Press Release: American Skiing Company
March 28, 2001
NEWRY, ME -- The Board of Directors of American Skiing Company (NYSE: SKI ) announced today that William ``B.J.''
Fair, currently American Skiing Company's chief operating officer, has been named chief executive officer of the
company.
Following the resignation of Leslie B. Otten, who had served as chairman and chief executive officer of American
Skiing Company, B.J. Fair will assume the chief executive duties, effective today.
``I've been proud to lead the American Skiing team over the past 21 years,'' said Otten. ``We have built a remarkable
company, and I am confident that the company's future under B.J.'s leadership will continue to improve as it moves
into its next phase of development. Since discussions of the Meristar merger began last summer, I have been investigating
plans outside of American Skiing Company and intend to pursue those options.''
Steven B. Gruber, Board member of the company and a managing partner at Oak Hill Capital Management, Inc., stated,
``I would like to thank Les Otten for the vision and energy that he brought to the company. He's achieved tremendous
success by building this company from a single small ski area in Maine into one of the country's leading operators
with nine world-class ski resorts in both the Eastern and Western United States. The Board and everyone at American
Skiing appreciates his substantial accomplishments and wishes him success in his new endeavors.''
``B.J. Fair's appointment as chief executive is a natural progression in the company's management structure. B.J.
has made significant contributions in driving the business forward in the twelve months that he has been at American
Skiing Company,'' said Gruber. ``He brings an exceptional level of experience in both resort management and real
estate development to the company. The Board of Directors is confident that American Skiing Company will thrive
under B.J.'s leadership and direction.''
Fair joined American Skiing Company in March 2000 as chief operating officer of American Skiing Company's resort
operations. Prior to his involvement at American Skiing Company, Fair served as president of Universal Studios'
Port Aventura theme park where he was responsible for the ongoing development and operation of the park. Also at
Universal, Fair served as senior vice president of Universal Creative. Earlier, in his role as director of finance
and business planning for Disney Development Company, Fair was a principal negotiator and led financing and development
efforts for the Disney's California Adventure expansion and related development in Anaheim, Calif.
``I joined American Skiing Company because of the company's world class portfolio of assets and because I believed
we could achieve substantial upside in financial performance from improved operational execution,'' Fair said.
``While the company has made large strides during the past twelve months, we are capable of accomplishing far more.''
Outlook
Fair commented on his outlook for the company for the immediate future. ``Although the company faces near-term
challenges, I am confident that substantial shareholder value can be created at American Skiing during the next
few years. I am eager to work closely with the rest of the senior management team to achieve our game plan,'' said
Fair.
Fair noted that American Skiing Company is experiencing growth in revenue and earnings in this fiscal year. At
this time, the company anticipates that resort EBITDA will likely be at or slightly below the low end of the previously
guided range of $50-$60 million, although results are subject to change as there are still approximately four months
remaining in the year.
To further strengthen operations and drive future results, Fair will accelerate some of the efforts the management
team began while he was chief operating officer. His immediate priorities include:
improving cost management at both the resort and corporate levels in the coming months
revising the organizational structure and management systems to better align the efforts of resort and real estate
managers with one another, as well as with shareholders
strengthening the company's marketing and sales functions at both the corporate level and in the field to improve
skier volumes and to strengthen the share of American Skiing Company resorts in their respective markets
enhancing the company's capital structure and financial flexibility
The American Skiing Company team of managers assembled over the past few years remains in place to work with Fair
in his new role. In particular, Hernan Martinez, who joined as chief operating officer of Real Estate Operations
in May 2000, will continue to lead the real estate business. Mark Miller, who has served as chief financial officer
since 1998, will assume additional responsibilities.
About American Skiing Company:
Headquartered in Newry, Maine, American Skiing Company is the largest operator of alpine ski, snowboard and golf
resorts in the United States. 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. Additional information is available on the company's Web site, www.peaks.com.
The historical and forward-looking statements about American Skiing Company contained in this press release are
not based on historical facts, but rather reflect American Skiing Company's current expectations concerning future
results and events. Similarly, statements that describe the Company's objectives, plans or goals are or may be
forward-looking statements. 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 American Skiing Company's resort operating and real estate segments;
competition and pricing pressures; failure to renew or refinance existing financial liabilities and obligations
or attain new outside financing; failure of on-mountain improvements and other capital expenditures to generate
incremental revenue; adverse weather conditions regionally and nationally; seasonal business activities; changes
to federal, state and local land use regulations; changes to federal, state and local regulations affecting both
American Skiing Company's resort operating and real estate segments; litigation involving ant- trust, consumer
and other issues; failure to renew land leases and forest service permits; disruptions in water supply that would
impact snowmaking operations and impact operations; the loss of any of our executive officers or key operating
personnel; control of American Skiing Company by principal stockholders; failure to hire and retain qualified employees
and other factors listed from time-to-time in American Skiing Company's documents filed by the Company with the
Securities Exchange Commission. The forward-looking statements included in this document 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 any obligation to publicly update any forward- looking statements to reflect subsequent events or circumstances.
SOURCE: American Skiing Company