Revenue down 16% at Peak Resorts after poor skiing weather

Revenue down 16% at Peak Resorts after poor skiing weather

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

Peak Resorts Inc., the Wildwood-based owner and operator of ski resorts, reported a fiscal third-quarter profit of $3.7 million on revenue of $38.7 million.

Revenue in the recent quarter fell 16 percent from nearly $46 million in the prior year’s quarter.

Peak Resorts’ net income rose 13 percent in the recent quarter compared with $3.3 million in the 2015 fiscal third quarter.However, earnings from operations were nearly cut in half to $8.8 million in the three months ended Jan. 31 this year.

During the quarter, the company acquired Hunter Mountain, a New York ski resort that was known for its celebrity clientele in the 1970s and 1980s, for $36.8 million.

Hunter contributed to Peak’s visits, revenue and cash flow but not enough to overcome an overall decline in visits, which dropped 23 percent in the recent quarter, Peak Resorts President and CEO Tim Boyd said in the company’s earnings release Tuesday.

“This year’s ski season got off to a late and very choppy start due to unseasonably warm weather in both our Northeast and Midwest regions,” Boyd said.

The company now expects full-year revenue, which had been estimated at $104.9 million for the fiscal year, to be down 10-12 percent.

Boyd said a delay in the company’s $52 million EB-5 capital raise from foreign investors, “has resulted in cash balances that are lower than we had anticipated.” EB-5 is an investor visa program to stimulate the U.S. economy through foreign investments. That capital raise is earmarked for upgrades and new construction at Peak’s Mount Snow resort in West Dover, Vermont.

The Hunter acquisition also substantially changed the company’s balance sheet as total assets rose to $315.5 million while total debt rose to $125.8 million, reflecting the $21 million for the first Hunter Mountain mortgage and another $15.5 million that was borrowed, Peak CFO Stephen Mueller said.

Peak Resorts operates 14 ski resorts primarily in the Northeast and Midwest, 13 of which are company owned.


http://www.bizjournals.com/stlouis/blog/2016/03/revenue-down-16-at-peak-resorts-after-poor-skiing.html

Mentions

States

  • Vermont


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.