Peak Resorts: The New ASC?

[ThinkSnow]

Wait, people still watch television news? I thought that was just for people eligible for AARP membership.

Maybe that's all they're telling you in your retirement community. In my world, the news is on at the gym first thing in the morning. Its also on in the cafeteria at work all day long.

 

[steamboat1]

Wait, people still watch television news? I thought that was just for people eligible for AARP membership.

They do have some hot looking news casters. Especially some of the weather girls.

 

[snoloco]

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.

Intrawest doesn't own Mountain Creek anymore. They sold it back to the original owners in 2010.

 

[Jully]

Of the options in the east, I don't see Vail trying try buy Waterville unless they can get access to Mt. Tecumseh. The village gondola and stuff are great, but it's just not a competitive enough mountain to get people to buy land / condos around right now.

Vail buying Stratton would be ridiculous. I'm assuming they make a killing every year.

 

[BenedictGomez]

A boutique IB that covers SKIS downgraded it due to the poor ski season and the stocks been getting CRUSHED, down 30% in the last few days since the downgrade. I haven't seen the report, but I'd speculate they must have made negative comments about the sustainability of SKIS dividend, because that's really the 1 thing that would crater the stock this quickly.

In response the company commented on the season (and its' dividend) today:

We continue to see the overnight and day-drive segments of the market as offering opportunities for organic growth, resort development and further acquisitions. The board demonstrated confidence in that strategy when it declared a regular quarterly cash dividend in December that will be paid to Peak shareholders on February 24. We anticipate the board will declare the next regular quarterly dividend in March, reflecting continued confidence in our operations and outlook.” Boyd added, “This year’s ski season continues to develop from its warm start. We experienced very strong activity across the entire 14-resort portfolio in the second half of January, reflecting pent up demand and the improved weather conditions. Now we are looking forward to an excellent Presidents’ Day holiday across all of our resorts, but particularly in the Northeast, where many schools close for a full week for this holiday. We also anticipate United States Citizenship and Immigration Services approval of our first EB-5 investor’s I-526 Petition in the near future.”

 

[yeggous]

SKIS announced their latest results today. Looks like a flop, but we all knew that was coming. Anybody have some insight?

 

[Domeskier]

SKIS announced their latest results today. Looks like a flop, but we all knew that was coming. Anybody have some insight?

Won't know the impact of the new pass sales until the fourth quarter results are out three months from now.

 

[BenedictGomez]

SKIS announced their latest results today. Looks like a flop, but we all knew that was coming. Anybody have some insight?

Yes.

"The slower-than-expected timeline for approval of our EB-5 project has resulted in cash balances that are lower than we had anticipated. Our board of directors, while committed to the dividend as a means of rewarding shareholders, is closely monitoring the EB-5 project status and continually evaluating the first dividend for fiscal 2017 in that context."

SKIS gets crushed if they cut that dividend.

 

[yeggous]

Yes.



SKIS gets crushed if they cut that dividend.

The stock price is already a fraction of the IPO level. How low do you think it will go?

 

[BenedictGomez]

The stock price is already a fraction of the IPO level. How low do you think it will go?

If they slash or eliminate the dividend? Below $2 for sure.

 

[machski]

Yes.



SKIS gets crushed if they cut that dividend.

Hmmm, seems to me this is where the Peaks pass pricing for next season originated from. A need to increase cash on hand given EB-5 delays right now. If that is true, this will be interesting to see how that plays out 12 months down the road as well.

 

[yeggous]

Latest word from the hill: all Peak Resorts employees will be laid off for the month of May.


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[ScottySkis]

Where that rumor come from??

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[deadheadskier]

Latest word from the hill: all Peak Resorts employees will be laid off for the month of May.


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Rough, but not surprising. Mandatory furloughs aren't uncommon in the ski business.

 

[NYDB]

Very reminiscent of ASC with the mandatory 20% paycuts at K in mid nineties

 

[drjeff]

Latest word from the hill: all Peak Resorts employees will be laid off for the month of May.


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Considering their summer operations at Attitash, Mount Snow and Hunter (not sure when Wildcat starts their summer Gondola rides off the top of my head) start Memorial Day Weekend, and Mount Snow's golf course typically opens the 3rd week of May, and I'm sure that the Grand Hotels at Mount Snow and Attitash have reservations and some conferences and weddings in May, not sure how much belief I'd put in that rumor.

Will some typical "spring transition" furlows happen? Probably, but laying off everybody i'm guessing is nothing more than a crazy rumor

 

[meff]

If they were doing that wide of a layoff they would be required to file a WARN notice, I believe 60 days out.

 

[ScottySkis]

Doesn't this always happens.?

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[yeggous]

Rumor comes from a reliable management level employee. I'm sure there will be exceptions for hotel operations and perhaps summer ops for Memorial Day. The idea is to reduce salary from the numerous full time employees. Think of the marketing, mountain ops, etc.


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[ss20]

Latest word from the hill: all Peak Resorts employees will be laid off for the month of May.


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I'd call BS on that. You still need people to answer the phones, keep communications/utilities running. May is the main mountain bike trail maintenance month so there's no way they won't be at the mountain.