WHISTLER BLACKCOMB HOLDINGS INC WHISTLER, BC, May 11, 2016 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Company") today reported record financial results for the second quarter and year to date period ended March 31, 2016. The Company holds a 75% interest in and manages the entities that operate Whistler Blackcomb, the largest four-season mountain resort in North America.
Highlights
-- Total visits, which include skier visits and other visits, increased 26%
to 2.0 million visits for the fiscal year to March 31, 2016, reflecting
strong visitation from both regional and destination markets. Total
visits for the fiscal year to May 9, 2016 increased 22% to 2.24 million.
-- Double-digit revenue growth in all key business divisions contributed to
a 26% increase in total revenue to $241.8 million and a 34% increase in
Adjusted EBITDA to $116.2 million for the fiscal year to March 31, 2016,
representing the highest six month period revenue and Adjusted EBITDA in
the Company's history.
-- Subsequent to quarter end the Company announced its $345 million
Renaissance strategic plan ("Renaissance") which is designed to increase
EBITDA over the long term by developing new weather-independent
attractions in Whistler while elevating Whistler Blackcomb's core skiing
and snowboarding experiences. Proceeding with Renaissance is subject to
certain conditions, including government approvals, the renegotiation of
the Company's master development agreements and master plans and
negotiation of a business partnership with local First Nations.
Dave Brownlie, President and Chief Executive Officer of the Company, commented: "I am very pleased with our strong performance to date this year. It has been a tremendously successful ski season with a strong rebound from our regional market and continued growth from our destination markets. Our financial performance also demonstrated the significant operating leverage in our business, as well as the benefits from $53 million in growth capital investments over the past three years. After quarter end, we announced our $345 million Renaissance project, which will further diversify our year-round operations, enhance guest experience and accelerate Whistler Blackcomb's long term growth and vision of becoming the number one mountain resort in the world." Mr. Brownlie continued: "As the 2015-2016 ski season winds down we are shifting our focus to our summer business, which we believe is well positioned to see continued visitation momentum with our Whistler Mountain bike park opening on May 20(th) and a strong line-up of events in Whistler this summer."
Financial & Operating Results Overview
(In thousands, except Effective Ticket Price ("ETP") and per visit amounts)
Six months ended March 31, Three months ended March 31,
2016 2015 % Change 2016 2015 % Change
---- ---- -------- ---- ---- --------
Visit Metrics
-------------
Skier visits 1,919 1,517 26.5% 1,417 1,110 27.7%
------------ ----- ----- ---- ----- ----- ----
Other visits 85 70 21.4% 43 36 19.4%
============ === === ==== === === ====
Total visits 2,004 1,587 26.3% 1,460 1,146 27.4%
============ ===== ===== ==== ===== ===== ====
Pricing Metrics
---------------
ETP $60.39 $62.36 (3.2%) $61.70 $64.51 (4.4%)
--- ------ ------ ----- ------ ------ -----
Revenue per total
visit $120.65 $120.63 0.0% $119.93 $119.38 0.5%
----------------- ------- ------- --- ------- ------- ---
Financial Results
-----------------
Total revenue $241,789 $191,444 26.3% $175,102 $136,805 28.0%
------------- -------- -------- ---- -------- -------- ----
Operating expenses,
excluding
depreciation and
amortization (104,737) (87,944) 19.1% (65,228) (53,212) 22.6%
------------------- -------- ------- ---- ------- ------- ----
Selling, general
and administrative (20,903) (17,105) 22.2% (10,961) (7,446) 47.2%
=================== ======= ======= ==== ======= ====== ====
Adjusted EBITDA $116,149 $86,365 34.4% $98,913 $76,147 29.9%
=============== ======== ======= ==== ======= ======= ====
Visit, Pricing and Financial Results Summary
-- The increase in skier visits for the three and six months ended March
31, 2016 compared to last year was attributable to strong growth in both
regional and destination visitation resulting from certain factors
including, increased sales and marketing initiatives in certain key
markets over the past two years, the Company's $53 million in growth
investments since the beginning of fiscal 2013, a return to more
normalized snowfall during the 2015-2016 ski season, favourable foreign
exchange rates and Whistler Blackcomb's leading resort rankings.
Destination skier visits are estimated to have comprised approximately
49% and 45% of skier visits for the three and six months ended March 31,
2016, respectively, compared to approximately 53% and 49%, respectively,
for the equivalent three and six month periods last year.
-- Revenue per total visit for the three and six months ended March 31,
2016 was consistent with comparative periods last year due to increased
spending per visit in all of the Company's ancillary businesses offset
by lower ETP. The ETP decrease in both the three and six month periods
was attributable to higher utilization of season pass and frequency card
products compared to last year, resulting in a lower yield on those
visits, offset in part by increased lift ticket prices in 2016.
-- The increase in Adjusted EBITDA for the three and six months ended March
31, 2016 was driven by significant growth in visitation, as described
above, combined with margin increases primarily as a result of the
operating leverage inherent in the Company's business.
-- The increase in operating expenses for both the three and six month
periods ended March 31, 2016 was primarily attributable to higher labour
costs and retail and food and beverage cost of sales, which increased
mainly due to higher business volumes and inflationary cost increases.
For the three and six months ended March 31, 2016 the increase in
selling, general and administrative expenses was principally due to a
higher management incentive accrual and increased credit card fees
associated with higher revenue, as described above.
Treasury Summary
-- As at March 31, 2016, the Company had long-term debt outstanding of
$172.8 million, a decrease of $61.7 million, or 26%, compared to $234.5
million at September 30, 2015. The Company's cash and cash equivalents
balance at March 31, 2016 was $7.8 million compared to $5.7 million at
September 30, 2015.
-- Cash interest paid during the three and six months ended March 31, 2016
decreased by 8% and 7% to $2.0 million and $4.1 million, respectively,
compared to the equivalent periods in the prior year principally due to
the lower interest rate on the Company's credit facility and a lower
average debt balance.
Season-to-Date Indicators
-- Total visits for the fiscal year to May 9, 2016 were 2.24 million, up
22% compared to the same period in the prior year. Total visits include
skier visits for the 2015-16 season to May 9, 2016 of 2.14 million, up
22% compared to the same period last year.
-- Management estimated that total skier visits to date were comprised of
54% regional guests and 46% destination guests compared to 51% and 49%,
respectively, in the comparative period last year.
Dividend
The Company's Board of Directors declared a dividend of $0.24375 per common share for the second quarter, to be paid on May 31, 2016 to shareholders of record on May 24, 2016. This dividend will be an eligible dividend for Canadian income tax purposes.
Non-GAAP Measures
This press release makes reference to Adjusted EBITDA and ETP, which are measures not prescribed by Canadian generally accepted accounting principles, or GAAP. These non-GAAP measures do not have standardized meanings and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is defined as consolidated net earnings (including net earnings attributable to the 25% non-controlling interest) before interest, taxes, depreciation and amortization, as well as items that management does not consider part of the Company's normal operations, examples of which include significant non-cash gains or losses on disposal of property, buildings and equipment, acquisition or disposal expenses and gains or losses or restructuring expenses relating to acquisitions or disposals of businesses, impairment, restructuring or refinancing charges and reversals and other significant event-driven amounts as applicable. Adjusted EBITDA is provided as additional information to complement GAAP measures and to further understand the Company's results of operations from management's perspective. It is also a supplemental measure of performance that highlights trends in the Company's business that may not otherwise be apparent when relying solely on GAAP financial measures. Seventy-five percent of Adjusted EBITDA is attributable to WBHI shareholders, based on the Company's equity interest in the Partnerships. The closest GAAP measure is net earnings and a reconciliation is provided below.
ETP is defined as the Company's ski ticket yield-per-skier visit calculated as total ski-related lift revenue divided by total skier visits. Ski-related lift revenue and skier visits exclude revenue and visits from summer glacier skiing and other revenue amounts. The Company believes ETP is an important measure of operating performance because it allows management, investors and others to evaluate and compare the yield generated by ski lift tickets from period to period, and ski tickets are the Company's largest source of revenue and the core of its operations. The closest GAAP measure is revenue and a reconciliation is provided below.
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of financial information reported in accordance with GAAP. Readers should refer to the Company's annual information form dated December 11, 2015 and its most recent Management's Discussion & Analysis, which are available on the Company's website and under the Company's SEDAR profile at www.sedar.com, for additional details regarding non-GAAP measures.
Reconciliation of Net Earnings to Adjusted EBITDA
The following table reconciles Adjusted EBITDA to the Company's most directly comparable GAAP measure, net earnings:
(In
thousands) Six months Six months Three months Three months
ended March ended March ended March ended March
31, 2016 31, 2015 31, 2016 31, 2015
--- -------- -------- -------- --------
Consolidated
net
earnings $66,851 $42,085 $65,628 $46,658
------------ ------- ------- ------- -------
Depreciation
and
amortization 21,192 20,946 10,712 10,618
------------ ------ ------ ------ ------
Finance
expense,
long
term
debt 4,752 7,244 2,580 4,218
-------- ----- ----- ----- -----
Finance
expense,
Limited
Partner's
interest 5,081 4,303 2,781 2,051
--------- ----- ----- ----- -----
Income
tax
expense 18,106 12,055 17,162 12,628
======= ====== ====== ====== ======
EBITDA $115,982 $86,633 $98,863 $76,173
====== ======== ======= ======= =======
Other
income - (238) - (26)
------ --- ---- --- ---
Other
expense 167 - 50 -
======= === === === ===
Adjusted
EBITDA $116,149 $86,395 $98,913 $76,147
======== ======== ======= ======= =======
The following table reconciles ETP to our most directly comparable GAAP measure, revenue:
(In
thousands,
except
ETP) Six months Six months Three months Three months
ended March ended March ended March ended March
31, 2016 31, 2015 31, 2016 31, 2015
--- -------- -------- -------- --------
Revenue $241,789 $191,444 $175,102 $136,805
------- -------- -------- -------- --------
Less:
Non-
ski
lift
revenue (125,905) (96,846) (87,680) (65,194)
======= ======== ======= ======= =======
Total
ski
lift
revenue $115,884 $94,598 $87,422 $71,611
======= ======== ======= ======= =======
Divided
by:
Total
skier
visits 1,919 1,517 1,417 1,110
======= ===== ===== ===== =====
Effective
Ticket
Price $60.39 $62.36 $61.70 $64.51
========= ====== ====== ====== ======
Conference Call Information
Management will conduct a conference call on May 11, 2016 at 7:30 a.m. Pacific Time / 10:30 a.m. Eastern Time to review the Company's fiscal 2016 second quarter results. The call can be accessed by dialing 1.800.319.4610 (Canada and US) or 1.604.638.5340 (International) prior to the start of the call. A live webcast and 30 day replay of the conference call will be available in the Presentation & Webcasts section of the Company's website.
ABOUT WHISTLER BLACKCOMB HOLDINGS INC.
The Company holds a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (the "Partnerships"), which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia (the "Resort Business"). The Company is the operating general partner of the Partnerships and as such manages the Resort Business. Whistler Blackcomb, the official alpine skiing venue for the 2010 Olympic Winter Games, is situated in the Coast Mountains of British Columbia, 125 kilometres (78 miles) north of Vancouver, British Columbia. North America's largest four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offer over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls, three glaciers, receive on average over 1,163 centimetres (458 inches) of snow annually, and offer one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB". Additional information is available on the Company's website at www.whistlerblackcomb.com/holdings or under the Company's SEDAR profile at www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release and the associated conference call and webcast, which include a business update, second quarter results and a question and answer session, may contain certain forward-looking statements or information, within the meaning of applicable Canadian securities laws, which reflect the current view of the Company with respect to future events and financial performance. Forward-looking statements can often be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. All forward-looking statements made by the Company are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable. The forward-looking statements and information contained in this press release and the associated conference call and webcast are based on certain factors and assumptions made by management of the Company including, but not limited to: the estimated capital to be invested in Renaissance, Renaissance further accelerating the Company's vision to become the number one mountain resort in the world and building on its year-round appeal to all guests, business conditions, availability of capital resources, its ability to successfully renew its MDAs and master plans in a timely manner and on commercially reasonable terms, economic and financial conditions, the success obtained in developing new facilities and activities and the performance of such facilities and activities, guest visitation, the Company benefiting from capital investments, visit momentum, and weather, among others. These forward-looking statements and information are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated including, but not limited to, satisfaction of conditions precedent to the commencement and completion of Renaissance (not all of which are in the Company's control), potential lack of availability of financing on terms satisfactory to the Company, unfavorable economic conditions, decreases in leisure and business travel, seasonality of operations, capital expenditures, currency fluctuations, reliance on agreements with the Province of British Columbia to operate the Resort Business, unfavourable weather conditions, competition from other resorts, dependence on key employees and seasonal workforce, workforce risks, the impact of natural disasters, risks related to the credit facility and interest rate risks, adequacy of insurance coverage, litigation or governmental investigations, safety and accident risks, environmental laws and regulations, risks related to privacy laws, information technology and the processing of credit card information, negative publicity or unauthorized use of the Company's trademarks or trade names, risks relating to growth projects and acquisitions, risks relating to third party interests and risks relating to an investment in the common shares of the Company, including with regard to dividend payments and future sales or issuances of common shares of the Company. A more detailed description of these risks is available in the Company's most recently filed annual information form and management's discussion and analysis, which are available on the Company's website and at www.sedar.com under the Company's SEDAR profile.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements or information because the Company can give no assurance that such expectations will prove to be correct.
These forward-looking statements and information are made as of the date of this press release, and the Company has no intention and assumes no obligation to update or revise any forward-looking statements or information to reflect new events or circumstances, except as required by applicable Canadian securities laws.
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except per share amounts)
Six months Six months Three months Three months
ended March ended March ended March ended March
31, 31, 31, 31,
2016 2015 2016 2015
---- ---- ---- ----
Resort Revenue $241,789 $191,444 $175,102 $136,805
-------------- -------- -------- -------- --------
Operating expenses 104,737 87,944 65,228 53,212
Depreciation and
amortization 21,192 20,946 10,712 10,618
Selling, general and
administrative 20,903 17,105 10,961 7,446
-------------------- ------ ------ ------ -----
146,832 125,995 86,901 71,276
------- ------- ------ ------
Earnings from operations 94,957 65,449 88,201 65,529
Other income - 238 - 26
Other expense (167) - (50) -
Finance expense, long term
debt (4,752) (7,244) (2,580) (4,218)
Finance expense, Limited
Partner's interest (5,081) (4,303) (2,781) (2,051)
Net earnings before income
tax 84,957 54,140 82,790 59,286
-------------------------- ------ ------ ------ ------
Income tax expense (18,106) (12,055) (17,162) (12,628)
Net earnings and
comprehensive income $66,851 $42,085 $65,628 $46,658
--------------------- ------- ------- ------- -------
Net earnings and
comprehensive income:
Attributable to Whistler
Blackcomb Holdings Inc.
shareholders $49,566 $32,005 $47,187 $33,274
Attributable to Limited Partner's
non-controlling interest 17,285 10,080 18,441 13,384
--------------------------------- ------ ------ ------ ------
$66,851 $42,085 $65,628 $46,658
------- ------- ------- -------
Earnings per share
Basic $1.30 $0.84 $1.24 $0.87
Diluted $1.30 $0.84 $1.23 $0.87
Weighted average number of
common shares outstanding
Basic 38,119 38,034 38,152 38,042
Diluted 38,239 38,155 38,287 38,156
======= ====== ====== ====== ======
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited, in thousands)
March 31, September 30,
2016 2015
---- ----
Assets
Current assets
Cash and cash equivalents $7,778 $5,682
Accounts receivable 16,521 3,783
Income taxes receivable - 210
Inventory 16,615 22,590
Prepaid expenses 3,083 4,215
Notes receivable 315 153
---
44,312 36,633
Notes receivable 462 624
Property, buildings and
equipment 311,299 315,312
Property held for
development 9,244 9,244
Intangible assets 283,882 290,009
Goodwill 142,343 142,343
-------- ------- -------
$791,542 $794,165
-------- --------
Liabilities and
Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $36,655 $28,793
Income taxes payable 14,333 -
Provisions 1,859 1,701
Deferred revenue 16,510 27,974
------
69,357 58,468
Other liabilities 3,656 3,691
Long-term debt 170,517 232,436
Deferred income tax
liability 27,286 26,089
Limited Partner's liability 72,796 72,796
------ ------
Total liabilities 343,612 393,480
Share capital 444,714 443,290
Contributed surplus 1,644 1,485
Deficit (59,700) (90,666)
------- -------
Total Whistler Blackcomb
Holdings Inc.
shareholders' equity 386,658 354,109
Non-controlling interest 61,272 46,576
------ ------
447,930 400,685
------- -------
$791,542 $794,165
======== ========
Whistler Blackcomb Holdings Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Six months Six months
ended ended
March 31,
2016 March 31, 2015
---------- --------------
Cash provided by (used in)
Operations
Net earnings and
comprehensive income $66,851 $42,085
Adjustments for:
Income tax expense 18,106 12,055
Finance expense on long-term debt 4,752 7,244
Finance expense on Limited
Partner's interest 5,081 4,303
Depreciation and amortization 21,192 20,946
Disposal losses (gains) 167 (105)
Share-based compensation 618 464
------------- ---
116,767 86,992
Interest and swap
installments paid on long-
term debt (4,138) (4,438)
Finance expense paid on
Limited Partner's interest (4,543) (4,567)
Income taxes paid (2,366) (3,413)
Changes in non-cash
operating working capital (9,610) (16,346)
$96,110 $58,228
======= =======
Financing
Dividends paid on common
shares (18,600) (18,543)
Distributions to Limited
Partner's non-controlling
interest (2,589) (2,813)
Repayment of long-term debt (81,000) (18,000)
Draws on long-term debt 19,312 7,000
Proceeds from issuances of
common stock from stock
option exercises 965 -
Debt issuance costs (380) (382)
=================== ==== ====
$(82,292) $(32,738)
======== ========
Investing
Expenditures on property,
buildings, equipment and
intangibles (11,817) (19,671)
Proceeds from sale of
property and equipment 95 176
Repayment of notes
receivable - 145
================== === ===
$(11,722) $(19,350)
======== ========
Cash and cash equivalents,
end of period
Increase in cash and cash
equivalents 2,096 6,140
Cash and cash equivalents,
beginning of period 5,682 8,410
========================== ===== =====
$7,778 $14,550
====== =======
SOURCE Whistler Blackcomb
