American Skiing Company announced an increase in resort revenues of approximately $16 million (7%) and an increase in skier visitation for the year to date. The improved results were due to an increase in season pass visitation as a result of the successful introduction of the All For One pass at the company's resorts in the East, increased revenue per skier visit, an increase in group and conference related business and an additional week of operations in the 40 weeks ended May 1, 2005 compared to the prior fiscal year.
“We were very pleased with the success of our All For One pass in generating incremental skier visits and introducing new skiers to our resorts. The financial boost of the All For One pass coupled with higher guest spending resulted in strong resort revenue increases compared to the comparable prior period,” said Chief Financial Officer Betsy Wallace. “Our operational changes over the last year have definitely resulted in not only improved guest service scores but also improved financial results,” added Wallace.
“The Canyons experienced yet another record season, and Mount Snow and Sugarloaf both posted excellent growth in visits this year,” continued Wallace. “Off the slopes, our group and conference business continues to grow as leisure and corporate groups seek the hospitality and amenities of our resort facilities.”
In addition to the financial results through May 1, 2005, management of the company reported strong early results for the fourth fiscal quarter, reflecting a 2.4% increase in revenues for the first four weeks of its fiscal 2005 fourth quarter over the first four weeks of its fiscal 2004 fourth quarter along with approximately a 15% increase in year over year hotel booking pace for such period.
Revenue from resort operations was $132.3 million for the 13 weeks ended May 1, 2005 compared to $128.1 million for the 13 weeks ended April 25, 2004. Income from resort operations was $24.5 million for the 13 weeks ended May 1, 2005 versus income from resort operations of $24.3 million for the 13 weeks ended April 25, 2004.
The increased income reflects increased resort revenues mentioned above, a $0.1 million decrease in the cost of resort operations due to the conversion of operating leases to capital leases offset by a $1.9 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $1.7 million increase in interest expense due to compound interest associated with the junior subordinated notes and the accretion of discount and dividends on mandatorily redeemable preferred stock and a $0.5 million increase in marketing, general and administrative costs.
Revenue from real estate operations was $2.9 million for the 13 weeks ended May 1, 2005 versus $17.6 million for the 13 weeks ended April 25, 2004, when the company recorded revenue from the auction relating to fractional share inventory at the Grand Summit Resort Hotel at The Canyons. The loss from real estate operations was $0.7 million for the 13 weeks ended May 1, 2005, compared to income of $0.2 million for the 13 weeks ended April 25, 2004. The loss reflects the lower revenues as mentioned above, offset by a $9.2 million decrease in the cost of real estate operations and a $4.5 million decrease in interest expense during fiscal 2005 as result of the restructuring of the real estate credit facility in May 2004.
Total consolidated revenue was $135.2 million for the 13 weeks ended May 1, 2005, compared with $145.7 million for the 13 weeks ended April 25, 2004. Net income for the 13 weeks ended May 1, 2005 was $23.8 million, or $0.29 per basic and diluted common share, compared to net income of $24.5 million, or $0.32 per basic and diluted common share for the 13 weeks ended April 25, 2004.
Skier visits company-wide for fiscal 2005 increased approximately 3% over skier visits from fiscal 2004. The increase was largely due to the increased season pass visits associated with the All For One pass products in fiscal 2005 compared to fiscal 2004. Revenue from resort operations was $253.5 million for the 40 weeks ended May 1, 2005 compared to $237.1 million for the 39 weeks ended April 25, 2004.
The increase in resort revenue reflects an additional week of operations in the second quarter of fiscal 2005 compared to the second quarter of fiscal 2004, and strong fiscal 2005 first quarter group and conference business at Steamboat and The Canyons as well as price increases at the company's resorts.
The loss from resort operations was $34.1 million for the 40 weeks ended May 1, 2005 versus a loss of $29.3 million for the 39 weeks ended April 25, 2004. The increased loss reflects $6.0 million in deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, a $6.4 million increase in the cost of resort operations due to price increases in fuel and power and an increase in repairs and maintenance expense, a $5.7 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $6.6 million increase in interest expense due to compound interest associated with the junior subordinated notes and the accretion of discount and dividends on mandatorily redeemable preferred stock and an additional week of outstanding borrowings, offset by the increased revenues mentioned above, a $3.2 million decrease in marketing, general and administrative costs and a reduction of $4.1 million in operating lease costs as a result of the conversion to capital leases.
Excluding the deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, the loss from resort operations was $28.1 million for the 40 weeks ended May 1, 2005 compared to a loss of $29.3 million for the 39 weeks ended April 25, 2004.
Revenue from real estate operations was $7.3 million for the 40 weeks ended May 1, 2005 versus $30.0 million for the 39 weeks ended April 25, 2004, including the previously mentioned auction at The Canyons as well as land parcel sales recorded in the second quarter of fiscal 2004. The loss from real estate operations was $2.0 million for the 40 weeks ended May 1, 2005 compared with a loss of $9.2 million for the 39 weeks ended April 25, 2004. The decrease in the loss reflects a reduction in interest expense of $13.6 million from the previously mentioned credit facility restructuring and significant decreases in revenue and associated operating costs mentioned above.
Total consolidated revenue was $260.8 million for the 40 weeks ended May 1, 2005, compared with $267.1 million for the 39 weeks ended April 25, 2004. Net loss for the 40 weeks ended May 1, 2005 was $36.0 million, or $1.14 per basic and diluted common share, compared with a net loss of $38.4 million, or $1.21 per basic and diluted common share for the 39 weeks ended April 25, 2004. 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 40 Weeks 39 Weeks
Ended Ended Ended Ended
May 1, April 25, May 1, April 25,
Net revenues: 2005 2004 2005 2004
Resort $132,266 $128,099 $253,497 $237,131
Real estate 2,928 17,571 7,317 29,972
Total net revenues 135,194 145,670 260,814 267,103
Operating expenses:
Resort 61,615 61,737 153,010 146,672
Real estate 2,461 11,696 5,724 21,892
Marketing, general and
administrative 14,261 13,758 41,288 44,528
Restructuring and asset
impairment -- -- -- 137
Depreciation and amortization 13,020 11,203 29,699 24,137
Total operating expenses 91,357 98,394 229,721 237,366
Income from operations 43,837 47,276 31,093 29,737
Interest expense and other, net 20,002 22,770 61,139 68,178
Write-off of deferred financing
costs and loss on extinguishment
of senior subordinated notes -- -- 5,983 --
Net income (loss) $23,835 $24,506 $(36,029) $(38,441)
Basic and diluted net loss per
common share:
Net income (loss) $0.29 $0.32 $(1.14) $(1.21)
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 of dollars)
13 Weeks Ended 13 Weeks Ended
May 1, 2005 April 25, 2004 %Change
Resort revenues
Lift tickets $67,829 $65,452 3.6%
Food and beverage 18,064 17,241 4.8%
Retail sales 13,457 12,218 10.1%
Skier development 14,271 13,549 5.3%
Golf, summer activities 82 95 (13.7%)
Lodging and property 14,563 15,111 (3.6%)
Miscellaneous revenue 4,000 4,433 (9.8%)
Total resort revenues $132,266 $128,099 3.3%
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%
