Intrawest Resorts Q4 Loss Narrows; To Buy Remaining 50% Stake In Blue Mountain

(RTTNews) - Intrawest Resorts Holdings Inc. (SNOW) reported that its fourth-quarter net loss attributable to the company narrowed to $54.33 million or $1.21 per share from $121.83 million or $2.91 per share in the prior year.

Quarterly revenue declined to $57.22 million from $59.15 million last year.

Analysts polled by Thomson Reuters expected the company to report a loss of $1.17 per share and revenues of $55.41 million for the quarter. Analysts' estimates typically exclude special items.

For the full fiscal year 2015, the Company expects total Reportable Segment Revenue to be in the range of $570 million to $595 million, net loss attributable to the company of $16 million to $6 million.

In a separate press release, Intrawest Resorts Holdings announced that it has negotiated and entered into a definitive agreement to acquire the 50% interest in Blue Mountain Ski Resort that it does not already own from Blue Mountain Resorts Holdings Inc. for C$58.0 million.

The purchase price was based on a C$5.0 million partial payment for growth capital expenditures related to a recently completed conference center and approximately seven times fiscal 2014 EBITDA, excluding any potential synergies. The Company will finance this acquisition through incremental term loan proceeds and existing cash. The transaction is expected to close by the end of September 2014.

Intrawest acquired a 50% interest in Blue in 1999 and since that time the resort has been operated as a joint venture between the Company and Blue Mountain Resorts Holdings Inc. Intrawest does not currently anticipate making significant changes to the operations or resort personnel.

Blue Mountain Ski Resort is the largest and most popular ski resort in Ontario, Canada and is conveniently located approximately 90 miles northwest of the Greater Toronto area's approximately 5.6 million residents.