Peak Resorts to go Public

[skiatomic]

Good points and welcome to the board!

Thanks!

Apologies if someone already noticed this -- But the Wildcat purchase, on a $5mm interest only note at 4% (ie 200k/yr interest) is akin to a modest lease of the mountain, especially if former owner is holding the note...and it is a ten year note.

Good strategy by Peaks, in that they get a test drive of Wildcat.

Back to Mt Snow, the more I read the Reg Statement, looks like Mt Snow will require another float of debt, doubtful the can re-make base area as their Master Plan states and add units for the remaining 23mm in debt they have to spend (of orig 30mm) -- if 6-pack cost 7mm. Unless they just use shorter term construction notes and bridge-loans (costly) as the form of the additional debt -- and that covers the remainder of the project.

 

[RSTuthill]

As a fairly active stock trader, I'd never in a million years invest any money into any business in which so much of its revenue is weather-dependent. Peak may do a good job with what it has, but why would anyone take a risk when so many other options to invest in are out there? The risk/reward ratio is too great. More power to them if they can improve their areas, but I think anyone who invests in their stock is nuts.

Obviously their investment in world class snowmaking is an effort to mitigate that risk. But their volume is not only dependent on the quality of their product, the weather in the population centers is also hugely influential. And they have no control over that or a means to mitigate that risk other than expensive massive advertising.

 

[threecy]

Apologies if someone already noticed this -- But the Wildcat purchase, on a $5mm interest only note at 4% (ie 200k/yr interest) is akin to a modest lease of the mountain, especially if former owner is holding the note...and it is a ten year note.

Noted earlier in the thread, though it's a $4.5M note to the seller at 4%, with $2.6M due in 2020.

 

[Breeze]

If I understand the setup with the state of NH.......

...this sounds about right for a Mountain with zero real estate, realatively little infastructure, zero land (leased from state), and on the low end of yearly visits as compared with other 2000' mountains.

Or as you were saying (sort of) the family that owned it couldn't afford to run it.

Just a minor correction here, Wildcat is on USFS ( federal) land. State of NH is not involved. Doesn't change the fact the land is leased, but just gets the names of the players straight on the roster.

Breeze

 

[thetrailboss]

The latest is that Peak Resort's IPO has been postponed:

PEAK RESORTS POSTPONES IPO
December 8, 2011
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SAM Magazine--December 8, 2012--Peak Resorts, Inc., announced that it has postponed its Initial Public Offering that was expected to price and close this week, due to volatile market conditions. Peak Resorts owns and manages 12 resorts in the East and Midwest.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective.

http://www.saminfo.com/news/article.php?tid=5391