Peak Resorts reports wider quarterly loss

Peak Resorts reports wider quarterly loss

EB-5 Visa, EB5 Visa, EB-5 Investment

Peak Resorts Inc., the Wildwood-based owner and operator of ski resorts, reported a fiscal 2017 first-quarter loss of $7.9 million, wider than the nearly $7.1 million loss it reported in the same period last year.

Revenue for the recent quarter grew 31 percent from the first quarter of fiscal 2016, to $7.1 million. Resort operating expenses were up $1.6 million over the prior year’s quarter.

“During the first quarter, we made substantial progress in our strategic plan for the long-term, financial stability of Peak Resorts, which includes a purposeful effort to strengthen our balance sheet and capital structure,” President and CEO Tim Boyd said Thursday in a statement.

Last month, Peak announced an agreement to sell $20 million of its Series A cumulative convertible preferred stock and common-stock purchase warrants to CAP 1 LLC, an affiliate of Summer Road LLC. As part of the deal, Summer Road will have rights to a seat on Peak’s board of directors.

The transaction is expected to be completed in early November.

The proceeds of the offering will be used for working capital and general corporate purposes.

“This investment is expected to provide us with increased financial flexibility, as well as ensure that we are well-positioned to execute on our strategy to grow our company, both organically and through strategic acquisition,” Stephen Mueller, Peak Resorts’ chief financial officer, said in the company’s quarterly earnings release.

In May, the company announced a $52 million foreign-investor-funded project to expand a Vermont property. Those funds, however, have been delayed as the company waits on approval from the United States Citizenship and Immigration Services (USCIS) EB-5 Program.

Peak Resorts operates more than a dozen ski resorts primarily in the Northeast and Midwest, 13 of which are company owned. It owns Hidden Valley in Wildwood.


http://www.bizjournals.com/stlouis/news/2016/09/08/peak-resorts-reports-wider-quarterly-loss.html

Mentions

States

  • Missouri


Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.