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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
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 MAY 1999
INTRAWEST CORPORATION
(Registrant's name)
SUITE 800, 200 BURRARD STREET, VANCOUVER, BC CANADA V6C 3L6
(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-________.
<PAGE> 2
TO OUR SHAREHOLDERS
This quarter validated our position as the leader in our industry. The third
quarter is our most significant and we dramatically outperformed our industry,
showing a 40% increase in EBITDA. We also saw Whistler/Blackcomb record its two
millionth visit in mid-April, the first time any resort in North America has
achieved this remarkable feat.
Our strong performance in a year when others in our industry are showing
declines in skier visits is presenting us with unique opportunities. To allow us
to capitalize on our current momentum and these opportunities, we sold 3.45
million common shares at $25.40, adding the $84.1 million in net proceeds to the
Company's equity base. We will, as we have in the past, carefully appraise any
potential new investments to ensure that they are accretive to earnings per
share and strategically sound.
During the third quarter we closed on the acquisition of 45% of Alpine
Helicopters Ltd. ("Alpine"), the parent company of Canadian Mountain Holidays
Inc., the world leader in heli-skiing. We also closed on 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.
OPERATING RESULTS
Income from continuing operations for the third quarter was $54.6 million ($1.38
per share) compared with $42.6 million ($1.24 per share) last year. Year-to-date
income from continuing operations was $54.9 million ($1.39 per share), up from
$42.9 million ($1.25 per share) last year. The per share results reflect a 15%
increase in the average number of shares outstanding.
Total company EBITDA for the quarter was $118.7 million, compared with $84.2
million in the prior year. For the nine months total company EBITDA rose to
$155.3 million compared with $110.6 million the prior year.
Revenue from ski and resort operations was $331.4 million in the third quarter
compared with $212.2 million in the third quarter last year. Revenue increased
at every one of our resorts and Whistler/Blackcomb, Tremblant, Panorama,
Stratton and Snowshoe all experienced record third quarter business. Revenue
growth was driven by a 13% increase in same-resort visits for the quarter.
Further contributing to this growth was a 6% increase in revenue per visit on a
same-resort basis. The three and nine month results also include revenue from
the warm-weather resorts as well as Blue Mountain and Alpine.
Due to the timing of construction, real estate revenue and operating profit were
down relative to the same quarter last year, however year-to-date, real estate
sales were up 7% and operating profit was up 18% from last year. Real estate
revenue totaled $53.4 million for the quarter compared with $64.3 million in the
third quarter last year. Operating profit from real estate sales was $10.1
million in the third quarter compared with $11.9 million last year. Closed units
and pre-sales for delivery in the fourth quarter total more than $165 million,
approximately three times more than last year.
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Our success in recent real estate pre-sales has been significant.
- - In February four buildings in Copper Village sold out rapidly in a 140
mountain home sale which generated $117 million.
- - In March 51 mountain homes were sold at Panorama for $10 million.
- - Also in March the 126-suite Westin Resort Tremblant, to be operated by
Intrawest under a franchise agreement with Starwood Hotels & Resorts, sold
out in 12 hours, generating $32 million.
- - In April Intrawest successfully launched its first quarter-ownership
project at Whistler, with over $20 million in real estate being sold,
representing over 90% of the total project. With this success, Intrawest
plans to expand this concept to its other resorts.
- - In May Intrawest successfully launched the Sunstone project at Mammoth,
selling all 77 of the units in less than 3 hours for over $41 million.
We now have over $400 million in pre-sales representing over 1,000 total units
to close in 2000 and 2001. The addition of these units will have a significant
positive impact on the operating income of our resorts, as well as having a
substantial effect on our real estate income.
DIVIDENDS
On May 10,1999, the Board of Directors of the company declared a dividend of
$0.08 per common share payable on July 19,1999 to owners of record on July
5,1999.
OUTLOOK
This year's success dramatically affirms the strength of our strategy. The use
of resort villages, combined with a very customer-oriented operational focus,
has fundamentally changed the way our industry operates and we are unrivalled in
the application of this approach. We will be alert to opportunities to
capitalize on this position of strength but remain very focused on reaping the
benefits which are flowing from the capital investment of the past two years and
the further development of the irreplaceable resorts we have assembled.
On behalf of the Board,
/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
May 10, 1999
<PAGE> 4
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31 March 31
------------------------- ------------------------
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------
(in thousands of dollars except per share amounts)
(unaudited)
<S> <C> <C> <C> <C>
REVENUE
Ski and resort operations $ 331,394 $ 212,229 $ 482,748 $ 319,989
Real estate sales 53,390 64,317 176,847 165,207
Rental properties 2,146 1,843 5,615 4,385
Income from equity
accounted investment 2,269 -- 2,269 --
Interest and other income 3,513 470 7,197 3,258
- ---------------------------------------------------------------------------------------------------
392,712 278,859 674,676 492,839
- ---------------------------------------------------------------------------------------------------
EXPENSES
Ski and resort operations 225,494 139,594 369,143 241,570
Real estate costs 43,300 52,424 142,427 135,978
Rental properties 1,070 623 2,619 1,749
Interest 10,331 6,308 27,252 16,030
Depreciation and amortization 28,875 20,219 43,595 30,549
General and administrative 3,174 3,220 7,649 7,093
- ---------------------------------------------------------------------------------------------------
312,244 222,388 592,685 432,969
- ---------------------------------------------------------------------------------------------------
Income before income taxes,
non-controlling interest and
discontinued operations 80,468 56,471 81,991 59,870
Provision for income taxes 17,106 10,724 17,464 12,988
- ---------------------------------------------------------------------------------------------------
Income before non-controlling interest
and discontinued operations 63,362 45,747 64,527 46,882
Non-controlling interest 8,751 3,104 9,636 3,970
- ---------------------------------------------------------------------------------------------------
Income from continuing operations 54,611 42,643 54,891 42,912
Results of discontinued operations (4) 432 44 (429)
- ---------------------------------------------------------------------------------------------------
Income for the period $ 54,607 $ 43,075 $ 54,935 $ 42,483
- ---------------------------------------------------------------------------------------------------
Income per common share
Income from continuing operations $ 1.38 $ 1.24 $ 1.39 $ 1.25
Net income $ 1.38 $ 1.24 $ 1.39 $ 1.25
- ---------------------------------------------------------------------------------------------------
Weighted average number of
common shares outstanding
(in thousands) 39,674 34,412 39,513 34,386
- ---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
As at March 31 1999 1998
---------- ----------
(in thousands of dollars)
(unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash and short-term deposits $ 81,609 $ 74,993
Other assets 84,944 42,859
Amounts receivable 105,118 57,412
Properties
Resort 274,940 143,607
Discontinued operations 7,716 12,993
- -----------------------------------------------------------------------------
554,327 331,864
Ski and resort operations 937,960 561,322
Goodwill 78,226 78,689
Properties
Resort 409,019 238,100
Discontinued operations 31,023 46,258
Amounts receivable 49,460 52,985
Other assets 92,050 32,347
- -----------------------------------------------------------------------------
$2,152,065 $1,341,565
=============================================================================
LIABILITIES
Current liabilities
Amounts payable $ 183,653 $ 123,469
Deferred revenue 80,422 18,524
Bank and other indebtedness, current portion
Resort 255,767 72,597
Discontinued operations 8,204 2,356
- -----------------------------------------------------------------------------
528,046 216,946
Bank and other indebtedness
Resort 807,955 509,570
Discontinued operations 6,141 32,420
Due to joint venture partners 12,012 18,749
Deferred revenue 17,600 9,950
Deferred income taxes 14,132 5,804
Non-controlling interest in subsidiaries 34,453 10,098
- -----------------------------------------------------------------------------
1,420,339 803,537
- -----------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 495,526 375,465
Retained earnings 198,628 151,381
Foreign currency translation adjustment 37,572 11,182
- -----------------------------------------------------------------------------
731,726 538,028
- -----------------------------------------------------------------------------
$2,152,065 $1,341,565
=============================================================================
</TABLE>
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CONSOLIDATED STATEMENTS OF
RETAINED EARNINGS
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31 March 31
------------------------ -------------------------
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(in thousands of dollars) (unaudited)
Retained earnings-beginning
of period $ 144,021 $ 108,306 $ 146,859 $ 111,649
Income for the period 54,607 43,075 54,935 42,483
Dividends -- -- (3,166) (2,751)
- ---------------------------------------------------------------------------------------------
Retained earnings-end of period $ 198,628 $ 151,381 $ 198,628 $ 151,381
=============================================================================================
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOW
FROM OPERATIONS
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31 March 31
------------------------- -------------------------
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------
(in thousands of dollars except per share amounts)
(unaudited)
<S> <C> <C> <C> <C>
Income before non-controlling
interest and discontinued
operations $ 63,362 $ 45,747 $ 64,527 $ 46,882
Items not affecting cash
Depreciation and amortization 28,875 20,219 43,595 30,549
Income from equity
accounted investment (2,269) -- (2,269) --
Cash flow from continuing
operations $ 89,968 $ 65,966 $ 105,853 $ 77,431
- ---------------------------------------------------------------------------------------------
Cash flow per common share $ 2.01 $ 1.78 $ 2.38 $ 2.08
- ---------------------------------------------------------------------------------------------
</TABLE>
Note: Cash flow per common share is calculated after providing for
non-controlling interest.
<PAGE> 7
CONSOLIDATED STATEMENTS OF CHANGES
IN FINANCIAL POSITION
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31 March 31
--------------------- --------------------
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------
(in thousands of dollars) (unaudited)
<S> <C> <C> <C> <C>
CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Cash flow from operations $ 89,968 $ 65,966 $ 105,853 $ 77,431
Recovery of costs through
real estate sales 43,300 52,424 142,427 135,978
Increase in amounts receivable, net (5,384) (4,002) (37,798) (17,579)
Acquisition and development
of properties for sale (62,398) (62,782) (266,310) (193,766)
Other changes in non-cash
operating working capital 40,313 (1,936) 9,889 48,782
Cash provided by discontinued operations 1,413 6,788 4,686 9,796
- ---------------------------------------------------------------------------------------------------------
107,212 56,458 (41,253) 60,642
- ---------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Bank and other borrowings, net (5,640) (23,721) 424,356 116,628
Issue of capital stock 172 909 33,076 2,210
Redemption of non-resort preferred shares -- -- (20,857) (9,015)
Proceeds on sale of partnership interest -- -- 15,980 --
Dividends paid -- -- (3,166) (2,751)
Distributions to non-controlling interests (1,751) (1,179) (2,911) (2,339)
- ---------------------------------------------------------------------------------------------------------
(7,219) (23,991) 446,478 104,733
- ---------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Proceeds from (expenditures on)
revenue-producing properties, net 40 9,209 (2,140) 9,496
Expenditures on ski
and resort operation assets (24,828) (12,155) (164,628) (90,264)
Acquisition of resort assets (30,827) (39,911) (273,885) (69,332)
- ---------------------------------------------------------------------------------------------------------
(55,615) (42,857) (440,653) (150,100)
- ---------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and
short-term deposits 44,378 (10,390) (35,428) 15,275
Cash and short-term deposits
- - beginning of period 37,231 85,383 117,037 59,718
- ---------------------------------------------------------------------------------------------------------
Cash and short-term deposits
- - end of period $ 81,609 $ 74,993 $ 81,609 $ 74,993
=========================================================================================================
</TABLE>
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31 March 31
-------------------- --------------------
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------
(millions of dollars except per share amounts)
(unaudited)
<S> <C> <C> <C> <C>
REVENUE
Ski and resort operations $ 331.4 $ 212.2 $ 482.7 $ 320.0
Real estate sales 53.4 64.3 176.8 165.2
INCOME FROM CONTINUING OPERATIONS 54.6 42.6 54.9 42.9
INCOME FOR THE PERIOD 54.6 43.1 54.9 42.5
INCOME PER COMMON SHARE
Income from continuing operations 1.38 1.24 1.39 1.25
Net income 1.38 1.24 1.39 1.25
CASH FLOW FROM CONTINUING OPERATIONS 90.0 66.0 105.9 77.4
CASH FLOW PER COMMON SHARE 2.01 1.78 2.38 2.08
</TABLE>
<PAGE> 9
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: May 28, 1999 By /s/ ROSS MEACHER
------------------------------------
Name: Ross Meacher
Title: Corporate Secretary
