Intrawest Resorts Holdings, Inc. reported total skier visits increased 26.8 percent in the fiscal third quarter ended March 31 compared to the prior year period, or 2.6 percent on a same-store basis. Lift revenue increased 21.1 percent compared to the prior year period, or 8.2 percent on a same-store basis.
Intrawest reported the same-store results to reflect its change in ownership of Blue Mountain resort in Ontario, Canada last September. Same-store metrics are calculated in currency-neutral terms and as if Intrawest owned 100 percent of the Blue Mountain in both periods. In the year earlier quarter, Intrawest had accounted for its 50 percent interest in Blue Mountain under the equity method and results included only 50 percent of Blue’s Adjusted EBITDA and none of Blue’s skier visits or revenue. Intrawest boosted its stake in Blue Mountain to 100 percent in September. The company already owned controlling stakes in five other North American mountain resorts, including Steamboat and Winter Park in Colorado, Stratton in Vermont, Snowshoe in West Virginia and Mont Tremblant in Montreal.
Intrawest reported that its total same-store revenue from the Mountain Segment increased $43.0 million, or 20 percent, to $258.1 million. That translated to a 6.5 percent increase in same-store revenues, which Intrawest attributed primarily to increases in season pass and frequency product revenue and revenue from guest services, including retail/rental sales. Mountain segment revenues include results from its ski lifts, ski school, retail/rental shops and restaurants. On a same-store basis, Mountain revenue increased $16.4 million, or 6.5 percent, primarily due to increases in season pass and frequency product revenue and revenue from guest services.
Mountain Adjusted EBITDA increased $16.5 million, or 13.9 percent, to $135.7 million, primarily due to the $43.0 million increase in Mountain revenue, partially offset by an $18.4 million increase in Mountain operating expenses. On a same-store basis, Mountain Adjusted EBITDA increased $12.6 million, or 9.9 percent, as the result of revenue growth and strong flowthrough.
Adventure segment revenues sag on weaker Canadian dollar
Revenue at the company's Adventure segment, which operates one of North America's largest heli-skiing operations, declined $5.8 million, or 11.5 percent, to $44.6 million, primarily due to a $5.5 million unfavorable foreign currency translation adjustment. Adventure Adjusted EBITDA decreased $3.4 million, or 17.9 percent, to $15.4 million, primarily due to a $2.3 million unfavorable foreign currency translation adjustment and a decline at CMH. On a constant currency basis, Adventure Adjusted EBITDA decreased by only $1.1 million, or 5.8 percent, despite challenging weather.
“Overall, we are very pleased with our fiscal third quarter results. We experienced strong growth in our Mountain segment largely due to the power of our season pass and frequency product program, successful pricing initiatives, and the impact of our growth capital investments,” stated Tom Marano, Chief Executive Officer. “While preliminary industry reports indicate an overall decline in skier visits, we drove skier visit growth across all regions and overcame challenging weather conditions.”
