Peak Resorts Reports Results

WILDWOOD, Mo., March 15, 2016 (GLOBE NEWSWIRE) -- Peak Resorts, Inc.(NASDAQ:SKIS), a leading owner and operator of high-quality, individually branded ski resorts in the U.S., today reported results for its fiscal 2016 third quarter and nine months ended January 31, 2016.

Hunter Mountain, the most recent addition to the resort portfolio, made positive contributions to visits, revenue and cash flow following the close of that transaction in early January.

Due to the late start to the ski season and challenging weather conditions in both regions, total skier and tuber visits declined 23 percent through January 31, 2016, compared with last year.

In light of year-to-date results, management now expects full-year fiscal 2016 revenue will be down 10 percent to 12 percent from the $104.9 million reported in fiscal 2015.

http://www.nasdaq.com/press-release/peak-resorts-reports-results-for-thirdquarter-and-ninemonths-fy2016-20160315-00250#ixzz42zArzBEc


http://www.nasdaq.com/press-release/peak-resorts-reports-results-for-thirdquarter-and-ninemonths-fy2016-20160315-00250

... and their stock dropped 12% on the news.  Now trading at $3.09 per share.  It actually traded as low as $2.62 this morning.  Remember, their IPO price a little over a year ago was $9.

Revenues are down $7.3 million for the 3 months ended 1/31/2016, but operating expenses are down only $1.8 million.  Tough winter to be in the business of skiing.

Incidentally, Hunter is included in the results as of January 6, the closing date of their purchase by Peak.  

Here's what we need to do.  100 of us pool our money.  $250K each (c'mon, you've all got 401ks).  We buy a controlling interest in Peak.  We put Snoloco in charge as GM at one of those mid-western mole hills.  If he does a good job there, we bump him up to Hunter or Mount Snow. Within 5-7 years we'll have him as CEO of Peak.  Who's in?

The company might be in trouble if next year is warm or bellow avg..
I was looking at the ALB snow data, many poor years are followed by poor years...

http://www.weather.gov/media/aly/Climate/ALY_Seasonal_Snowfall_Totals.pdf

Hmm.. Hell No!

time to short this stock

Looks like I was correct in that Hunter improved revenues (they lost less money than they would've otherwise).   I wonder what their next report will look like.  This company could definitely be in trouble which sucks because I think they do a great job with the mountains they own.

JasonWx wrote

The company might be in trouble if next year is warm or bellow avg..
I was looking at the ALB snow data, many poor years are followed by poor years...

http://www.weather.gov/media/aly/Climate/ALY_Seasonal_Snowfall_Totals.pdf

You're just a Debbie Downer this year, so there.  

Coach Z wrote

Hmm.. Hell No!

time to short this stock

Agree

I can't believe all you ever do is keep naysaying.  You ski at the mountain with the best snowmaking in the east, so why are you getting so hurt if it's a bad year.  I've had plenty of great skiing this year.  Sure I've occasionally bitched about the weather, but I can't change it, so I make the most of it and get in all the ski days that I can instead of giving up and making a big stink about it.

???
we are discussing their financial results , not how they run their resorts..  Apples and Oranges

This report isn't an accurate reflection of the entire season.  Most of their mountains didn't even open till January, so obviously they're going to lose money.  Mount Snow is normally making a killing over Christmas week and is packed to capacity with lots of people in resort lodging.  They also have all their lifts running to handle the extra crowds, so no one is pissed that there's really limited terrain and big crowds.  They, and all other ski resort operators on the ec lost all of their Christmas week profits.  The report that's going to be more interesting is their next quarterly report because that includes the other part of the season.

It reports on 12 months so it includes a season.  And if you are in the crapper on Jan 31 that is probably going to be a tough year.  From what I saw, it sounds like, while Hunter will or may help, the situation is still difficult.

JasonWx wrote

Coach Z wrote

Hmm.. Hell No!

time to short this stock

Agree

Actually it's not a good time to short this stock.  You want to open a short position when the stock is over-priced and has lots of room to fall.  Peak is currently at its all-time low, so not much down potential left.  That doesn't necessarily make it a "buy," just not a great short candidate.

snoloco wrote

Looks like I was correct in that Hunter improved revenues (they lost less money than they would've otherwise).

Yes, obviously Hunter added to Peak's revenues.  The problem is they also added expenses.  In all likelihood those added expenses exceeded the added revenue.  Thus Peak lost more money than they would have otherwise.

Harvey wrote

It reports on 12 months so it includes a season.  And if you are in the crapper on Jan 31 that is probably going to be a tough year.  From what I saw, it sounds like, while Hunter will or may help, the situation is still difficult.

The report that was released today includes results for the 3-month and 9-month periods ended Jan 31. We'll have to wait 3 more months to see the 12-month results, but you are 100% correct that it's going to be a tough year.  I don't see much hope for Peak posting a profit for the 12-month period that will end on 4/30.

snoloco wrote

This report isn't an accurate reflection of the entire season.  Most of their mountains didn't even open till January, so obviously they're going to lose money.  Mount Snow is normally making a killing over Christmas week and is packed to capacity with lots of people in resort lodging.  They also have all their lifts running to handle the extra crowds, so no one is pissed that there's really limited terrain and big crowds.  They, and all other ski resort operators on the ec lost all of their Christmas week profits.  The report that's going to be more interesting is their next quarterly report because that includes the other part of the season.

Oh, you mean the other part of the season when it rained like ten inches?

Adk Jeff wrote

... and their stock dropped 12% on the news.  Now trading at $3.09 per share.  It actually traded as low as $2.62 this morning.  Remember, their IPO price a little over a year ago was $9.

Revenues are down $7.3 million for the 3 months ended 1/31/2016, but operating expenses are down only $1.8 million.  Tough winter to be in the business of skiing.

Incidentally, Hunter is included in the results as of January 6, the closing date of their purchase by Peak.  

Here's what we need to do.  100 of us pool our money.  $250K each (c'mon, you've all got 401ks).  We buy a controlling interest in Peak.  We put Snoloco in charge as GM at one of those mid-western mole hills.  If he does a good job there, we bump him up to Hunter or Mount Snow. Within 5-7 years we'll have him as CEO of Peak.  Who's in?

No way. Sounds like Les Otten II.

Adk Jeff wrote

snoloco wrote

Looks like I was correct in that Hunter improved revenues (they lost less money than they would've otherwise).

Yes, obviously Hunter added to Peak's revenues.  The problem is they also added expenses.  In all likelihood those added expenses exceeded the added revenue.  Thus Peak lost more money than they would have otherwise.

Did you read this?

Harvey wrote

Hunter Mountain, the most recent addition to the resort portfolio, made positive contributions to visits, revenue and cash flow following the close of that transaction in early January.

I think you're wrong.  Positive contributions to cash flow means that they made money off of it instead of losing money.  Hunter is probably one of the only ski areas in the east that made money this year.

Peak must think they can really pay off their debts because they're making snow at Mount Snow come Friday.  I'm not done yet.  Will be going there Easter Weekend it looks like.  Maybe Hunter will follow suit and light up as well.

snoloco wrote

Peak Resorts wrote

Hunter Mountain, the most recent addition to the resort portfolio, made positive contributions to visits, revenue and cash flow following the close of that transaction in early January.

I think you're wrong.  Positive contributions to cash flow means that they made money off of it instead of losing money.  Hunter is probably one of the only ski areas in the east that made money this year.

Correction.

As in the other thread worst season ever. All I know is I skied Hunter once a week from Jan thru the first week of March and never had a bad experience. The snowmaking was awesome. As soon as the cold came back the guns were fired , even if there was a rain event predicted a few days out. I was disappointed they didn't take advantage of a few cold spells in Late February but they did well till then

As far as I know, they did take advantage of all but one of those cold spells.  They're hurting right now according to the webcam.  West Side might be done.  Belt, and many other trails have tons of bare spots.  Not sure if they'll make more snow come Friday or if they'll just let it go, call it a season, and send their passholders to Mount Snow.

Their earnings release hints at possibly reducing/suspending their dividend, which likely plays into the drop in the stock price today.  Also some worry about uncertainty around cash they have tied up in some Mount Snow projects.  Lots of things up in the air right now, hoping the picture becomes clearer soon.