Intrawest First Quarter Results Mixed
SAM Magazine--Vancouver, Nov. 9, 2004--Intrawest saw revenue decline for the fiscal 2005 first quarter ended September 30, 2004 to $206.5 million from $276.6 million for the same period last year, due to an expected drop in real estate sales. But revenues and profits increased in the resort, travel, and management services divisions. The company incurred a net loss of $6.7 million compared with net income of $0.9 million in 2003.
Resort and travel operations revenue and profit contribution increased to $129.3 million and $7.1 million, respectively, from $54.4 million and $3.5 million, due mainly to the $70.5 million contribution from Intrawest's 67 percent interest in Abercrombie & Kent, the luxury adventure-travel company. Excluding Abercrombie & Kent, resort and travel operations revenue increased 8 percent over the first quarter last year, led primarily by growth at Whistler Blackcomb and Sandestin.
Management services revenue and profit contribution increased to $35.1 million and $5.7 million, respectively, from $24.5 million and $2.6 million primarily as a result of increased service fees for real estate development and sales services and higher property rental management fees. Occupied room nights in the first quarter increased 5 per cent over the first quarter last year and average daily rates increased 7 per cent.
Revenue from real estate development decreased to $39.6 million from $193.3 million in 2003. In addition to lower unit sales in first quarter 2005, first quarter 2004 revenues received a one-time boost from sales to Leisura, Intrawest's separate resort development partnership. The decline in revenue decreased the profit contribution from real estate development to $5.5 million from $14.5 million in the first quarter last year.