Peak Resorts: The New ASC?

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  1. #1

    Peak Resorts: The New ASC?

    Well, this doesn't sound good. Can't say this is a surprise.

    http://www.newenglandskiindustry.com...hp?storyid=174

    Peak Resorts to Attempt IPO Again
    Wednesday, October 22, 2014, NewEnglandSkiIndustry.com



    The pending event likely prompting the latest IPO attempt is a 10% interest only loan related to Mount Snow. $42.9 million is due on April 1, 2016.

    According to the SEC Form S-1, Peak Resorts has $204 million in assets, $175 million in long term debt (most of it at 10% interest), and $3.5 million in stockholders' equity. The company reported 1.57 million skier visits and 182 thousand tubing visits in fiscal year 2014.
    I'm no banker, but 175 million $ in the hole probably isn't a good thing I suppose.
    2019-2020 0 days and holding...
    "Skiing is the closest you'll get to flying without leaving the ground." -snowmonster

  2. #2
    Yes companies don't want to have a lot of debt but that doesn't mean they can't be successful. The construction equipment company caterpillar is a great example of this.

    As a shareholder, what I'd be more concerned about are their plans for growth. The ski industry is volatile due to the weather, I don't see much growth from operations alone, it would have to come from real estate.
    2017/2018 Days - 88
    2016/2017 Days - 34
    2015/2016 Days - 57
    2014/2015 Days - 58
    2013/2014 Days - 47

  3. #3
    L
    Quote Originally Posted by skiNEwhere View Post
    Yes companies don't want to have a lot of debt but that doesn't mean they can't be successful. The construction equipment company caterpillar is a great example of this.

    As a shareholder, what I'd be more concerned about are their plans for growth. The ski industry is volatile due to the weather, I don't see much growth from operations alone, it would have to come from real estate.
    Agreed. That S-1 better disclose their position on domes.

  4. #4
    5 bucks says they build a dome before they ever upgrade the summit triple at attitash
    2017/2018 Days - 88
    2016/2017 Days - 34
    2015/2016 Days - 57
    2014/2015 Days - 58
    2013/2014 Days - 47

  5. #5
    The SEC Form is a very interesting read and provides a lot of insight into the economics of ski area operations.

  6. #6
    Peak Resorts has $204 million in assets, $175 million in long term debt (most of it at 10% interest), and $3.5 million in stockholders' equity.
    Goodnight Gracie.
    President - Bicknell's Thrush Extermination Solutions (BTES), LLC



  7. #7
    Quote Originally Posted by Quietman View Post
    The SEC Form is a very interesting read and provides a lot of insight into the economics of ski area operations.
    You're right, here are my top-10 takeaways for those who are either too lazy, or not boring enough to enjoy reading SEC filings:

    1) It's pretty telling who isnt book running.
    2) They're losing money & don't have a lot of cash.
    3) They have a ton of debt.
    4) With a few notable exceptions, they own mostly crummy little ski areas.
    5) Why they plan on offering a quarterly dividend is completely beyond me.
    6) They plan on raising lift ticket & season pass prices and call that a big component of their success.
    7) They claim they intend to continue to acquire ski areas when it's a strategic fit (interesting given their current debt/equity).
    8: For the 13/14 season, they got 33.1% of revenue on weekends & 24.4% of revenue during the 3 major holiday periods.
    9) Lots of info here on what segments comprise what % of revenue and what items are what % of expenses (interesting stuff).
    10) They're highly leveraged to Mount Snow from a top-line perspective (40%). As Mount Snow goes, so too goes this company.
    President - Bicknell's Thrush Extermination Solutions (BTES), LLC



  8. #8
    Some of those dinky areas have more revenue than Wildcat, which is 3rd from the bottom!

  9. #9
    I'm not sure if running ski areas with Wall St's best interests in mind, rather than skier/riders best interests, is a great idea...


    Sent from my iPhone using Tapatalk

  10. #10
    Interest on the debt is over $11 per skier visit.

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