Steamboat Springs Fortress Investment Group reported a $171 million net loss for the second quarter, which ended June 30. The company saw a net loss of $250 million in the second quarter of 2008.
The private-equity and hedge fund manager is the parent company of Intrawest, which is the parent company of Steamboat Ski and Resort Corp. Some Fortress funds are invested in development at the base area of Mount Werner in Steamboat Springs.
Fortress released its financial report Wednesday. The company reported that its net loss attributable to shareholders was $45 million, or 41 cents per share. That compares with a loss of 67 cents per share in the second quarter of 2008.
Excluding compensation for principals, Fortress' net second-quarter income was $66 million. The company announced in June that it wouldn't pay second-quarter dividends.
Fortress' losses improved compared with the first quarter, when it reported a net loss of $287 million.
Fortress Chairman and CEO Wesley Edens spoke about the results during a conference call with analysts this week.
"For the second quarter, it was our strongest quarter in the past year," Edens said. "First of all, our assets under management ended the quarter at $31 billion, up $4.5 billion, or 17 percent, from the $26.5 billion that we closed at the end of the first quarter. The increase is primarily a result of positive investment performance across all three businesses and the closing of the management of a large credit hedge fund."
Fortress ran into issues in December, finding itself in a position where it had to hold back redemptions from some of its funds. Investors requested $3.5 billion of their money in November and December. The amount would have wiped out the funds, so Fortress suspended redemptions.
News has improved for the company. Fortress raised $219.5 million in net proceeds by selling 46 million shares in a common stock offering in May. The company used half of that to pay down debt, Edens said.
"As of today, we have approximately $410 million in outstanding debt and approximately $100 million in cash, so net debt just a shade over $300 million, which puts our balance sheet liquidity in a real place of strength," Edens said.
Daniel Mudd, former chief executive officer of mortgage giant Fannie Mae, will take over from Edens as CEO on Tuesday. Fortress also elected a new board member, George Wellde.
Fortress was trading at $5.11 per share, up 26 cents, when the stock market closed Thursday.