Inc. ("Booth Creek" or the "Company") announced today results for the fiscal quarter ended Jan. 30, 2004. Resort operations revenues were $47,315,000 for the fiscal quarter ended Jan. 30, 2004, an increase of $800,000, or 2 percent, from the level of revenues generated during the fiscal quarter ended Jan. 31, 2003. Total skier visits increased from 913,000 visits for the 2003 period to 953,000 visits for the 2004 period, an increase of 4 percent, due to the combined effect of the following: -- Total skier visits for the Company's Lake Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. resorts (Northstar and Sierra) for the fiscal quarter ended Jan. 30, 2004 increased by 29,000 visits, or 7 percent, from the 2003 period, primarily as a result of an earlier opening at Sierra as compared to the prior season. -- For the first half of the 2003/04 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. , 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 relatively inconsistent Reciprocally contradictory or repugnant. Things are said to be inconsistent when they are contrary to each other to the extent that one implies the negation of the other. weather patterns, including, at varying times, major snowstorms, warm temperatures, periods of heavy rainfall, and, for most of January January: see month. 2004, extended periods of bitterly cold temperatures. Due to the weather volatility, skier volumes at 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 for the fiscal quarter ended Jan. 30, 2004 declined by 84,000 visits, or 25 percent, from the level of 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. during the comparable period of the 2002/03 season. -- As compared to the difficult 2002/03 season, the Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. experienced a return to more normal weather patterns for the first half of the 2003/04 ski season, resulting in a significant rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in skier visitation at the Company's Summit resort in Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. . For the 2003/04 season, the Summit opened slightly ahead of schedule on Nov. 29, 2003 as compared to an opening date of Dec. 27, 2002 for the 2002/03 season. As a result of the earlier opening for the 2003/04 season and substantially improved conditions, skier visits for the Summit for the fiscal quarter ended Jan. 30, 2004 increased by 95,000 visits, or 62 percent, from the corresponding period in the prior year. For the fiscal quarter ended Jan. 30, 2004, recognized season pass revenues, which rose 4 percent to $9,963,000 for the 2004 period, as well as increased snow school, equipment rental, retail and food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. sales, offset the impact of reduced lift ticket sales due to changes in the mix of skier visits at certain of the Company's resorts. Sales of season pass products, which are expected to increase by approximately 11 percent in total for the 2003/04 season as compared to the $19,772,000 in season passes sold for the 2002/03 season, are recognized ratably over the expected ski season. The difference between the level of increase in recognized season pass revenues between the first fiscal quarters of 2004 and 2003 and the expected increase in total season pass products between the 2003/04 and 2002/03 seasons is primarily due to later scheduled openings for the 2003/04 season. Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $33,310,000 for the fiscal quarter ended Jan. 30, 2004, an increase of $693,000, or 2 percent, from the 2003 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 fiscal quarter ended Jan. 30, 2004 was $10,402,000 compared to operating income of $10,075,000 for the corresponding period in 2003. 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 $14,005,000 for the fiscal quarter ended Jan. 30, 2004, compared with resort operations EBITDA of $13,898,000 for the corresponding period in 2003. Revenues from real estate operations for the fiscal quarter ended Jan. 30, 2004 were $8,498,000, which was due to (i) 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 three lots within the Unit 7A subdivision at Northstar for an aggregate sales price of $2,798,000, (ii) the transfer and sale of certain development real estate at Northstar, which contributed revenues of $5,610,000 and (iii) the sale of a single family lot at 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 for $90,000. There were no real estate sales during the 2003 period. Timber operations at Northstar contributed revenues of $16,000 for the 2003 period. 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 $2,011,000 for the fiscal quarter ended Jan. 30, 2004, as compared to $316,000 for the 2003 period. The results for the 2004 period included noncash cost of real estate sales (as defined below) of $1,590,000 related to the real estate sales described above. Operating income for the real estate and other segment was $6,487,000 for the 2004 period, as compared to an 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. of $300,000 in the 2003 period. Real estate and other operations generated EBITDA (excluding noncash cost of real estate sales) (as defined below) of $8,077,000 for the fiscal quarter ended Jan. 30, 2004, compared with an EBITDA loss from real estate and other operations of $293,000 in the 2003 period. Interest expense was $3,056,000 for the fiscal quarter ended Jan. 30, 2004, as compared to $3,371,000 for the 2003 period, a reduction of $315,000, or 9 percent. The decline in interest expense for the 2004 period was primarily due to reduced borrowings and lower average interest rates. The Company's net income totaled $13,637,000 for the fiscal quarter ended Jan. 30, 2004, an increase of $7,006,000 from the Company's net income in the corresponding period of 2003, primarily as a result of the factors discussed above. Total EBITDA (excluding noncash cost of real estate sales) (as defined below) was $22,082,000 for the fiscal quarter ended Jan. 30, 2004, as compared to total EBITDA of $13,605,000 for 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 Sierra-at-Tahoe is a ski and snowboard resort in Twin Bridges, California to the south of Lake Tahoe. Sierra-at-Tahoe is approximately 16 miles (26 km) south of Stateline, Nevada and South Lake Tahoe on Highway 50 and is contained within the Eldorado National Forest. 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 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 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 Snoqualmie can refer to:
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. 30, 2004 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. 30, Jan. 31,
2004 2003
----------- -----------
Statement of Operations Data:
Revenue:
Resort Operations $47,315 $46,515
Real Estate and Other 8,498 16
----------- -----------
Total Revenue 55,813 46,531
Operating Expenses:
Cost of Sales - Resort Operations 26,273 26,096
Cost of Sales - Real Estate and Other 1,791 21
Depreciation and Depletion 3,603 3,830
Selling, General and Administrative Expense 7,257 6,809
----------- -----------
Total Operating Expenses 38,924 36,756
----------- -----------
Operating Income 16,889 9,775
Other Income (Expense):
Interest Expense (3,056) (3,371)
Amortization of Deferred Financing Costs (280) (282)
Gain on Early Retirement of Debt - 506
Other Income 84 3
----------- -----------
Other Income (Expense), Net (3,252) (3,144)
----------- -----------
Net Income $13,637 $6,631
=========== ===========
Other Financial and Operating Data:
Total Skier Visits 953,000 913,000
Revenue per Skier Visit (a) $49.65 $50.95
Capital Expenditures for Property and
Equipment $(1,625) $(2,339)
Net Cash Provided By (Used In):
Operating Activities $23,156 $14,678
Investing Activities $(2,034) $(2,570)
Financing Activities $(18,405) $(10,889)
Total EBITDA $20,492 $13,605
Noncash Cost of Real Estate Sales $1,590 $-
Total EBITDA (Excluding Noncash Cost of Real
Estate Sales) $22,082 $13,605
Resort Operations EBITDA $14,005 $13,898
Real Estate and Other EBITDA (Excluding
Noncash Cost of Real Estate Sales) $8,077 $(293)
As of
-----------------------------------
Jan. 30, Oct. 31, Jan. 31,
2004 2003 2003
----------- ----------- -----------
Balance Sheet Data:
Working Capital (Deficit),
Including Revolving Credit
Facility Borrowings $(36,024) $(52,233) $(45,159)
Total Assets $158,966 $154,866 $169,586
Long-term Debt $98,731 $98,382 $103,066
Total Debt (b) $105,372 $122,561 $116,030
Shareholder's Equity (Deficit) $10,839 $(2,798) $9,194
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) Reflects revenue from resort operations divided by total skier visits. (b) Includes 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, current portion of 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. and long-term debt. Skier Visit Information: Total skier visits generated by each of the Company's resorts for the three months ended Jan. 30, 2004 and Jan. 31, 2003 were as follows:
Three Months Ended
----------------------------- Percentage
Jan. 30, Jan. 31, Increase Increase
2004 2003 (Decrease) (Decrease)
-------- ----------- ---------- ----------
(In thousands)
Northstar 260 266 (6) (2)%
Sierra 198 163 35 21
Waterville Valley 74 106 (32) (30)
Mt. Cranmore 37 51 (14) (27)
Loon Mountain 136 174 (38) (22)
The Summit 248 153 95 62
----- ------ -----
953 913 40 4
===== ====== =====
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 (Excluding Noncash Cost of Real Estate Sales)" represents net income (loss) before (i) extraordinary gains and losses, (ii) interest expense and amortization of deferred financing costs, (iii) depreciation and depletion expense, (iv) noncash cost of real estate sales, and (v) other noncash charges Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. and credits. "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 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 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 net income from the Company's consolidated statements of operations to the related EBITDA measures for the periods indicated:
Three Months Ended
---------------------
Jan. 30, Jan. 31,
2004 2003
--------- ---------
(In thousands)
Net Income $13,637 $6,631
Other Income (84) (3)
Gain on Early Retirement of Debt - (506)
Amortization of Deferred Financing Costs 280 282
Interest Expense 3,056 3,371
------- --------
Operating Income 16,889 9,775
Depreciation and Depletion 3,603 3,830
------- --------
Total EBITDA 20,492 13,605
Noncash Cost of Real Estate Sales 1,590 -
------- --------
Total EBITDA (Excluding Noncash Cost of Real
Estate Sales) $22,082 $13,605
======= ========
Operating Income for Resort Operations Segment $10,402 $10,075
Depreciation 3,603 3,823
------- --------
Resort Operations EBITDA $14,005 $13,898
======== ========
Operating Income (Loss) for Real Estate and Other
Segment $6,487 $(300)
Depletion - 7
Noncash Cost of Real Estate Sales 1,590 -
------- --------
Real Estate and Other EBITDA (Excluding Noncash
Cost of Real Estate Sales) $8,077 $(293)
======= ========
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