Company Press Release: American Skiing Company
January 19, 2000
NEWRY, ME -- American Skiing Company (NYSE: SKI) yesterday announced that anticipated financial results for the
second quarter of fiscal 2000 ending January 30, 2000 will be below published analysts' estimates.
Historically low snowfall and unseasonably warm temperatures in the major metropolitan markets of the northeast
and in the Sierras significantly impacted skier visitation at the Company's New England and Heavenly resorts. Based
on the negative affects of early season weather, and the overall softness in the travel industry during the New
Year's holiday, the Company anticipates a 10 percent decline in company-wide skier visits for its second fiscal
quarter, compared with the same period in 1999.
The Company stated that total revenues for the quarter are expected to be in the range of $110.0 million to $125.0
million, compared with $109.5 million in the corresponding period in fiscal 1999. Resort revenues for the second
quarter of fiscal 2000 are expected to be in a range of $95.0 million to $105.0 million versus $103.2 in fiscal
1999. Real estate revenues for the second quarter of fiscal 2000 are expected to be in a range of $15.0 million
to $20.0 million versus $6.3 million in fiscal 1999.
The Company expects earnings before interest, income taxes, depreciation and amortization (EBITDA) to be in the
range of $9.0 million to $12.0 million, compared with $14.5 million in the comparable period in fiscal 1999. Resort
EBITDA for the second quarter of fiscal 2000 is expected to be in a range of $11.0 million to $15.0 million, compared
with $16.0 million in the comparable period in fiscal 1999. Real estate EBITDA for the second quarter of fiscal
2000 is expected to be in a range of minus $2.0 million to minus $3.0 million, compared with a loss of $1.6 million
in the comparable period in fiscal 1999. Actual results are expected to be announced in early March.
``Adverse weather conditions from coast to coast, coupled with the millennium travel malaise, led to extremely
disappointing skier visits in the second fiscal quarter, which directly affects our top- and bottom-line,'' said
Leslie B. Otten, Chairman and Chief Executive Officer of American Skiing Company. ``In the east, Boston finally
broke an unprecedented 304-day snow drought on January 13th, and out west Yosemite's Tioga Pass, traditionally
closed due to snow in the winter, was still open into early January for the first time in recorded history.''
``In terms of our real estate business, we delayed the openings of our Sundial Lodge and Grand Summit Hotel projects
at The Canyons while the finishing touches are being completed,'' Otten continued. ``The Sundial Lodge began delivering
units on December 20, and we anticipate a phased opening of the Grand Summit Hotel beginning in the latter half
of next month. As a result, we will recognize most of the real estate revenue and corresponding EBITDA from these
projects in our third and fourth fiscal quarters as both projects come fully online.''
``Looking ahead, we remain optimistic about our business,'' Otten concluded. ``We continue to see strong demand
for our resorts, as indicated by a 10 percent increase in season pass sales, and strong reservations for the remainder
of the ski season. Sales of our unique mEticket product, which allow our guests to pre-purchase discounted multi-day
lift tickets for use at all American Skiing Company resorts (www.mEticket.com), have exceeded our expectations.
The high quality and exceptional detail of the real estate product we are delivering at the Canyons, continues
to reinforce our vision for that resort as a world class destination. Moreover, with recent snowfall in the east
and in the west, market demand is increasing. We remain optimistic about the remainder of the ski season.''
Headquartered in Newry, Maine, American Skiing Company, founded by Leslie B. Otten, is the largest operator of
alpine ski, snowboard and golf resorts in the United States, growing skier visits ten-fold over the last five years.
Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA
in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada.
Statements in this press release, other than statements of historical information, are forward-looking statements
that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ
materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements
which speak only as of the date hereof. Please refer to the 'Risk Factors' included in the Form 10-K dated October
22, 1999 and Form 10-Q dated December 7, 1999 on file with the Securities and Exchange Commission.
SOURCE: American Skiing Company