ASC Loss Increases in Second Fiscal Quarter

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Publish Date

03/18/2005

SAM Magazine--Park City, Utah, Mar. 18, 2005--American Skiing Company (ASC) reported a $22.1 million net loss for the 14 weeks ended January 30, 2005, compared to a net loss of $21.7 million for the 13 weeks ended January 25, 2004. The loss from resort operations was $21.4 million for the 14 weeks ended January 30, 2005 versus a loss of $17.7 million for the 13 weeks ended January 25, 2004. The increased loss stemmed from costs related to various refinancings the company has undertaken recently.

Overall revenues were down slightly from the previous year. They totaled $106.1 million for the 14 weeks ended January 30, 2005, compared with $103.0 million for the 13 weeks ended January 25, 2004. Revenue from resort operations was $103.4 million this year compared to $92.9 million a year ago. ASC's fiscal 2005 includes an extra week of operations compared to fiscal 2004; revenue associated with the additional week was approximately $11.6 million. Without the extra week, skier visits were down approximately 3 percent. Revenue from real estate operations was $2.7 million this year versus $10.1 million a year ago, when the company recognized $8.9 million from land parcel sales.

The company also reported a 10.6 percent increase in revenues for the first four weeks of its fiscal 2005 third quarter over the first four weeks of its fiscal 2004 third quarter, along with a 4 percent increase in year-over-year hotel bookings, reflecting favorable winter weather in the northeast in February. Other positive trends include an increase in group and conference business and increases in season pass visitation as a result of the heavily discounted All For One season pass program.

"While we did experience poor early season weather conditions in the East, excellent skiing and riding conditions now prevail at all of our resorts," CEO B.J. Fair said. "As a result, we remain cautiously optimistic about the remainder of this year's ski season." \