Resort operator Intrawest posts first-quarter profit of $938,000

By Published On: June 7th, 2004Comments Off on Resort operator Intrawest posts first-quarter profit of $938,000

Resort operator Intrawest posts first-quarter profit of $938,000{mosimage}A boost from real estate development helped push Intrawest Corp. to a first-quarter profit and higher revenues, the North American ski resort operator and property company reported on Monday.

The Vancouver, British Columbia-based operator of resorts such as Whistler/Blackcomb in British Columbia, said it made $938,000, or 2 cents a share (all figures in U.S. dollars), for the quarter ended Sept. 30, compared with a loss of $10.9 million, or 23 cents a share, in the same quarter of the prior year. Revenues were $227.8 million, up from $114.5 million, it said in a statement.

Chief executive Joe Houssian said he remained wary of a strong Canadian dollar and the negative effect it could have on U.S. tourism. “We’re not seeing it today, but if there’s a warning flag that we’re still not willing to put away yet it would be on that point,” Houssian said in a conference call with analysts.

The Canadian dollar has climbed about 17 percent against the U.S. dollar since the start of the year.

For the quarter, the biggest revenue boost came from real estate development, which was $144.5 million, compared with $47 million last year. Closed real estate units and units scheduled to close in 2004 now amount to about $480 million, up from $400 million at the same point last year, the company said.

Cash flow from continuing operations was $18 million compared with negative cash flow of $114.9 million. The swing to positive cash flow was mainly due to increased real estate closings and the impact of selling projects to real estate company Leisura Developments, Intrawest said.

The Leisura partnership was established earlier in 2003 to take on the production phase of Intrawest’s real estate development business.

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