WHISTLER BLACKCOMB HOLDINGS INC WHISTLER, BC, Feb. 10, 2016 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Company") today reported record financial results for the first quarter ended December 31, 2015 and announced strong mid-season indicators as of February 8, 2016. The Company holds a 75% interest in and manages the entities that operate Whistler Blackcomb, the largest four-season mountain resort in North America.
Highlights
-- Strong revenue growth in all of the Company's ancillary businesses
combined with disciplined cost management contributed to record first
quarter Adjusted EBITDA of $17.2 million, representing a 68% increase
over the first quarter last year.
-- Solid mid-season indicators as at February 8, 2016 compared to the same
time last year. Total visits for the year to February 8, 2016 were 1.14
million, representing the highest year to date visits in the Company's
history and an increase of 21% over visits to the same date in prior
year. Season pass and frequency cards sales as at February 8, 2016
increased 4% to $46.2 million.
-- Planned investment of $8 million in growth projects in Whistler designed
to grow EBITDA, improve guest experience and enhance the Company's
weather resiliency.
Dave Brownlie, President and Chief Executive Officer of the Company commented: "We are very pleased with our first quarter performance. Increased guest visitation from both our regional and destination markets combined with strong spending in our ancillary businesses contributed to our record financial results. Since December 31, 2015, our strong visitation momentum has continued and I am pleased to report that we have welcomed the highest total visits in our history for the year to date period." Mr. Brownlie continued: "Looking ahead, we are positioned well for the remainder of the ski season as both season pass and frequency card sales and hotel room bookings are pacing ahead of the same time last year."
Regarding the planned $8 million in growth projects, Mr. Brownlie commented: "The growth projects that we have announced today highlight our continued focus on our long-term strategy of upgrading and expanding our on-mountain facilities and infrastructure, expanding our non-ski business and executing on other strategic investments."
Financial & Operating Results Overview
(In thousands, except Effective Ticket Price ("ETP") and per visit amounts)
Three Months ended
December 31,
------------
2015 2014 % Change
---- ---- --------
Visit Metrics
-------------
Skier visits 502 407 23.3%
------------ --- --- ----
Other visits 42 34 23.5%
------------ --- --- ----
Total visits 544 441 23.4%
------------ --- --- ----
Pricing Metrics
---------------
ETP $56.70 $56.48 0.4%
--- ------ ------ ---
Revenue per total visit $122.59 $123.90 (1.1%)
----------------------- ------- ------- -----
Financial Results
-----------------
Total revenue $66,687 $54,638 22.1%
------------- ------- ------- ----
Operating expenses, excluding depreciation and amortization (39,509) (34,732) 13.8%
----------------------------------------------------------- ------- ------- ----
Selling, general and administrative (9,942) (9,659) 2.9%
----------------------------------- ------ ------ ---
Adjusted EBITDA $17,236 $10,247 68.2%
--------------- ------- ------- ----
Visit, Pricing and Financial Results Summary
-- The increase in skier visits for the three months ended December 31,
2015 was attributable to improved visitation over the Christmas holiday
period and strong early season momentum. Destination skier visits
comprised approximately 33% of skier visits for the first quarter of
fiscal 2016, compared to 38% during the comparative quarter last year.
-- The small decrease in revenue per visit for the first quarter reflected
lower spending per visit in the Company's retail, rental and snow school
businesses principally as a result of the strong growth in regional
visitation, as regional guests typically spend less on a per visit basis
than destination guests. ETP increased slightly due to increased lift
ticket prices on destination products, offset by higher utilization of
season pass and frequency card products attributable to strong regional
market visitation.
-- The significant increase in Adjusted EBITDA for the quarter ended
December 31, 2015 was driven primarily by higher total visits, as
described above, offset partially by higher labour, and retail and food
and beverage cost of sales compared to the first quarter last year as a
result of increased business volumes.
Treasury Summary
-- As at December 31, 2015, the Company had long-term debt outstanding of
$230.5 million, a decrease of $4.0 million, or 2%, compared to $234.5
million at September 30, 2015. The Company's cash and cash equivalents
balance at December 31, 2015 was $18.7 million compared to $5.7 million
at September 30, 2015.
-- Cash interest paid during the quarter ended December 31, 2015 decreased
by 6% to $2.2 million from $2.3 million in the prior year due to a lower
interest rate on the Company's debt outstanding compared to the prior
period.
Mid-Season Indicators
-- Total visits for the 2015-16 season to February 8, 2016 were 1.14
million, an increase of 21% over visits to the same date last year and
representing the highest year to date visits in the Company's history.
Total visits to date comprised 1.09 million skier visits and 59,000
other visits compared to 900,000 and 46,000, respectively, in the prior
year to date period. Management estimated that total skier visits to
date were comprised of approximately 58% regional guests and 42%
destination guests compared to 56% and 44%, respectively, in the
comparative period last year.
-- As at February 8, 2016, the Company's 2015-16 season pass and frequency
card sales were $46.2 million, an increase of 4% over season pass and
frequency card sales at the same time in the prior year.
-- Estimated forward hotel bookings over the remainder of the ski season in
Whistler's accommodation sector as at February 8, 2016 were pacing
approximately 11% ahead of bookings at the same time in the prior year.
Capital Investments
The Company also announced plans to invest approximately $8.0 million in the following growth projects, in addition to the Company's regular maintenance capital program:
-- Upgrades to and expansion of the Company's facilities at the Garibaldi
Lift Company restaurant and the Roundhouse Lodge restaurant on Whistler
Mountain.
-- Upgrades and enhancements to ski and snowboard learning terrain and
infrastructure on Whistler Mountain.
-- Adding summer hiking trails and infrastructure and constructing a new
glacier-view sightseeing deck connected to the Roundhouse Lodge on
Whistler Mountain.
All of these investments are designed to grow EBITDA, improve guest experience and enhance the weather resiliency of the Company's business. The Company expects that these projects will be completed by the start of the 2016-17 ski season.
Dividend
The Company's Board of Directors declared a dividend of $0.24375 per common share for the first quarter, to be paid on February 29, 2016 to shareholders of record on February 22, 2016. This dividend will be an eligible dividend for Canadian income tax purposes.
Non-GAAP Measures
This press release makes reference to Adjusted EBITDA and ETP, which are measures not prescribed by Canadian generally accepted accounting principles, or GAAP. These non-GAAP measures do not have standardized meanings and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is defined as consolidated net earnings (including net earnings attributable to the 25% non-controlling interest) before interest, taxes, depreciation and amortization, as well as items that management does not consider part of the Company's normal operations, examples of which include significant non-cash gains or losses on disposal of property, buildings and equipment, acquisition or disposal expenses and gains or losses or restructuring expenses relating to acquisitions or disposals of businesses, impairment, restructuring or refinancing charges and reversals and other significant event-driven amounts as applicable. Adjusted EBITDA is provided as additional information to complement GAAP measures and to further understand the Company's results of operations from management's perspective. It is also a supplemental measure of performance that highlights trends in the Company's business that may not otherwise be apparent when relying solely on GAAP financial measures. Seventy-five percent of Adjusted EBITDA is attributable to WBHI shareholders, based on the Company's equity interest in the Partnerships. The closest GAAP measure is net earnings and a reconciliation is provided below.
ETP is defined as the Company's ski ticket yield-per-skier visit calculated as total ski-related lift revenue divided by total skier visits. Ski-related lift revenue and skier visits exclude revenue and visits from summer glacier skiing and other revenue amounts. The Company believes ETP is an important measure of operating performance because it allows management, investors and others to evaluate and compare the yield generated by ski lift tickets from period to period, and ski tickets are the Company's largest source of revenue and the core of its operations. The closest GAAP measure is revenue and a reconciliation is provided below.
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of financial information reported in accordance with GAAP. Readers should refer to the Company's annual information form dated December 11, 2015 and its most recent Management's Discussion & Analysis, which are available on the Company's website and under the Company's SEDAR profile at www.sedar.com, for additional details regarding non-GAAP measures.
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA
The following table reconciles Adjusted EBITDA to the Company's most directly comparable GAAP measure, net earnings (loss):
(In thousands) Three months ended Three months
ended
December 31,
2014
December 31, 2015
--- -----------------
Net earnings (loss) $ $(4,573)
1,223
--- -----
Depreciation and amortization 10,481 10,329
----------------------------- ------ ------
Finance expense, long term debt 2,171 3,026
------------------------------- ----- -----
Finance expense, Limited
Partner's interest 2,300 2,252
------------------------ ----- -----
Income tax expense (benefit) 945 (573)
--------------------------- --- ----
EBITDA $17,120 $10,461
------ ------- -------
Other income - (214)
------------ --- ----
Other expenses 116 -
-------------- --- ---
Adjusted EBITDA $17,236 $10,247
--------------- ------- -------
The following table reconciles ETP to our most directly comparable GAAP measure, revenue:
(In thousands) Three months
ended Three months ended
December 31, 2014
December 31,
2015
--- -------------
Revenue $66,687 $54,638
------- ------- -------
Less: Non-ski lift revenue (38,225) (31,650)
-------------------------- ------- -------
Total ski lift revenue 28,462 22,988
---------------------- ------ ------
Divided by: Total skier visits 502 407
------------------------------ --- ---
Effective Ticket Price $56.70 $56.48
---------------------- ------ ------
Conference Call Information
Management will conduct a conference call on February 10, 2016 at 7:30 a.m. Pacific Time / 10:30 a.m. Eastern Time to review the Company's fiscal 2016 first quarter results. The call can be accessed by dialing 1.800.319.4610 (Canada and US) or 1.604.638.5340 (International) prior to the start of the call. A live webcast and 30 day replay of the conference call will be available in the Presentation & Webcasts section of the Company's website.
ABOUT WHISTLER BLACKCOMB HOLDINGS INC.
The Company holds a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (the "Partnerships"), which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia (the "Resort Business"). The Company is the operating general partner of the Partnerships and as such manages the Resort Business. Whistler Blackcomb, the official alpine skiing venue for the 2010 Olympic Winter Games, is situated in the Coast Mountains of British Columbia, 125 kilometres (78 miles) north of Vancouver, British Columbia. North America's largest four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offer over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls, three glaciers, receive on average over 1,163 centimetres (458 inches) of snow annually, and offer one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB". Additional information is available on the Company's website at www.whistlerblackcomb.com/holdings or under the Company's SEDAR profile at www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release and the associated conference call and webcast, which include a business update, first quarter results and a question and answer session, may contain certain forward-looking statements or information, within the meaning of applicable Canadian securities laws, which reflect the current view of the Company with respect to future events and financial performance. Forward-looking statements can often be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. All forward-looking statements made by the Company are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable. The forward-looking statements and information contained in this press release and the associated conference call and webcast are based on certain factors and assumptions made by management of the Company including, but not limited to: business conditions, guest visitation, the Company benefiting from capital investments, visit momentum and encouraging 2015-16 season pass and frequency card sales and accommodation bookings, weather, macroeconomic and currency influences, and interest rates, among others. These forward-looking statements and information are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated including, but not limited to, unfavourable weather conditions, unfavorable economic conditions, decreases in leisure and business travel, seasonality of operations, capital expenditures, currency fluctuations, reliance on agreements with the Province of British Columbia to operate the Resort Business, competition from other resorts, dependence on key employees and seasonal workforce, workforce risks, the impact of natural disasters, risks related to the credit facility and interest rate risks, adequacy of insurance coverage, litigation or governmental investigations, safety and accident risks, environmental laws and regulations, risks related to privacy laws, information technology and the processing of credit card information, negative publicity or unauthorized use of the Company's trademarks or trade names, risks relating to growth projects and acquisitions, risks relating to third party interests and risks relating to an investment in the common shares of the Company, including with regard to dividend payments and future sales or issuances of common shares of the Company. A more detailed description of these risks is available in the Company's most recently filed annual information form and management's discussion and analysis, which is available on the Company's website and at www.sedar.com under the Company's SEDAR profile.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements or information because the Company can give no assurance that such expectations will prove to be correct.
These forward-looking statements and information are made as of the date of this press release, and the Company has no intention and assumes no obligation to update or revise any forward-looking statements or information to reflect new events or circumstances, except as required by applicable Canadian securities laws.
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except per share amounts)
Three Months Three Months
ended ended
December 31, December 31,
2015 2014
------------ ------------
Resort Revenue $66,687 $54,638
-------------- ------- -------
Operating expenses 39,509 34,732
Depreciation and amortization 10,481 10,329
Selling, general and
administrative 9,942 9,659
59,932 54,720
------ ------
Earnings (loss) from
operations 6,755 (82)
Other income - 213
Other expense (116) -
Finance expense, long term
debt (2,171) (3,026)
Finance expense, Limited
Partner's interest (2,300) (2,252)
Net earnings (loss) before
income tax 2,168 (5,147)
-------------------------- ----- ------
Income tax (expense) benefit (945) 573
Net earnings (loss) and
comprehensive income (loss) $1,223 $(4,574)
---------------------------- ------ -------
Net earnings (loss) and
comprehensive income (loss):
Attributable to Whistler
Blackcomb Holdings Inc.
shareholders $2,379 $(1,269)
Attributable to Limited
Partner's non-controlling
interest (1,156) (3,305)
$1,223 $(4,574)
------ -------
Earnings (loss) per share
Basic $0.06 $(0.03)
Diluted $0.06 $(0.03)
Weighted average number of
common shares outstanding
Basic 38,085 38,026
Diluted 38,189 38,097
------- ------ ------
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited, in thousands)
December 31, September 30,
2015 2015
---- ----
Assets
Current assets
Cash and cash equivalents $18,665 $5,682
Accounts receivable 9,693 3,783
Income taxes receivable 1,025 210
Inventory 23,106 22,590
Prepaid expenses 4,582 4,215
Notes receivable 153 153
---
57,224 36,633
Notes receivable 624 624
Property, buildings and
equipment 315,726 315,312
Property held for
development 9,244 9,244
Intangible assets 286,961 290,009
Goodwill 142,343 142,343
$812,122 $794,165
-------- --------
Liabilities and
Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $34,367 $28,793
Provisions 1,806 1,701
Deferred revenue 52,601 27,974
------
88,774 58,468
Other liabilities 3,129 3,691
Long-term debt 228,143 232,436
Deferred income tax
liability 26,626 26,089
Limited Partner's
liability 72,796 72,796
------ ------
Total liabilities 419,468 393,480
Share capital 444,714 443,290
Contributed surplus 1,355 1,485
Deficit (97,586) (90,666)
------- -------
Total Whistler Blackcomb
Holdings Inc.
shareholders' equity 348,483 354,109
Non-controlling interest 44,171 46,576
------ ------
392,654 400,685
$812,122 $794,165
-------- --------
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three months Three months
ended ended
December 31, December 31,
2015 2014
------------- -------------
Cash provided by (used in)
Operations
Net earnings (loss) and
comprehensive income (loss) $1,223 $(4,574)
Adjustments for:
Income tax expense (benefit) 945 (573)
Finance expense on long-term debt 2,171 3,026
Finance expense on Limited
Partner's interest 2,300 2,252
Depreciation and amortization 10,481 10,329
Disposal losses (gains) 116 (62)
Share-based compensation 329 227
------------- ---
17,565 10,625
Interest and swap
installments paid on long-
term debt (2,146) (2,277)
Finance expense paid on
Limited Partner's interest (2,243) (2,315)
Income taxes paid (1,223) (2,867)
Changes in non-cash
operating working capital 23,459 26,481
$35,412 $29,647
------- -------
Financing
Dividends paid on common
shares (9,299) (9,268)
Distributions to Limited
Partner's non-controlling
interest (1,249) (1,741)
Repayment of long-term debt (22,000) -
Draws on revolving credit
facility 18,000 7,000
Proceeds from issuances of
common stock from stock
option exercises 965 -
Debt issuance costs (380) (382)
-------------------
$(13,963) $(4,391)
-------- -------
Investing
Expenditures on property,
buildings, equipment and
intangibles (8,559) (14,424)
Proceeds from sale of
property and equipment 93 118
----------------------- ---
$(8,466) $(14,306)
------- --------
Cash and cash equivalents,
end of period
Increase in cash and cash
equivalents 12,983 10,950
Cash and cash equivalents,
beginning of period 5,682 8,410
--------------------------
$18,665 $19,360
------- -------
SOURCE Whistler Blackcomb
