Preview | Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2016
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-36286
Intrawest Resorts Holdings, Inc.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware
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46-3681098
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(State or Other Jurisdiction of
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(I.R.S. Employer
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Incorporation or Organization)
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Identification No.)
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1621 18th Street, Suite 300
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Denver, Colorado
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80202
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(Address of Principal Executive Offices)
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(Zip Code)
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(303) 749-8200
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(Registrant’s Telephone Number, Including Area Code)
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. x Yes oNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
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Accelerated filer
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x
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No
As of January 30, 2017, 39,775,887 shares of the registrant’s common stock were outstanding.
Table of Contents
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PART I
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FINANCIAL INFORMATION
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PART II
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OTHER INFORMATION
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SIGNATURES
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CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, without limitation:
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weakness in general economic conditions;
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lack of adequate snowfall and unfavorable weather conditions;
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lack of access to adequate supplies of water to make snow and otherwise conduct our operations;
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adverse events that occur during our peak operating periods;
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our failure to achieve the expected benefits of our strategic alliance, real estate development, acquisition and other growth strategies;
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Steamboat Ski & Resort’s dependence on contracted direct air service;
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risks related to information technology;
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our potential failure to maintain the integrity of our customer or employee data;
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adverse consequences of ongoing legacy litigation or future legal claims;
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our ability to monetize real estate assets;
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a partial or complete loss of Alpine Helicopters Inc.’s services;
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the effects of climate change on our business operations;
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our ability to maintain effective internal control over financial reporting;
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risks of foreign currency fluctuations which could reduce the U.S. dollar value of our Canadian earnings;
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risks associated with the ownership of a majority of our outstanding common stock by entities managed or controlled by Fortress Investment Group, LLC (collectively “Fortress”), including potential sales of shares held by Fortress, governance rights in our stockholders' agreement with Fortress and potential conflicts of interests;
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our leverage, which could adversely affect our ability to raise additional capital to support our growth strategy; and
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our limited public float and therefore trading volume.
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You should carefully consider the risks described in Part I - Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended June 30, 2016 filed with the Securities and Exchange Commission (the “SEC”) on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016. Moreover, we operate in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur, and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements.
We undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INTRAWEST RESORTS HOLDINGS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
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December 31, 2016
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June 30, 2016
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Assets
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Current assets:
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Cash and cash equivalents
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$
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131,321
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$
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107,066
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Restricted cash
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23,799
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12,475
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Receivables, net of allowances of $825 and $831
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26,046
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36,660
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Inventories
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30,861
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23,620
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Other current assets
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24,516
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21,081
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Total current assets
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236,543
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200,902
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Property, plant and equipment, net of accumulated depreciation of $455,447 and $438,991
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511,559
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511,486
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Real estate held for development
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135,773
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137,283
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Intangible assets, net of accumulated amortization of $64,759 and $63,304
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46,908
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50,226
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Goodwill
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105,627
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105,981
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Other long-term assets, net of accumulated amortization of $1,399 and $1,560
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33,110
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31,927
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Total assets
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$
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1,069,520
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$
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1,037,805
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Liabilities and Equity
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Current liabilities:
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Accounts payable and accrued liabilities
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$
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80,271
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$
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64,869
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Deferred revenue and deposits
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155,119
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67,937
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Capital lease obligations due within one year
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3,331
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3,345
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Long-term debt due within one year
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2,349
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497
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Total current liabilities
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241,070
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136,648
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Long-term capital lease obligations
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34,496
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35,061
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Long-term debt
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536,802
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537,295
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Other long-term liabilities
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66,614
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68,766
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Total liabilities
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878,982
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777,770
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Commitments and contingencies (Note 9)
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Stockholders' equity:
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Preferred stock, $0.01 par value; 300,000 shares authorized; 0 and 0 shares issued and outstanding, respectively
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—
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—
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Common stock, $0.01 par value; 2,000,000 shares authorized; 39,762 and 39,736 shares issued and outstanding, respectively
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453
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453
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Treasury stock, at cost; 5,556 shares and 5,556 shares, respectively
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(50,643
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(50,643
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Additional paid-in capital
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2,902,348
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2,900,696
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Accumulated deficit
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(2,789,175
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(2,726,074
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Accumulated other comprehensive income
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124,740
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131,920
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Total Intrawest Resorts Holdings, Inc. stockholders' equity
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187,723
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256,352
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Noncontrolling interest
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2,815
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3,683
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Total stockholders' equity
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190,538
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260,035
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Total liabilities and stockholders' equity
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$
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1,069,520
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$
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1,037,805
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See accompanying notes to condensed consolidated financial statements.
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INTRAWEST RESORTS HOLDINGS, INC.
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Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
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(In thousands, except per share data)
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(Unaudited)
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Three Months Ended December 31,
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Six Months Ended December 31,
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2016
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2015
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2016
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2015
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Statements of Operations
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Revenue
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$
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121,161
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$
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103,951
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$
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201,641
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$
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190,155
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Operating expenses
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119,916
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117,074
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217,984
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220,322
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Depreciation and amortization
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14,220
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14,496
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29,390
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29,538
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Loss (gain) on disposal of assets
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1,480
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(1,638
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1,139
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(2,327
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Loss from operations
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(14,455
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(25,981
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(46,872
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(57,378
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Interest expense, net
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(9,009
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(9,384
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(18,847
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(18,618
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Earnings (loss) from equity method investments
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4,175
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1,702
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2,787
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(1,382
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Loss on extinguishment of debt
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(820
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—
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(820
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—
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Other (expense) income, net
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(256
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5,131
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218
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5,210
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Loss before income taxes
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(20,365
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(28,532
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(63,534
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(72,168
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Income tax (benefit) expense
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(623
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(519
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317
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1,268
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Net loss
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(19,742
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(28,013
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(63,851
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(73,436
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(Loss) income attributable to noncontrolling interest
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(1,037
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(708
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(750
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912
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Net loss attributable to Intrawest Resorts Holdings, Inc.
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$
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(18,705
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$
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(27,305
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$
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(63,101
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$
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(74,348
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Weighted average shares of common stock outstanding:
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Basic and diluted
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39,762
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45,230
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39,762
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45,230
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Net loss attributable to Intrawest Resorts Holdings, Inc. per share:
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Basic and diluted
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$
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(0.47
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$
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(0.60
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$
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(1.59
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$
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(1.64
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Statements of Comprehensive Income (Loss)
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Net loss
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$
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(19,742
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$
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(28,013
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$
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(63,851
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$
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(73,436
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)
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(Loss) income attributable to noncontrolling interest
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(1,037
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(708
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(750
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912
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Net loss attributable to Intrawest Resorts Holdings, Inc.
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(18,705
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(27,305
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(63,101
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(74,348
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Other comprehensive loss, net of tax of $0
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(5,480
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(8,379
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(7,298
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(30,371
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)
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Other comprehensive loss attributable to noncontrolling interest
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(86
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(59
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(118
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(215
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Other comprehensive loss attributable to Intrawest Resorts Holdings, Inc.
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(5,394
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(8,320
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(7,180
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(30,156
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Comprehensive loss, net of tax of $0
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(25,222
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(36,392
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(71,149
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(103,807
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)
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Comprehensive (loss) income attributable to noncontrolling interest
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(1,123
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)
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(767
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)
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(868
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697
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Comprehensive loss attributable to Intrawest Resorts Holdings, Inc., net of tax
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$
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(24,099
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$
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(35,625
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$
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(70,281
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)
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$
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(104,504
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)
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See accompanying notes to condensed consolidated financial statements.
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INTRAWEST RESORTS HOLDINGS, INC.
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Condensed Consolidated Statements of Cash Flows
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(In thousands)
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(Unaudited)
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Six Months Ended December 31,
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2016
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2015
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Cash provided by (used in):
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Operating activities:
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Net loss
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$
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(63,851
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)
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$
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(73,436
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)
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Adjustments to reconcile net loss to net cash provided by operating activities:
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Depreciation and amortization
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29,390
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29,538
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Funding of pension plans
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(2,250
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)
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(2,207
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)
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Dividend from equity method investments
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2,000
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1,000
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Loss on extinguishment of debt
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820
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—
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Other non-cash expense, net
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3,038
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3,824
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Changes in assets and liabilities
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Inventories
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(7,777
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)
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(10,072
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)
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Restricted Cash
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(11,379
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)
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(4,154
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)
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Receivables
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9,946
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4,813
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Accounts payable and accrued liabilities
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13,771
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21,262
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Deferred revenue and deposits
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88,507
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77,115
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Other assets and liabilities, net
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(1,946
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)
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(3,362
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)
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Net cash provided by operating activities
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60,269
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44,321
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Investing activities:
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Capital expenditures
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(31,904
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)
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(32,531
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)
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Other investing activities, net
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600
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2,244
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Net cash used in investing activities
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(31,304
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)
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(30,287
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)
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Financing activities:
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Repayments of bank and other borrowings
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(3,115
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)
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(4,892
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)
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Financing costs paid
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(275
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)
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—
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Net cash used in financing activities
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(3,390
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)
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(4,892
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)
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Effect of exchange rate changes on cash
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(1,320
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)
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(4,749
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)
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Increase in cash and cash equivalents
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24,255
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4,393
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Cash and cash equivalents, beginning of period
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107,066
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90,580
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Cash and cash equivalents, end of period
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$
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131,321
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$
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94,973
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Supplemental information:
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Cash paid for interest
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$
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15,479
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$
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15,735
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Cash paid for income tax
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$
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1,062
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|
$
|
968
|
|
|
Non-cash investing and financing activities:
|
|
|
|
|
Property, plant and equipment received but not paid
|
$
|
3,270
|
|
|
$
|
7,355
|
|
|
Addition in property, plant and equipment financed by capital lease obligations
|
$
|
423
|
|
|
$
|
—
|
|
See accompanying notes to condensed consolidated financial statements.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
|
|
|
1.
|
Formation and Business
|
Intrawest Resorts Holdings, Inc. (together with its subsidiaries, collectively referred to herein as the "Company") is a Delaware corporation that was formed on August 30, 2013 as a holding company that operates various subsidiaries primarily engaged in the operation of mountain resorts, adventure businesses, and real estate activities, throughout North America.
The Company conducts business through three segments: Mountain, Adventure and Real Estate. The Mountain segment includes the Company's mountain resort and lodging operations at Steamboat Ski & Resort (“Steamboat”) and Winter Park Resort (“Winter Park”) in Colorado, Stratton Mountain Resort (“Stratton”) in Vermont, Snowshoe Mountain Resort (“Snowshoe”) in West Virginia, Mont Tremblant Resort (“Tremblant”) in Quebec, and Blue Mountain Ski Resort (“Blue Mountain”) in Ontario. The Mountain segment derives revenue mainly from sales of lift products, lodging, ski school services, retail and rental merchandise, food and beverage, and other ancillary services.
The Adventure segment includes Canadian Mountain Holidays (“CMH”), which provides helicopter accessed skiing, mountaineering and hiking from eleven lodges in British Columbia, Canada. In support of CMH’s operations, the Company owns a fleet of Bell helicopters that are also used in the off-season for fire suppression activities and other commercial uses primarily in the United States and Canada. The Company's subsidiary, Alpine Aerotech L.P., provides helicopter maintenance, repair and overhaul services to the Company’s fleet of helicopters as well as to aircraft owned by unaffiliated third parties.
The Real Estate segment is comprised of Intrawest Hospitality Management, Inc. (“IHM”), which principally manages condominium hotel properties including Honua Kai Resort and Spa in Maui, Hawaii and the Westin Monache Resort in Mammoth Lakes, California, Playground, a residential real estate sales and marketing business, the Company’s 50.0% interest in Mammoth Hospitality Management, L.L.C. ("MHM"), the Company's 57.1% economic interest in Chateau M.T. Inc. ("Chateau"), and formerly included Intrawest Resort Club Group ("IRCG"), a vacation club business, which was sold on January 29, 2016 ("the Disposition Date"). The Real Estate segment is also comprised of real estate development activities and includes costs associated with these activities, such as planning activities and land carrying costs.
|
|
|
2.
|
Significant Accounting Policies
|
Basis of Presentation and Use of Estimates
The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, the financial statements do not include all of the information and notes required for complete financial statements prepared in accordance with GAAP. In management's opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Principles of Consolidation
The accompanying condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and a variable interest entity (“VIE”) for which the Company is the primary beneficiary. All significant intercompany transactions are eliminated in consolidation. Investments in which the Company does not have a controlling interest or is not the primary beneficiary, but over which the Company is able to exercise significant influence, are accounted for under the equity method. Under the equity method, the original cost of the investment is adjusted for the Company’s share of post-acquisition earnings or losses increased by contributions less distributions received. As of July 1, 2016, the Company reassessed all non-wholly owned subsidiaries in accordance with the new guidance issued in Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”) and determined that no changes to consolidation methods were needed.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
The Company owns a 20.0% equity interest in Alpine Helicopters Inc. (“Alpine Helicopters”). Alpine Helicopters employs all the pilots that fly the helicopters supporting CMH's operations. Alpine Helicopters leases substantially all of its helicopters from Intrawest ULC, a consolidated subsidiary of the Company, creating economic dependence and therefore giving Intrawest ULC a variable interest in Alpine Helicopters. Alpine Helicopters is a VIE for which the Company is the primary beneficiary and is consolidated in the accompanying condensed consolidated financial statements. The remaining 80.0% equity interest in Alpine Helicopters is held by the employees of Alpine Helicopters and is reflected as a noncontrolling interest in the accompanying condensed consolidated financial statements. As of December 31, 2016, Alpine Helicopters had total assets of $8.8 million and total liabilities of $3.5 million.
On January 29, 2016, the Company sold substantially all of the assets used in the operations of IRCG and all of the equity interests in certain wholly-owned subsidiaries of IRCG to Diamond Resorts Corporation and Diamond Resorts International, Inc. (together with Diamond Resorts Corporation, “Diamond”), as described in Note 3, “Dispositions” (the "IRCG Transaction"). In accordance with applicable accounting guidance, the disposal did not qualify for discontinued operations presentation and, therefore, the accompanying condensed consolidated statements of operations and comprehensive income (loss) reflect the consolidation of the results of IRCG in the prior fiscal year. Prior to the Deposition Date, IRCG was a part of the Real Estate segment.
Fair Value of Financial Instruments
As of December 31, 2016 and June 30, 2016, the fair value of cash and cash equivalents, restricted cash, net receivables and accounts payable approximated their carrying value based on the short-term nature of these instruments. Estimates of fair value may be affected by assumptions made and, accordingly, are not necessarily indicative of the amounts the Company could realize in a current market exchange.
The fair value of the Senior Debt (as defined in Note 6, “Debt”) was estimated using quoted prices for the Company's instruments in markets that are not active and was considered a Level 2 measure. The fair value of other debt obligations was estimated based on Level 3 inputs using discounted cash flow analyses based on assumptions that management believes are consistent with market participant assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Senior Debt
|
$
|
553,333
|
|
|
$
|
560,769
|
|
|
$
|
554,480
|
|
|
$
|
555,173
|
|
|
Other debt obligations
|
1,106
|
|
|
924
|
|
|
1,172
|
|
|
971
|
|
Recent Accounting Pronouncements
In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No.2017-01, Business Combinations (Topic 805) ("ASU 2017-01"). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets of businesses. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and related disclosures.
In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. The Company intends to adopt this guidance on July 1, 2018. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and related disclosures.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This update replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for interim and annual periods beginning after December 15, 2019, with a modified-retrospective approach. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and related disclosures.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). This update is part of the FASB's simplification initiative and is intended to simplify accounting for stock-based compensation. The guidance requires that excess tax benefits or deficiencies be recognized in income tax expense or benefit in the income statement, rather than recognized in additional paid-in capital. The guidance allows the Company to elect whether to recognize forfeitures as they occur or use an estimated forfeiture assumption in estimating the number of awards that are expected to vest. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance prospectively for the year beginning on July 1, 2016.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 supersedes existing guidance in Leases (Topic 840). The revised standard requires lessees to recognize the assets and liabilities arising from leases with lease terms greater than twelve months on the balance sheet, including those currently classified as operating leases, and to disclose key information about leasing arrangements. Lessees will be required to recognize a lease liability and a right-of-use asset on their balance sheets, while lessor accounting will remain largely unchanged. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures. While we are continuing to evaluate the standard, we currently believe the most significant impact will relate to our accounting for operating leases and that our capital leases will remain substantially unchanged under the new standard.
In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). This update is intended to reduce diversity in practice by providing explicit guidance to customers about whether a cloud computing arrangement includes a software license. For public business entities, the guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU 2015-05 as of July 1, 2016 and will apply the guidance prospectively for all arrangements entered into or materially modified after July 1, 2016. There was no impact to the Company's condensed consolidated financial statements upon the adoption.
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). This update (i) amends the criteria for determining which entities are considered VIEs or voting interest entities, (ii) amends the criteria for evaluating fees paid to a decision maker or service provider as a variable interest, (iii) amends the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) ends the deferral previously granted to certain investment companies for application of the VIE consolidation model. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance for the year beginning on July 1, 2016. With the adoption the Company reassessed all non-wholly owned subsidiaries and determined that no changes to consolidation methods were needed.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. In August 2015, the FASB issued an accounting standards update that defers the effective date of the new revenue recognition guidance for one year, to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for periods beginning after December 15, 2016. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing ("ASU 2016-10"), which clarifies the identification of performance obligations and the licensing implementation guidance in Topic 606. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12"), which clarifies the guidance in Topic 606 on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ("ASU 2016-20"), which provides technical corrections and improvements to clarify Topic 606 or to correct unintended application of Topic 606. These accounting standard updates have the same effective date as the original standard. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is planning to adopt the standard on July 1, 2018. The Company is currently in the assessment phase to evaluate the impact this standard will have on our financial results, systems, processes and internal controls and based on that assessment will then determine the transition approach to use and the full impact of adoption.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
3. Dispositions
On November 24, 2015, the Company, through its wholly owned indirect subsidiaries, Intrawest U.S. Holdings, Inc. and Intrawest ULC, entered into a definitive agreement to sell IRCG, its vacation club business, to Diamond for gross proceeds of $84.6 million, which included certain purchase price adjustments. The purchase price consisted of cash consideration and the assumption of certain liabilities, including certain lease obligations and certain other continuing contractual obligations.
Upon closing the IRCG Transaction on January 29, 2016, Diamond acquired substantially all of the assets used in the operations of IRCG and all of the equity interests in certain wholly-owned subsidiaries of the Company. The IRCG Transaction resulted in a pre-tax gain of $40.4 million, which was included in the gain on sale of IRCG line item in the consolidated statement of operations accompanying the Company's Annual Report on Form 10-K for the year ended June 30, 2016 filed with the SEC on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016. Due to the Company's net operating losses for tax purposes in the United States and Canada, there were no cash taxes or any impact on the effective tax rate, due to the Company's valuation allowance, as a result of the IRCG Transaction.
|
|
|
4.
|
Earnings (Loss) Per Share
|
Basic earnings (loss) per share ("EPS") is calculated by dividing net income (loss) attributable to the Company by the weighted average number of shares of common stock outstanding. Diluted EPS is calculated by dividing net income (loss) attributable to the Company by the weighted average number of shares of common stock outstanding, plus potentially dilutive securities. Potentially dilutive securities include unvested restricted common stock, restricted stock units, and stock options, the dilutive effect of which is calculated using the treasury stock method.
Due to the Company's reported net loss for the three months ended December 31, 2016 and 2015, the effect of 0.9 million and 1.5 million share based payment awards, respectively, was not included in the calculation of diluted EPS as the effect would be anti-dilutive. Due to the Company's reported net loss for the six months ended December 31, 2016 and 2015, the effect of 0.7 million and 1.3 million share based payment awards, respectively, was not included in the calculation of diluted EPS as the effect would be anti-dilutive. The calculation of basic and diluted EPS is presented below (in thousands, except per share data).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Basic and Diluted EPS
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Intrawest Resorts Holdings, Inc.
|
|
$
|
(18,705
|
)
|
|
$
|
(27,305
|
)
|
|
$
|
(63,101
|
)
|
|
$
|
(74,348
|
)
|
|
Weighted average common shares outstanding
|
|
39,762
|
|
|
45,230
|
|
|
39,762
|
|
|
45,230
|
|
|
Basic and diluted EPS
|
|
$
|
(0.47
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.59
|
)
|
|
$
|
(1.64
|
)
|
5. Supplementary Balance Sheet Information
Current receivables, net
Current receivables as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Trade receivables
|
$
|
26,857
|
|
|
$
|
37,441
|
|
|
Loans, mortgages and notes receivable
|
14
|
|
|
50
|
|
|
Allowance for doubtful accounts
|
(825
|
)
|
|
(831
|
)
|
|
Total current receivables, net
|
$
|
26,046
|
|
|
$
|
36,660
|
|
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
Other current assets
Other current assets as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Capital spares
|
$
|
12,452
|
|
|
$
|
11,628
|
|
|
Prepaid insurance
|
4,100
|
|
|
4,813
|
|
|
Other prepaid expenses and current assets
|
7,964
|
|
|
4,640
|
|
|
Total other current assets
|
$
|
24,516
|
|
|
$
|
21,081
|
|
Other long-term assets, net
Other long-term assets, net as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Equity method investments
|
$
|
27,003
|
|
|
$
|
26,398
|
|
|
Long-term receivables
|
1,460
|
|
|
1,541
|
|
|
Other long-term assets
|
4,647
|
|
|
3,988
|
|
|
Total other long-term assets, net
|
$
|
33,110
|
|
|
$
|
31,927
|
|
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Trade payables
|
$
|
72,944
|
|
|
$
|
48,353
|
|
|
Accrued liabilities
|
7,327
|
|
|
16,516
|
|
|
Total accounts payable and accrued liabilities
|
$
|
80,271
|
|
|
$
|
64,869
|
|
Current deferred revenue and deposits
Current deferred revenue and deposits as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Season pass and other deferred revenue
|
$
|
95,824
|
|
|
$
|
42,343
|
|
|
Lodging and tour deposits
|
59,251
|
|
|
25,548
|
|
|
Deposits on real estate sales
|
44
|
|
|
46
|
|
|
Total current deferred revenue and deposits
|
$
|
155,119
|
|
|
$
|
67,937
|
|
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
Other long-term liabilities
Other long-term liabilities as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
|
|
Pension liability, net of funded assets
|
$
|
31,465
|
|
|
$
|
33,550
|
|
|
Forgivable government grants
|
8,599
|
|
|
7,719
|
|
|
Deferred revenue and deposits
|
7,796
|
|
|
8,106
|
|
|
Other long-term liabilities
|
18,754
|
|
|
19,391
|
|
|
Total other long-term liabilities
|
$
|
66,614
|
|
|
$
|
68,766
|
|
The Company's total borrowings as of December 31, 2016 and June 30, 2016 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
Fiscal Year End June 30, 2016
|
|
|
Maturity
|
|
|
|
Senior Debt
|
2020
|
|
$
|
553,333
|
|
|
$
|
554,480
|
|
|
Other debt obligations
|
2017-2023
|
|
1,106
|
|
|
1,172
|
|
|
Less: unamortized original issue discount ("OID") and debt issuance costs
|
|
|
(15,288
|
)
|
|
(17,860
|
)
|
|
Total
|
|
|
539,151
|
|
|
537,792
|
|
|
Less: Long-term debt due within one year
|
|
|
2,349
|
|
|
497
|
|
|
Total long-term debt
|
|
|
$
|
536,802
|
|
|
$
|
537,295
|
|
Senior Debt
The Company’s credit agreement, dated as of December 9, 2013 (as amended, the “Credit Agreement”), provides for a $540.0 million term loan facility (the “Term Loan"), a $25.0 million senior secured first-lien revolving loan facility (the “Revolver”), and a $55.0 million senior secured first-lien letters of credit facility (the “LC Facility” and, together with the Term Loan and Revolver, collectively referred to herein as the “Senior Debt”). Pursuant to an Incremental Amendment to the Credit Agreement, dated September 19, 2014 (the "Incremental Amendment"), the Company borrowed an incremental $60.0 million under the Term Loan, and continues to have the ability to increase the borrowings on the Term Loan under certain circumstances and subject to certain criteria; so long as, after giving effect to any additional amounts borrowed, the Company remains compliant with all covenants contained in the Credit Agreement. There were $39.8 million and $42.8 million of irrevocable standby letters of credit outstanding under the LC Facility at December 31, 2016 and June 30, 2016, respectively. There were no outstanding borrowings under the Revolver or draws on our outstanding letters of credit under the LC facility as of December 31, 2016 and June 30, 2016. On December 30, 2016, the Company executed the sixth amendment to the Credit Agreement, which primarily served to appoint Bank of America, N.A. as the Company's administrative agent.
Other Debt Obligations
Other debt obligations include various lending agreements, including a government loan agreement and a bank loan related to employee housing. The weighted average interest rate for other debt obligations was 5.3% for the six months ended December 31, 2016.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
Maturities
Current maturities represent principal payments due in the next 12 months. As of December 31, 2016, the long-term debt aggregate maturities for the 12 month periods ending December 31, for each of the following years are set forth below (in thousands):
|
|
|
|
|
|
|
2017
|
|
$
|
2,349
|
|
|
2018
|
|
6,136
|
|
|
2019
|
|
6,143
|
|
|
2020
|
|
539,431
|
|
|
2021
|
|
156
|
|
|
Thereafter
|
|
224
|
|
|
|
|
$
|
554,439
|
|
Interest Expense
The Term Loan bears interest based upon the LIBOR-based rate subject to a LIBOR floor of 1.00%. On October 14, 2016, certain of the subsidiaries of the Company, that guarantee the Senior Debt, entered into the fifth amendment (the “Fifth Amendment”) to the Credit Agreement. The Fifth Amendment decreased the applicable margin for base rate loans and Eurodollar rate loans under the Term Loan from 3.00% to 2.50% and from 4.00% to 3.50%, respectively. Additionally, the Fifth Amendment decreased the applicable margin for base rate loans and Eurodollar rate loans under the Revolver. The applicable margin for base rate loans under the Revolver decreased from 2.75% to 2.50%, if the total secured debt leverage ratio is greater than or equal to 4.50:1.00, and from 2.50% to 2.25% if the total secured debt leverage ratio is less than 4.50:1.00. The applicable margin for Eurodollar rate loans under the Revolver decreased from 3.75% to 3.50%, if the total secured debt leverage ratio is greater than or equal to 4.50:1.00, and from 3.50% to 3.25% if the total secured debt leverage ratio is less than 4.50:1.00. As of December 31, 2016, the applicable margin was 3.50% under the Term Loan, 3.25% under the Revolver and 4.50% under the LC Facility.
The Company recorded interest expense of $9.1 million and $10.3 million in the accompanying condensed consolidated statements of operations for the three months ended December 31, 2016 and 2015, respectively, of which $0.9 million and $0.9 million, respectively, was amortization of deferred financing costs and the OID. The Company recorded interest expense of $19.0 million and $20.4 million in the accompanying condensed consolidated statements of operations for the six months ended December 31, 2016 and 2015, respectively, of which $1.9 million and $1.8 million was amortization of deferred financing costs and the OID.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
7. Accumulated Other Comprehensive Income (Loss) and Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The following table presents the changes in accumulated other comprehensive income (loss) ("AOCI"), by component, for the six months ended December 31, 2016 and 2015 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized portion on cash flow hedge
|
|
Actuarial loss on pensions
|
|
Foreign currency translation adjustments
|
|
Total
|
|
As of June 30, 2015
|
|
$
|
(1,919
|
)
|
|
$
|
(11,950
|
)
|
|
$
|
159,248
|
|
|
$
|
145,379
|
|
|
Amounts reclassified from AOCI
|
|
606
|
|
|
349
|
|
|
—
|
|
|
955
|
|
|
Foreign currency translation adjustments
|
|
(8
|
)
|
|
779
|
|
|
(31,882
|
)
|
|
(31,111
|
)
|
|
Net current period other comprehensive income (loss)
|
|
598
|
|
|
1,128
|
|
|
(31,882
|
)
|
|
(30,156
|
)
|
|
As of December 31, 2015
|
|
$
|
(1,321
|
)
|
|
$
|
(10,822
|
)
|
|
$
|
127,366
|
|
|
$
|
115,223
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2016
|
|
$
|
(733
|
)
|
|
$
|
(14,242
|
)
|
|
$
|
146,895
|
|
|
$
|
131,920
|
|
|
Amounts reclassified from AOCI
|
|
435
|
|
|
451
|
|
|
—
|
|
|
886
|
|
|
Foreign currency translation adjustments
|
|
(1
|
)
|
|
272
|
|
|
(8,337
|
)
|
|
(8,066
|
)
|
|
Net current period other comprehensive income (loss)
|
|
434
|
|
|
723
|
|
|
(8,337
|
)
|
|
(7,180
|
)
|
|
As of December 31, 2016
|
|
$
|
(299
|
)
|
|
$
|
(13,519
|
)
|
|
$
|
138,558
|
|
|
$
|
124,740
|
|
Other Comprehensive Income (Loss)
Other comprehensive income (loss) is derived from adjustments to reflect (i) foreign currency translation adjustments, (ii) realized portion of a cash flow hedge, and (iii) actuarial gain (loss) on pensions. The components of other comprehensive income (loss) for the three and six months ended December 31, 2016 and 2015 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Foreign currency translation adjustments
|
|
$
|
(5,942
|
)
|
|
$
|
(8,845
|
)
|
|
$
|
(8,184
|
)
|
|
$
|
(31,326
|
)
|
|
Realized portion of cash flow hedge(a)
|
|
237
|
|
|
303
|
|
|
435
|
|
|
606
|
|
|
Actuarial gain (loss) on pensions(b)
|
|
225
|
|
|
163
|
|
|
451
|
|
|
349
|
|
|
Other comprehensive loss, net of tax of $0
|
|
(5,480
|
)
|
|
(8,379
|
)
|
|
(7,298
|
)
|
|
(30,371
|
)
|
|
Other comprehensive loss attributable to noncontrolling interest, net of tax of $0
|
|
(86
|
)
|
|
(59
|
)
|
|
(118
|
)
|
|
(215
|
)
|
|
Other comprehensive loss attributable to Intrawest Resorts Holdings, Inc., net of tax of $0
|
|
$
|
(5,394
|
)
|
|
$
|
(8,320
|
)
|
|
$
|
(7,180
|
)
|
|
$
|
(30,156
|
)
|
|
|
|
(a)
|
Amounts reclassified out of AOCI are included in interest expense in the accompanying condensed consolidated statements of operations.
|
|
|
|
(b)
|
Amounts reclassified out of AOCI are included in operating expenses in the accompanying condensed consolidated statements of operations.
|
8. Income Taxes
The Company’s quarterly provision for income taxes is calculated using an estimated annual effective tax rate for the period, adjusted for discrete items that occurred within the period presented. The consolidated income tax provision attributable to the Company was a $0.6 million benefit and a $0.3 million expense for the three and six months ended December 31, 2016, respectively, and a $0.5 million benefit and a $1.3 million expense for the three and six months ended December 31, 2015, respectively, primarily relating to taxable Canadian helicopter operations. These amounts represent an effective tax rate of 3.1% and (0.5)% for the three and six months ended
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
December 31, 2016, respectively; and an effective tax rate of 1.8% and (1.8)% for the three and six months ended December 31, 2015, respectively. The federal blended statutory rate was 28.9% and 31.9% for the three and six months ended December 31, 2016, respectively, and 29.5% and 31.5% for the three and six months ended December 31, 2015, respectively. The effective tax rates for the periods presented differ from the federal blended statutory rates due to changes in the recorded valuation allowances for entities in the United States and Canada.
9. Commitments and Contingencies
Letters of Credit
The Company had issued letters of credit of $39.8 million and $42.8 million as of December 31, 2016 and June 30, 2016, respectively, mainly to secure the Company's commitments under the three closed noncontributory defined benefit pension plans covering certain of the Company's former executives and self-insurance claims. These outstanding letters of credit will expire in November 2018.
Legal
The Company is involved in various lawsuits and claims arising in the ordinary course of business and others arising from legacy real estate development. These lawsuits and claims may include, among other things, claims or litigation relating to personal injury and wrongful death, allegations of violations of laws and regulations relating to real estate activities and labor and employment, intellectual property and environmental matters and commercial contract disputes. The Company operates in multiple jurisdictions and, as a result, a claim in one jurisdiction may lead to claims or regulatory penalties in other jurisdictions.
Due to the nature of the activities at the Company's mountain resorts and CMH, the Company is exposed to the risk that customers or employees may be involved in accidents during the use, operation or maintenance of its trails, lifts, helicopters and facilities. As a result, the Company is, from time to time, subject to various lawsuits and claims in the ordinary course of business related to injuries occurring at the Company's properties.
In addition, the Company's pre-2010 legacy real estate development and sales activities, combined with the significant downward shift in real estate asset values that occurred in 2007 and 2008, resulted in claims arising in the ordinary course of business being filed against the Company by owners and prospective purchasers of residences of the Company's real estate developments. In some instances, the Company has been named as a defendant in lawsuits alleging construction defects at certain of the Company's existing developments or alleging that the Company failed to construct planned amenities. In other lawsuits, purchasers are seeking rescission of real estate purchases and/or return of deposits paid on pre-construction purchase and sale agreements. These claims are related to alleged violations of state and federal laws.
The Company believes that it has adequate insurance coverage or has adequately accrued for loss contingencies for all material matters in which it believes a loss is probable and the amount of the loss is reasonably estimable. Although the ultimate outcome of claims cannot be ascertained, current pending and threatened claims are not expected to have a material adverse effect, individually or in the aggregate, on the Company's financial position, results of operations or cash flows. However, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may affect the Company's reputation, even if resolved in the Company's favor.
Government Grants and Loans
The federal government of Canada and the provincial government of Quebec have granted financial assistance to certain subsidiaries of the Company in the form of reimbursable loans and forgivable grants for the construction of specified tourist facilities at Tremblant. The unamortized balance of forgivable government grants received is included in other long-term liabilities in the accompanying condensed consolidated balance sheets and recorded as a reduction in depreciation expense of the related fixed asset or a reduction in cost of sales for property under development at the time a sale is recognized. Reimbursable government loans are included in long-term debt and long-term debt due within one year in the accompanying condensed consolidated balance sheets. The reimbursable government loans have a weighted average borrowing rate of 6.4%.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
Reimbursable government loans and forgivable grants as of December 31, 2016 and June 30, 2016 in Canadian dollars ("CAD") and the U.S. dollar ("USD") equivalent are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
June 30, 2016
|
|
|
CAD
|
|
USD Equivalent
|
|
CAD
|
|
USD Equivalent
|
|
Loans
|
$
|
241
|
|
|
$
|
179
|
|
|
$
|
241
|
|
|
$
|
185
|
|
|
Grants
|
|
|
|
|
|
|
|
|
Received
|
89,298
|
|
|
66,506
|
|
|
89,298
|
|
|
68,643
|
|
|
Future advances
|
31,421
|
|
|
23,401
|
|
|
31,421
|
|
|
24,153
|
|
|
Total grants
|
$
|
120,719
|
|
|
$
|
89,907
|
|
|
$
|
120,719
|
|
|
$
|
92,796
|
|
Capital Leases
Capital lease obligations are primarily for equipment except for the lease of the Winter Park ski resort. The Winter Park capital lease requires annual payments, a portion of which are contingent on future annual gross revenue levels. As such, the obligation associated with the contingent portion of the payments is not readily determinable and has not been recorded. The Company is contractually obligated to make certain debt service payments on behalf of Winter Park Recreational Association as a requirement of the capital lease agreement.
Amortization of assets under capital leases is included in depreciation and amortization expense in the accompanying condensed consolidated statements of operations. The capital leases have a weighted average remaining term of 35 years and a weighted average interest rate of 9.9%.
Other
The Company holds certain forestry licenses and land leases with respect to its resort operations at Steamboat and Winter Park. These licenses and leases expire between 2047 and 2056 and provide for annual payments based on a percentage of sales that range between 1.5% and 4.0% of such sales. Payments for forestry licenses and land leases were $0.8 million for each of the three months ended December 31, 2016 and 2015 and $0.9 million for each of the six months ended December 31, 2016 and 2015.
10. Segment Information
The Company currently manages and reports operating results through three segments: Mountain, Adventure and Real Estate. The Mountain segment includes the operations of the Company’s mountain resorts and related ancillary activities. The Mountain segment
earns revenue from a variety of activities, including lift revenue, lodging revenue, ski school revenue, retail and rental revenue, food and beverage revenue, and other revenue. The Adventure segment generates revenue from the sale of helicopter accessed skiing, mountaineering and hiking adventure packages, and ancillary services, such as fire suppression services, leasing, and maintenance, repair and overhaul of aircraft. The Real Estate segment includes the management of condominium hotel properties and real estate management, including marketing and sales activities, real estate development activities, and a vacation club business through the Disposition Date, as described in Note 3, "Dispositions".
Each of the Company’s segments offers distinctly different products and services and requires different types of management focus. As such, these segments are managed separately. In deciding how to allocate resources and assess performance, the Company’s Chief Operating Decision Maker (“CODM”) regularly evaluates the performance of the Company's segments on the basis of revenue and earnings, which are adjusted for certain items set forth in the reconciliation below, including interest, taxes, depreciation and amortization (“Adjusted EBITDA”). The Company also evaluates Adjusted EBITDA as a key compensation measure. The compensation committee of the board of directors reviews the annual variable compensation for certain members of the management team based, in part, on Adjusted EBITDA. The Company’s management believes that adjusted EBITDA is useful when comparing the segment performance over various reporting periods because it removes from the operating results the impact of items that the Company's management believes do not reflect the Company's core operating performance.
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other entities may not calculate Adjusted EBITDA in the same manner as the Company. The Company's definition of Adjusted EBITDA is generally consistent with the definition of Consolidated EBITDA in the Credit Agreement, with exceptions related
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
to not adjusting for recurring public company costs and foreign currency adjustments related to operational activities and adjusting for executive management restructuring costs.
The Company defines Adjusted EBITDA as net income (loss) attributable to the Company. before interest expense, net (excluding interest income earned from receivables related to IRCG operations) prior to the Disposition Date, income tax benefit or expense and depreciation and amortization, further adjusted to exclude certain items, including, but not limited to: (i) impairments of goodwill, real estate and long-lived assets; (ii) gains and losses on asset dispositions; (iii) earnings and losses from equity method investments; (iv) gains and losses from remeasurement of equity method investments; (v) gains and losses on extinguishment of debt; (vi) other income or expense; (vii) earnings and losses attributable to noncontrolling interest; (viii) discontinued operations, net of tax; and (ix) other items, which include revenue and expenses of legacy and other non-core operations, restructuring charges and associated severance expenses, non-cash compensation and other items. For purposes of calculating Adjusted EBITDA, the Company also adds back to net income (loss) attributable to the Company the pro rata share of Adjusted EBITDA related to equity method investments included within the segments and removes from Adjusted EBITDA the Adjusted EBITDA attributable to noncontrolling interests for entities consolidated within the segments. Asset information by segment, except for capital expenditures as shown in the table below, is not included in reports used by the CODM in the monitoring of performance and, therefore, is not disclosed.
The accounting policies of the segments are the same as those described in Note 2, "Significant Accounting Policies". Transactions among segments are accounted for as if the sales or transfers were to third parties, or, in other words, at current market prices.
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
The following tables present segment revenue reconciled to consolidated revenue and net income (loss) attributable to the Company reconciled to Adjusted EBITDA and Adjusted EBITDA by segment (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Mountain
|
|
|
|
|
|
|
|
|
Lift (1)
|
$
|
41,527
|
|
|
$
|
31,937
|
|
|
$
|
46,278
|
|
|
$
|
35,941
|
|
|
Lodging
|
14,006
|
|
|
11,547
|
|
|
30,967
|
|
|
26,866
|
|
|
Ski School (2)
|
7,949
|
|
|
6,662
|
|
|
8,622
|
|
|
7,272
|
|
|
Retail and Rental
|
15,050
|
|
|
11,195
|
|
|
22,653
|
|
|
18,652
|
|
|
Food and Beverage
|
12,356
|
|
|
10,338
|
|
|
22,709
|
|
|
19,970
|
|
|
Other
|
8,157
|
|
|
7,757
|
|
|
21,811
|
|
|
20,493
|
|
|
Total Mountain revenue
|
99,045
|
|
|
79,436
|
|
|
153,040
|
|
|
129,194
|
|
|
Adventure revenue
|
13,291
|
|
|
12,368
|
|
|
31,237
|
|
|
36,630
|
|
|
Real Estate revenue
|
8,226
|
|
|
11,403
|
|
|
16,505
|
|
|
23,216
|
|
|
Total segment revenue
|
120,562
|
|
|
103,207
|
|
|
200,782
|
|
|
189,040
|
|
|
Legacy, non-core and other revenue (3)
|
599
|
|
|
744
|
|
|
859
|
|
|
1,115
|
|
|
Total revenue
|
$
|
121,161
|
|
|
$
|
103,951
|
|
|
$
|
201,641
|
|
|
$
|
190,155
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Intrawest Resorts Holdings, Inc.
|
$
|
(18,705
|
)
|
|
$
|
(27,305
|
)
|
|
$
|
(63,101
|
)
|
|
$
|
(74,348
|
)
|
|
Legacy and other non-core expenses, net (4)
|
814
|
|
|
2,092
|
|
|
1,617
|
|
|
4,442
|
|
|
Other operating expenses (5)
|
2,942
|
|
|
1,401
|
|
|
5,049
|
|
|
2,552
|
|
|
Depreciation and amortization
|
14,220
|
|
|
14,496
|
|
|
29,390
|
|
|
29,538
|
|
|
Loss (gain) on disposal of assets
|
1,480
|
|
|
(1,638
|
)
|
|
1,139
|
|
|
(2,327
|
)
|
|
Interest income (6)
|
(50
|
)
|
|
(65
|
)
|
|
(120
|
)
|
|
(136
|
)
|
|
Interest expense
|
9,059
|
|
|
10,269
|
|
|
18,967
|
|
|
20,431
|
|
|
(Earnings) loss from equity method investments (7)
|
(4,175
|
)
|
|
(1,702
|
)
|
|
(2,787
|
)
|
|
1,382
|
|
|
Loss on extinguishment of debt
|
820
|
|
|
—
|
|
|
820
|
|
|
—
|
|
|
Pro rata share of Adjusted EBITDA related to equity method investments (8)
|
716
|
|
|
853
|
|
|
1,836
|
|
|
1,545
|
|
|
Adjusted EBITDA attributable to noncontrolling interest
|
1,369
|
|
|
1,029
|
|
|
999
|
|
|
(1,133
|
)
|
|
Other expense (income), net (9)
|
256
|
|
|
(5,131
|
)
|
|
(218
|
)
|
|
(5,210
|
)
|
|
Income tax (benefit) expense
|
(623
|
)
|
|
(519
|
)
|
|
317
|
|
|
1,268
|
|
|
(Loss) income attributable to noncontrolling interest
|
(1,037
|
)
|
|
(708
|
)
|
|
(750
|
)
|
|
912
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(6,928
|
)
|
|
$
|
(6,842
|
)
|
|
$
|
(21,084
|
)
|
|
|
|
|
|
|
|
|
|
|
Mountain Adjusted EBITDA
|
$
|
8,484
|
|
|
$
|
(5,136
|
)
|
|
$
|
(9,588
|
)
|
|
$
|
(25,923
|
)
|
|
Adventure Adjusted EBITDA (10)
|
(2,867
|
)
|
|
(3,489
|
)
|
|
(722
|
)
|
|
1,371
|
|
|
Real Estate Adjusted EBITDA (8)(11)
|
1,469
|
|
|
1,697
|
|
|
3,468
|
|
|
3,468
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(6,928
|
)
|
|
$
|
(6,842
|
)
|
|
$
|
(21,084
|
)
|
|
|
|
(1)
|
Lift revenue outside of the ski season is derived primarily from mountain biking and sightseeing lift products.
|
|
|
|
(2)
|
Ski School revenue outside of the ski season is derived primarily from mountain bike instruction at various resorts.
|
Notes to Condensed Consolidated Financial Statements
Three and Six Months Ended December 31, 2016 and 2015
(Unaudited)
|
|
|
(3)
|
Legacy, non-core and other revenue represents legacy and other non-core operations that are not reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. It includes legacy real estate asset sales, divested non-core operations, and non-core retail revenue.
|
|
|
|
(4)
|
Legacy and other non-core expenses, net represents revenue and expenses of legacy and other non-core operations that are not reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. Revenue and expenses related to legacy and other non-core operations include retail operations not located at the Company’s properties and legacy litigation consisting of claims for damages related to alleged construction defects, purported disclosure violations in real estate marketing sales and documents, and allegations that the Company failed to construct planned amenities.
|
|
|
|
(5)
|
Includes costs related to non-cash compensation, reduction in workforce severance and lease payments pursuant to the lease at Winter Park. The six months ended December 31, 2016 also includes $0.8 million of expenses for major IT infrastructure replacements, $0.7 million in fees associated with executing the Fifth Amendment and $0.5 million of business development related expenses.
|
|
|
|
(6)
|
Includes interest income unrelated to IRCG financing activities.
|
|
|
|
(7)
|
Represents the (earnings) losses from equity method investments, including: Chateau, MHM, and the Mammoth family of resorts.
|
|
|
|
(8)
|
Includes the Company’s pro rata share of Adjusted EBITDA from its equity method investments in MHM and Chateau. The pro rata share of Adjusted EBITDA represents the Company’s share of Adjusted EBITDA from these equity method investments based on the Company's economic ownership percentages.
|
|
|
|
(9)
|
Includes foreign currency transaction gains (losses), litigation settlement gains (losses), acquisition-related expenses, and other expenses.
|
|
|
|
(10)
|
Adventure segment Adjusted EBITDA excludes Adjusted EBITDA attributable to noncontrolling interest.
|
|
|
|
(11)
|
Real Estate segment Adjusted EBITDA includes interest income earned from receivables related to the IRCG operations until the Disposition Date, in the amount of $0.8 million and $1.7 million for the three and six months ended December 31,2015, respectively.
|
Capital Expenditures
The following table presents capital expenditures for each segment, reconciled to consolidated amounts for each of the three and six months ended December 31, 2016 and 2015 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
Mountain
|
|
$
|
15,683
|
|
|
$
|
17,285
|
|
|
$
|
21,491
|
|
|
$
|
24,915
|
|
|
Adventure
|
|
4,224
|
|
|
2,980
|
|
|
7,609
|
|
|
4,325
|
|
|
Real Estate
|
|
4
|
|
|
115
|
|
|
121
|
|
|
238
|
|
|
Total segment capital expenditures
|
|
19,911
|
|
|
20,380
|
|
|
29,221
|
|
|
29,478
|
|
|
Corporate and other
|
|
1,645
|
|
|
2,362
|
|
|
2,683
|
|
|
3,053
|
|
|
Total capital expenditures
|
|
$
|
21,556
|
|
|
$
|
22,742
|
|
|
$
|
31,904
|
|
|
$
|
32,531
|
|
Geographic Data
The Company’s revenue by geographic region for each of the three and six months ended December 31, 2016 and 2015 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
77,130
|
|
|
$
|
67,321
|
|
|
$
|
114,895
|
|
|
$
|
106,342
|
|
|
Canada
|
|
44,031
|
|
|
36,630
|
|
|
86,746
|
|
|
83,813
|
|
|
Total revenue
|
|
$
|
121,161
|
|
|
$
|
103,951
|
|
|
$
|
201,641
|
|
|
$
|
190,155
|
|
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and the notes thereto included in this Quarterly Report on Form 10-Q, as well as the Company's Annual Report on Form 10-K for the year ended June 30, 2016 filed with the Securities Exchange Commission (the "SEC) on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016. In addition to historical consolidated financial information, the following discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. See “Cautionary Note About Forward-Looking Statements” included elsewhere in this Quarterly Report on Form 10-Q. References herein to the "Company," "we," "us," or "our" are to Intrawest Resort Holdings, Inc. and its consolidated subsidiaries.
Overview
We are a North American mountain resort, adventure, and real estate company, delivering distinctive vacation and travel experiences to our customers for over three decades. We wholly own and/or operate six four-season mountain resorts with approximately 8,000 skiable acres and approximately 1,100 acres of land available for real estate development. Our mountain resorts are geographically diversified across North America’s major ski regions, including the Eastern United States, the Rocky Mountains and Canada. Our mountain resorts are located within an average of approximately 160 miles of major metropolitan markets with high concentrations of affluent skiers and several major national airports, including: New York City, Boston, Washington D.C., Denver, Pittsburgh, Montreal and Toronto. We also operate an adventure travel business, which includes Canadian Mountain Holidays (“CMH”), a leading heli-skiing adventure company in North America. CMH provides helicopter accessed skiing, mountaineering and hiking over approximately 3.0 million tenured acres. Additionally, we operate a comprehensive real estate business through which we manage condominium hotel properties and sell and market residential real estate.
Our three segments are as follows:
|
|
|
•
|
Mountain: Our Mountain segment includes our mountain resort and lodging operations at Steamboat Ski & Resort (“Steamboat”), Winter Park Resort (“Winter Park”), Stratton Mountain Resort (“Stratton”), Snowshoe Mountain Resort (“Snowshoe”), Mont Tremblant Resort (“Tremblant”), and Blue Mountain Ski Resort (“Blue Mountain”).
|
|
|
|
•
|
Adventure: Our Adventure segment is comprised of CMH, which provides helicopter accessed skiing, mountaineering, and hiking in British Columbia, and our ancillary businesses that support CMH and provide commercial aviation services, such as firefighting, leasing and helicopter maintenance, and repair and overhaul (“MRO”) services to third parties.
|
|
|
|
•
|
Real Estate: Our Real Estate segment includes our real estate management, marketing and sales businesses, as well as our real estate development activities. Our Real Estate segment includes Intrawest Hospitality Management, Inc. (“IHM”), which manages condominium hotel properties including Honua Kai Resort and Spa in Maui, Hawaii and the Westin Monache Resort in Mammoth Lakes, California, Playground, our residential real estate sales and marketing business, our 50.0% interest in Mammoth Hospitality Management, L.L.C. (“MHM”) and our 57.1% economic interest in Chateau M.T. Inc. (“Chateau”), and formerly included the Intrawest Resort Club Group ("IRCG"), a vacation club business, until we sold the business on January 29, 2016 (the "Disposition Date"). Our Real Estate segment also includes costs associated with real estate development activities, such as planning activities and land carrying costs.
|
In addition to our segments, our consolidated financial results reflect items related to our legacy real estate development and sales activities and non-core assets and operations (referred to herein as “Legacy, non-core and other”).
Recent Transactions
IRCG Transaction
On January 29, 2016, the Company sold substantially all of the assets used in the operations of IRCG and all of the equity interests in certain wholly-owned subsidiaries of IRCG to Diamond Resorts Corporation and Diamond Resorts International, Inc. (together with Diamond Resorts Corporation, “Diamond”) for a purchase price of approximately $84.6 million (the “IRCG Transaction”).
Factors Affecting our Business
Economic Conditions
Our results of operations are affected by consumer discretionary spending. Numerous economic trends support the notion that the health of the general economy has improved in recent periods. We believe that if the economy continues to improve, consumers will have more disposable income and a greater inclination to engage in and spend money on leisure activities, which will positively impact our results of operations. We also believe that lower fuel prices experienced in recent periods can, if sustained, benefit the travel and leisure industry.
Snowfall and Weather
The timing and amount of snowfall and other weather conditions can have an impact on visitation and the financial results in primarily our Mountain and Adventure segments. Our resorts are geographically diversified and have strong snowmaking capabilities, which help to partially mitigate the impact of localized snow conditions and weather. In addition, our increasing percentage of revenue derived from season pass and frequency products sold prior to the ski season helps to insulate us from variations in snowfall and weather conditions. Prolonged periods of severe weather at our resorts and helicopter accessed skiing tenures can force us to cancel or suspend operations, which may have a negative impact on our financial results. Weather may also have an effect on our summer fire suppression activities and flight hours, as a significant share of our ancillary firefighting service revenue is from “as needed” contracts, which is based almost entirely on flight hours.
Season Pass and Frequency Product Usage
Season pass products offer unlimited access to lifts at our resorts, subject to certain exceptions and restrictions, for a fixed upfront payment. Frequency products are valid for a specific period of time or number of visits, providing our customers with flexibility to ski on multiple dates for a fixed price. The number of visits from season pass and frequency product holders is influenced by sales volume and usage levels. In recent ski seasons, season pass and frequency product sales have been increasing, while usage levels vary from one ski season to the next due primarily to changes in weather, snowfall and skiing conditions. A greater proportion of visits from season pass and frequency product holders results in downward pressure on the effective ticket price (“ETP”) since these passholders are skiing for a fixed upfront payment, regardless of the number of times they visit. This downward pressure on ETP is more pronounced in ski seasons with higher snowfall, as season pass holders increase their usage. Similarly, a greater proportion of visits from season pass and frequency product holders may result in downward pressure on Revenue Per Visit, as defined in "Key Business Metrics Evaluated by Management". We expect the volume and pricing of season pass and frequency product sales to continue to increase in future ski seasons; however, ETP and Revenue Per Visit in any given ski season may increase or decrease as a result of the mix of visitors and pass products.
Seasonality and Fluctuations in Quarterly Results
Our business is seasonal in nature. Although we operate four-season resorts, based upon historical results, we generate the highest revenue between our second and third fiscal quarters, which includes the peak ski season. As a result of the seasonality of our business, our mountain resorts and CMH typically experience operating losses during the first and fourth quarters of each fiscal year. In addition, during our peak quarters, we generate the highest daily revenue on weekends, during the Christmas/New Year’s and Presidents’ Day holiday periods and, in the case of our mountain resorts, during school spring breaks. Depending on how peak periods, holidays and weekends fall on the calendar, in any given year we may have more or less peak periods, holidays and weekends in our second fiscal quarter compared to prior years, with a corresponding difference in our third fiscal quarter. These differences can result in material differences in our quarterly results of operations and affect the comparability of our results of operations.
The following table contains selected unaudited segment information for the quarter ended December 31, 2016 and the four preceding quarters (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
Mountain revenue
|
$
|
99,045
|
|
|
$
|
53,994
|
|
|
$
|
36,781
|
|
|
$
|
255,357
|
|
|
$
|
79,436
|
|
|
Adventure revenue
|
13,291
|
|
|
17,946
|
|
|
18,939
|
|
|
48,835
|
|
|
12,368
|
|
|
Real Estate revenue
|
8,226
|
|
|
8,279
|
|
|
9,245
|
|
|
9,973
|
|
|
11,403
|
|
|
Total segment revenue
|
$
|
120,562
|
|
|
$
|
80,219
|
|
|
$
|
64,965
|
|
|
$
|
314,165
|
|
|
$
|
103,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
|
Mountain Adjusted EBITDA
|
$
|
8,484
|
|
|
$
|
(18,073
|
)
|
|
$
|
(26,447
|
)
|
|
$
|
136,704
|
|
|
$
|
(5,136
|
)
|
|
Adventure Adjusted EBITDA
|
(2,867
|
)
|
|
2,145
|
|
|
(471
|
)
|
|
21,246
|
|
|
(3,489
|
)
|
|
Real Estate Adjusted EBITDA
|
1,469
|
|
|
1,999
|
|
|
(191
|
)
|
|
3,346
|
|
|
1,697
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(13,929
|
)
|
|
$
|
(27,109
|
)
|
|
$
|
161,296
|
|
|
$
|
(6,928
|
)
|
See "Non-GAAP Financial Measures" below for reconciliations between non-GAAP financial measures and the most directly comparable GAAP (as defined below) measures.
Resort Real Estate Markets
We intend to resume development of residential vacation homes at our mountain resorts or other resort properties when market conditions are favorable. The value and sales volume of vacation homes fluctuate with macroeconomic trends and consumer sentiment. During recent periods we have seen a partial recovery in the market for vacation homes.
Foreign Currency Fluctuation Risk
We present our financial statements in United States dollars ("U.S. dollars"). Our operating results are sensitive to fluctuations in foreign currency exchange rates, as a significant portion of our revenue and operating expenses is transacted in Canadian dollars, principally at Tremblant, Blue Mountain and within our Adventure segment. A significant fluctuation in the Canada/U.S. exchange rate could therefore have a significant impact on our results of operations after translating our Canadian operations into U.S. dollars. See Part I - Item 3, Quantitative and Qualitative Disclosures About Market Risk, "Foreign Currency Fluctuations".
Where we discuss the impact of foreign currency adjustments on our results of operations, the impact is calculated on a constant U.S. dollars basis. We calculate constant U.S. dollar amounts by applying prior year period average exchange rates to the current comparable period.
Results of Operations
The following historical consolidated statements of operations for the three and six months ended December 31, 2016 and 2015 have been derived from the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Set forth below is a discussion of our consolidated results of operations followed by a discussion of our segment results.
Comparison of Results of Operations for the Three and Six Months Ended December 31, 2016 and 2015 (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Change
|
|
Six Months Ended December 31,
|
|
Change
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
Revenue
|
$
|
121,161
|
|
|
$
|
103,951
|
|
|
$
|
17,210
|
|
|
16.6
|
%
|
|
$
|
201,641
|
|
|
$
|
190,155
|
|
|
$
|
11,486
|
|
|
6.0
|
%
|
|
Operating expenses
|
119,916
|
|
|
117,074
|
|
|
2,842
|
|
|
2.4
|
%
|
|
217,984
|
|
|
220,322
|
|
|
(2,338
|
)
|
|
(1.1
|
)%
|
|
Depreciation and amortization
|
14,220
|
|
|
14,496
|
|
|
(276
|
)
|
|
(1.9
|
)%
|
|
29,390
|
|
|
29,538
|
|
|
(148
|
)
|
|
(0.5
|
)%
|
|
Loss (gain) on disposal of assets
|
1,480
|
|
|
(1,638
|
)
|
|
3,118
|
|
|
(190.4
|
)%
|
|
1,139
|
|
|
(2,327
|
)
|
|
3,466
|
|
|
(148.9
|
)%
|
|
Loss from operations
|
(14,455
|
)
|
|
(25,981
|
)
|
|
11,526
|
|
|
(44.4
|
)%
|
|
(46,872
|
)
|
|
(57,378
|
)
|
|
10,506
|
|
|
(18.3
|
)%
|
|
Interest expense, net
|
(9,009
|
)
|
|
(9,384
|
)
|
|
375
|
|
|
(4.0
|
)%
|
|
(18,847
|
)
|
|
(18,618
|
)
|
|
(229
|
)
|
|
1.2
|
%
|
|
Earnings (loss) from equity method investments
|
4,175
|
|
|
1,702
|
|
|
2,473
|
|
|
145.3
|
%
|
|
2,787
|
|
|
(1,382
|
)
|
|
4,169
|
|
|
n/m
|
|
|
Loss on extinguishment of debt
|
(820
|
)
|
|
—
|
|
|
(820
|
)
|
|
(100.0
|
)%
|
|
(820
|
)
|
|
—
|
|
|
(820
|
)
|
|
(100.0
|
)%
|
|
Other (expense) income, net
|
(256
|
)
|
|
5,131
|
|
|
(5,387
|
)
|
|
(105.0
|
)%
|
|
218
|
|
|
5,210
|
|
|
(4,992
|
)
|
|
(95.8
|
)%
|
|
Loss before income taxes
|
(20,365
|
)
|
|
(28,532
|
)
|
|
8,167
|
|
|
(28.6
|
)%
|
|
(63,534
|
)
|
|
(72,168
|
)
|
|
8,634
|
|
|
(12.0
|
)%
|
|
Income tax (benefit) expense
|
(623
|
)
|
|
(519
|
)
|
|
(104
|
)
|
|
20.0
|
%
|
|
317
|
|
|
1,268
|
|
|
(951
|
)
|
|
(75.0
|
)%
|
|
Net loss
|
(19,742
|
)
|
|
(28,013
|
)
|
|
8,271
|
|
|
(29.5
|
)%
|
|
(63,851
|
)
|
|
(73,436
|
)
|
|
9,585
|
|
|
(13.1
|
)%
|
|
(Loss) income attributable to noncontrolling interest
|
(1,037
|
)
|
|
(708
|
)
|
|
(329
|
)
|
|
46.5
|
%
|
|
(750
|
)
|
|
912
|
|
|
(1,662
|
)
|
|
(182.2
|
)%
|
|
Net loss attributable to Intrawest Resorts Holdings, Inc.
|
$
|
(18,705
|
)
|
|
$
|
(27,305
|
)
|
|
$
|
8,600
|
|
|
(31.5
|
)%
|
|
$
|
(63,101
|
)
|
|
$
|
(74,348
|
)
|
|
$
|
11,247
|
|
|
(15.1
|
)%
|
n/m - Calculation is not meaningful
Revenue
Revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to an increase of $17.4 million in total segment revenue. Total segment revenue in the three months ended December 31, 2016 included increases of $19.6 million and $0.9 million in Mountain revenue and Adventure revenue, respectively, partially offset by a decrease of $3.2 million in Real Estate revenue. Revenue in the three months ended December 31, 2015 included $4.2 million of revenue from IRCG prior to the Disposition Date. Excluding the IRCG revenue, revenue increased by $21.4 million, or 21.4%, in the three months ended December 31, 2016 compared to the same period of the prior year.
Revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to an increase of $11.7 million in total segment revenue. Total segment revenue in the six months ended December 31, 2016 included an increase of $23.8 million in Mountain revenue, partially offset by decreases of $5.4 million and $6.7 million in Adventure revenue and Real Estate revenue, respectively. Revenue in the six months ended December 31, 2015 included $8.6 million of revenue from IRCG prior to the Disposition Date. Excluding the IRCG revenue, revenue increased by $20.1 million, or 11.0%, in the six months ended December 31, 2016 compared to the same period of the prior year.
Operating expenses
Operating expenses increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily as a result of an increase of $2.7 million in total segment operating expenses. Total segment operating expenses in the three months ended December 31, 2016 included increases of $6.0 million and $0.6 million in Mountain and Adventure operating expenses, respectively, partially offset by a decrease of $3.9 million in Real Estate operating expenses. Operating expenses in the three months ended December 31, 2015 included $4.2 million of operating expenses from IRCG prior to the Disposition Date. Excluding the IRCG operating expense, operating expenses increased by $7.1 million, or 6.3%, in the three months ended December 31, 2016 compared to the same period of the prior year.
Operating expenses decreased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to decreases of $1.8 million and $0.6 million in total segment operating expenses and Legacy, non-core and other expenses, respectively. Total segment operating expenses in the six months ended December 31, 2016 included decreases of $8.1 million and $1.2 million in Real Estate and Adventure operating expenses, respectively, partially offset by an increase of $7.5 million in Mountain operating expense. Operating expenses in the six months ended December 31, 2015 included $8.6 million of operating expenses from IRCG prior to the Disposition Date. Excluding the IRCG operating expense, operating expenses increased by $6.3 million, or 3.0%, in the six months ended December 31, 2016 compared to the same period of the prior year.
Depreciation and amortization
Depreciation and amortization decreased slightly by $0.3 million and $0.1 million, in the three and six months ended December 31, 2016, respectively, compared to the same periods of the prior year primarily due to the closing of the IRCG Transaction in January 2016, which resulted in us no longer recording the related depreciation and amortization.
Loss (gain) on disposal of assets
In the three months ended December 31, 2016, the loss on disposal of assets of $1.5 million was primarily attributable to the write-off of a damaged helicopter with a book value of $1.3 million. In the three months ended December 31, 2015, the gain on disposal of assets of $1.6 million was primarily due to the completion of a non-monetary exchange of helicopter assets with an independent third party, acquiring four helicopters in exchange for two. A $1.7 million gain resulted from the fair value of the helicopters received exceeding the net book value of helicopters sold.
In the six months ended December 31, 2016, the loss on disposal of assets of $1.1 million was primarily attributable to the write-off of a damaged helicopter with a book value of $1.3 million. In the six months ended December 31, 2015, the gain on disposal of assets of $2.3 million was primarily due to the completion of a non-monetary exchange of helicopter assets with an independent third party, acquiring four helicopters in exchange for two. A $1.7 million gain resulted from the fair value of the helicopters received exceeding the net book value of helicopters sold. Additionally, we recognized a gain due to the insurance proceeds received exceeding the net book value of a damaged helicopter.
Interest expense, net
Interest expense, net, decreased by $0.4 million, or 4.0%, in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 as a result of lower interest expense partially offset by lower interest income. Interest expense decreased as a result of the reduced outstanding principal balance of the Term Loan. We made principal payments of $8.8 million in January 2016 due to an excess cash flow payment and $25.0 million in April 2016 in conjunction with executing the fourth amendment ("Fourth Amendment") to our existing Credit Agreement. Execution of the fifth amendment ("Fifth Amendment") to our existing Credit Agreement in October 2016 further reduced the interest rate by 50 basis points. Interest income decreased primarily due to lower notes receivable as a result of the IRCG disposition on January 29, 2016.
Interest expense, net, increased by $0.2 million, or 1.2%, in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 as a result of lower interest income partially offset by lower interest expense. Interest income decreased primarily due to lower notes receivable as a result of the IRCG disposition on January 29, 2016. Interest expense decreased as a result of the reduced outstanding principal balance of the Term Loan. We made principal payments of $8.8 million in January 2016 due to an excess cash flow payment and $25.0 million in April 2016 in conjunction with executing the Fourth Amendment. Execution of the Fifth Amendment in October 2016 further reduced the interest rate by 50 basis points.
Earnings (loss) from equity method investments
Earnings (loss) from equity method investments increased by $2.5 million in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to increased earnings from our investments in MHM and the Mammoth family of resorts.
Earnings (loss) from equity method investments increased by $4.2 million in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily driven by increased earnings from our investment in MHM coupled with improved results from our investment in the Mammoth family of resorts. These increases were in part due to higher summer visitation and biking activities which led to increased lodging, food and beverage and other earnings compared to the same period of the prior year.
Loss on extinguishment of debt
In the three and six months ended December 31, 2016, we recognized a $0.8 million loss on extinguishment of debt as a result of amending our Senior Debt during the three months ended December 31, 2016. There was no comparable transaction in the prior year period.
Other (expense) income, net
Other income, net, decreased by $5.4 million and $5.0 million in the three and six months ended December 31, 2016, respectively, compared to the same periods of the prior year primarily due to a favorable legacy legal settlement during the three months ended December 31, 2015. There was no comparable transaction in the current year period.
Income tax (benefit) expense
The consolidated income tax benefit was $0.6 million and $0.5 million in the three months ended December 31, 2016 and 2015, respectively, representing effective tax rates of 3.1% and 1.8%, respectively. The consolidated income tax expense was $0.3 million and $1.3 million in the six months ended December 31, 2016 and 2015, respectively, representing effective tax rates of (0.5)% and (1.8)%, respectively. The income tax (benefit) expense primarily relates to taxable Canadian helicopter operations.
Results of Segment Operations (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Mountain revenue
|
$
|
99,045
|
|
|
$
|
79,436
|
|
|
$
|
153,040
|
|
|
$
|
129,194
|
|
|
Adventure revenue
|
13,291
|
|
|
12,368
|
|
|
31,237
|
|
|
36,630
|
|
|
Real Estate revenue
|
8,226
|
|
|
11,403
|
|
|
16,505
|
|
|
23,216
|
|
|
Total segment revenue
|
$
|
120,562
|
|
|
$
|
103,207
|
|
|
$
|
200,782
|
|
|
$
|
189,040
|
|
|
|
|
|
|
|
|
|
|
|
Mountain Adjusted EBITDA
|
$
|
8,484
|
|
|
$
|
(5,136
|
)
|
|
$
|
(9,588
|
)
|
|
$
|
(25,923
|
)
|
|
Adventure Adjusted EBITDA
|
(2,867
|
)
|
|
(3,489
|
)
|
|
(722
|
)
|
|
1,371
|
|
|
Real Estate Adjusted EBITDA
|
1,469
|
|
|
1,697
|
|
|
3,468
|
|
|
3,468
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(6,928
|
)
|
|
$
|
(6,842
|
)
|
|
$
|
(21,084
|
)
|
See "Non-GAAP Financial Measures" below for reconciliations between non-GAAP financial measures and the most directly comparable GAAP measures.
Key Business Metrics Evaluated by Management
"Skier Visits" represents the total of each individual’s use of a paid or complimentary ticket, frequency card or season pass product to ski or snowboard at our mountain resorts for any part of one day. We measure visitation volume during the ski season, which is when most of our lift revenue is earned, by the number of Skier Visits at our resorts. The number of Skier Visits, viewed in conjunction with ETP (defined below), is an important indicator of our lift revenue. Changes in the number of Skier Visits have an impact on Mountain revenue. The number of Skier Visits is affected by numerous factors, including the quality of the guest experience, the effectiveness of our marketing efforts, pricing policies, snow and weather conditions, overall industry trends, macroeconomic factors and the relative attractiveness of our resort offerings compared to competitive offerings.
"Revenue per Visit" is total Mountain revenue recorded during the ski season divided by total Skier Visits during such period. This metric excludes non-ski season revenue, which is not directly correlated to visitor growth. Revenue per Visit is influenced by our mix of guests. Destination guests are more likely to purchase ancillary products and services than regional guests and a higher percentage of destination guests in our skier mix typically increases Revenue per Visit.
"Effective ticket price" or "ETP" is determined by dividing Lift revenue recorded during the ski season by total Skier Visits. We measure average ticket price during a given period by calculating our ETP. ETP is influenced by lift product mix and other factors. Season pass products offer unlimited access, subject to certain exceptions and restrictions, for a fixed upfront payment. As a result, season passholders skiing more frequently in a given fiscal period as compared to the corresponding prior year period will result in downward pressure on ETP. This downward pressure on ETP is more pronounced in ski seasons with higher snowfall, as season pass holders increase their usage. Conversely, single- and multi-day lift ticket products are priced per visit, and therefore a greater proportion of use of these products will tend to increase our ETP. Other factors that influence ETP include the number of complimentary or special promotional passes issued by us, the average age of skiers visiting our resorts, the volume of group or promotional sales and the relative volume of products sold through different sales channels, including our call centers, our ecommerce platform and our network of third-party online and traditional travel companies. Products sold at the ticket counter, which has been a declining percentage of Lift revenue in recent years, are typically priced higher relative to other channels because walk-up customers are our least price sensitive guests.
"Revenue per available room" or "RevPAR" is determined by dividing gross room revenue during a given period by the number of units available to guests during such period.
"Average Daily Rate" or "ADR" is determined by dividing gross room revenue during a given period by the number of occupied units under management during such period. ADR is a measure commonly used in the lodging industry, as well as by our management, to track lodging pricing trends. ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a lodging operation. ADR is affected by numerous factors, including the quality of the guest experience, the effectiveness of our
marketing efforts, snow and weather conditions, overall industry trends, macroeconomic factors and the relative attractiveness of our resort offerings compared to competitive offerings.
Comparison of Mountain Results for the Three and Six Months Ended December 31, 2016 and 2015 (dollars in thousands except for Key Business Metrics)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Change
|
|
Six Months Ended December 31,
|
|
Change
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
Skier Visits
|
797,794
|
|
|
627,810
|
|
|
169,984
|
|
|
27.1
|
%
|
|
797,794
|
|
|
627,810
|
|
|
169,984
|
|
|
27.1
|
%
|
|
Revenue per Visit
|
$
|
110.35
|
|
|
$
|
111.29
|
|
|
$
|
(0.94
|
)
|
|
(0.8
|
)%
|
|
$
|
110.35
|
|
|
$
|
111.29
|
|
|
$
|
(0.94
|
)
|
|
(0.8
|
)%
|
|
ETP
|
$
|
50.92
|
|
|
$
|
49.72
|
|
|
$
|
1.20
|
|
|
2.4
|
%
|
|
$
|
50.92
|
|
|
$
|
49.72
|
|
|
$
|
1.20
|
|
|
2.4
|
%
|
|
RevPAR
|
$
|
57.82
|
|
|
$
|
43.97
|
|
|
$
|
13.85
|
|
|
31.5
|
%
|
|
$
|
63.46
|
|
|
$
|
53.06
|
|
|
$
|
10.40
|
|
|
19.6
|
%
|
|
ADR
|
$
|
176.77
|
|
|
$
|
152.12
|
|
|
$
|
24.65
|
|
|
16.2
|
%
|
|
$
|
157.13
|
|
|
$
|
140.74
|
|
|
$
|
16.39
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mountain revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
$
|
41,527
|
|
|
$
|
31,937
|
|
|
$
|
9,590
|
|
|
30.0
|
%
|
|
$
|
46,278
|
|
|
$
|
35,941
|
|
|
$
|
10,337
|
|
|
28.8
|
%
|
|
Lodging
|
14,006
|
|
|
11,547
|
|
|
2,459
|
|
|
21.3
|
%
|
|
30,967
|
|
|
26,866
|
|
|
4,101
|
|
|
15.3
|
%
|
|
Ski School
|
7,949
|
|
|
6,662
|
|
|
1,287
|
|
|
19.3
|
%
|
|
8,622
|
|
|
7,272
|
|
|
1,350
|
|
|
18.6
|
%
|
|
Retail and Rental
|
15,050
|
|
|
11,195
|
|
|
3,855
|
|
|
34.4
|
%
|
|
22,653
|
|
|
18,652
|
|
|
4,001
|
|
|
21.5
|
%
|
|
Food and Beverage
|
12,356
|
|
|
10,338
|
|
|
2,018
|
|
|
19.5
|
%
|
|
22,709
|
|
|
19,970
|
|
|
2,739
|
|
|
13.7
|
%
|
|
Other
|
8,157
|
|
|
7,757
|
|
|
400
|
|
|
5.2
|
%
|
|
21,811
|
|
|
20,493
|
|
|
1,318
|
|
|
6.4
|
%
|
|
Total Mountain revenue
|
$
|
99,045
|
|
|
$
|
79,436
|
|
|
$
|
19,609
|
|
|
24.7
|
%
|
|
$
|
153,040
|
|
|
$
|
129,194
|
|
|
$
|
23,846
|
|
|
18.5
|
%
|
|
Mountain Adjusted EBITDA
|
$
|
8,484
|
|
|
$
|
(5,136
|
)
|
|
$
|
13,620
|
|
|
n/m
|
|
|
$
|
(9,588
|
)
|
|
$
|
(25,923
|
)
|
|
$
|
16,335
|
|
|
(63.0
|
)%
|
Mountain revenue
Mountain revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015, primarily attributable to a higher number of Skier Visits at our Eastern resorts. In fiscal 2016, Eastern resorts experienced unseasonably warm weather and lack of snowfall. In fiscal 2017, Eastern resorts have had more normal weather conditions.
Mountain revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015, primarily attributable to a higher number of Skier Visits at our Eastern resorts. In fiscal 2016, Eastern resorts experienced unseasonably warm weather and lack of snowfall. In fiscal 2017, Eastern resorts have had more normal weather conditions. Additionally, lodging revenue increased due to more room nights and higher ADR at our Eastern resorts as a result of higher summer visitation.
Lift revenue
Lift revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015. The increase was primarily due to a higher number of Skier Visits at our Eastern resorts and an increase in season pass and frequency product revenue. Season pass and frequency product revenue for the 2016/2017 ski season increased 23.0% in the three months ended December 31, 2016 compared to the same period in the prior year and comprised 48.0% and 50.7% of Lift revenue for the three months ended December 31, 2016 and 2015, respectively, with the East returning to more normal weather conditions. Season pass revenue, for which cash is generally collected prior to the ski season, is recognized based on historical usage patterns. Frequency product revenue is recognized as used, and unused portions ("breakage") are recognized based on historical usage for each frequency product.
As our ski resorts opened during our second quarter, the results of the six months ended December 31, 2016 and 2015 for Lift revenue are largely the same as the results for the three months ended December 31, 2016 and 2015. During the summer season, Lift revenue primarily relates to mountain biking and sightseeing products, which increased slightly in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to higher summer visitation.
Lodging revenue
Lodging revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a higher number of room nights and higher ADR.
Lodging revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a higher number of room nights and higher ADR. Additionally, during the summer season, lodging revenue increased at our Eastern resorts as a result of higher summer visitation.
Ski School revenue
Ski School revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to an increase in Skier Visits at our Eastern resorts, including increase in participation in competitive programs partially offset by a slight decrease at our Colorado resorts due to delayed opening resulting from lack of early season snowfall.
As our ski resorts opened during our second quarter, the results of the six months ended December 31, 2016 and 2015 for Ski School revenue are largely the same as the results for the three months ended December 31, 2016 and 2015. During the summer, Ski School revenue is derived from mountain bike instruction and child care, which increased slightly in the six months ended December 31, 2016 compared to the six months ended December 31, 2015.
Retail and Rental revenue
Retail and Rental revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a higher number of Skier Visits at our Eastern resorts and operating additional stores in the three months ended December 31, 2016 compared to the same period in 2015.
Retail and Rental revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a higher number of Skier Visits at our Eastern resorts and operating additional stores in the six months ended December 31, 2016 compared to the same period in 2015.
Food and Beverage revenue
Food and Beverage revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a higher number of Skier Visits at our Eastern resorts.
Food and Beverage revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a higher number of Skier Visits at our Eastern resorts. Additionally, during summer season, Food and Beverage revenue increased due to higher summer visitation and more special events, including weddings and banquets.
Other revenue
Other revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to increased amenity fees driven by higher visitation.
Other revenue increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to increased amenity fees driven by higher visitation, including summer visitation, and higher revenue from more summer attractions.
Mountain Adjusted EBITDA
Mountain Adjusted EBITDA increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a $19.6 million increase in Mountain revenue, partially offset by a $6.0 million increase in Mountain operating expenses. Mountain operating expenses increased from $84.6 million in the three months ended December 31, 2015 to $90.6 million in the three months ended December 31, 2016 as a result of increased variable expenses associated with higher visitation volume, which was partially offset by a $1.4 million decrease in general and administrative expenses.
Mountain Adjusted EBITDA increased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a $23.8 million increase in Mountain revenue, partially offset by a $7.5 million increase in Mountain operating expenses. Mountain operating expenses increased from $155.1 million in the six months ended December 31, 2015 to $162.6 million in the six months ended December 31, 2016 as a result of increased variable expenses associated with higher visitation volume, which was partially offset by a $1.3 million decrease in general and administrative expenses.
Comparison of Adventure Results for the Three and Six Months Ended December 31, 2016 and 2015 (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Change
|
|
Six Months Ended December 31,
|
|
Change
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
Adventure revenue
|
$
|
13,291
|
|
|
$
|
12,368
|
|
|
$
|
923
|
|
|
7.5
|
%
|
|
$
|
31,237
|
|
|
$
|
36,630
|
|
|
$
|
(5,393
|
)
|
|
(14.7
|
)%
|
|
Adventure Adjusted EBITDA
|
$
|
(2,867
|
)
|
|
$
|
(3,489
|
)
|
|
$
|
622
|
|
|
(17.8
|
)%
|
|
$
|
(722
|
)
|
|
$
|
1,371
|
|
|
$
|
(2,093
|
)
|
|
(152.7
|
)%
|
Adventure revenue
Adventure revenue increased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily related to an increase in ancillary aviation services revenue, due to an increase in helicopter MRO services resulting from higher billable hours and helicopter part sales.
Adventure revenue decreased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a $5.7 million decrease in ancillary aviation services as a result of reduced flight hours. The ancillary aviation services revenue in the six months ended December 31, 2015 was elevated primarily due to fire suppression related activities for above average forest fire activity, which did not recur in the six months ended December 31, 2016.
Adventure Adjusted EBITDA
Adventure Adjusted EBITDA improved in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a $0.9 million increase in Adventure revenue, partially offset by a $0.6 million increase in Adventure operating expenses, which increased from $16.9 million in the three months ended December 31, 2015 to $17.5 million in the three months ended December 31, 2016. The increase in Adventure operating expenses in the three months ended December 31, 2016 was primarily due to an increase in variable MRO expenses associated with higher billable hours. After removing $1.4 million of Adjusted EBITDA attributable to the 80.0% interest in Alpine Helicopters that is owned by a third party, Adventure Adjusted EBITDA increased by $0.6 million.
Adventure Adjusted EBITDA decreased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 primarily due to a $5.4 million decrease in Adventure revenue, partially offset by a $1.2 million decrease in Adventure operating expenses, which decreased from $34.1 million in the six months ended December 31, 2015 to $33.0 million in the six months ended December 31, 2016. The decrease in Adventure operating expenses in the six months ended December 31, 2016 was primarily attributable to lower variable expenses associated with the decrease in fire suppression activities and associated flight hours. After removing $1.0 million of Adjusted EBITDA attributable to the 80.0% interest in Alpine Helicopters that is owned by a third party, Adventure Adjusted EBITDA decreased by $2.1 million.
Comparison of Real Estate Results for the Three and Six Months Ended December 31, 2016 and 2015 (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Change
|
|
Six Months Ended December 31,
|
|
Change
|
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
$
|
|
%
|
|
Real Estate revenue
|
$
|
8,226
|
|
|
$
|
11,403
|
|
|
$
|
(3,177
|
)
|
|
(27.9
|
)%
|
|
$
|
16,505
|
|
|
$
|
23,216
|
|
|
$
|
(6,711
|
)
|
|
(28.9
|
)%
|
|
Real Estate Adjusted EBITDA
|
$
|
1,469
|
|
|
$
|
1,697
|
|
|
$
|
(228
|
)
|
|
(13.4
|
)%
|
|
$
|
3,468
|
|
|
$
|
3,468
|
|
|
$
|
0
|
|
|
0.0
|
%
|
Real Estate revenue
Real Estate revenue decreased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 due to the sale of IRCG in the prior year. Excluding IRCG revenue of $4.2 million in the three months ended December 31, 2015, Real Estate revenue increased by $1.0 million, or 13.7%, in the three months ended December 31, 2016 compared to the same period in the prior year, primarily as a result of higher occupancy and higher ADR at our IHM properties and $0.4 million of revenue from the sale of a parcel of land at Showshoe.
Real Estate revenue decreased in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 due to the sale of IRCG in the prior year. Excluding IRCG revenue of $8.6 million in the six months ended December 31, 2015, Real Estate revenue increased by $1.9 million, or 12.7%, in the six months ended December 31, 2016 compared to the same period in the prior year, primarily as a result of higher occupancy and higher ADR at our IHM properties and $0.4 million of revenue from the sale of a parcel of land at Showshoe.
Real Estate Adjusted EBITDA
Real Estate Adjusted EBITDA decreased in the three months ended December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a $0.8 million decrease of interest income earned from receivables related to IRCG as a result of the sale of IRCG in the prior year and a $3.2 million decrease in Real Estate revenue, partially offset by a $3.9 million decrease in Real Estate operating expenses. Real Estate operating expenses decreased from $11.4 million in the three months ended December 31, 2015 to $7.5 million in the three months ended December 31, 2016, primarily due to the sale of IRCG in the prior year. Excluding IRCG operating expenses of $4.2 million in the three months ended December 31, 2015, Real Estate operating expenses increased by $0.3 million, or 4.7%, in the three months ended December 31, 2016 compared to the same period in the prior year, primarily due to increased variable expenses associated with the higher occupancy at our IHM properties.
Real Estate Adjusted EBITDA was flat in the six months ended December 31, 2016 compared to the six months ended December 31, 2015. Real Estate revenue decreased by $6.7 million partially offset by an $8.1 million decrease in Real Estate operating expenses. Real Estate Adjusted EBITDA was further decreased by $1.7 million of interest income earned from receivables related to IRCG as a result of the sale of IRCG in the prior year.
Non-GAAP Financial Measures
We use Adjusted EBITDA, as defined in Part I - Item 1, Financial Statements (unaudited), Note 10, "Segment Information", as a measure of our operating performance. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for net income (loss), income (loss) from continuing operations, cash flows from operating activities or any other measure prescribed by accounting principles generally accepted in the United States of America ("GAAP").
Our board of directors and management team focus on Adjusted EBITDA as a key performance and compensation measure. Adjusted EBITDA assists us, and we believe that it assists investors, in comparing our performance over various reporting periods because it removes from our operating results the impact of items that our management believes do not reflect our core operating performance. The compensation committee of our board of directors will determine the annual variable compensation for certain members of our management team based, in part, on Adjusted EBITDA.
There are limitations to using non-GAAP financial measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA to compare the performance of those companies to our performance. Adjusted EBITDA should not be considered as a measure of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to our results and by using Adjusted EBITDA as a supplemental measure. Our definition of Adjusted EBITDA is generally consistent with the definition of Consolidated EBITDA in the Credit Agreement, with exceptions related to not adjusting for recurring public company costs and foreign currency adjustments related to operational activities and adjusting for executive management restructuring costs.
The following table reconciles net loss attributable to the Company to total Adjusted EBITDA for the periods presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net loss attributable to Intrawest Resorts Holdings, Inc.
|
$
|
(18,705
|
)
|
|
$
|
(27,305
|
)
|
|
$
|
(63,101
|
)
|
|
$
|
(74,348
|
)
|
|
Legacy and other non-core expenses, net
|
814
|
|
|
2,092
|
|
|
1,617
|
|
|
4,442
|
|
|
Other operating expenses
|
2,942
|
|
|
1,401
|
|
|
5,049
|
|
|
2,552
|
|
|
Depreciation and amortization
|
14,220
|
|
|
14,496
|
|
|
29,390
|
|
|
29,538
|
|
|
Loss (gain) on disposal of assets
|
1,480
|
|
|
(1,638
|
)
|
|
1,139
|
|
|
(2,327
|
)
|
|
Interest income
|
(50
|
)
|
|
(65
|
)
|
|
(120
|
)
|
|
(136
|
)
|
|
Interest expense
|
9,059
|
|
|
10,269
|
|
|
18,967
|
|
|
20,431
|
|
|
(Earnings) loss from equity method investments
|
(4,175
|
)
|
|
(1,702
|
)
|
|
(2,787
|
)
|
|
1,382
|
|
|
Loss on extinguishment of debt
|
820
|
|
|
—
|
|
|
820
|
|
|
—
|
|
|
Pro rata share of Adjusted EBITDA related to equity method investments
|
716
|
|
|
853
|
|
|
1,836
|
|
|
1,545
|
|
|
Adjusted EBITDA attributable to noncontrolling interest
|
1,369
|
|
|
1,029
|
|
|
999
|
|
|
(1,133
|
)
|
|
Other expense (income), net
|
256
|
|
|
(5,131
|
)
|
|
(218
|
)
|
|
(5,210
|
)
|
|
Income tax (benefit) expense
|
(623
|
)
|
|
(519
|
)
|
|
317
|
|
|
1,268
|
|
|
(Loss) income attributable to noncontrolling interest
|
(1,037
|
)
|
|
(708
|
)
|
|
(750
|
)
|
|
912
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(6,928
|
)
|
|
$
|
(6,842
|
)
|
|
$
|
(21,084
|
)
|
|
|
|
|
|
|
|
|
|
|
Mountain Adjusted EBITDA
|
$
|
8,484
|
|
|
$
|
(5,136
|
)
|
|
$
|
(9,588
|
)
|
|
$
|
(25,923
|
)
|
|
Adventure Adjusted EBITDA
|
(2,867
|
)
|
|
(3,489
|
)
|
|
(722
|
)
|
|
1,371
|
|
|
Real Estate Adjusted EBITDA
|
1,469
|
|
|
1,697
|
|
|
3,468
|
|
|
3,468
|
|
|
Total Adjusted EBITDA
|
$
|
7,086
|
|
|
$
|
(6,928
|
)
|
|
$
|
(6,842
|
)
|
|
$
|
(21,084
|
)
|
Liquidity and Capital Resources
Overview
Our primary goal as it relates to liquidity and capital resources is to maintain an appropriate level of debt and cash to fund operations, expansions, maintenance projects and other capital investments and to ensure that we are poised for growth in our businesses. Our principal sources of liquidity are cash generated from operations, existing cash on hand and our revolving credit facility. Our principal uses of cash include the funding of working capital obligations, capital expenditures and servicing our debt.
Due to the seasonality of our business, there are significant fluctuations in our cash and liquidity throughout the year. Our cash balances are typically at their highest at the end of our third fiscal quarter, following the peak ski season, and at their lowest toward the middle of our second fiscal quarter, before the start of the ski season.
Significant Sources of Cash
Historically, we have financed our capital expenditures and other cash needs through cash generated from operations. We generated $60.3 million and $44.3 million of cash from operating activities during the six months ended December 31, 2016 and 2015, respectively. We currently anticipate that our ongoing operations will continue to provide a significant source of future operating cash flows, with the third fiscal quarter of each fiscal year generating the highest cash flows due to the seasonality of our business.
As part of a refinancing in December 2013, we entered into a credit agreement dated as of December 9, 2013 (as amended, the "Credit Agreement"), which provides for a $540.0 million term loan facility (the “Term Loan"), a $25.0 million senior secured first-lien revolving loan facility (the “Revolver”), and a $55.0 million senior secured first-lien letters of credit facility (the “LC Facility” and, together with the Term Loan and Revolver, collectively referred to herein as the “Senior Debt”). Pursuant to an Incremental Amendment to the Credit Agreement, dated September 19, 2014 (the "Incremental Amendment"), the Company borrowed an incremental $60.0 million under the Term Loan. The incremental borrowing has the same terms and maturity date as the original Term Loan. We continue to have the ability to increase the borrowings on the Term Loan under certain circumstances and subject to certain criteria; so long as, after giving effect to any additional amounts borrowed, we remain compliant with all covenants of the Credit Agreement.
As of December 31, 2016, we had available capacity of $15.2 million under the LC Facility and $25.0 million under the Revolver. The Credit Agreement contains affirmative and negative covenants that restrict, among other things, the ability of our subsidiaries to incur indebtedness, dispose of property and make investments or distributions. We were in compliance with the applicable covenants of the Credit Agreement as of December 31, 2016.
Our cash and cash equivalents balance as of December 31, 2016 was $131.3 million. We expect that our liquidity needs for at least the next 12 months will be met by continued utilization of operating cash flows and borrowings under the Revolver, if needed.
Significant Uses of Cash
Our current cash requirements include providing for our working capital obligations, capital expenditures and servicing our debt.
We make capital expenditures to maintain the safety and quality of our operations within our Mountain, Adventure and Real Estate segments. Many of these capital expenditures are related to maintenance capital, including lift maintenance, snow grooming machine replacement, snowmaking equipment upgrades and building refurbishments. We also make growth capital expenditures that are discretionary in nature and intended to generate new revenue, improve our level of service, or increase the scale of our operations. Capital expenditures were $31.9 million and $32.5 million in the six months ended December 31, 2016 and 2015, respectively, or 15.8% and 17.1% of total revenue, for the respective periods.
A large portion of our capital expenditures are incurred throughout the summer months when ski operations are closed and weather allows for on-mountain construction and resort infrastructure maintenance. As a result, we manage our capital spend on a calendar year basis to provide us the flexibility to begin capital projects as soon as possible following the end of the ski season and to capture the entire cost of projects in the same spending cycle. We expected to spend between $44.0 million and $48.0 million on capital expenditures in calendar year 2016. Our Calendar year capital expenditures were $47.7 million. Our Calendar year capital expenditures are capital expenditures as presented in the accompanying condensed consolidated statements of cash flows adjusted for third party reimbursements and property, plant and equipment received but not yet paid. The $6.0 million of third party
reimbursements includes $4.3 million of insurance proceeds related to damaged helicopters, of which $2.0 million is expected to be received in the third fiscal quarter of 2017, as well as $1.7 million of grants towards the build of the Winter Park Express Train platform and related infrastructure.
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
December 31, 2016
|
|
Capital expenditures
|
$
|
(50,452
|
)
|
|
Third party reimbursement for capital expenditures
|
6,005
|
|
|
Accrued capital expenditures
|
(3,270
|
)
|
|
Calendar year capital expenditures
|
$
|
(47,717
|
)
|
We paid principal, interest and fees to our lenders of $18.9 million and $20.6 million in the six months ended December 31, 2016 and 2015, respectively. The majority of principal payments on our long-term debt under the Term Loan is not due until 2020.
Our debt service requirements can be impacted by changing interest rates as we had $553.3 million of variable rate debt outstanding as of December 31, 2016. As of December 31, 2016, the one month LIBOR was 0.772%. As our variable rate borrowings have a LIBOR floor of 1.0%, a 100-basis point decrease in the one month LIBOR would not impact our annual interest payments. By contrast, a 100-basis point increase in the one month LIBOR would cause our annual interest payments to increase by approximately $4.3 million.
Cash Flows for the Six Months Ended December 31, 2016 and 2015
The table below sets forth for the periods indicated our net cash flows from operating, investing and financing activities, as well as the effect of exchange rates on cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31,
|
|
|
2016
|
|
2015
|
|
$ Change
|
|
Net cash provided by (used in):
|
|
|
|
|
|
|
Operating activities
|
$
|
60,269
|
|
|
$
|
44,321
|
|
|
$
|
15,948
|
|
|
Investing activities
|
(31,304
|
)
|
|
(30,287
|
)
|
|
(1,017
|
)
|
|
Financing activities
|
(3,390
|
)
|
|
(4,892
|
)
|
|
1,502
|
|
|
Effect of exchange rate on cash
|
(1,320
|
)
|
|
(4,749
|
)
|
|
3,429
|
|
|
Net increase in cash and cash equivalents
|
$
|
24,255
|
|
|
$
|
4,393
|
|
|
$
|
19,862
|
|
Operating Activities
The $15.9 million increase in cash provided by operating activities in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 was primarily related to normal changes in working capital accounts primarily from deferred revenue due to higher pass sales and lower net loss from improved operating results in the six months ended December 31, 2016 compared to the same period in 2015.
Investing Activities
Cash used in investing activities increased by $1.0 million in the six months ended December 31, 2016 compared to the six months ended December 31, 2015 as a result of a decrease in cash outflows for capital expenditures in the six months ended December 31, 2016 compared to the same period in 2015 partially offset by a decrease in insurance proceeds received on a damaged helicopter.
Financing Activities
Cash used in financing activities decreased by $1.5 million in the six months ended December 31, 2016 compared to the six months ended December 31, 2015. The decrease was due to the Company prepaying several quarterly payments under the Term Loan through the excess cash flow payment made in the third fiscal quarter of 2016.
Contractual Obligations
There were no material changes in our commitments under contractual obligations as disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed with the SEC on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016.
Off-Balance Sheet Arrangements
As of December 31, 2016, we did not have any off-balance sheet transactions that are expected to have a material effect on our financial condition, revenue, expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Policies and Estimates
Our consolidated financial statements are prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. These estimates form the basis of judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates.
There have been no material changes in our critical accounting policies and estimates as compared to the critical accounting policies and estimates described in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed with the SEC on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016.
Recent Accounting Pronouncements
For a discussion of the recent accounting pronouncements relevant to our business operations, see the information provided under Part I - Item 1, Financial Statements (unaudited), Note 2, “Significant Accounting Policies.”
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Fluctuations
Our exposure to market risk is limited primarily to fluctuating interest rates associated with variable rate indebtedness. At December 31, 2016, we had $553.3 million of variable rate indebtedness, representing approximately 99.8% of our total debt outstanding, at an average interest rate for the six months ended December 31, 2016 of approximately 4.8%. As of December 31, 2016, the one month LIBOR was 0.772%. As our variable rate borrowings have a LIBOR floor of 1.0%, a 100-basis point decrease in the one month LIBOR would not impact our annual interest payments. By contrast, a 100-basis point increase in the one month LIBOR would cause our annual interest payments to increase by approximately $4.3 million.
Foreign Currency Fluctuations
In addition to our operations in the United States, we conduct operations in Canada from which we record revenue and expenses in Canadian dollars. Because our reporting currency is in U.S. dollars, fluctuations in the value of the Canadian dollar against the U.S. dollar have had and will continue to have an effect, which may be significant, on our reported financial results. A decline in the value of the Canadian dollar, or in any other foreign currencies in which we receive revenue against the U.S. dollar, will reduce our reported revenue, expenses, and Adjusted EBITDA from operations in foreign currencies, while an increase in the value of any such foreign currencies against the U.S. dollar will tend to increase our reported revenue, expenses, and Adjusted EBITDA from operations in foreign currencies. Total Canadian dollar denominated revenue comprised approximately 43% and 44%, respectively, of total revenue in the six months ended December 31, 2016 and 2015. Based upon our ownership of Canadian subsidiaries as of December 31, 2016, holding all else constant, a 10% unfavorable change in foreign currency exchange rates would have reduced our reported revenue by approximately $7.9 million for the six months ended December 31, 2016. Any negative impact on revenue would be naturally hedged, in part, by our Canadian dollar denominated operating expenses. Variations in exchange rates can significantly affect the comparability of our financial results between reported periods. We do not currently engage in any foreign currency hedging activities related to this exposure.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, management, with the participation of the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures, as of the end of the period covered by this Quarterly Report on Form 10-Q, were functioning effectively to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
Change in Internal Control over Financial Reporting
There were no changes in the Company's internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or that are reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are involved in various lawsuits and claims arising in the ordinary course of business and others arising from our legacy real estate development. These lawsuits and claims may include, among other things, claims or litigation relating to personal injury and wrongful death, allegations of violations of laws and regulations relating to our real estate activities and labor and employment, intellectual property and environmental matters and commercial contract disputes. We operate in multiple jurisdictions and, as a result, a claim in one jurisdiction may lead to claims or regulatory penalties in other jurisdictions.
Due to the nature of the activities at our mountain resorts and CMH, we are exposed to the risk that customers or employees may be involved in accidents during the use, operation or maintenance of our trails, lifts, helicopters and facilities. As a result, we are, from time to time, subject to various lawsuits and claims in the ordinary course of business related to injuries occurring at our properties.
In addition, our pre-2010 legacy real estate development and sales activities, combined with the significant downward shift in real estate asset values that occurred in 2007 and 2008, resulted in claims arising in the ordinary course of business being filed against us by owners and prospective purchasers of residences in our real estate developments. In some instances, we have been named as a defendant in lawsuits alleging construction defects at certain of our existing developments or alleging that we failed to construct planned amenities. In other lawsuits, purchasers are seeking rescission of real estate purchases and/or return of deposits paid on pre-construction purchase and sale agreements. These claims are related to alleged violations of state and federal laws.
We believe that we have adequate insurance coverage or have adequately accrued for loss contingencies for all material matters in which we believe a loss is probable and the amount of the loss is reasonably estimable. Although the ultimate outcome of claims against us cannot be ascertained, current pending and threatened claims are not expected to have a material adverse effect, individually or in the aggregate, on our financial position, results of operations or cash flows. However, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may affect our reputation, even if resolved in our favor.
ITEM 1A. RISK FACTORS
There have been no material changes from the risk factors previously disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed with the SEC on September 8, 2016, as amended by our Amendment to the Annual Report on Form 10-K/A filed with the SEC on November 3, 2016, which risk factors are incorporated herein by reference.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS
The exhibits filed or furnished herewith are set forth in the Exhibit Index at the end of this Quarterly Report on Form 10-Q.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
|
Intrawest Resorts Holdings, Inc.
|
|
|
|
|
|
Date: February 2, 2017
|
By:
|
/s/ Travis Mayer
|
|
|
|
Travis Mayer
|
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
|
Principal Financial Officer
|
|
|
|
|
|
Date: February 2, 2017
|
By:
|
/s/ Lindsay Goszulak
|
|
|
|
Lindsay Goszulak
|
|
|
|
Vice President, Accounting and Corporate Controller
|
|
|
|
Principal Accounting Officer
|
INDEX TO EXHIBITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
|
Furnished
Herewith
|
|
Exhibit
Number
|
|
Document Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
|
|
|
|
2.1
|
|
Purchase Agreement, dated November 24, 2015, among Intrawest U.S. Holdings Inc., Intrawest ULC, Diamond Resorts Corporation, and Diamond Resorts International, Inc.
|
|
10-Q
|
|
2.2
|
|
February 3, 2016
|
|
|
|
|
|
3.1
|
|
Restated Certificate of Incorporation of the Registrant
|
|
S-1/A
|
|
3.1
|
|
January 10, 2014
|
|
|
|
|
|
3.2
|
|
Amended and Restated Bylaws of the Registrant
|
|
S-1/A
|
|
3.2
|
|
January 10, 2014
|
|
|
|
|
|
10.1
|
|
Tenth Amendment to Lease and Operating Agreement, dated August 29, 2016, between Winter Park Recreational Association and Intrawest/Winter Park Operations Corporation
|
|
10-K
|
|
10.6(k)
|
|
September 8, 2016
|
|
|
|
|
|
10.2
|
|
Fifth Amendment to Credit Agreement
|
|
8-K
|
|
10.1
|
|
October 19, 2016
|
|
|
|
|
|
10.3
|
|
Sixth Amendment to Credit Agreement
|
|
|
|
|
|
|
|
X
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
|
|
X
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
|