Peak Resorts - Preliminary Year end Results & Hunter Mountain Expansion
Peak Resorts Announces Two New Expansion Projects and Provides Preliminary Fiscal Year 2017 Results
- Intends to apply for permits to add additional skiing terrain to Hunter Mountain and a zip tour to Hidden Valley
- Expects to report record revenue of $120-$125 million for the year driven by growth in visitors, season pass sales and the acquisition of Hunter Mountain
- Expects to report record EBITDA of approximately $26-$27 million despite poor seasonal weather conditions
WILDWOOD, Mo., June 21, 2017 (GLOBE NEWSWIRE) -- Peak Resorts Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality individually branded ski resorts in the U.S. today announced that it intends to apply for permits for two organic revenue growth opportunities, and has reported preliminary financial results for the 2017 fiscal year.
Organic Growth Expansion Projects
Hunter Mountain Expansion
Peak intends to apply for construction permits at the company’s Hunter Mountain resort in Hunter, New York, to increase the resort’s skiable acreage by approximately 25-30%. The new area will feature a parking area and a detachable high speed chair lift. The additional acreage will be built on the north facing slope of Hunter Mountain, between the Main Face and the West Side, and will be predominantly intermediate terrain. The company’s goal is to complete the project in time for the 2018-2019 ski season. The expansion is expected to cost approximately $9 million and has the potential to generate $1.5 million to $2 million in incremental EBITDA per year.
Hidden Valley Zip Tour
Peak also intends to apply for a permit to construct a zip tour at its Hidden Valley resort in Wildwood, Missouri. This investment is aligned with the company’s goal of leveraging underutilized capacity in the spring, summer and fall to generate additional sales and diversify its revenue base. The company’s goal is to begin construction this fall and complete the project for use beginning in the fall of 2018. The project is expected to cost approximately $2.5 million and has the potential to generate $0.5 million to $1 million in incremental EBITDA per year.
EB-5 Capital Projects
The company is pleased to report that its EB-5-funded West Lake water project and Carinthia base ski lodge project at Mt. Snow are running within budget and on schedule for their completions prior to the 2017-18 and 2018-19 ski seasons, respectively.
Preliminary Fiscal 2017 Results
Based on preliminary unaudited financial results, Peak expects to report record revenue and EBITDA for the year ended April 30, 2017. Revenue is expected to be approximately $120 million to $125 million, which, at the midpoint of this range, reflects an increase of 28% over fiscal 2016 revenue. EBITDA is expected to be approximately $26 to $27 million, which, at the midpoint, reflects an increase of 63% over fiscal 2016 EBITDA.
The company anticipates having over $30 million in operating cash on the balance sheet at year-end, and remains in full compliance with all debt covenants. In addition, the company was able to pay off $10 million in debt during the third quarter of fiscal 2017.