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Skier Visits Return to Pre-Olympic Levels with Record Regional Market Visitation
WHISTLER, BC, Aug. 10, 2011 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Corporation") today reported financial results for the fiscal 2011 third quarter and nine months ended June 30, 2011. On November 9, 2010, the Corporation completed its initial public offering and concurrently acquired a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (together, the "Partnerships"). The Partnerships carry on the four season mountain resort business and operations ("Whistler Blackcomb") at the Resort Municipality of Whistler. The full third quarter and the partial and combined full nine month results are both discussed below.
"With our winter ski season complete we are pleased to have accomplished two key milestones. First we met our post-Olympic goal to exceed two million skier visits and second we were able to return value to our shareholders through our first three dividend payments" said Dave Brownlie, President and Chief Operating Officer of Whistler Blackcomb. "Despite only a partial recovery in the destination market, our key indicators have returned to pre-Olympic levels with skier visit growth of 22%, effective ticket price growth of 6% and we are particularly proud of our record season pass and frequency card unit sale growth of 28% over the previous year's ski season."
"As we look ahead to the 2011/2012 ski season, we are confident that we will be able to sustain this past season's regional growth and we are encouraged by the results from our recent spring season pass and frequency card campaign which saw unit sale and revenue growth over the record 2010-2011 ski season" added Brownlie. "As our management team ramps up for the upcoming season, our main focus is on increasing destination visitation to historical levels."
Highlights of the Corporation:
Skier visits and effective ticket price ("ETP") returned to pre-2010 Olympic and Paralympic Winter Games (the "Olympic Winter Games") levels. In the three months ended June 30, 2011 and the period ended June 30, 2011:
Skier visits increased by 13% and 22%, respectively, over the same periods in the prior year to 346,000 and 2.030 million
ETP decreased by 17% and increased 6%, respectively, over the same periods in the prior year to $36.79 and $47.06
Unit sales of season passes and frequency cards for the 2010/2011 ski season increased by 28% and revenues increased to $43.3 million, the highest level in the history of Whistler Blackcomb
In the period from November 9, 2010 to June 30, 2011, the Corporation generated $82 million of EBITDA on revenues of $186 million and net earnings totalled $38 million or $1.00 per common share
In the three months ended June 30, 2011, the Corporation generated $3 million of EBITDA on revenues of $31 million and net loss totalled $7 million or $0.18 per common share
FISCAL 2011 THIRD QUARTER AND NINE MONTH FINANCIAL RESULTS
For the purposes of management's quarterly comparisons, the Corporation's results for the quarter ended June 30, 2011 are compared with the Partnerships' results for the quarter ended June 30, 2010. The combined results for the nine months ended June 30, 2011 therefore are comprised of the Corporation's results for the period from November 9 to June 30, 2011 and the Partnerships' results for the period from October 1 to November 8, 2010. Reference to the "venue agreement" means the agreement between the Partnerships and the Vancouver Organizing Committee for the Olympic Winter Games ("VANOC") that relates to revenues earned and recorded by the Partnerships in the quarter ended March 31, 2010 as consideration for providing access to certain facilities for the Olympic Winter Games.
Revenue and Effective Ticket Price
Resort revenues decreased by 1% to $31 million and increased by 22% to $186 million and ETP decreased by 17% to $36.79 and increased by 6% to $47.06 in the three and nine months ended June 30, 2011, respectively, over the same periods in the prior year.
In the three months ended June 30, 2011, the decrease in ETP is primarily a result of timing of recognition of frequency card deferred revenue over the 2009/2010 ski season for accounting purposes. Due to differences in estimates of frequency card usage in the third quarter, the balance of unrecognized frequency card deferred revenue at March 31, 2010 was higher than the balance at March 31, 2011. As a result, more frequency card revenue was recognized in the three months ended June 30, 2010 than in the three months ended June 30, 2011. After adjusting for this difference, ETP for the three months ended June 30, 2011 was $36.79 compared to $36.35 for the three months ended June 30, 2010.
In the nine months ended June 30, 2011, all categories of resort revenue (e.g., lift, retail and rental, food and beverage and ski school) benefited from the increase in skier visits and ETP in the 2010/2011 ski season compared to the prior year's ski season, representing a return to pre-Olympic Winter Games levels.
In the prior year, the Partnerships earned $32 million from VANOC under the venue agreement and this entire amount was included in the Partnerships' revenue in the nine months ended June 30, 2010.
Operating Expenses
Resort operating expenses decreased by 9% to $22 million and increased by 7% to $97 million for the three and nine months ended June 30, 2011, respectively, over the same periods in the prior year. The 7% increase for the nine month period was primarily attributable to increases in labour and benefit costs and other operating expenses. The increase in labour and benefit costs corresponded with the increase in skier visits in the nine month period compared to the same period in the prior year.
Depreciation and amortization expense in the three months ended June 30, 2011 increased by $5 million over the same quarter in the prior year. The increase in depreciation and amortization expense in the period from November 9, 2010 to June 30, 2011 over the prior period is the result of, for accounting purposes, the cost of the Corporation's acquisition of the Partnerships being allocated to the Partnerships' property, buildings and equipment and amortizing intangible assets at amounts based on fair value as of November 9, 2010. The amounts assigned to such assets in the Corporation's consolidated financial statements are higher than the Partnerships' historical cost of those assets, resulting in incremental depreciation and amortization expense of approximately $13 million in the period from November 9, 2010 to June 30, 2011.
Selling, general and administrative expenses in the three and nine months ended June 30, 2011 remained relatively consistent with the Partnerships' in the same periods in the prior year.
Resort Segment Operating Profit and EBITDA
In the three months ended June 30, 2011, the Corporation generated $3 million of EBITDA and resort segment operating profit on revenues of $31 million. In the period from November 9, 2010 to June 30, 2011, the Corporation generated $82 million of EBITDA and resort segment operating profit on revenues of $186 million.
Resort segment operating profit in the three months ended June 30, 2011 increased to $3 million from $1 million in the same period in the prior year, primarily as a result of lower operating expenses.
Prior to the inclusion of the $32 million earned by the Partnerships under the venue agreement in the prior year, resort segment operating profit increased by 55% to $75 million in the nine months ended June 30, 2011 over the same period in the prior year. EBITDA in the nine months ended June 30, 2011 increased by 140% to $75 million over the same period in the prior year. EBITDA in the nine months ended June 30, 2010 included a net expense of $17 million from real estate activities.
After the inclusion of the $32 million earned by the Partnerships in the prior year under the venue agreement, resort segment operating profit decreased by 7% in the nine months ended June 30, 2011. EBITDA in the nine months ended June 30, 2011 increased by 18% over the same period in the prior year.
Detailed financial results of the Corporation and Management's Discussion and Analysis as of August 10, 2011 ("MD&A") can be found on SEDAR at www.sedar.com and the Corporation's website at www.whistlerblackcombholdings.com.
Conference Call Information
Management will conduct a conference call on August 10th at 8:30am (EDT) to review the Corporation's fiscal 2011 third quarter and nine months ended June 30, 2011 financial results. The call can be accessed by dialing 1.866.356.3093 (Canada and US) or 1.617.597.5381 (International) prior to the start of the call. The access code is 36824728. A replay of the call will be available until August 17th, 2011 and can be accessed at 1.888.286.8010 or 1.617.801.6888 (International). The access code for the replay is 19183376. The call will also be archived for a period of 60 days following the call in the Events and Presentations section of the Corporation's website: www.whistlerblackcombholdings.com.
ABOUT WHISTLER BLACKCOMB
Whistler Blackcomb, the official alpine skiing venue for the Olympic Winter Games, is situated in the Resort Municipality of Whistler located in the Coast Mountains of British Columbia 125 kilometres (78 miles) from Vancouver, British Columbia. North America's premier four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offers over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls and three glaciers. Whistler Blackcomb receives on average over 1,090 centimetres (430 inches) of snow annually and offers one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB". For more information visit www.whistlerblackcomb.com
WHISTLER, BC, Aug. 10, 2011 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Corporation") today reported financial results for the fiscal 2011 third quarter and nine months ended June 30, 2011. On November 9, 2010, the Corporation completed its initial public offering and concurrently acquired a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (together, the "Partnerships"). The Partnerships carry on the four season mountain resort business and operations ("Whistler Blackcomb") at the Resort Municipality of Whistler. The full third quarter and the partial and combined full nine month results are both discussed below.
"With our winter ski season complete we are pleased to have accomplished two key milestones. First we met our post-Olympic goal to exceed two million skier visits and second we were able to return value to our shareholders through our first three dividend payments" said Dave Brownlie, President and Chief Operating Officer of Whistler Blackcomb. "Despite only a partial recovery in the destination market, our key indicators have returned to pre-Olympic levels with skier visit growth of 22%, effective ticket price growth of 6% and we are particularly proud of our record season pass and frequency card unit sale growth of 28% over the previous year's ski season."
"As we look ahead to the 2011/2012 ski season, we are confident that we will be able to sustain this past season's regional growth and we are encouraged by the results from our recent spring season pass and frequency card campaign which saw unit sale and revenue growth over the record 2010-2011 ski season" added Brownlie. "As our management team ramps up for the upcoming season, our main focus is on increasing destination visitation to historical levels."
Highlights of the Corporation:
Skier visits and effective ticket price ("ETP") returned to pre-2010 Olympic and Paralympic Winter Games (the "Olympic Winter Games") levels. In the three months ended June 30, 2011 and the period ended June 30, 2011:
Skier visits increased by 13% and 22%, respectively, over the same periods in the prior year to 346,000 and 2.030 million
ETP decreased by 17% and increased 6%, respectively, over the same periods in the prior year to $36.79 and $47.06
Unit sales of season passes and frequency cards for the 2010/2011 ski season increased by 28% and revenues increased to $43.3 million, the highest level in the history of Whistler Blackcomb
In the period from November 9, 2010 to June 30, 2011, the Corporation generated $82 million of EBITDA on revenues of $186 million and net earnings totalled $38 million or $1.00 per common share
In the three months ended June 30, 2011, the Corporation generated $3 million of EBITDA on revenues of $31 million and net loss totalled $7 million or $0.18 per common share
FISCAL 2011 THIRD QUARTER AND NINE MONTH FINANCIAL RESULTS
For the purposes of management's quarterly comparisons, the Corporation's results for the quarter ended June 30, 2011 are compared with the Partnerships' results for the quarter ended June 30, 2010. The combined results for the nine months ended June 30, 2011 therefore are comprised of the Corporation's results for the period from November 9 to June 30, 2011 and the Partnerships' results for the period from October 1 to November 8, 2010. Reference to the "venue agreement" means the agreement between the Partnerships and the Vancouver Organizing Committee for the Olympic Winter Games ("VANOC") that relates to revenues earned and recorded by the Partnerships in the quarter ended March 31, 2010 as consideration for providing access to certain facilities for the Olympic Winter Games.
Revenue and Effective Ticket Price
Resort revenues decreased by 1% to $31 million and increased by 22% to $186 million and ETP decreased by 17% to $36.79 and increased by 6% to $47.06 in the three and nine months ended June 30, 2011, respectively, over the same periods in the prior year.
In the three months ended June 30, 2011, the decrease in ETP is primarily a result of timing of recognition of frequency card deferred revenue over the 2009/2010 ski season for accounting purposes. Due to differences in estimates of frequency card usage in the third quarter, the balance of unrecognized frequency card deferred revenue at March 31, 2010 was higher than the balance at March 31, 2011. As a result, more frequency card revenue was recognized in the three months ended June 30, 2010 than in the three months ended June 30, 2011. After adjusting for this difference, ETP for the three months ended June 30, 2011 was $36.79 compared to $36.35 for the three months ended June 30, 2010.
In the nine months ended June 30, 2011, all categories of resort revenue (e.g., lift, retail and rental, food and beverage and ski school) benefited from the increase in skier visits and ETP in the 2010/2011 ski season compared to the prior year's ski season, representing a return to pre-Olympic Winter Games levels.
In the prior year, the Partnerships earned $32 million from VANOC under the venue agreement and this entire amount was included in the Partnerships' revenue in the nine months ended June 30, 2010.
Operating Expenses
Resort operating expenses decreased by 9% to $22 million and increased by 7% to $97 million for the three and nine months ended June 30, 2011, respectively, over the same periods in the prior year. The 7% increase for the nine month period was primarily attributable to increases in labour and benefit costs and other operating expenses. The increase in labour and benefit costs corresponded with the increase in skier visits in the nine month period compared to the same period in the prior year.
Depreciation and amortization expense in the three months ended June 30, 2011 increased by $5 million over the same quarter in the prior year. The increase in depreciation and amortization expense in the period from November 9, 2010 to June 30, 2011 over the prior period is the result of, for accounting purposes, the cost of the Corporation's acquisition of the Partnerships being allocated to the Partnerships' property, buildings and equipment and amortizing intangible assets at amounts based on fair value as of November 9, 2010. The amounts assigned to such assets in the Corporation's consolidated financial statements are higher than the Partnerships' historical cost of those assets, resulting in incremental depreciation and amortization expense of approximately $13 million in the period from November 9, 2010 to June 30, 2011.
Selling, general and administrative expenses in the three and nine months ended June 30, 2011 remained relatively consistent with the Partnerships' in the same periods in the prior year.
Resort Segment Operating Profit and EBITDA
In the three months ended June 30, 2011, the Corporation generated $3 million of EBITDA and resort segment operating profit on revenues of $31 million. In the period from November 9, 2010 to June 30, 2011, the Corporation generated $82 million of EBITDA and resort segment operating profit on revenues of $186 million.
Resort segment operating profit in the three months ended June 30, 2011 increased to $3 million from $1 million in the same period in the prior year, primarily as a result of lower operating expenses.
Prior to the inclusion of the $32 million earned by the Partnerships under the venue agreement in the prior year, resort segment operating profit increased by 55% to $75 million in the nine months ended June 30, 2011 over the same period in the prior year. EBITDA in the nine months ended June 30, 2011 increased by 140% to $75 million over the same period in the prior year. EBITDA in the nine months ended June 30, 2010 included a net expense of $17 million from real estate activities.
After the inclusion of the $32 million earned by the Partnerships in the prior year under the venue agreement, resort segment operating profit decreased by 7% in the nine months ended June 30, 2011. EBITDA in the nine months ended June 30, 2011 increased by 18% over the same period in the prior year.
Detailed financial results of the Corporation and Management's Discussion and Analysis as of August 10, 2011 ("MD&A") can be found on SEDAR at www.sedar.com and the Corporation's website at www.whistlerblackcombholdings.com.
Conference Call Information
Management will conduct a conference call on August 10th at 8:30am (EDT) to review the Corporation's fiscal 2011 third quarter and nine months ended June 30, 2011 financial results. The call can be accessed by dialing 1.866.356.3093 (Canada and US) or 1.617.597.5381 (International) prior to the start of the call. The access code is 36824728. A replay of the call will be available until August 17th, 2011 and can be accessed at 1.888.286.8010 or 1.617.801.6888 (International). The access code for the replay is 19183376. The call will also be archived for a period of 60 days following the call in the Events and Presentations section of the Corporation's website: www.whistlerblackcombholdings.com.
ABOUT WHISTLER BLACKCOMB
Whistler Blackcomb, the official alpine skiing venue for the Olympic Winter Games, is situated in the Resort Municipality of Whistler located in the Coast Mountains of British Columbia 125 kilometres (78 miles) from Vancouver, British Columbia. North America's premier four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offers over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls and three glaciers. Whistler Blackcomb receives on average over 1,090 centimetres (430 inches) of snow annually and offers one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB". For more information visit www.whistlerblackcomb.com
