Whistler Blackcomb Holdings Inc. Reports Record Financial Results for the Third Consecutive Year

WHISTLER, BC, Dec. 14, 2015 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Company") today reported financial results for the year and fourth quarter ended September 30, 2015. The Company holds a 75% interest in and manages the entities that operate Whistler Blackcomb, the largest four-season mountain resort in North America.

Highlights  

• Strong growth in the Company's non-ski and ancillary businesses contributed to a 3.0% increase in revenue to $262.3 million and 0.3% increase in adjusted EBITDA (defined below) to $93.0 million for fiscal 2015, representing the Company's third consecutive year of record financial results. Fourth quarter adjusted EBITDA increased 48.1% to $3.2 million due to a 14.6% increase in revenue per visit.
  
  
• Other visits increased 5.2% to 610,000 for fiscal 2015, representing the highest sightseeing, hiking and mountain bike park visits in the Company's history. Skier visits decreased 9.0% for the year ended September 30, 2015 due to challenging snow conditions at lower elevations.
  
  
• Readers of Ski Magazine have recently rated Whistler Blackcomb the number one ski resort in North America for the second consecutive year, and for the third time in the past four years, with leading rankings in the following categories: terrain variety, off-hill activities, scenery, lifts, après-ski, terrain parks, lodging, and overall guest satisfaction.

Dave Brownlie, the Company's President and Chief Executive Officer commented: "We are honoured to be rated the number one ski resort in North America two years in a row and we look forward to continuing to deliver unforgettable experiences for our guests.  Over the past three fiscal years we have invested in on-mountain improvements and business acquisitions, which have elevated guest experience, diversified our operations and contributed meaningfully to our financial performance.  The unveiling of the Rendezvous Lodge upgrade on Blackcomb Mountain in November is a great example of these investments."  Mr. Brownlie continued: "The 2015-16 ski season is off to an excellent start with great early season conditions and over 7,000 acres of terrain open to the public, more than any other ski resort in North America.  I am also pleased to report that we are seeing strong skier visit momentum, which combined with solid pre-committed mountain product sales, positions us well leading into the busy holiday period."

Financial & Operating Results Overview
(In thousands, except per visit amounts and Effective Ticket Price ("ETP" as defined below))

Visit, Pricing and Financial Results Summary

• Other visits increased for fiscal 2015 reflecting strong growth in the Company's sightseeing, hiking and mountain bike park businesses. The decrease in skier visits for the year ended September 30, 2015 was attributable to unfavourable winter conditions at lower elevations, driven by unusually warm weather and below average snowfall in the Pacific Northwest. For the 2014-15 ski season destination skier visits are estimated to have comprised approximately 49% of skier visits compared to approximately 41% for the 2013-14 ski season.
  
  
• The increases in revenue per total visit for both the year and quarter ended September 30, 2015 reflected the strong mix of destination visits, improved performance of the Company's retail, rental, and snow school businesses, and the first quarter acquisition of Summit Ski Limited, a complementary ski, snowboard and bike rental and retail business in Whistler. The increased ETP for the 2014-15 ski season was attributable to increased lift ticket prices and lower utilization of pass and card products, which resulted in a higher yield on these visits.
  
  
• The increase in Adjusted EBITDA for the year and quarter ended September 30, 2015 was driven by increased revenue per visit, as described above, offset in part by lower total visits, increased spending on sales and marketing, higher operating expenses due mainly to inflationary wage increases and increased cost of sales resulting from higher ancillary business sales volumes.

Treasury Summary

• As at September 30, 2015, the Company had long-term debt outstanding of $234.5 million, an increase of $2.5 million, or 1.1%, compared to $232.0 million at September 30, 2014. The Company's cash and cash equivalents balance at September 30, 2015 was $5.7 million compared to $8.4 million at September 30, 2014.
  
  
• For the year ended September 30, 2015, cash interest paid decreased 10.0% or $1.0 million to $8.7 million compared to the prior year principally due to the lower average debt balance and lower effective interest rate on the Company's credit facility in 2015.
  
  
• Subsequent to year end, the Company extended the maturity of its $300 million credit facility to November 12, 2020 and extended the term of its $125 million interest rate swap to September 5, 2020.

Indicators

• As of December 12, 2015, the Company generated $36.2 million in 2015-16 season pass and frequency card sales, which represented a 1.5% decrease in sales compared to the same time last year.
  
  
• Forward bookings in Whistler's accommodation sector as of December 7, 2015 were pacing approximately 3% ahead of bookings at the same time in the prior year, reflecting strength from European and US destination markets.

Dividend

The Company's Board of Directors declared a dividend of $0.24375 per common share for the fourth quarter, to be paid on December 31, 2015 to shareholders of record on December 24, 2015.  This dividend will be an eligible dividend for Canadian income tax purposes.

Non-GAAP Measures

This press release makes reference to Adjusted EBITDA and ETP, which are measures not prescribed by Canadian generally accepted accounting principles, or GAAP. These non-GAAP measures do not have standardized meanings and are therefore unlikely to be comparable to similar measures presented by other companies.

Adjusted EBITDA is defined as consolidated net earnings (including net earnings attributable to the 25% non-controlling interest) before interest, taxes, depreciation and amortization, as well as items that management does not consider part of the Company's normal operations, examples of which include significant non-cash gains or losses on disposal of property, buildings and equipment, acquisition or disposal expenses and gains or losses or restructuring expenses relating to acquisitions or disposals of businesses, impairment, restructuring or refinancing charges and reversals and other significant event-driven amounts as applicable. Adjusted EBITDA is provided as additional information to complement GAAP measures and to further understand the Company's results of operations from management's perspective. It is also a supplemental measure of performance that highlights trends in the Company's business that may not otherwise be apparent when relying solely on GAAP financial measures. Seventy-five percent of Adjusted EBITDA is attributable to Whistler Blackcomb Holdings Inc. shareholders, based on the Company's equity interest in the Partnerships. The closest GAAP measure is net earnings and a reconciliation is provided below.

ETP is defined as the Company's ski ticket yield per skier visit calculated as total ski-related lift revenue divided by total skier visits. Ski-related lift revenue and skier visits exclude revenue and visits from summer glacier skiing and other revenue amounts. The Company believes ETP is an important measure of operating performance because it allows management, investors and others to evaluate and compare the yield generated by ski lift tickets from period to period, and ski tickets are the Company's largest source of revenue and the core of its operations. The closest GAAP measure is revenue and a reconciliation is provided below. 

Non-GAAP measures should not be considered in isolation or as a substitute for analysis of financial information reported in accordance with GAAP. Readers should refer to the Company's Annual Information Form dated December 11, 2015 and its most recent Management's Discussion & Analysis, which are available on the Company's website and under the Company's SEDAR profile at www.sedar.com, for additional details regarding non-GAAP measures.

Reconciliation of Net Earnings to Adjusted EBITDA

The following table reconciles Adjusted EBITDA to the Company's most directly comparable GAAP measure, net earnings:

The following table reconciles ETP to our most directly comparable GAAP measure, revenue:

Conference Call Information

Management will conduct a conference call on December 14, 2015 at 7:30 a.m. Pacific Time / 10:30 a.m. Eastern Time to review the Company's fiscal 2015 results. The call can be accessed by dialing 1.800.319.4610 (Canada and US) or 1.604.638.5340 (International) prior to the start of the call. A live webcast and 30 day replay of the conference call will be available in the Presentation & Webcasts section of the Company's website.

ABOUT WHISTLER BLACKCOMB HOLDINGS INC.

The Company holds a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (the "Partnerships"), which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia (the "Resort Business"). The Company is the operating general partner of the Partnerships and as such manages the Resort Business. Whistler Blackcomb, the official alpine skiing venue for the 2010 Olympic Winter Games, is situated in the Coast Mountains of British Columbia, 125 kilometres (78 miles) north of Vancouver, British Columbia. North America's largest four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offer over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls, three glaciers, receive on average over 1,163 centimetres (458 inches) of snow annually, and offer one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB".  Additional information is available on the Company's website at www.whistlerblackcomb.com/holdings or under the Company's SEDAR profile at www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release and the associated conference call and webcast, which include a business update, review of the Company's fiscal 2015 results and a question and answer session, may contain certain forward-looking statements or information, within the meaning of applicable Canadian securities laws, which reflect the current view of the Company with respect to future events and financial performance. Forward-looking statements can often be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. All forward-looking statements made by the Company are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable. The forward-looking statements and information contained in this press release and the associated conference call and webcast are based on certain factors and assumptions made by management of the Company including, but not limited to: business conditions, guest visitation, the Company benefiting from momentum in summer visitation and encouraging 2015-16 season pass and frequency card sales and accommodation bookings, weather, macroeconomic and currency influences, and interest rates, among others. These forward-looking statements and information are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated including, but not limited to, unfavourable weather conditions, unfavorable economic conditions, decreases in leisure and business travel, seasonality of operations, capital expenditures, currency fluctuations, reliance on agreements with the Province of British Columbia to operate the Resort Business, competition from other resorts, dependence on key employees and seasonal workforce, workforce risks, the impact of natural disasters, risks related to the credit facility and interest rate risks, adequacy of insurance coverage, litigation or governmental investigations, safety and accident risks, environmental laws and regulations, risks related to privacy laws, information technology and the processing of credit card information, negative publicity or unauthorized use of the Company's trademarks or trade names, risks relating to growth projects and acquisitions, risks relating to third party interests and risks relating to an investment in the common shares of the Company, including with regard to dividend payments and future sales or issuances of common shares of the Company.  A more detailed description of these risks is available in the Company's most recently filed annual information form and management's discussion and analysis, which is available on the Company's website and at www.sedar.com under the Company's SEDAR profile.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements or information because the Company can give no assurance that such expectations will prove to be correct. 

These forward-looking statements and information are made as of the date of this press release, and the Company has no intention and assumes no obligation to update or revise any forward-looking statements or information to reflect new events or circumstances, except as required by applicable Canadian securities laws.

Whistler Blackcomb Holdings Inc.
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Whistler Blackcomb Holdings Inc.
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SOURCE Whistler Blackcomb

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