Peak Resorts First Quarter

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ropeways.net | Home | 2017-09-12

Peak Resorts reports results for first-quarter FY2018

WILDWOOD, Mo., -- Peak Resorts, Inc. reported results for the first quarter of its 2018 fiscal year.
First-Quarter 2018 Highlights and Outlook:

Revenue of $7.5 million, an increase of 6% over the prior year period
Net loss was $8.6 million, or 64 cents per share (basic and diluted)
Reported EBITDA* was ($8.3) million
Cash and cash equivalents of $26.9 million
Commitment for renewed $15 million acquisition and new $10 million working capital lines of credit
West Lake Water project on track for 2017/2018 ski season opening

Timothy D. Boyd, president and chief executive officer, commented, “Fiscal year 2018 is off to a solid start. We achieved 6% revenue growth in our slowest season and continued to deliver on our promise to expand Mount Snow’s skiable acres and develop other important organic growth opportunities.”

Boyd continued, “I’m pleased to report that our EB-5 funded West Lake Water project at Mount Snow is running ahead of schedule and the new reservoir is expected to be completely filled by early November. With adequate weather, this project will enable us to open the resort with significantly more terrain than in previous seasons. Our Carinthia Ski Lodge project at Mount Snow also remains on track to be completed for the 2018/2019 ski season, and we are awaiting permits for our two latest projects – the Hunter Mountain expansion and the zip tour at Hidden Valley, which are expected to begin construction this fall.”
“In conjunction with our succession planning efforts, we recently announced the promotion of Chris Bub, chief accounting officer, to CFO, effective October 3. Steve Mueller, our long time CFO, will remain with the company and on the board, to assist with the transition and help with special projects and growth initiatives,” Boyd said.

First Quarter Operating Results
 
Stephen J. Mueller, Peak Resorts’ chief financial officer, noted, “We achieved organic revenue growth of 6% in the first quarter as a result of stronger food and beverage sales at summer concerts and conferences held at our resorts. Reported EBITDA* was down $1.4 million largely due to resort maintenance projects returning to historical levels.  Comparability to fiscal year 2017 is skewed by strict cost control procedures implemented in fiscal 2017 as we were awaiting the release of our EB-5 escrow funds.”

Financial Position
 
Mueller continued, “As recently announced, we received a commitment from Royal Banks of Missouri, our primary banking partner, to renew our $15 million acquisition line of credit and enter into a new $10 million working capital line of credit that we intend to close this fall.  We intend to roll all amounts currently outstanding under existing credit facilities with Royal Banks into the renewed acquisition line.  These actions will bolster our strong liquidity position going into the 2017/2018 ski season and improve shareholder value.” 
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