Intrawest Financial Improvement Reflects Restructuring, Growth

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15 September 2015

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SAM Magazine—Denver, Colo., Sept., 15, 2015—Intrawest Resort Holdings Inc., reported a major financial improvement in fiscal 2015, increasing revenues by 14 percent and cutting its net loss for the year by 96 percent. The improvements were due to the addition of 100 percent ownership of Blue Mountain, Ont., and the restructuring and refinancing that occurred in December 2013, respectively.

On a same-store basis, calculated as if Blue Mountain had been wholly owned both years, revenues rose 6 percent.

The company's 2015 fiscal net loss improved to $6.9 million, from a loss $189.4 million during the 2014 fiscal year, when the effects of the company's restructuring were only partly reflected in the annual figures. The company saw a $129 million reduction in interest expense and $34.8 million reduction in loss on extinguishment of debt, both as a result of the restructuring and refinancing that occurred in December 2013, as well as a $19.9 million increase in income from operations.

“Our results continue to reflect the power of our season pass and frequency product program, successful pricing initiatives, increased visitation, and the impact of our growth capital investments,” said CEO Tom Marano.

The increase in income stemmed from the Blue Mountain acquisition and organic growth at Intrawest's other resorts, which accrued “despite below average snowfall and challenging conditions this ski season,” he added.

Early pass sales suggest the 2015-16 season may produce more growth. The company has tallied a 15 percent increase in season pass and product sales compared to this time last year.

“As we look ahead to the upcoming ski season, we are excited to build on our achievements of last year. With the current strength in season pass and frequency product sales and CMH reservations, our expanded season pass offerings, and additional capital improvements, we are well positioned for another successful ski season,” Marano concluded.

In addition to Blue Mountain, Intrawest also owns Steamboat, Colo., Tremblant, Que., Stratton, Vt., Snowshoe, W.V., and heli-skiing operator Canadian Mountain Holidays. It also manages Winter Park, Colo.