American Skiing Company reported that its fiscal 2005 resort operating results were favorably impacted by the introduction of the new All For One Pass and favorable Spring season conditions at the Company's eastern resorts, as well as a record number of skier visits at The Canyons resort. Coupled with effective pricing and yield management, the Company achieved a 7% increase in resort revenues in fiscal 2005. Other highlights of fiscal 2005 include the successful refinancing of a majority of the Company's resort debt, as well as a significant reduction in borrowings outstanding under the real estate construction loan facility.
“The secret is out on the best value in eastern skiing,” commented President and CEO B.J. Fair. “Our guests have applauded the introduction of the All For One product in the East, as well as the noticeable guest service improvements at all of our resorts. I am pleased to report that these improvements have already generated a positive impact to our financial results in fiscal 2005, with significantly higher resort revenues than in the past three years. We experienced marked growth in revenues in several business lines of the Company including our Food & Beverage, Retail and Rental operations. Additionally, based on year to date results of season pass sales and booking pace to date, we are pleased about our prospects for a strong fiscal 2006.”
The Company also reported season pass sales and hotel bookings for the upcoming fiscal 2006 winter operating season are pacing ahead of prior year levels.
“As we've continuously improved operations and the financial position of the Company over the last several years, we enter fiscal 2006 considerably stronger and healthier. We're in a position to look ahead to new growth opportunities and investment at our resorts in the months and years to come,” added Fair.
Fiscal 2005 Fourth Quarter Results
On a GAAP basis, net loss attributable to common shareholders for the fourth quarter of fiscal 2005 was $37.3 million, or $1.17 per basic and diluted common share, compared with net income available to common shareholders of $9.9 million, or $0.13 per basic and diluted common share for the fourth quarter of fiscal 2004.
Total consolidated revenue was $15.7 million for the fourth quarter of fiscal 2005, compared with $17.0 million for the fourth quarter of fiscal 2004. Resort revenue was $13.8 million for the fourth quarter of fiscal 2005, compared with $13.6 million for the fourth quarter of fiscal 2004. Real estate revenue was $1.8 million for the fourth quarter of fiscal 2005 versus $3.4 million for the comparable period in fiscal 2004. The decrease in real estate revenue was primarily due to lower sales of fractional ownership inventory in the fourth quarter of fiscal 2005 as compared with the fourth quarter of fiscal 2004. The Company's consolidated net loss was $37.3 million for the fourth quarter of fiscal 2005, compared with consolidated net income of $9.9 million for the comparable period in fiscal 2004.
Excluding other items, the Company's consolidated net loss was $38.4 million for the fourth quarter of fiscal 2005 versus a consolidated net loss of $38.6 million for the fourth quarter of fiscal 2004. The loss from resort operations was $36.6 million for the fourth quarter of fiscal 2005 versus a loss from resort operations of $37.4 million for the fourth quarter of fiscal 2004. Excluding other items, the loss from resort operations was $37.7 million for the fourth quarter of fiscal 2005 versus a loss of $37.4 million for the fourth quarter of fiscal 2004. The loss from real estate operations was $0.7 million for the fourth quarter of fiscal 2005, compared with income of $47.3 million for the fourth quarter of fiscal 2004.
Excluding other items, loss from real estate operations was $0.7 million for the fourth quarter of fiscal 2005 versus a loss of $1.3 million for the fourth quarter of fiscal 2004. The Company has provided reconciliations from GAAP financial measures to non-GAAP financial measures in the tables following this discussion.
Fiscal 2005 Year End Results
On a GAAP basis, net loss attributable to common shareholders for the fiscal year ended July 31, 2005 was $73.3 million, or $2.31 per basic and diluted common share, compared with a net loss of $28.5 million, or $0.90 per basic and diluted common share, for fiscal 2004.
Total consolidated revenue was $276.5 million in fiscal 2005, compared with $284.1 million in fiscal 2004. Resort revenue grew seven percent to $267.3 million in fiscal 2005, compared with $250.7 million for fiscal 2004, primarily reflecting price increases and increased skier visits at the Company's resorts. Real estate revenue was $9.2 million in fiscal 2005 versus $33.4 million in fiscal 2004, reflecting the revenues resulting from the auction of remaining fractional ownership inventory at The Canyons and land parcel sales recognized in fiscal 2004.
The Company's consolidated net loss for fiscal 2005 was $73.3 million compared with a loss of $28.5 million for fiscal 2004. Excluding other items, the consolidated net loss was $68.5 million for fiscal 2005 versus $76.9 million for fiscal 2004. The loss from resort operations was $70.6 million for fiscal 2005 compared to a loss of $66.6 million for fiscal 2004. Excluding other items, the loss from resort operations was $65.8 million for fiscal 2005 versus $66.5 million for fiscal 2004, reflecting a $16.6 million increase in resort revenues, a $4.4 million decrease in marketing and general and administrative costs, offset by a $11.9 million increase in the cost of resort operations (including depreciation and amortization), and $8.4 million increase in interest expense. The loss from real estate operations was $2.7 million for fiscal 2005 compared to income of $38.1 million for fiscal 2004. Excluding other items, the loss from real estate operations was $2.7 million for fiscal 2005 versus a loss of $10.5 million for fiscal 2004, reflecting decreased interest expense and fewer sales staff following the auction of remaining fractional ownership inventory at The Canyons. The Company has provided reconciliations from GAAP financial measures to non-GAAP financial measures in the tables following this discussion.
American Skiing Company and Subsidiaries
Unaudited Condensed Consolidated Financial Statement Information
(in thousands, except per share amounts)
13 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended (a) Ended
July 31, July 25, July 31, July 25,
Net revenues: 2005 2004 2005 2004
Resort $13,817 $13,575 $267,314 $250,706
Real estate 1,846 3,433 9,163 33,405
Total net revenues 15,663 17,008 276,477 284,111
Operating expenses:
Resort 20,845 20,846 173,855 167,518
Real estate 1,461 2,769 7,185 24,661
Marketing, general and
administrative 9,151 10,273 50,439 54,801
Merger, restructuring and
asset impairment charges - - - 137
Depreciation and
amortization 2,099 2,340 31,798 26,477
Write-off of deferred
financing costs - - 5,983 -
Total operating
expenses 33,556 36,228 269,260 273,594
Income (loss) from operations (17,893) (19,220) 7,217 10,517
Interest expense, net (20,529) (19,425) (81,668) (87,603)
Gain on sale of Haystack
resort 822 - 822 -
Increase in fair value of
interest rate swap agreement 314 - 314 -
Gain on extinguishment of
debt - 23,091 - 23,091
Gain on transfer of assets
associated with
extinguishment of debt - 25,493 - 25,493
Net income (loss) $(37,286) $9,939 $(73,315) $(28,502)
Basic and diluted net income
(loss) per common share:
Net income (loss) $(1.17) $0.13 (b) $(2.31) $(0.90)
Weighted average common
shares outstanding - basic
and diluted 31,738 31,738 31,738 31,738
American Skiing Company and Subsidiaries
Unaudited Supplemental Revenue Data
(in thousands, except skier visits)
13 Weeks Ended 13 Weeks Ended
July 31, 2005 July 25, 2004 % Change
Resort revenues
Lift tickets $42 $805 (94.8%)
Food and beverage 3,628 2,848 27.4%
Retail sales 252 342 (26.2%)
Skier development 193 111 74.2%
Lodging and property 5,203 4,817 8.0%
Golf, summer activities and other 4,499 4,652 (3.3%)
Total resort revenues $13,817 $13,575 1.8%
American Skiing Company and Subsidiaries
Unaudited Supplemental Revenue Data
(in thousands, except skier visits)
53 Weeks Ended 52 Weeks Ended
July 31, (a) July 25,
2005 2004 % Change
Resort revenues
Lift tickets $120,785 $112,587 7.3%
Food and beverage 39,606 35,426 11.8%
Retail sales 25,856 23,886 8.2%
Skier development 24,332 22,774 6.8%
Lodging and property 39,038 37,737 3.4%
Golf, summer activities and other 17,697 18,296 (3.3%)
Total resort revenues $267,314 $250,706 6.6%
Fiscal Year Total
Unaudited Skier Visits 2005 2004 % Change
Attitash 211,301 207,400 1.9%
The Canyons 403,043 374,458 7.6%
Killington 985,962 954,853 3.3%
Mount Snow 523,698 489,411 7.0%
Sugarloaf/USA 366,382 334,830 9.4%
Sunday River 524,861 522,927 0.4%
Steamboat 971,770 1,002,821 (3.1%)
Total Skier Visits 3,987,017 3,886,700 2.6%
(a) Includes an additional fiscal week of operations relative to
fiscal 2004.
