Peak Resorts (SKIS) Tops Q2 EPS by 3c, Revenues Miss

Peak Resorts (NASDAQ: SKIS) reported Q2 EPS of ($0.81), $0.03 better than the analyst estimate of ($0.84). Revenue for the quarter came in at $7.98 million versus the consensus estimate of $8.55 million.

Timothy D. Boyd, President and Chief Executive Officer, commented, “Peak Resorts delivered fiscal 2019 second quarter results consistent with the seasonality of our business as a busy schedule of summer events partially offset the loss of revenue associated with the termination of our operating contract for the hotel at Attitash. Our operating teams continued company-wide efforts to more efficiently manage expenses, leading to a 9.3% decline in resort operating costs versus the prior year period. In particular, labor and labor related expenses were down 20.1% despite ongoing wage pressure in New York and Vermont as we benefited from the elimination of the costs associated with the Attitash hotel, all while working across the company to manage staffing levels by more closely tying seasonal hiring to visitation levels.

“During the fiscal 2019 second quarter, we announced our transformative acquisition of Snow Time. With the transaction’s completion coming early in the fiscal third quarter, Peak has added three attractive resorts to our Northeast and Mid-Atlantic portfolio and expanded our geographic footprint into the Baltimore and Washington D.C. metropolitan areas.

“The value and appeal of our unlimited Peak Pass has never been greater, demonstrated by strong initial pass sales and healthy upgrade activity by Snow Time pass holders. Despite the recent encroachment of heavily marketed season pass offerings into the Northeast, customers are choosing our Peak Pass in greater numbers. Through mid-October, Peak Pass sales were up approximately 19% and 22% year over year on a unit and revenue basis, respectively, and this momentum has continued through early December. Snow Time season pass sales were also up 20% and 19% year over year on a unit and revenue basis, respectively, through the end of October. Notably, 27% of Snow Time pass holders took advantage of the opportunity to upgrade to the Peak Pass as these new customers see the value of our unlimited offering with access to 10 attractive destinations across the Northeast and Mid-Atlantic.

“As fall turns to winter, we are pleased to report our earliest-ever start to a ski season as snowmaking combined with healthy natural snowfall allowed us to open both Mount Snow and Wildcat in late October and kick off the 2018/2019 ski season with a strong start. We are also excited to be putting the finishing touches on two key capital projects, which we expect will open ahead of the holidays. The two lower floors of the Carinthia Ski Lodge at Mount Snow are now open and we expect to finish work on the remaining areas of the facility in the coming days, which will allow us to open it in its entirety before the Christmas holiday. Initial guest feedback has been favorable and we believe the lodge is a welcome addition to Mount Snow. At Hunter Mountain, we are completing work on the six passenger lift serving the Hunter North terrain expansion and we expect to have the new parking area, lift and terrain open heading into Christmas. Both of these projects represent significant additions to our on-mountain amenities and we believe they will help attract added interest and further differentiate Mount Snow, Hunter Mountain and the Peak Pass from the competition.”

For earnings history and earnings-related data on Peak Resorts (SKIS) click here.

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