Gunstock $470k Loss

Gunstock ends season with $470,000 loss

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By ROGER AMSDEN, LACONIA DAILY SUN

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Apr 28, 2018

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GILFORD
— Gunstock Mountain Resort is faced with a $470,931 loss for the 2017-18 fiscal
year, a drop of  $1.3 million from the $831,583 profit it realized the
previous year.

A snowy
March gave a much-needed boost to Gunstock’s ski season, enabling the county-owned
recreation area to recoup some of its losses from earlier in the year, but the
net income realized in March — $534,265 — wasn’t enough to make up for the $1.4
million decline in previous months, according to Gunstock General Manager Greg
Goddard.

He told
the Gunstock Area Commission Wednesday night that skier visits were down to
150,320 this year from last year’s 165,575, an 11.2 percent drop.

It is
the second time in the last three years that Gunstock has recorded a loss for
its fiscal year, which runs from May 1 through April 30.

In
2016, it recorded a $648,617 loss.

The
commission approved a strategic operating plan and budget at Wednesday night’s
meeting that projects Gunstock will realize a net profit of  $890,000 in
the 2018-2019 fiscal year. The projected revenue is $12.2 million with expenses
of $11.3 million.

 

The
commission also approved a proposal from Goddard to modify $2.6 million in
loans for the Mountain Coaster project, which was completed in 2016 and is the
most recent capital expenditure project designed to increase the number of
year-round visitors.

He said
that both the Bank of New Hampshire, which holds a  $1.6 million note, and
Meredith Village Savings Bank, which holds a $1 million note, have verbally
agreed to a modification that would improve Gunstock’s summer cash flow.

Goddard
said currently Gunstock makes principal payments totaling $260,000 to the banks
in September and interest-only payments in March. He said it makes more sense
to have the interest-only payments made in September and the principal payments
in March.

The
commission agreed to increase principal payments by about $37,000 a year and to
accelerate the loan maturity date by six months, resulting in no increase in
total interest costs.

Comments

  • I don't think a great March can ever make up for the loss of all 3 major holiday periods.  It will be interesting to see what declines other New England ski areas are projecting (or experienced) this season (2017-2018).
  • Wait ... Gunstock is county owned? I guess I never knew that.
    2.6 million in debt with 12.2 in revenue I guess is better than Hermitage’s 17.1 with zero revenue.
    ISNE-I Skied New England | NESAP-the New England Ski Area Project | SOSA-Saving Our Ski Areas - Location SW of Boston MA
  • Just got an email from Two Roads brewing out of Connecticut that they will be having their Road Jam Festival at Gunstock in July. It's a Two Roads brewer's festival with live music, and includes some camping. 
  • I guess it was the amazing March we had here in Vermont, but I feel like VT had a pretty good year all in all. Early on things were good, then rough, then AMAZING. I'm pretty surprised by just how much they lost, this seems pretty large for them and the county. 
  • Sully said:

    I guess it was the amazing March we had here in Vermont, but I feel like VT had a pretty good year all in all. Early on things were good, then rough, then AMAZING. I'm pretty surprised by just how much they lost, this seems pretty large for them and the county. 

    They basically lost all the major holiday periods (or most of the days in them) to extreme cold, rain, or meltdown. When the periods that give you a huge chunk of revenue crap out, there is no amount of March and April skiing that can fully blunt the effect of a disappointing or disastrous Xmas, MLK and Prez Week.
  • That is 100% correct.
  • 88 bucks could be the other reason.
    ISNE-I Skied New England | NESAP-the New England Ski Area Project | SOSA-Saving Our Ski Areas - Location SW of Boston MA
  • ski_it said:

    88 bucks could be the other reason.

    I suspect that with Liftopia and season passes, very few people who are cost-conscious are actually paying $88.
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