Profits reach new peak: Mount Snow parent company has best year
by Randy Capitani
Jun 30, 2017 | 2979 views | 0 0 comments | 19 19 recommendations | email to a friend | print
Work continues on the foundation for a new pump house at Mount Snow that will pull water from the West Lake snowmaking reservoir.  From the pump house, at the base of Carinthia along Handle Road, water will be distributed throughout Mount Snow.
Work continues on the foundation for a new pump house at Mount Snow that will pull water from the West Lake snowmaking reservoir. From the pump house, at the base of Carinthia along Handle Road, water will be distributed throughout Mount Snow.
DOVER- Mount Snow’s parent company, Peak Resorts, is expecting record profits as it closes out its fiscal year, according to information released from the company last week. It also announced expansion plans at Hunter Mountain in New York, a zip line project to be built in Missouri, and provided updates on construction currently underway here in the valley.

According to a press release, Peak Resorts expects to report record revenue for the year ended April 30. Revenue is anticipated to be $120 million to $125 million, which, depending on the final audited amount, could be an increase of 28% over fiscal 2016. Earnings before interest, taxes, depreciation, and amortization ( EBITDA) are expected to be between $26 million and $27 million, which could be an increase of 63% over fiscal 2016 EBITDA. The company anticipates having over $30 million in operating cash on the balance sheet at year-end, and remains in full compliance with all debt covenants. In addition, the company was able to pay off $10 million in debt during the third quarter of fiscal 2017.

Peak Resorts president Tim Boyd said in the release the company was happy with the results. “We are very pleased with our preliminary revenue and EBITDA results for the fiscal year. Despite the unusually warm weather we faced, particularly in the Midwest where our margins are the highest, we generated record revenue and EBITDA, which underscores the resiliency of our business model. Importantly, our liquidity is strong, and we remain committed to returning capital to our shareholders.”

Peak Resorts will apply for construction permits at Hunter Mountain to increase the skiable acreage by 25% to 30%. The new area will feature a parking area and a detachable high speed chair lift. The additional acreage will be built on the north-facing slope of Hunter Mountain, between the main face and the west side, and will be predominantly intermediate terrain. The company’s goal is to complete the project in time for the 2018-2019 ski season. The expansion is expected to cost approximately $9 million. They also plan to apply for a permit to construct a zip tour at the Hidden Valley resort in Wildwood, MO.“While expanding our portfolio through new resorts remains a key priority for us,” Boyd said, “we also intend to build value by investing in our current properties through expansions, new products, and amenities that will elevate our customers’ skiing and off-season experiences and keep them visiting more often. These investments alone could boost our EBITDA by $2 million to $3 million on an investment of approximately $11.5 million, generating solid returns on our capital. Our previously announced 8.6% increase in pre-season Peak Pass sales also highlights our ability to drive organic growth at our resorts.”

The press release also said the EB-5 foreign-investment-funded West Lake water project and Carinthia base lodge project at Mount Snow are running within budget and on schedule. West Lake is slated to be completed later this year, while the Carinthia base lodge is planned to be done in fall 2018.

“Everything is on schedule and everything is on budget,” confirmed Mount Snow’s Dick Deutsch on Tuesday. “We’ve begun digging the foundation for the Carinthia base lodge. We expect to be finished with the pump house foundation on Handle Road around August 15 and then in mid-August we’ll go vertical and start building the pump house. Everything is really going according to plan. Our contractors have been great.”

Deutsch also said Mount Snow is preparing for the next round of EB-5 investment solicitations. He hopes to begin the process in August.
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