American Skiing Company announced its financial results for the first quarter of fiscal 2005 reflecting a 6% increase in total revenues and a $3.5 million reduction in net loss compared to the same period in fiscal 2004. The Company also reported significantly higher season pass sales than at the same time in fiscal 2004. This increase has been driven primarily by the successful introduction of the All For One multi-resort pass in the eastern market.
“While it is quite early in the season, we are benefiting from our recent pre-ski season initiatives. The introduction of our All For One pass has contributed to a great start to the season for the Company, locking in early season revenues in the East. 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,” said CFO Betsy Wallace. “In addition, the recently completed refinancing of the Company’s senior resort credit facility and its senior subordinated debt has provided us with the tools necessary to continue improvements at our resorts to the benefit of our guests. We remain cautiously optimistic about the ski season months to come, given our successes with season pass sales and continuing improvements at the Company.”
Fiscal 2004 First Quarter Results
On a GAAP basis, net loss available to common shareholders for the first quarter of fiscal 2005 was $37.7 million, or $1.19 per basic and diluted common share, compared with a net loss available to common shareholders of $41.3 million, or $1.30 per basic and diluted common share for the first quarter of fiscal 2004. Total consolidated revenue was $19.5 million for the first quarter of fiscal 2005, compared with $18.5 million for the first quarter of fiscal 2004. Revenue from resort operations was $17.8 million for the quarter compared with $16.1 million for the first quarter of fiscal 2004. The increase in resort revenues reflects the improvement in conference business and increased lodging revenues at Steamboat and The Canyons. Revenue from real estate operations was $1.7 million for the quarter versus $2.3 million for the comparable period in fiscal 2004. The decrease in real estate revenue resulted from a reduction of inventory at The Canyons and reduced sales at Steamboat versus the comparable period in fiscal 2004.
The loss from resort operations was $37.1 million for the first fiscal quarter of 2005 versus a loss of $35.9 million for the first quarter of fiscal 2004. The wider loss was associated with a $1.5 million increase in resort interest expense, $1.1 million in increased expenses associated with increased lodging volume, and a $0.5 million increase in marketing, general and administrative expenses associated with the All-East pass, offset by increases in resort revenues mentioned earlier and a $0.1 million reduction in restructuring charges. The loss from real estate operations was $0.6 million for the first fiscal quarter of 2005, compared with a loss of $5.4 million for the first quarter of fiscal 2004. The decrease in the loss was largely a result of the restructuring of the real estate credit facility in May 2004.
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American Skiing Company and Subsidiaries
Unaudited Condensed Consolidated Financial Statement Information
(in thousands except per share amounts)Quarter Ended
Net revenues: October 24, 2000 October 26, 2003
Resort $ 17,820 $ 16,128
Real estate 1,726 2,345
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Total net revenues 19,546 18,473
------------- -------------Operating expenses:
Resort 23,609 22,525
Real estate 1,108 1,658
Marketing, general and administrative 10,817 10,280
Restructuring and asset impairment - 137
Depreciation and amortization 2,279 2,303
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Total operating expenses 37,813 36,903
------------- -------------Loss from operations (18,267) (18,430)
Interest expense, net 19,453 22,828
------------- -------------Net loss available to common shareholders $ (37,720) $ (41,258)
============= =============Basic and diluted net loss per common share:
Net loss available to common shareholders $ (1.19) $ (1.30)
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Weighted average common shares outstanding -
basic and diluted 31,738 31,738
