Intrawest Shows Strong Growth For Fifth Consecutive Year

5/11/99

Vancouver, May 10, 1999‹Intrawest Corporation announced third quarter results that show total company EBITDA rose 40 percent for a total of $155.3-million for the nine months ended March 31, 1999. This compares with $110.6-million for the same period last year. Intrawest¹s EBITDA has increased every year for the past five years and grew at a compound rate of 57 percent during that period.

"These record results validate the power of our resort villages," said Daniel Jarvis, executive vice president and chief financial officer. "These villages, together with our proven operational expertise and our geographically balanced network, have resulted in both high growth and predictability of income."

Income from continuing operations for the third quarter was $54.6-million ($1.38 per share) compared with $42.6-million ($1.24 per share) last year. Year-to-date income from continuing operations was $54.9-million ($1.39 per share), up from $42.9-million ($1.25 per share) last year. The per share results reflect an increase of 15 percent in the average number of shares outstanding.

Revenue from ski and resort operations was $331.4-million in the third quarter compared with $212.2-million in the third quarter last year. "Revenue increased at every one of our resorts from the third quarter last year," added Jarvis, "and Whistler/Blackcomb, Tremblant, Panorama, Stratton, and Snowshoe all experienced record third quarter business." Revenue growth was driven by an overall 13 percent increase in same-resort visits for the quarter. Further contributing to this growth was a six percent increase in revenue per visit on the same-resort basis. The nine month results also include revenue from the warm weather resorts as well as Blue Mountain in Ontario and Canadian Mountain Holidays, our helicopter ski operation, which were added this year.

"We have also been very successful in pre-selling real estate at our resorts," said Jarvis, "which ensures that our villages will continue to expand and that the operating results can continue to benefit from this accommodation." -In February, four buildings in Copper Village sold out rapidly in a 140 mountain home sale which generated Cdn $117-million.

-In March, 51 mountain homes were sold at Panorama for Cdn $10-million.

-Also in March, the 126-suite Westin Resort Tremblant, to be operated by Intrawest under a franchise agreement with Starwood Hotels and Resorts, sold out in 12 hours, generating Cdn. $32-million.

-In April, Intrawest successfully launched it first quarter ownership project at Whistler, with over Cdn $20-million in real estate being sold, representing over 90 percent of the total project. With this success, Intrawest plans to expand this concept to its other resorts.

-In May, Intrawest successfully launched the Sunstone project at Mammoth, selling all 77 of the units in less than three hours for over Cdn $41-million.

"We now have over $400-million in pre-sales representing over 1,000 total units to close in 2000 and 2001," said Jarvis. "The addition of these units will have a significant positive impact on the operating income of our resorts, as well as having a substantial effect on our real estate income."

Due to the timing of construction, real estate revenue and operating profit were down relative to the same quarter last year, however year-to-date, real estate sales were up seven percent and operating profit was up 18 percent from last year. Real estate revenue totaled $53.4 -million for the quarter compared with $64.3-million in the third quarter last year. Operating profit from real estate sales was $10.1-million in the third quarter compared with $11.9-million last year. Real estate revenue in the fourth quarter is expected to total more than $165-million, approximately three times more than the fourth quarter last year.

Back to Business Main