Intrawest Reports Fiscal 2015 Third Quarter Results

Intrawest Resorts Holdings, Inc. (NYSE: SNOW), a leading North American mountain resort and adventure company, today reported results for the three and nine months ended March 31, 2015. Fiscal 2015 third quarter results include Blue Mountain which was acquired in September. In the prior year period, the Company’s 50% interest in Blue Mountain was accounted for under the equity method and results included only 50% of Blue’s Adjusted EBITDA and none of Blue’s skier visits or revenue. For comparative purposes, the Company has provided Same Store metrics calculated as if Blue was 100% owned in both periods and on a constant currency basis.

For the Company’s third quarter of fiscal 2015:

• Net income attributable to Intrawest Resorts Holdings, Inc. was $128.7 million, representing a 17.6% increase compared to the prior year period.
• Adjusted EBITDA increased 9.9% to $156.4 million compared to the prior year period, or 8.4% on a Same Store basis.
• Total reportable segment revenue increased 12.7% to $320.3 million compared to the prior year period, or 4.8% on a Same Store basis.
• Total skier visits increased 26.8% compared to the prior year period, or 2.6% on a Same Store basis.
• Lift revenue increased 21.1% compared to the prior year period, or 8.2% on a Same Store basis.
• The Company amended its Term Loan Credit Agreement to reduce its interest rate margin by 75 basis points.

“Overall, we are very pleased with our fiscal third quarter results. We experienced strong growth in our Mountain segment largely due to the power of our season pass and frequency product program, successful pricing initiatives, and the impact of our growth capital investments,” stated Tom Marano, Chief Executive Officer. “While preliminary industry reports indicate an overall decline in skier visits, we drove skier visit growth across all regions and overcame challenging weather conditions.”

Fiscal 2015 Third Quarter Highlights

Below are our comparative results for the three months ended March 31, 2015 as compared to the prior year period:

Consolidated Results

• Consolidated revenue increased $36.0 million, or 12.6%, to $321.8 million.
• Net income attributable to Intrawest Resorts Holdings, Inc. improved $19.2 million, or 17.6%, to $128.7 million, or $2.85 per diluted share. This growth was largely a result of improved operating results.
• Total Adjusted EBITDA increased $14.1 million, or 9.9%, to $156.4 million. The increase was largely driven by the Mountain Segment due to both the inclusion of 100% of Blue Mountain and organic growth in Lift revenue and other guest services revenue.

Mountain Segment

• Mountain revenue increased $43.0 million, or 20.0%, to $258.1 million, primarily due to the inclusion of revenue from Blue Mountain.
• On a Same Store basis, Mountain revenue increased $16.4 million, or 6.5%, primarily due to increases in season pass and frequency product revenue and revenue from guest services.
• Mountain Adjusted EBITDA increased $16.5 million, or 13.9%, to $135.7 million, primarily due to the $43.0 million increase in Mountain revenue, partially offset by an $18.4 million increase in Mountain operating expenses.
• On a Same Store basis, Mountain Adjusted EBITDA increased $12.6 million, or 9.9%, as the result of revenue growth and strong flowthrough.

Adventure Segment

• Adventure revenue declined $5.8 million, or 11.5%, to $44.6 million, primarily due to a $5.5 million unfavorable foreign currency translation adjustment.
• Adventure Adjusted EBITDA decreased $3.4 million, or 17.9%, to $15.4 million, primarily due to a $2.3 million unfavorable foreign currency translation adjustment and a decline at CMH.
• On a constant currency basis, Adventure Adjusted EBITDA decreased by only $1.1 million, or 5.8%, despite challenging weather conditions at CMH.

Real Estate Segment

• Real Estate revenue decreased $1.2 million, or 6.6%, to $17.6 million, primarily due to lower sales volume at the Company's vacation club business and an unfavorable foreign currency translation adjustment of $0.5 million.
• Real Estate Adjusted EBITDA increased $0.9 million, or 22.1%, to $5.2 million, primarily due to a gain on the sale of a parcel of land at Tremblant.
• On a constant currency basis, Real Estate Adjusted EBITDA increased by $1.1 million, or 26.2%.

Webcast and Earnings Conference Call

The Company will host a conference call via live webcast for investors and other interested parties beginning at 9:00 a.m. Eastern Time on Thursday, May 7, 2015. Participants may access the live webcast by visiting the Company’s investor relations website at ir.intrawest.com. The call can also be accessed by dialing (877) 705-6003 (U.S. and Canada), or (201) 493-6725 for international participants.

The replay of the call will be available from approximately 12:00 p.m. Eastern Time on May 7, 2015 through midnight Eastern Time on May 21, 2015. To access the replay, the domestic dial-in number is (877) 870-5176, the international dial-in number is (858) 384-5517, and the passcode is 13607504. The archive of the webcast will be available on the Company’s website for a limited time.

About Intrawest Resorts Holdings, Inc.

Intrawest is a North American mountain resort and adventure company, delivering distinctive vacation and travel experiences to its customers for over three decades. The Company wholly owns six four-season mountain resorts with approximately 8,000 skiable acres and over 1,130 acres of land available for real estate development. Intrawest’s mountain resorts are geographically diversified across most of North America’s major ski regions, including the Eastern United States, the Rocky Mountains, and Canada. The Company also operates an adventure travel business, the cornerstone of which is Canadian Mountain Holidays, a leading heli-skiing adventure company in North America. Additionally, the Company operates a comprehensive real estate business through which it manages, markets and sells vacation club properties; manages condominium hotel properties; and sells and markets residential real estate. Intrawest Resorts Holdings, Inc. common stock is traded on the New York Stock Exchange (NYSE: SNOW). For more information, visit www.intrawest.com.

Forward-Looking Statements

This press release includes “forward - looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “intend”, “expect”, “estimate”, “plan”, “outlook” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including weakness in general economic conditions; lack of adequate snowfall and unfavorable weather conditions; adverse events that occur during our peak operating periods; our failure to achieve the expected benefits of our recent acquisition and other risks associated with our acquisition strategy; Steamboat Ski & Resort's dependence on subsidized direct air service; risks related to information technology; our potential failure to maintain the integrity of our customer or employee data; risks of foreign currency fluctuations which could reduce the U.S. dollar value of our Canadian earnings; adverse consequences of ongoing legacy litigation or future legal claims; our ability to monetize real estate assets; a partial or complete loss of Alpine Helicopters’ services; the effects of climate change on our business operations; our ability to maintain effective internal control over financial reporting; our substantial leverage, which could adversely affect our ability to raise additional capital to support our growth strategy; risks associated with Fortress’s ownership of a majority of our outstanding common stock and other risks described under the caption “Risk Factors” in Part I - Item 1A., “Risk Factors” in our Annual Report on Form 10-K for the period ended June 30, 2014, filed with the Securities and Exchange Commission (“SEC”) on September 23, 2014, as may be revised in our future SEC filings. We operate in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Statement Concerning Non-GAAP Financial Measures

We use Adjusted EBITDA as a measure of our operating performance. Adjusted EBITDA is a supplemental non-GAAP financial measure.

Our board of directors and management team focus on Adjusted EBITDA as a key performance and compensation measure. Adjusted EBITDA assists us in comparing our performance over various reporting periods because it removes from our operating results the impact of items that our management believes do not reflect our core operating performance. The compensation committee of our board of directors will determine the annual variable compensation for certain members of our management team, based in part, on Adjusted EBITDA.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA to compare the performance of those companies to our performance. Adjusted EBITDA should not be considered as a measure of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to our GAAP results and using Adjusted EBITDA as a supplemental measure.

Mountain Segment (dollars in thousands)

Mountain Segment Same Store

Adventure Segment (dollars in thousands)

Real Estate Segment (dollars in thousands)

Total Reportable Segment Revenue and Adjusted EBITDA (dollars in thousands)

The following table presents consolidated revenue, net income (loss) reconciled to Adjusted EBITDA, and Adjusted EBITDA by segment (dollars in thousands):