Visits to Peak Resorts Behind Five Year Average

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09 January 2015

Push to The Latest: No

SAM Magazine—Wildwood, Mo., Jan. 9, 2015—Peak Resorts noted in its latest earnings report that total skier and snowboarder visits in November and December, the first two months of its third quarter, were behind the five-year average due to late openings at the company's Midwest ski areas.

Tim Boyd, Peak president and COO, said late openings are not unusual in the region, and that visits to the day-drive resorts typically rebound quickly because of their close proximity to the customer base.

Visits at Peak's six Northeastern resorts are running ahead of their five-year average. Advance lift ticket and seasonal product sales for the first two months of the third quarter were up more than 11 percent over the average of the past five years.

In the report, Peak said it narrowed its second-quarter (August-October) net loss by 13 percent, thanks to increased summer visits to some of its resorts, including Mount Snow, Vt., Attitash, N.H., and Big Boulder, Pa. In September, Attitash opened its $1.8 million zip rider, reportedly the longest in New England. The company also reported a $2.1 million gain from a legal settlement. Boyd explained that about 90 percent his company's revenue is collected in third and fourth quarters, and that losses in the first and second quarters are typical.

Peaks' capital expenditures totaled $6.3 million in the first and second quarters. In addition, the company invested $3 million in snowmaking at Mount Snow, Wildcat, and Attitash.

Since the end of the second quarter, the company has completed its initial public offering. Proceeds from the offering of $82 million were used, as planned, to prepay $75.8 million of debt in early December, reducing the company's total outstanding debt to approximately $100 million.

The Peak board of directors declared initial cash dividend of $0.1091 per share of common stock, with the current indicated annual dividend at $0.55 per share.