Peak Resorts: The New ASC?

trackbiker · Oct 24, 2014

Quietman said:
Those #'s are for revenue, not net profit. There is a big difference!

I realize that. I was just speculating.

"I would bet their percentage of profit is much higher than the larger areas...."

I didn't see anything on the net profits (loss) for each area. But most of those little areas have to have relatively smaller costs when you look at snowmaking acres and that most of the lifts have been there for years.

Highway Star · Oct 24, 2014

trackbiker said:
I think this revenue summary shows how some of these little areas can be very profitable. I would bet their percentage of profit is much higher than the larger areas when you look at skier numbers and costs. Little 300 ft. Mad River OH is number 3 for revenue. :-o Wildcat is number 11 but that could be because of the problems they had last year.

Err....they have an overall yield of $60 per skier visit. Mad River is like $43.50.........

Vail's is like $160.

Their operating profit margin is probably right around 30%, which is pretty good actually.

Tin · Oct 24, 2014

Quietman said:
Those #'s are for revenue, not net profit. There is a big difference!

In the last couple of years they have invested over $4,000,000 at Crotched and Wildcat, above and beyond normal operating expenses, with yearly revenue of less than $8,000,000. Going to be a while before that investment is paid back.

But Crotched will make it back and is continuing to grow. The same cannot be said about Wildcat imo.

HowieT2 · Oct 24, 2014

Highway Star said:
You can't run eastern ski areas with a 80% LTV (loan to value) mortgage at a 10% interest rate. No way, not a chance. These guys are hosed.

Isnt that the point of the ipo? To pay off the debt (at least what's coming due in 4/16) and eliminate the personal guarantees of the principles.

Im surprised mt snow has only 468k skier visits/yr.

Brad J · Oct 24, 2014

drjeff said:
Peak more than likely gives Wildcat a few years before any real consideration of selling. They've got of couple of their company wide young gun, rising stars there running it and now they seemingly have working infrastructure unlike last year

May be it me but if last year was an indication of how there rising stars can run an area, then Peak Resorts are screwed!!

MadMadWorld · Oct 24, 2014

Wildcat will land on their paws...no matter who owns them. It's Magic Mountain with better snowfall!

WWF-VT · Oct 25, 2014

Quietman said:
The SEC Form is a very interesting read and provides a lot of insight into the economics of ski area operations.

From the S-1

"Wildcat has garnered a reputation for strong spring skiing as it has had the latest closing date of any lift-serviced ski resort for the past eight seasons. "

That's news to me.

Edd · Oct 25, 2014

WWF-VT said:
From the S-1

"Wildcat has garnered a reputation for strong spring skiing as it has had the latest closing date of any lift-serviced ski resort for the past eight seasons. "

That's news to me.

I ski there regularly and, yeah, that sounds wrong.

Quietman · Oct 25, 2014

WWF-VT said:
From the S-1

"Wildcat has garnered a reputation for strong spring skiing as it has had the latest closing date of any lift-serviced ski resort for the past eight seasons. "

That's news to me.

It should read latest closing date in NH

machski · Oct 25, 2014

This IPO and Peaks is talking about getting into EB-5 at Mount Snow too. Good luck!

ss20 · Oct 25, 2014

machski said:
This IPO and Peaks is talking about getting into EB-5 at Mount Snow too. Good luck!

They have already. Earlier this year they went the EB-5 route for funding their master plan

benski · Oct 25, 2014

Quietman said:
It should read latest closing date in NH

you should buy a share then suit them for fraud.

deadheadskier · Oct 25, 2014

They should cut a deal with Vail.

Vail takes Mt. Snow, Attitash and Wildcat, plus they eliminate Peaks debt at the smaller areas.

Peaks gets to keep doing what they do best in running the smaller feeder areas free of debt, Vail gets into the Eastern market in a big way.

We Northeast skiers score big by getting in on the Epic pass.

ss20 · Oct 25, 2014

deadheadskier said:
They should cut a deal with Vail.

Vail takes Mt. Snow, Attitash and Wildcat, plus they eliminate Peaks debt at the smaller areas.

Peaks gets to keep doing what they do best in running the smaller feeder areas free of debt, Vail gets into the Eastern market in a big way.

We Northeast skiers score big by getting in on the Epic pass.

I don't see that happening. Vail wouldn't wanna touch Mount Snow's 50+ year old base area infrastructure. They like things new and shiny. I also don't know how keen they are on 2 resorts in rural NH far away from the airports of NYC and Boston that will take people to the big mountains out west.

If anything, its more likely Vail would want some of the smaller ski areas Peak owns, since some are close to cities.

deadheadskier · Oct 25, 2014

dude, we're talking perfect scenario for NE skiers and riders here. work with me

ss20 · Oct 25, 2014

deadheadskier said:
dude, we're talking perfect scenario for NE skiers and riders here. work with me

Lol. Vail will come to NE soon DHS. My guess is they'll take a small hill by NYC or Boston. Maybe they'll make a deal with Interwest and buy Stratton and Mountain Creek. With Waterville's financial difficulties, already-made master plan, and village they're a good candidate too.

deadheadskier · Oct 25, 2014

nope

they want Attitash and Wildcat.

that's the perfect DHS scenario anyways.

yeggous · Oct 25, 2014

deadheadskier said:
nope

they want Attitash and Wildcat.

that's the perfect DHS scenario anyways.

That is my dream.

Sent from my iPhone using AlpineZone mobile app

steamboat1 · Oct 26, 2014

Hostile takeover of Killington. POWDR will threaten to remove the lifts.

Brad J · Oct 26, 2014

My dream for Wildcat is for a group of extremely wealthy skiers buy it from Peaks and form a skier owned area like MRG. Not worry about profit , just make a paradise of natural skiing for us.

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