ASC Reports Second Quarter Loss

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SAM Magazine--Park City, Utah, Mar. 10, 2004--American Skiing Company (ASC) lost $21.7 million in its fiscal second quarter ended Jan. 31, 2004, compared to a loss of $16.7 million for second quarter of 2003. For the first six months of fiscal 2004, net loss totalled $62.9 million, compared with a net loss of $55.8 million in the corresponding period of fiscal 2003. Improved financial performance at ASC's western resorts helped mitigate the impact of difficult weather conditions in New England, according to the company.

Total consolidated revenue was $103.0 million for the second quarter of fiscal 2004, compared with $100.3 million for the second quarter of fiscal 2003.

Of the total, resort revenue was $92.9 million for the quarter, compared with $99.0 million for the second quarter of fiscal 2003. The decline in resort revenue primarily reflects lower eastern skier visits, according to ASC.

Real estate revenue was $10.1 million, versus $1.3 million for the comparable period in fiscal 2003. The sale of three land parcels at Steamboat resort accounted for $8.9 million of the 2004 total.

Resort operating expenses narrowed, from $88.3 million for the six-month period in 2003 to $84.9 million in the 2004 period, as a result of aggressive cost control efforts, ASC said. But this reduction was offset by higher costs associated with compliance with the Sarbanes-Oxley Act and other corporate and legal expenses, according to ASC. \