<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF FEBRUARY 1999
INTRAWEST CORPORATION
(Registrant's name)
SUITE 800, 200 BURRARD STREET, VANCOUVER, BC V6C 3L6 CANADA
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F X
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- .
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<PAGE> 2
2nd Quarter Report
Six Months Ended December 31,1998
INTRAWEST. FOR THE TIMES OF YOUR LIFE.
7 DAYS A WEEK
Yielding superior returns depends on maximizing the resort's use on those
historically quiet mid-week days. A vibrant village is key in achieving
that objective.
<PAGE> 3
TO OUR SHAREHOLDERS
The momentum at Intrawest keeps building. During the second quarter we finalized
the details on two new acquisitions, which were both announced in January. The
first was the acquisition of 45% of Alpine Helicopters Ltd. ("Alpine"), the
parent company of Canadian Mountain Holidays Inc., the world leader in
heli-skiing. The second was the acquisition of 50% of Blue Mountain Resorts
Limited in Ontario and 100% of the developable real estate lands at the base of
the resort. In December we announced the private placement of US$75 million of
9.75% unsecured senior notes, the proceeds of which were used to reduce debt.
And in February we made history at our Copper Mountain resort with the sale of
220 mountain homes, totaling US$78 million, in just over eight hours.
OPERATING RESULTS
Income from continuing operations for the second quarter was $2.9 million ($0.07
per share) down from $4.2 million ($0.12 per share) last year. In spite of the
lowest snowfall in 40 years in Colorado and unseasonably warm weather on the
East Coast early in the season, total company EBITDA for this period was $24.4
million, approximately the same as last year. Higher depreciation and interest,
partially offset by lower income taxes, reduced net income. Year-to-date income
from continuing operations was $0.3 million ($0.01 per share), the same as the
six month period last year.
Revenue from ski and resort operations was $95.0 million in the second quarter
- -- $87.7 million from the mountain resorts and $7.3 million from Sandestin and
Raven. Overall, revenue at the mountain resorts increased 9% compared with last
year, due to the increased ownership of Mammoth and same-resort growth. Revenue
increased 17% at Whistler/Blackcomb as a result of record early season business,
and Tremblant improved 12% mainly due to increased retail and lodging revenues.
Colorado's poor snowfall resulted in reduced revenues at Copper, and the
unseasonably warm weather on the East Coast lowered revenues at Snowshoe and
Stratton.
Operating profit from ski and resort operations for the second quarter was $9.4
million, 26% higher than the prior year. Year-to-date ski and resort operations
revenue increased 40% and operating profit increased 34% over the comparable
period last year.
Real estate revenue was $58.1 million for the quarter, down from $84.9 million
for the second quarter last year which included a number of large project
closings. Despite this, operating profit was $12.7 million, only slightly down
from the $13.9 million reported in the prior year. The unit mix combined with
effective cost control resulted in a margin improvement to 21.9% from 16.4%.
MAJOR DEVELOPMENTS
Intrawest's core strategy is to grow our assets to their full potential by
spending the necessary capital to bring them to maturity, launching our villages
at each resort, and moving forward with the integration at each of our
complexes. At the same time, we will keep an eye on various adjunct businesses
we can add to increase our growth.
<PAGE> 4
The acquisitions of Blue Mountain and Alpine are both in line with this
strategy. Blue Mountain is an obvious extension of our network. It's a regional
resort within three hours of seven million people, requires very little
on-mountain capital and provides a wonderful opportunity for a village. The
acquisition of Alpine extends our network into the most affluent customer base
in the skiing industry. It also extends our array of offerings from the regional
resorts like Mountain Creek, to the premier destination resorts like
Whistler/Blackcomb, to the pinnacle of the skiing experience--heli-skiing in the
Bugaboos. And it extends our expertise into yet another complementary business.
The successful launches at Copper highlight the wisdom of our core strategy.
This is the largest concentrated real estate sale for Intrawest and the
first-ever launch of an entire resort village in North America. The New Village
at Copper is just one of a number of villages we are building across North
America as part of our strategy to transform the resort industry. With 12 years
experience and 300 professionals across North America, we are unique in our
expertise to turn an under-performing resort into a thriving, successful one.
Our success at Copper testifies once again to the public recognition of that
expertise.
OUTLOOK
We are experiencing extraordinary performance at Whistler/Blackcomb, which is up
216,000 visits season-to-date, and are seeing above-target results in our real
estate operations and improving performance at our other resorts, all of which
gives us great confidence going forward.
/s/ JOE S. HOUSSIAN /s/ DANIEL O. JARVIS
- ----------------------------- -----------------------------
Joe S. Houssian Daniel O. Jarvis
Chairman, President and Executive Vice President
Chief Executive Officer and Chief Financial Officer
February 22, 1999
<PAGE> 5
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31 December 31
1998 1997 1998 1997
- ----------------------------------------------------------------------------------------------------------------------------
(in thousands of dollars except per share amounts) (unaudited)
<S> <C> <C> <C> <C>
REVENUE
Ski and resort operations $ 94,999 $ 80,037 $ 151,354 $ 107,760
Real estate sales 58,122 84,899 123,457 100,890
Rental properties 1,389 1,321 3,469 2,542
Interest and other income 660 1,628 3,684 2,788
- ----------------------------------------------------------------------------------------------------------------------------
155,170 167,885 281,964 213,980
- ----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Ski and resort operations 85,571 72,548 143,649 101,976
Real estate costs 45,383 70,954 99,127 83,554
Rental properties 495 513 1,549 1,126
Interest 8,135 5,323 16,921 9,722
Depreciation and amortization 8,283 6,588 14,720 10,330
General and administrative 2,151 1,641 4,475 3,873
- ----------------------------------------------------------------------------------------------------------------------------
150,018 157,567 280,441 210,581
- ----------------------------------------------------------------------------------------------------------------------------
Income before income taxes,
non-controlling interest and
discontinued operations 5,152 10,318 1,523 3,399
- ----------------------------------------------------------------------------------------------------------------------------
Provision for income taxes
Current 1,383 3,448 358 2,264
Deferred -- 1,051 -- --
- ----------------------------------------------------------------------------------------------------------------------------
1,383 4,499 358 2,264
- ----------------------------------------------------------------------------------------------------------------------------
Income before non-controlling
interest and discontinued operations 3,769 5,819 1,165 1,135
Non-controlling interest 872 1,665 885 866
- ----------------------------------------------------------------------------------------------------------------------------
Income from continuing
operations 2,897 4,154 280 269
Results of discontinued operations (188) (447) 48 (861)
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) for the period $ 2,709 $ 3,707 $ 328 $ (592)
============================================================================================================================
Income per common share
Income from continuing
operations $ 0.07 $ 0.12 $ 0.01 $ 0.01
Net income $ 0.07 $ 0.12 $ 0.01 $ 0.01
============================================================================================================================
Weighted average number of
common shares outstanding
(in thousands) 39,555 34,387 39,435 34,373
============================================================================================================================
</TABLE>
<PAGE> 6
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
As at December 31 1998 1997
- ---------------------------------------------------------------------------------------------------
(in thousands of dollars) (unaudited)
ASSETS
Current assets
<S> <C> <C>
Cash and short-term deposits $ 37,231 $ 85,383
Other assets 97,842 44,045
Amounts receivable 101,107 57,633
Properties
Resort 259,835 155,247
Discontinued operations 7,531 10,606
- ---------------------------------------------------------------------------------------------------
503,546 352,914
Ski and resort operations 895,718 519,443
Goodwill 78,977 79,292
Properties
Resort 405,480 229,059
Discontinued operations 31,333 62,683
Amounts receivable 49,252 46,028
Other assets 82,768 30,247
- ---------------------------------------------------------------------------------------------------
$2,047,074 $1,319,666
===================================================================================================
LIABILITIES
Current liabilities
Amounts payable $ 134,709 $ 113,191
Deferred revenue 82,519 35,421
Bank and other indebtedness, current portion
Resort 187,665 101,288
Discontinued operations 8,217 2,774
- ---------------------------------------------------------------------------------------------------
413,110 252,674
Bank and other indebtedness
Resort 871,853 497,192
Discontinued operations 6,383 36,798
Due to joint venture partners 12,132 14,140
Deferred revenue 16,527 8,277
Deferred income taxes 11,925 5,792
Non-controlling interest in subsidiaries 27,494 8,173
- ---------------------------------------------------------------------------------------------------
1,359,424 823,046
- ---------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 495,354 374,556
Retained earnings 144,021 108,306
Foreign currency translation adjustment 48,275 13,758
- ---------------------------------------------------------------------------------------------------
687,650 496,620
- ---------------------------------------------------------------------------------------------------
$2,047,074 $1,319,666
===================================================================================================
</TABLE>
<PAGE> 7
CONSOLIDATED STATEMENTS OF
RETAINED EARNINGS
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31 December 31
1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------
(in thousands of dollars) (unaudited)
<S> <C> <C> <C> <C>
Retained earnings - beginning
of period $ 144,478 $ 107,350 $ 146,859 $ 111,649
Income (loss) for the period 2,709 3,707 328 (592)
Dividends (3,166) (2,751) (3,166) (2,751)
- --------------------------------------------------------------------------------------------------------
Retained earnings - end of period $ 144,021 $ 108,306 $ 144,021 $ 108,306
========================================================================================================
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOW
FROM OPERATIONS
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31 December 31
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------------------
(in thousands of dollars except per share amounts) (unaudited)
<S> <C> <C> <C> <C>
Income before non-controlling
interest and discontinued
operations $ 3,769 $ 5,819 $ 1,165 $ 1,135
Items not affecting cash
Depreciation and amortization 8,283 6,588 14,720 10,330
Deferred income taxes -- 1,051 -- --
- -----------------------------------------------------------------------------------------------------------------------
Cash flow from continuing
operations $12,052 $13,458 $15,885 $11,465
=======================================================================================================================
Cash flow per common share $ 0.28 $ 0.29 $ 0.36 $ 0.27
=======================================================================================================================
</TABLE>
Note: Cash flow per common share is calculated after providing for
non-controlling interest.
<PAGE> 8
CONSOLIDATED STATEMENTS OF CHANGES
IN FINANCIAL POSITION
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31 December 31
------------------------ ------------------------
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------
(in thousands of dollars) (unaudited)
<S> <C> <C> <C> <C>
CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Cash flow from operations $ 12,052 $ 13,458 $ 15,885 $ 11,465
Recovery of costs through
real estate sales 45,383 70,954 99,127 83,554
Increase in amounts receivable, net (28,824) (20,889) (32,414) (13,577)
Acquisition and development
of properties for sale (103,758) (53,413) (203,912) (130,984)
Other changes in non-cash
operating working capital 4,514 60,937 (30,424) 50,718
Cash provided by (used for)
discontinued operations 5,212 (1) 3,273 3,008
- -----------------------------------------------------------------------------------------------------
(65,421) 71,046 (148,465) 4,184
- -----------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Bank and other borrowings, net 106,721 64,257 429,996 140,349
Issue of capital stock 344 254 32,904 1,301
Redemption of non-resort
preferred shares -- -- (20,857) (9,015)
Proceeds on sale
of partnership interest -- -- 15,980 --
Dividends paid (3,166) (2,751) (3,166) (2,751)
Distributions to non-controlling interests -- -- (1,160) (1,160)
- -----------------------------------------------------------------------------------------------------
103,899 61,760 453,697 128,724
- -----------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Proceeds from (expenditures on)
revenue-producing properties, net (1,200) (43) (2,180) 287
Expenditures on ski
and resort operation assets (77,001) (54,067) (139,800) (78,109)
Acquisition of ski resort assets -- (29,421) (243,058) (29,421)
- -----------------------------------------------------------------------------------------------------
(78,201) (83,531) (385,038) (107,243)
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in cash and
short-term deposits (39,723) 49,275 (79,806) 25,665
Cash and short-term deposits
- beginning of period 76,954 36,108 117,037 59,718
- -----------------------------------------------------------------------------------------------------
Cash and short-term deposits
- end of period $ 37,231 $ 85,383 $ 37,231 $ 85,383
=====================================================================================================
</TABLE>
<PAGE> 9
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31 December 31
1998 1997 1998 1997
- ----------------------------------------------------------------------------------------------------------------
(millions of dollars except per share amounts) (unaudited)
<S> <C> <C> <C> <C>
REVENUE
Ski and resort operations $ 95.0 $ 80.0 $ 151.4 $ 107.8
Real estate sales 58.1 84.9 123.5 100.9
INCOME FROM CONTINUING OPERATIONS 2.9 4.2 0.3 0.3
INCOME (LOSS) FOR THE PERIOD 2.7 3.7 0.3 (0.6)
INCOME PER COMMON SHARE
Income from continuing operations 0.07 0.12 0.01 0.01
Net income 0.07 0.12 0.01 0.01
CASH FLOW FROM CONTINUING OPERATIONS 12.1 13.5 15.9 11.5
CASH FLOW PER COMMON SHARE 0.28 0.29 0.36 0.27
</TABLE>
INTRAWEST
Suite 800, 200 Burrard Street
Vancouver, B.C. Canada V6C 3L6
Tel: (604) 669-9777 Fax: (604) 669-0605
Website: www.intrawest.com
<PAGE> 10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the
undersigned, thereunto duly authorized.
INTRAWEST CORPORATION
Date: March 1, 1999 By /s/ Ross Meacher
--------------------------
Name: Ross Meacher
Title: Corporate Secretary
