Real estate revenue falls, Intrawest profits cut
Sun
VANCOUVER (CP) – Ski resort operator Intrawest Corp. reported a sharp drop in profits in its latest quarter as a decline in the company’s real estate business dragged down overall revenues.
Intrawest said Tuesday it earned profits of $3.4 million or seven cents a sharre from continuing operations in the three months ended Dec. 31, the company’s fiscal 2003 second quarter. That compared with profits of $6 million or 14 cents a share in the same quarter in fiscal 2002.
Quarterly revenues fell to $208 million from $231.4 million.
“Our resorts performed extremely well in the quarter, with strong attendance during the holiday from coast to coast,” Joe Houssian, Intrawest’s chairman, president and chief executive, said in a release.
However, overall revenues were squeezed by a drop in real estate sales, which fell to $99.4 million from $141 million. The decrease was expected because more closings on condominium sales are expected later this year.
Intrawest said it closed the sale of 243 resort units during the quarter, down from 450 in the same quarter last year. Real estate profit fell to $13.9 million from $21.1 million last year.
For the six-month period, Intrawest (TSX:ITW) lost $7.6 million on revenue of $320.8 million. That compared with a loss of $3.7 million in the same period last year on revenue of $325.1 million.
© The Canadian Press, 2003