Catamount Ski Area News

[mbedle]

Just saw that over on saminfo.com. Isn't this the place that was looking to expand with a new hotel a couple of years ago?

 

[andrec10]

Just saw that over on saminfo.com. Isn't this the place that was looking to expand with a new hotel a couple of years ago?

And they got stalled by the town and the Hotel owner, to the point where the investors of the new hotel lost interest. I hope Rich still retains the reins! Hell of a nice guy!

 

[ss20]

Doesn't sound like they're struggling....just sounds like they want to expand and don't have the capital for it. They are in a prime location and do a fantastic job catering to all levels of skiers- something many mountains can't do these days. Big ski school with a new magic carpet and plenty of greens, nice blue cruisers, plenty of black terrain that's groomed and ungroomed.

All that said it's the same drive time from NYC to the Catskills as it is to Catamount. Catskills have more mountain and more amenities. I'd have to imagine Catamount is looking to entice the Westchester county crowd (hence that upscale timeshare/hotel thing from years ago). I always thought Jiminy Peak had that market cornered but we'll see.

I wish them luck in whatever they do...not just because I like it. It's a critical stop on the NYC/Westchester conga line of future skiers. Start them at Thunder Ridge/Mountain Creek, send them to Catamount/Mohawk/Butternut, and the ones that complete the journey end up at Jiminy or Vermont and are hooked.

 

[podunk77]

I wish them luck in whatever they do...not just because I like it. It's a critical stop on the NYC/Westchester conga line of future skiers.

Not to mention the fact they have one of the best ticket deals around.... $20 if bought online, and usable any Monday through Thursday except for the usual blackout periods (basically Christmas and February school vacation). For the 85% of skiers who can enjoy a day at a place that isn't Killington, Stowe or MRG, this place is a little gem.

 

[ss20]

Purchased by Berkshire East for $2.3M...

http://www.newenglandskiindustry.com/viewstory.php?storyid=688

Couple of interesting points...

1. $2.3M sounds absurdly low. I can't believe that's the going-rate on a well-established 4-season mountain that has no substantial problems.

2. I don't know what they're going to invest in to make it more of a summer place. They already have the ropes course. Mountain biking? I do not know the mountain biking industry at all...but the big names I always hear are Killington and Berkshire East so they must know what they're doing.

3. New base lodge to be constructed this summer. Good luck. Unless it's already started that seems like a stretch to have it done in 6 months.

4. I only see how things on-hill during the ski season could improve. BE is not afraid to leave things natural and let some things bump up. Catamount is good about that too...although they had begun to groom Catapult more and more in recent years. My wish list for Catamount has a couple of glades and installing a new conveyor-quad like Berkshire East has to replace the summit quad. Other than that- no big changes needed.

 

[benski]

Purchased by Berkshire East for $2.3M...

http://www.newenglandskiindustry.com/viewstory.php?storyid=688

Couple of interesting points...

1. $2.3M sounds absurdly low. I can't believe that's the going-rate on a well-established 4-season mountain that has no substantial problems.

3. New base lodge to be constructed this summer. Good luck. Unless it's already started that seems like a stretch to have it done in 6 months.

If they have to tear down the base lodge, that’s a huge problem.

 

[urungus]

If they have to tear down the base lodge, that’s a huge problem.

According to the press release “We also intend to renovate the existing main lodge and build a new lodge in the base area during the summer of 2018.”

 

[Killingtime]

[2. I don't know what they're going to invest in to make it more of a summer place. They already have the ropes course. Mountain biking? I do not know the mountain biking industry at all...but the big names I always hear are Killington and Berkshire East so they must know what they're doing.

Mountain Biking has taken off at Killington. Lots of people there on weekends when a decade ago there was nothing. They keep expanding terrain. It actually pretty impressive.

 

[Abominable]

"My wish list for Catamount has a couple of glades" - agree with this, seemed like the middle of the mountain in between the lifts was sort of under-used, but I don't know the place that well and have never been when trees were in play.

The right folks bought it for that to happen, I'd say.

Also agree 2.3 million seems pretty low. I mean, the real estate alone should be worth more than that, no? Unless this thing has been losing money for years. That 2.3 includes 1.6 of debt as well.

But I'm not in this line of work. Check out the listing for Bousquet - asking 3.2m. Lemme check my couch cushions....

http://www.stonehouseproperties.com/real-estate/101-dan-fox-dr-pittsfield-ma-01201/222147/52412413

 

[Abominable]

A bit of googling and it looks like these things generally go for 6X earnings. So I suppose that means Catamount makes 400K / year.

Is it surprising that Hunter makes so much more (15 times more?) than a Catamount?

ILDWOOD, Mo., November 30, 2015 -- Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today announced it has entered into an agreement to purchase Hunter Mountain, the Catskills' premier winter resort destination, for cash consideration of $35 million plus the assumption of two capital leases estimated at approximately $1.8 million. Hunter Mountain generates approximately $27 million (unaudited) in annual revenue. The purchase price is slightly more than six times Hunter Mountain’s adjusted EBITDA, which is estimated at approximately $6 million (unaudited) for its fiscal year ended April 30, 2015.

 

[x10003q]

Purchased by Berkshire East for $2.3M...

http://www.newenglandskiindustry.com/viewstory.php?storyid=688

Couple of interesting points...

1. $2.3M sounds absurdly low. I can't believe that's the going-rate on a well-established 4-season mountain that has no substantial problems.

The $2.3 million is easily backed into once you see the financial numbers. BE is really tuned into the value of Catamount based on being in the same business in roughly the same area. After that, you need to see what the current owners will take.

 

[machski]

A bit of googling and it looks like these things generally go for 6X earnings. So I suppose that means Catamount makes 400K / year.

Is it surprising that Hunter makes so much more (15 times more?) than a Catamount?

ILDWOOD, Mo., November 30, 2015 -- Peak Resorts, Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today announced it has entered into an agreement to purchase Hunter Mountain, the Catskills' premier winter resort destination, for cash consideration of $35 million plus the assumption of two capital leases estimated at approximately $1.8 million. Hunter Mountain generates approximately $27 million (unaudited) in annual revenue. The purchase price is slightly more than six times Hunter Mountain’s adjusted EBITDA, which is estimated at approximately $6 million (unaudited) for its fiscal year ended April 30, 2015.

You really are comparing apples to oranges here. For starters, how many detachable lifts did Hunter have when peaks bought it, 3 I think (maybe 4). Catamount has none, so right there is a big difference. The real estate thing at Catamount, not such a draw. The previous owner tried to do some stuff and it got quashed by other local interests. So not like anything is shovel ready. Plus the previous ownership retired out, so a bit of cash and freeing of debt may have been good enough here.

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[JimG.]

You really are comparing apples to oranges here. For starters, how many detachable lifts did Hunter have when peaks bought it, 3 I think (maybe 4). Catamount has none, so right there is a big difference. The real estate thing at Catamount, not such a draw. The previous owner tried to do some stuff and it got quashed by other local interests. So not like anything is shovel ready. Plus the previous ownership retired out, so a bit of cash and freeing of debt may have been good enough here.

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2 detachable lifts when Peaks bought Hunter.

 

[mister moose]

Just curious, how much was Ascutney worth with a new detach?

It's all about earnings, with a little future expectations thrown in.

 

[Tin Woodsman]

Exactly. You can invest in all the high-tech equipment you want. Unless it converts into earnings/EBITDA, it means almost nothing in terms of the value of the business.

 

[machski]

Exactly. You can invest in all the high-tech equipment you want. Unless it converts into earnings/EBITDA, it means almost nothing in terms of the value of the business.

Except for the fact, most large resorts feature at least one. Those that don't are either nitch resorts that do well (MRG, Smuggs come to mind) or lesser areas probably not making much return. I would put Catamount in the later category. Ascutney couldn't have been worth much, since it went out and no one stepped up to buy. Kind of sad, I actually took a long cut 2 fridays ago from K and drove by As****ey for the first time ever. Looked like an interesting area, too bad it is mostly gone (lower half may be revived next winter I guess).

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[ss20]

Its just surprising...I'd figure the equipment of the lifts, groomers, snowmaking, etc is worth $2m alone...

 

[Smellytele]

When Ascutney went OOB they sold all their lifts. Crotched got the detachable and Pat's Peak bought the rest as well as a bunch of snow making equipment (which they turned around and sold to someone else)

 

[Killingtime]

Some new construction going on at Ascutney. Looks like new base building being put in and the remaining tow rope was refurbished. The mountain itself was much taller and bigger than I imagined. Looks like it had some decent terrain back in the day.

 

[deadheadskier]

It had very fun terrain. Lack of natural snow and decent snowmaking did it in. A real shame as it was so convenient to 91. Had it been done right, it could have been a nice low key family alternative for folks in CT and western Mass who desired a bigger hill than what is in the Berkshires, but didn't want to deal with the southern VT big resort crowds and expense.

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