American Skiing Company reported stronger season pass sales than at the same time in fiscal 2005, as well as positive guest reservation trends heading into its winter operating season. Increases in season pass sales were driven primarily by the second successful year of its acclaimed All For One multi-resort pass in the eastern market.
“While it is quite early in the season, we have enjoyed successes from our season pass initiatives. The second year of our All For One pass and favorable early-season skiing and riding conditions have contributed to a great start to the season for the Company. The East saw an October opening at Killington with the rest of our eastern resorts opening by Thanksgiving weekend. In the West, abundant early season snowfall and cool winter temperatures for snowmaking have created fantastic skiing and riding conditions at both The Canyons and Steamboat, with Steamboat recording a record amount of snowfall through its early season,” said CFO Betsy Wallace.
On a GAAP basis, net loss attributable to common shareholders for the first quarter of fiscal 2006 was $42.2 million, or $1.33 per basic and diluted common share, compared with a net loss attributable to common shareholders of $37.7 million, or $1.19 per basic and diluted common share for the first quarter of fiscal 2005. Total consolidated revenue was $20.1 million for the first quarter of fiscal 2006, compared with $19.5 million for the first quarter of fiscal 2005. Revenue from resort operations was $17.1 million for the first quarter of fiscal 2006 compared with $17.8 million for the first quarter of fiscal 2005. The decrease in resort revenues reflects the lower levels of summer business at the Company's eastern resorts due to rainy weather, and lower levels of group and conference business at Steamboat and The Canyons in the first quarter of fiscal 2006. Revenue from real estate operations was $3.0 million for the quarter versus $1.7 million for the comparable period in fiscal 2005. The increase in real estate revenue was primarily a result of increased sales of fractional unit inventory at Steamboat versus the comparable period in fiscal 2005.
The loss from resort operations was $40.8 million for the first fiscal quarter of 2006 versus a loss of $37.1 million for the first quarter of fiscal 2005. The wider loss was associated with the decrease in revenues mentioned above, a $2.0 million increase in resort interest expense, a $0.4 million increase in repairs and maintenance expense and employee benefits, a $0.7 million increase in marketing, general and administrative expenses and a $0.8 million increase in depreciation expense due largely to a $0.7 million adjustment recorded as a result of the review of the seasonal usage of ski resort operating assets; offset by a $0.2 million net gain on sale of property and a $0.7 million increase in fair value of the interest rate swap agreement.
The loss from real estate operations was $1.4 million for the first fiscal quarter of 2006 compared with a loss of $0.6 million for the comparable quarter in fiscal 2005. The increased loss was associated with a $0.8 million increase in costs due to an increase in revenues and a $1.5 million increase in impairment loss on the sale of retail commercial space; offset by a $1.2 million increase in revenues mentioned above, a $0.2 million decrease in depreciation and amortization and a $0.1 million decrease in interest expense due to restructuring of real estate debt.
American Skiing Company and Subsidiaries Unaudited Condensed Consolidated Financial Statement Information (in thousands, except per share amounts) 13 Weeks Ended 13 Weeks Ended October 30, October 24, 2005 2004 Net revenues: Resort $17,147 $17,820 Real estate 2,969 1,726 Total net revenues 20,116 19,546 Operating expenses: Resort 23,963 23,609 Real estate 1,942 1,108 Marketing, general and administrative 11,568 10,817 Depreciation and amortization 2,910 2,279 Gain on sale of property (169) -- Impairment loss on property sold 1,533 -- Total operating expenses 41,747 37,813 Loss from operations (21,631) (18,267) Interest expense, net (21,254) (19,453) Increase in fair value of interest rate swap agreement 686 -- Net loss $(42,199) $(37,720) Basic and diluted net loss per common share: Net loss $(1.33) $(1.19) Weighted average common shares outstanding - basic and diluted 31,738 31,738