American Skiing Company Announces Fiscal 2006 First Quarter Results
Company Reports Significant Increase in Season Pass Sales for Second
Straight Year
PARK CITY, UTAH - December 14, 2005 - American Skiing Company (OTCBB: AESK)
today announced its financial results for the first quarter of fiscal 2006. The
Company also reported stronger season pass sales than at the same time in fiscal
2005, as well as positive guest reservation trends heading into its winter
operating season. Increases in season pass sales were driven primarily by the
second successful year of its acclaimed All For One multi-resort pass in the
eastern market.
"While it is quite early in the season, we have enjoyed successes from our
season pass initiatives. The second year of our All For One pass and favorable
early-season skiing and riding conditions have contributed to a great start to
the season for the Company. The East saw an October opening at Killington with
the rest of our eastern resorts opening by Thanksgiving weekend. In the West,
abundant early season snowfall and cool winter temperatures for snowmaking have
created fantastic skiing and riding conditions at both The Canyons and
Steamboat, with Steamboat recording a record amount of snowfall through its
early season," said CFO Betsy Wallace.
Fiscal 2006 First Quarter Results
On a GAAP basis, net loss attributable to common shareholders for the first
quarter of fiscal 2006 was $42.2 million, or $1.33 per basic and diluted common
share, compared with a net loss attributable to common shareholders of $37.7
million, or $1.19 per basic and diluted common share for the first quarter of
fiscal 2005. Total consolidated revenue was $20.1 million for the first quarter
of fiscal 2006, compared with $19.5 million for the first quarter of fiscal
2005. Revenue from resort operations was $17.1 million for the first quarter of
fiscal 2006 compared with $17.8 million for the first quarter of fiscal 2005.
The decrease in resort revenues reflects the lower levels of summer business at
the Company's eastern resorts due to rainy weather, and lower levels of group
and conference business at Steamboat and The Canyons in the first quarter of
fiscal 2006. Revenue from real estate operations was $3.0 million for the
quarter versus $1.7 million for the comparable period in fiscal 2005. The
increase in real estate revenue was primarily a result of increased sales of
fractional unit inventory at Steamboat versus the comparable period in fiscal
2005.
The loss from resort operations was $40.8 million for the first fiscal quarter
of 2006 versus a loss of $37.1 million for the first quarter of fiscal 2005. The
wider loss was associated with the decrease in revenues mentioned above, a $2.0
million increase in resort interest expense, a $0.4 million increase in repairs
and maintenance expense and employee benefits, a $0.7 million increase in
marketing, general and administrative expenses and a $0.8 million increase in
depreciation expense due largely to a $0.7 million adjustment recorded as a
result of the review of the seasonal usage of ski resort operating assets;
offset by a $0.2 million net gain on sale of property and a $0.7 million
increase in fair value of the interest rate swap agreement.
The loss from real estate operations was $1.4 million for the first fiscal
quarter of 2006 compared with a loss of $0.6 million for the comparable quarter
in fiscal 2005. The increased loss was associated with a $0.8 million increase
in costs due to an increase in revenues and a $1.5 million increase in
impairment loss on the sale of retail commercial space; offset by a $1.2 million
increase in revenues mentioned above, a $0.2 million decrease in depreciation
and amortization and a $0.1 million decrease in interest expense due to
restructuring of real estate debt.
About American Skiing Company
Headquartered in Park City, Utah, American Skiing Company is one of the largest
operators of alpine ski, snowboard and golf resorts in the United States. Its
resorts include Killington, Pico and Mount Snow in Vermont; Sunday River and
Sugarloaf/USA in Maine; Attitash in New Hampshire; Steamboat in Colorado; and
The Canyons in Utah. More information is available on the Company's web site,
www.peaks.com.
Certain statements contained in this press release constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended (the Securities Act), and Section 21E of the Securities Exchange Act of
1934, as amended (the Exchange Act). These forward-looking statements are not
based on historical facts, but rather reflect our current expectations
concerning future results and events. Similarly, statements that describe our
objectives, plans or goals are or may be forward-looking statements. We have
tried, wherever possible, to identify such statements by using words such as
"anticipate", "assume", "believe", "expect", "intend", "plan", and words and
terms of similar substance in connection with any discussion of operating or
financial performance. Such forward-looking statements involve a number of risks
and uncertainties. In addition to factors discussed above, other factors that
could cause actual results, performances or achievements to differ materially
from those projected include, but are not limited to, the following: changes in
regional and national business and economic conditions affecting both our resort
operating and real estate operating segments; competition and pricing pressures;
adverse weather conditions regionally and nationally; changes in weather
patterns resulting from global warming; seasonal business activity; increased
gas and energy prices; changes to federal, state and local regulations affecting
both our resort operating and real estate segments; failure to renew land leases
and forest service permits; disruptions in water supply that would impact
snowmaking operations; the loss of any of our executive officers or key
operating personnel; and other factors listed from time to time in our documents
we have filed with the Securities and Exchange Commission. We caution the reader
that this list is not exhaustive. We operate in a changing business environment
and new risks arise from time to time. The forward-looking statements included
in this press release are made only as of the date of this document and under
Section 27A of the Securities Act and Section 21E of the Exchange Act, we do not
have or undertake any obligation to publicly update any forward-looking
statements to reflect subsequent events or circumstances.
American Skiing Company and Subsidiaries
Unaudited Condensed Consolidated Financial Statement Information
(in thousands, except per share amounts)
13 Weeks Ended 13 Weeks Ended
Net revenues: October 30, 2005 October 24, 2004
----------------------------------
Resort $ 17,147 $ 17,820
Real estate 2,969 1,726
---------------- ----------------
Total net revenues 20,116 19,546
---------------- ----------------
Operating expenses:
Resort 23,963 23,609
Real estate 1,942 1,108
Marketing, general and administrative 11,568 10,817
Depreciation and amortization 2,910 2,279
Gain on sale of property (169) -
Impairment loss on property sold 1,533 -
---------------- ----------------
Total operating expenses 41,747 37,813
---------------- ----------------
Loss from operations (21,631) (18,267)
Interest expense, net (21,254) (19,453)
Increase in fair value of interest rate
swap agreement 686 -
---------------- ----------------
Net loss $ (42,199) $ (37,720)
================ ================
Basic and diluted net loss per common share:
Net loss $ (1.33) $ (1.19)
================ ================
Weighted average common shares outstanding -
basic and diluted 31,738 31,738
================ ================
For more information, please refer to the Company's Form 10-Q, filed on December
14, 2005, with the Securities and Exchange Commission.
American Skiing Company and Subsidiaries
Unaudited Segment Information and Reconciliation of GAAP to Non-GAAP Metrics
(in thousands)
13 Weeks Ended 13 Weeks Ended
October 30, 2005 October 24, 2004
----------------------------------
Loss from resort operations $ (40,796) $ (37,122)
Loss from real estate operations (1,403) (598)
---------------- ----------------
Net loss $ (42,199) $ (37,720)
================ ================
Net loss $ (42,199) $ (37,720)
Gain on sale of property (169) -
Impairment loss on property sold 1,533 -
Increase in fair value of interest
rate swap agreement (686) -
---------------- ----------------
Net loss excluding gain on sale of
property, impairment loss on property
sold and increase in fair value of
interest rate swap agreement $ (41,521) $ (37,720)
================ ================
Loss from resort operations $ (40,796) $ (37,122)
Gain on sale of property (169) -
Increase in fair value of interest rate
swap agreement (686) -
---------------- ----------------
Loss from resort operations excluding
gain on sale of property and increase
in fair value of interest rate swap
agreement $ (41,651) $ (37,122)
================ ================
Loss from real estate operations $ (1,403) $ (598)
Impairment loss on property sold 1,533 -
---------------- ----------------
Income (loss) from real estate
operations excluding impairment
loss on property sold $ 130 $ (598)
================ ================
American Skiing Company and Subsidiaries
Unaudited Balance Sheet Data - October 30, 2005
(in thousands)
Real estate developed for sale $ 21,515
================
Total assets $ 427,886
================
Total resort debt (a) $ 650,014
Total real estate debt 20,464
----------------
Total debt (a) $ 670,478
================
(a) Includes preferred stock of $321,478 as a result of the adoption of
SFAS No. 150. Excluding preferred stock, total resort debt would be $328,536
and total debt would be $349,000.
For more information, please refer to the Company's Form 10-Q, filed on
December 14, 2005, with the Securities and Exchange Commission.