Whoa. Killington sold.

[snoloco]

Something is fishy about this sale. Something tells me Powdr was/is in financial difficulty. Doesn't make much sense that they would dump K and also announce that two other popular hills were on the market all of a sudden, and then announced that they were diversifying into NP concessions, of all things. I guess that's a good business these days, but, really? Maybe they're getting out while they can. So, anyway, my guess is on the low end of those three, with provisions. Fire sale time.

Of the 4 properties that they are selling, I don't think any of them are unprofitable, but Killington and Mount Bachelor will need a lot of lift investment in the near future. The other two are in better shape. They're keeping Copper, Snowbird, Boreal, and Soda Springs. If they're keeping those resorts, then I don't think it's a case of getting out while they can. Otherwise they'd just sell everything.

I just don't see a conspiracy or anything fishy here. The new people have been relatively transparent on what their intentions are, and it's most likely the best outcome for Killington compared to staying under Powdr or being bought by Alterra or Vail. I don't blame you for thinking that way though. Killington has been hamstrung by awful corporate management for years. Given the history, I see how it could be hard for some to trust a new buyer. I just say give it time before passing further judgement.

 

[x10003q]

Wow. Vail paid 100 million for Seven Springs? I'm telling you, if I was a big short seller, I'd be all over that company. Unfortunately, when the cracks start widening, they're going to leave a lot of dead and dormant ski areas behind.

Something is fishy about this sale. Something tells me Powdr was/is in financial difficulty. Doesn't make much sense that they would dump K and also announce that two other popular hills were on the market all of a sudden, and then announced that they were diversifying into NP concessions, of all things. I guess that's a good business these days, but, really? Maybe they're getting out while they can. So, anyway, my guess is on the low end of those three, with provisions. Fire sale time.

What's fishy? I could be Powdr just readjusting their portfolio. They still are retaining ownership in Killington. If they were in trouble they would be done with Killington along with some of the more profitable areas they own.

 

[MarzNC]

What comes to mind for me is that John Cummings is getting older. There is no obvious member of the family who could take over in the coming years. Shifting focus is in keeping with how he has adjusted to the ever changing leisure industry, beyond just ski slopes. He stopped being the CEO of Powdr in 2018, soon after his father died.

". . .
Cumming said he decided to step down due to his increased roles at organizations outside of Powdr. He said that he is proud to see how Powdr has evolved in the last five years, but said it is “clear that now is the right time for me to step down as CEO.”

“I am confident that Wade, Justin and Tim, and our teams and leaders across Powdr’s properties, will continue to protect and enhance the adventure lifestyle for generations to come,” he said.
. . ."

Notice he didn't say "ski lifestyle."

 

[Benny Profane]

What's the key metric to determine sale price?

What somebody will pay at the moment.

 

[Benny Profane]

What's fishy? I could be Powdr just readjusting their portfolio. They still are retaining ownership in Killington. If they were in trouble they would be done with Killington along with some of the more profitable areas they own.

They are a ski "resort" operator. They have been since inception. Why are they selling Killington, probably the most visited hill in Vermont, and Bachelor, a very popular hill in the Northwest that gets filled up with eastern ski clubs, despite the distance? You really can't find hills in any other regions that are healthier in ticket sales. It's like GM selling Chevy, General Mills selling Cheerios. Something is wrong.

 

[Benny Profane]

Of the 4 properties that they are selling, I don't think any of them are unprofitable, but Killington and Mount Bachelor will need a lot of lift investment in the near future. The other two are in better shape. They're keeping Copper, Snowbird, Boreal, and Soda Springs. If they're keeping those resorts, then I don't think it's a case of getting out while they can. Otherwise they'd just sell everything.

I just don't see a conspiracy or anything fishy here. The new people have been relatively transparent on what their intentions are, and it's most likely the best outcome for Killington compared to staying under Powdr or being bought by Alterra or Vail. I don't blame you for thinking that way though. Killington has been hamstrung by awful corporate management for years. Given the history, I see how it could be hard for some to trust a new buyer. I just say give it time before passing further judgement.

They aren't dumping everything because that action would dilute the asking price of their remaining assets. They'd be setting the market with that sudden fire sale. They've already signalled blood in the water by putting Bachelor on the market at the same time. The sharks must be circling, and they won't pay 2021 prices, for sure.

As far as corporate management, I think that place has been run really well the last five years, and I'm a 35 year K skier. Blown away sometimes by snowmaking, grooming, and lift operations in late March, when a lot of places are winding down. The new base lodge finally went up, but, beer is 14-15 bucks. Boohoo.
It's the best place to drive 4-5 hours for the Jersey crowd most days of the season. The new guys have to keep that, if they want return on their money.

 

[riverc0il]

Notice he didn't say "ski lifestyle."

I don't think that the "ski lifestyle" (whatever that means, but I am envisioning what a resort might think it means) is sustainable for many generations to come. A resort corporation saying "adventure lifestyle" is more honest and direct and accurate.

 

[Harvey]

What somebody will pay at the moment.

I guess it was dumb question. I was wondering if there was some kind of profitability formula, based in the last three years or something. At our company, stock price is set on "book value" which is generally a very conservative estimate of value.

 

[Benny Profane]

It's a funny game. There was recently a famous trial in NY state convicting a politician of over and under valuing his business assets, which everybody does, and they took all his money as a penalty.

 

[Peter Minde]

I don't think that the "ski lifestyle" (whatever that means, but I am envisioning what a resort might think it means) is sustainable for many generations to come. A resort corporation saying "adventure lifestyle" is more honest and direct and accurate.

"Adventure lifestyle" seems to connote doing stuff all year round at yer mountain. Possibly buying real estate.