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.
... 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?
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.
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.
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.