Company Press Release
January 5, 2000
NEW YORK, NY -- Mother Nature continues to be the key factor for the Ski Industry, according to a report published
by Bear Stearns senior managing director and skiing analyst, Jason Ader. However, the report stresses the importance
of the ``human'' factor in resorts' profitability. This year, according to the National Oceanic Atmospheric Administration
(NOAA), snowfall should return to normal levels. Regardless, the Ski Industry must learn to adapt to the uncertainty
of weather patterns.
Creating Other Attractions: Ader notes that successful resorts have made changes off the slopes by investing capital
to create compelling resort villages. ``The baby boomers and their children, when considering a ski vacation, are
looking for a total resort vacation experience, rather than just good skiing and lift service,'' says Ader. These
changes even help to attract visitors during the summer months. Ader cites Intrawest's (IDR) Whistler/Blackcomb
and Tremblant resorts as prototypical models, which appeal to skiers and non-skiers alike. ``Intrawest has created
a formula for success that has enabled it to garner the top spots in the annual resort rankings,'' adds Ader. Additional
resort amenities such as hotels, restaurants, retail and rental shops should help to drive revenue in a year where
ticket prices are expected to remain relatively flat.
Capital Spending is Paying Off: Assuming the industry is spared another year of challenging weather, the significant
capital investments that have been made by companies during the past several years should begin to payoff, states
Bear Stearns. Ader predicts, ``For this season, as well as the next several years, effective marketing, creative
real estate development and the ensuing resort villages should be the keys to continued growth in the Ski Industry.''
Ader believes companies such as Vail Resorts (MTN), Intrawest (IDR) and the American Skiing Company (SKI) are grasping
this proactive movement toward success and therefore could be in for a profitable future.
To obtain a copy of this report, or to speak with Jason Ader, please contact:
Christina Conde Russell Sherman Bear Stearns Bear Stearns 212-272-4320 212-272-5219
Jason Ader is a senior managing director responsible for equity research coverage of the Gaming, Lodging and Leisure
industries. His division covers a universe of over 100 public companies. According to Institutional Investor, Mr.
Ader is the only leading analyst to be ranked in both gaming and lodging and has been a member of that publication's
``All-America Research Team'' for the past five years. In 1999, Mr. Ader was named one of New York City's ``Forty
Under Forty'' by Crain's New York Business Magazine.
Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading
and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC - news). With approximately
$21.4 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide.
The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed
income sales and trading, private client services, derivatives, foreign exchange and futures sales and trading,
asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent
clearing, including securities lending. Headquartered in New York City, the company has over 10,000 employees located
in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Puerto Rico and San Francisco; and an international
presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo.
For additional information about Bear Stearns, please visit our Web site at http://www.bearstearns.com.
Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information
contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be
guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations
herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have
performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns
may have positions and effect transactions in the securities or options of the issuers mentioned herein and may
serve as directors of such issuers.
Copyright (c) 1999. All rights reserved by Bear, Stearns & Co. Inc.
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Contact:
Bear Stearns
Christina Conde or Russell Sherman
212-272-4320 212-272-5219