Booth Creek Net Income Drops
SAM Magazine--Vail, Colo., Mar. 24, 2005--Booth Creek Ski Holdings, Inc., reported net income of $1,155,000 for the fiscal quarter ended Jan. 28, 2005, a decrease of more than 90 percent from the $12,482,000 net income in the corresponding period of 2004. The company attributed the sharp drop to the poor season at the Summit areas in Washington state and to the timing of real estate sales.
Resort operations revenues were $42,777,000 for the fiscal quarter, a decrease of 10 percent from 2004. Total skier visits decreased from 953,000 in the 2004 period to 798,000 visits for 2005, a decrease of 16 percent. The Summit areas are the source of the declines: they accounted for 206,000 visits in 2004 and just 42,000 in 2005, with a revenue dropoff in 2005 of nearly $6 million.
"Five of our six resorts are performing very well," said Booth Creek chief financial officer Betsy Cole. "Our business prospects on many other fronts--including our development efforts at Northstar--continue to be positive." Total skier visits for the company's Lake Tahoe resorts (Northstar and Sierra) for the fiscal quarter increased by 43,000 visits, or 9 percent, from the 2004 period, primarily as a result of an earlier opening at Sierra for the current season. And the Eastern areas (Waterville Valley, Mt. Cranmore and Loon Mountain) were up 3 percent.
Cost of resort sales and selling, general and administrative expense totaled $34,171,000 for the quarter, up 3 percent. Resort operating income was $5,339,000, compared to $10,402,000 in 2004.
There were no real estate sales during the 2005 quarter. Operating loss for the real estate and other segment was $451,000 for the period, compared to operating income of $6,487,000 in 2004.
Interest expense was $3,267,000 for the fiscal quarter as compared to $3,056,000 for 2004, due to increased borrowings and higher average interest rates.
Due to the extraordinary weather challenges experienced at the Summit, the company did not achieve certain financial covenants and other conditions under its Amended and Restated Credit Agreement. Booth Creek has entered into an amendment and waiver to the Senior Credit Facility and is again in compliance.