Peak Resorts Inc (SKIS) Q2 FY2015 Quarterly Earnings Call Transcript

Tim Boyd, President and C.E.O. Peak Resorts.

Yes. We believe that the landscape is very fertile for us in the acquisition arena, especially in the day and the overnight space where we operate. We think there are a lot of potential targets out there and of course based on our historical performance we have every reason to believe that we can take advantage of that and we don’t see any impediments in terms of our ability to do that. We really believe that we created an environment with the IPO that will actually enhance our ability to make these acquisitions by what I discussed earlier in terms of our lower cost of capital, having our five additional properties unencumberedto add liquidity to us which we believe is going to give us more of an ability to make these acquisitions going forward.

David Loeb, Baird.

Great. Thank you.

Operator

Our next question comes from Ian Zaffino by Rick Faulkner. Please go ahead.

Rick Faulkner – Ian Zaffino.

Hi Guys. This is Rick Faulkner for Ian. I just had a follow up EB-5 financing. It sounds as if you are saying that, well, I mean, basically there are two projects in mind.  It does not sound like you need financing for both to begin construction on the first. Am I right?

Dick Deutsch, Vice President – Business and Real Estate Development.

This is Dick. You are correct. In the way that we have our project structured, the first $30 million will go to the construction of the West Lake water project and the next $22 million would be for infrastructure work and the construction of a new base lodge at our Carinthia part of Mount Snow.

Rick Faulkner – Ian Zaffino.

Ok. Got it. Thanks.

Operator

Again, if you have a question please press * then 1. Our next question comes from Jim Young of West Family Investments. Please go ahead.

Jim Young, West Family Investments

Yeah Hi. You have mentioned on some resort bases that you are up by 11% over the average of last five years. Could you break that up between volume and pricing?

Steve Mueller, Vice President and C.F.O. Peak Resorts.

This is Steve. The majority of that is pricing. I would say probably two thirds of that is pricing. The remainder is volume.

Jim Young, West Family Investments

OK. And then, could you explain what is the benefit of this new direct-to-lift RFID technology to your business?

Tim Boyd, President and C.E.O. Peak Resorts.

Well, basically, right now it is for season pass holders. It gives them the ability to bypass our ticket windows and go directly from their cars to our lifts. But the longer term benefit of this technology is that we think that we would be able to grow this into an ability for our regular customers to buy lift tickets in other parts of our services in the future  right off the web, where they would be able to get direct access to our resorts too  again without going to a ticket window.

Jim Young, West Family Investments

Ok. Then lastly. This is a follow up to the question with respect to your energy costs. Could you just clarify again, how much on average, over the last five years or so, do you spend on your energy, given where oil has declined precipitously over the last three months? How much of the benefit do you see being realized in this ski season, 2015?