Yeah, I'm jumping into this thread late. Regardless, here is some info on Powdr:
1) Powdr lost PCMR (literally). There were a zillion posts on other threads, but basically Powdr forgot to renew a 40-year lease that was for less than some people lease a house in San Francisco. Talisker (Jack Bistricer) then leased the land from the United Park City Mine lease to Vail Resrots and later the court ruled against Powdr and in favor of the lessor. This killed Powdr's cash flow to the tune of $35 million per year. It seems PCMR is a one story whorehouse (no f___ing overhead). Whoops! There goes the capital expenditures for the rest of Powdr's portfolio.
2) Powder is primarily owned by John Cumming. His father, Ian, is one of the wealthiest investors in the USA with a net worth of around $7 billion (he wrote the book on utilizing tax loss carry-forwards with M&A).
3) Before losing PCMR Dick Bass, another billionaire, sold his stake in Snowbird to the Cumming family. Bass died soon thereafter knowing Snowbird would have a steward of the mountain that would never sell. This deal was with the Cumming family, not with Powdr Corp.
4) With the loss of PCMR Powdr now has less cash flow for lift replacement, although it has access to all the cash it will ever need through Ian Cumming.
5) Powdr is no Vail Resorts when it comes to management, employee training or capital spending.
6) Lift replacement is a big issue in the industry because no one seems to reserve for it. I believe this is in part why Solitude sold and why others have sold. CapEx is high and the industry is in decline. The only operator that doesn't care about spending money is Vail Resorts, which just buys lifts with borrowed money. So far it created enough synergies to create enough steady cash flow (EPIC Pass) to cover the debt with enough left over for a dividend.
7) FWIW, Taos is also now owned by a billionaire who cares about the mountain and isn't operating it solely for profit. I'll bet the Cumming family puts money into Snowbird faster than they put money into the Powdr portfolio.
Edited by quant2325 - 10/5/15 at 9:04pm