Booth Creek Ski Holdings, Inc. Reports Fiscal 2004 Third Quarter Results.VAIL, Colo. -- Booth Creek Ski Holdings, Inc. ("Booth Creek" or the "Company") announced today results for the third fiscal quarter ended July July: see month. 30, 2004. Third Quarter Results: Resort operations revenues were $2,893,000 for the fiscal quarter ended July 30, 2004, a decrease of $675,000, or 19 percent, from the level of revenues generated during the fiscal quarter ended Aug. 1, 2003. The decline in resort operations revenue was primarily due to (i) a reduction in 2004 revenues of $260,000 at Northstar principally as a result of the commencement of construction of a new Village core, which has impacted certain summer lines of business including group and conference business and related lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a and banquet A banquet is a large public meal or feast, complete with main courses and desserts. It usually serves a purpose, such as a charitable gathering, a ceremony, or a celebration. Sometimes a banquet consists of only desserts, but it is advisable to include main courses as well. business, and (ii) the effect of a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. revenue adjustment for $183,000 in the 2003 period upon the positive settlement of an earnings contingency contingency n. an event that might not occur. . Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $10,423,000 for the fiscal quarter ended July 30, 2004, an increase of $613,000, or 6 percent, from the 2003 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 resort segment for the fiscal quarter ended July 30, 2004, was $11,018,000 compared to an operating loss of $9,985,000 for the corresponding period in 2003. Resort operations incurred an 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 loss (as defined below) of $7,530,000 for the fiscal quarter ended July 30, 2004, compared with a resort operations EBITDA loss of $6,242,000 for the corresponding period in 2003. There were no sales of real estate during the fiscal quarter ended July 30, 2004, or the corresponding period in 2003. Timber timber: see lumber; wood. operations at Northstar contributed $63,000 in revenues in the 2004 period (none in 2003). Cost of sales and selling, general and administrative expense for the real estate and other segment increased by $462,000 for the fiscal quarter ended July 30, 2004, primarily due to (i) final adjustments to construction cost estimates for the Unit 7A subdivision at Northstar, (ii) costs associated with timber harvesting har·vest n. 1. The act or process of gathering a crop. 2. a. The crop that ripens or is gathered in a season. b. The amount or measure of the crop gathered in a season. c. activities, and (iii) increased administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. associated with the Company's real estate activities at Northstar. Operating loss for the real estate and other segment was $661,000 for the 2004 period, as compared to an operating loss of $236,000 in the 2003 period. Real estate and other operations incurred an EBITDA loss (excluding noncash cost of real estate sales) (as defined below) of $382,000 for the fiscal quarter ended July 30, 2004, compared with an EBITDA loss (excluding noncash cost of real estate sales) from real estate and other operations of $236,000 in the 2003 period. Interest expense was $2,963,000 for the fiscal quarter ended July 30, 2004, as compared to $3,063,000 for the 2003 period, a reduction of $100,000, or 3 percent. The decline in interest expense for the 2004 period was primarily due to reduced borrowings. The Company's total debt was $117,407,000 as of July 30, 2004, a reduction of $6,035,000 over the past year. The Company's net loss was $14,929,000 for the fiscal quarter ended July 30, 2004, an increase of $1,386,000 from the Company's net loss in the corresponding period of 2003, primarily as a result of the factors discussed above. Total EBITDA loss (excluding noncash cost of real estate sales) (as defined below) was $7,912,000 for the fiscal quarter ended July 30, 2004, as compared to a total EBITDA loss (excluding noncash cost of real estate sales) of $6,478,000 for 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: Revenues from resort operations for the nine months ended July 30, 2004, were $101,126,000, an increase of $612,000, or 1 percent, as compared to the 2003 period. Skier visits for the 2004 period increased by 28,000 visits, or 1 percent, from the 2003 period. Season-pass revenues, which rose 11 percent to $22,010,000 for the 2004 period, as well as increased snow school, 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. Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $74,313,000 for the nine months ended July 30, 2004, an increase of $1,294,000, or 2 percent, compared to 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 nine months ended July 30, 2004, was $16,156,000 compared to operating income of $16,025,000 for the corresponding period in 2003. Resort operations contributed EBITDA (as defined below) of $26,813,000 for the nine months ended July 30, 2004, compared with resort operations EBITDA of $27,495,000 for the corresponding period in 2003. Revenues from real estate operations for the nine months ended July 30, 2004, were $8,678,000 which was due to (i) the sale of 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 three single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. lots 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 $270,000. Revenues from real estate operations for the nine months ended Aug. 1, 2003, were $646,000, due to the sale of the final lot within the Unit 7 development at Northstar. Timber operations at Northstar contributed revenues of $63,000 and $16,000 in the 2004 and 2003 periods, respectively. 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 $3,140,000 for the nine months ended July 30, 2004, as compared to $1,314,000 for the 2003 period. The results for the 2004 and 2003 periods included noncash cost of real estate sales (as defined below) of $1,850,000 and $190,000, respectively, related to the real estate sales described above. Operating income for the real estate and other segment was $5,601,000 for the 2004 period, as compared to an operating loss of $652,000 in the 2003 period. Real estate and other operations generated EBITDA (excluding noncash cost of real estate sales) (as defined below) of $7,477,000 for the nine months ended July 30, 2004, compared with an EBITDA loss (excluding noncash cost of real estate sales) from real estate and other operations of $455,000 in the 2003 period. Interest expense was $8,912,000 for the nine months ended July 30, 2004, as compared to $9,523,000 for the 2003 period, a reduction of $611,000 or 6 percent. The Company's net income totaled $12,089,000 for the nine months ended July 30, 2004, an increase of $6,529,000 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 $34,290,000 for the nine months ended July 30, 2004, as compared to total EBITDA (excluding noncash cost of real estate sales) of $27,040,000 for the 2003 period. Financing Activities: On Sept. 10, 2004, the Company obtained a commitment letter (the "Commitment Letter") from U.S. Bank National Association with respect to certain proposed amendments to the Company's 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 dated March 15, 2002 (the "Senior Credit Facility"). In general, the proposed amendments contemplated by the Commitment Letter include the following: (i) an increase in the outstanding term loan borrowings under the Senior Credit Facility from $18,000,000 to $25,000,000, (ii) a decrease in the quarterly commitment reductions for term loan borrowings from the present level of $1,000,000 to a proposed level of $416,667 for each of the quarterly periods ending Oct. 31, 2004, Jan. 31, 2005, April 30, 2005 and July 31, 2005, (iii) modifications to certain of the existing financial covenants under the Senior Credit Facility, and (iv) certain other changes to the definitions, terms and conditions of the Senior Credit Facility. The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transactions contemplated under the Commitment Letter is subject to normal and customary closing conditions for transactions of this nature. 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 Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. 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 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 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 July 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 Nine Months Ended
------------------- ---------------------
July 30, Aug. 1, July 30, Aug. 1,
2004 2003 2004 2003
--------- --------- ---------- ----------
Statement of Operations Data:
Revenue:
Resort Operations $2,893 $3,568 $101,126 $100,514
Real Estate and Other 63 - 8,741 662
--------- --------- ---------- ----------
Total Revenue 2,956 3,568 109,867 101,176
Operating Expenses:
Cost of Sales - Resort
Operations 6,250 5,872 56,932 56,566
Cost of Sales - Real Estate
and Other 323 11 2,153 229
Depreciation and Depletion 3,514 3,743 10,683 11,477
Selling, General and
Administrative Expense 4,548 4,163 18,342 17,531
--------- --------- ---------- ----------
Total Operating Expenses 14,635 13,789 88,110 85,803
--------- --------- ---------- ----------
Operating Income (Loss) (11,679) (10,221) 21,757 15,373
Other Income (Expense):
Interest Expense (2,963) (3,063) (8,912) (9,523)
Amortization of Deferred
Financing Costs (312) (276) (869) (839)
Gain on Early Retirement of
Debt - - - 506
Other Income 25 17 113 43
--------- --------- ---------- ----------
Other Income (Expense), Net (3,250) (3,322) (9,668) (9,813)
--------- --------- ---------- ----------
Net Income (Loss) $(14,929) $(13,543) $12,089 $5,560
========= ========= ========== ==========
Other Financial and Operating
Data:
Total Skier Visits - - 1,981,000 1,953,000
Revenue per Skier Visit (a) NM NM $51.05 $51.47
Capital Expenditures for
Property and Equipment $(1,743) $(931) $(4,257) $(4,158)
Net Cash Provided By (Used
In):
Operating Activities $(7,556) $(8,204) $14,246 $9,135
Investing Activities $(3,165) $(1,765) $(6,202) $(5,422)
Financing Activities $11,088 $9,769 $(8,078) $(3,662)
Total EBITDA (Loss) $(8,165) $(6,478) $32,440 $26,850
Noncash Cost of Real Estate
Sales $253 $- $1,850 $190
Total EBITDA (Loss)
(Excluding Noncash Cost of
Real Estate Sales) $(7,912) $(6,478) $34,290 $27,040
Resort Operations EBITDA
(Loss) $(7,530) $(6,242) $26,813 $27,495
Real Estate and Other EBITDA
(Loss) (Excluding Noncash
Cost of Real Estate Sales) $(382) $(236) $7,477 $(455)
As of
-------------------------------
July 30, Oct. 31, Aug. 1,
2004 2003 2003
--------- ----------- ---------
Balance Sheet Data:
Working Capital (Deficit), Including
Revolving Credit
Facility Borrowings $(39,092) $(52,233) $(44,653)
Total Assets $149,964 $154,866 $158,185
Long-term Debt $95,189 $98,382 $99,286
Total Debt (b) $117,407 $122,561 $123,442
Shareholder's Equity (Deficit) $9,291 $(2,798) $8,123
Notes to Consolidated Condensed Financial and Operating Information:
NM - Not meaningful.
(a) Reflects revenue from resort operations divided by total skier
visits.
(b) Includes revolving credit facility borrowings, current portion of
long-term debt and long-term debt.
Skier Visit Information:
Total skier visits generated by each of the Company's resorts for
the nine-month periods ended July 30, 2004, and Aug. 1, 2003, were as
follows:
Nine Months Ended
------------------------ Percentage
July 30, Aug. 1, Increase Increase
2004 2003 (Decrease) (Decrease)
----------- ----------- ------------- -------------
(In thousands)
Northstar 535 570 (35) (6)%
Sierra 372 353 19 5
Waterville Valley 175 223 (48) (22)
Mt. Cranmore 102 119 (17) (14)
Loon Mountain 322 359 (37) (10)
The Summit 475 329 146 44
----------- ----------- -------------
1,981 1,953 28 1
=========== =========== =============
Reconciliation of Non-GAAP Financial Measures:
The financial information presented herein 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 and
credits. "Noncash Cost of Real Estate Sales" represents the allocated
portion of real estate development expenditures previously capitalized
(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"), the information is presented because
management believes it provides useful information regarding a
company's ability to incur 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 governing 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 net income (loss) from the
Company's consolidated statements of operations to the related EBITDA
measures for the periods indicated:
Three Months Ended Nine Months Ended
------------------- -------------------
July 30, Aug. 1, July 30, Aug. 1,
2004 2003 2004 2003
--------- --------- --------- ---------
(In thousands)
Net Income (Loss) $(14,929) $(13,543) $12,089 $5,560
Other Income (25) (17) (113) (43)
Gain on Early Retirement of
Debt - - - (506)
Amortization of Deferred
Financing Costs 312 276 869 839
Interest Expense 2,963 3,063 8,912 9,523
--------- --------- --------- ---------
Operating Income (Loss) (11,679) (10,221) 21,757 15,373
Depreciation and Depletion 3,514 3,743 10,683 11,477
--------- --------- --------- ---------
Total EBITDA (Loss) (8,165) (6,478) 32,440 26,850
Noncash Cost of Real Estate
Sales 253 - 1,850 190
--------- --------- --------- ---------
Total EBITDA (Loss) (Excluding
Noncash Cost of Real Estate
Sales) $(7,912) $(6,478) $34,290 $27,040
========= ========= ========= =========
Operating Income (Loss) for
Resort Operations Segment $(11,018) $(9,985) $16,156 $16,025
Depreciation 3,488 3,743 10,657 11,470
--------- --------- --------- ---------
Resort Operations EBITDA
(Loss) $(7,530) $(6,242) $26,813 $27,495
========= ========= ========= =========
Operating Income (Loss) for
Real Estate and Other Segment $(661) $(236) $5,601 $(652)
Depletion 26 - 26 7
Noncash Cost of Real Estate
Sales 253 - 1,850 190
--------- --------- --------- ---------
Real Estate and Other EBITDA
(Loss) (Excluding Noncash
Cost of Real Estate Sales) $ (382) $ (236) $ 7,477 $ (455)
========= ========= ========= =========
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