A skier rides up the new Crystal Ridge Express chairlift on Blackcomb Mountain in Whistler in this file photo.John Lehmann/The Globe and Mail
After bouncing back this past ski season, Whistler Blackcomb Holdings Inc. is gearing up for expansion plans to entice customers year-round as the B.C. company prepares to be sold to Vail Resorts Inc.
Colorado-based Vail announced on Monday that it will buy Whistler Blackcomb in a cash-and-stock deal valued at $1.4-billion, with the U.S. acquisitor vowing to support the Canadian firm's redevelopment plans to improve the B.C. mountain resort not only for winter operations but also for summer attractions.
"It's been a big week for us here at Whistler and there's lots to be excited about," Whistler Blackcomb chief executive officer Dave Brownlie said on Wednesday during a conference call with industry analysts. "During the next few months while our strategic combination with Vail Resorts goes through the approval process, we will remain focused on delivering positive guest experiences for our guests and executing on our plans."
The number of skier visits jumped 22 per cent year over year to nearly 2.16 million for the 2015-16 winter season at the renowned Canadian resort, located 125 kilometres north of Vancouver.
The winter of 2014-15 was disappointing at Whistler Mountain and Blackcomb Mountain, largely due to low snowfall that totalled 672 centimetres. But this past season saw 1,257 centimetres of snow, luring customers and helping boost revenue to $278.7-million for the nine months ended June 30, compared with $226.7-million for the same period in the previous fiscal year.
The Whistler-based company saw its third-quarter loss widen to $14.1-million from $9.9-million a year earlier, but its nine-month profit jumped 64 per cent to $52.7-million.
While this past season benefited from above-average snowfall, the previous three winters proved to be challenging with below-average snowfall for skiers and snowboarders.
Seeking to guard against the impact of climate change, Whistler Blackcomb unveiled a $345-million expansion strategy in April. The multiyear Renaissance program includes diversifying into year-round activities, including plans to open an indoor water park at Blackcomb Mountain's upper base. Also on tap are extended hiking trails and an expanded mountain-bike park, as well as real estate developments.
Whistler Blackcomb is holding discussions with the B.C. government, the resort municipality of Whistler and the Squamish and Lil'wat First Nations to renegotiate master plans that cover long-term development.
"We continue to make good progress on the renewal of our master development agreements, a key condition of moving forward with our Renaissance strategic plan," Mr. Brownlie said.
During the summer, local mountain bikers have become regular riders along paths while tourists from India and China are being lured to a gondola that provides majestic views of the Whistler region.
"Our pace in both our sightseeing and mountain-bike visits are up over the last year. Last year was an incredible summer, so we're actually really pleased with the resiliency of our summer business this year," Mr. Brownlie said. "It's been a positive summer, despite the cooler and wetter-than-normal conditions."
Skier visits still dominate, accounting for 90 per cent of total visits during the nine months ended June 30. But Mr. Brownlie said non-ski visits are gaining momentum, with summer traffic in the fiscal fourth quarter on the rise as B.C. residents go on repeat trips for hiking and biking.
Vail's friendly takeover deal is expected to be completed this fall, subject to clearing the Investment Canada Act and approval from Canada's Competition Bureau.
Raymond James Ltd. analyst Ben Cherniavsky said the odds are low that regulators will raise objections to the transaction and he believes it is extremely unlikely that there will be any competing bid.
While skier visits have declined over the past decade in the North American resort industry, Whistler Blackcomb's Renaissance project shows promise in spurring diversification at the B.C. destination, he said.
Brent Jang