American Skiing Company reported a significant increase in season pass sales for the first quarter of fiscal 2004 as well as excellent early season skiing and riding conditions at all of its resorts.
“We continue to benefit from restructuring initiatives in every area of our resort business and we are excited about our prospects for the 2003/2004-ski season,” said CEO B.J. Fair. “The realignment of our marketing and sales organization has driven a solid increase in season pass sales that foreshadows higher visitation. We have enjoyed abundant early season snowfall in the West and conditions in the East have steadily improved, with excellent snowmaking temperatures and significant natural snowfall this past weekend. We remain cautiously optimistic given a number of positive indicators as we approach the heart of the season”
The Company reported that through November 30, 2003, year-to-date season pass sales were 27.4% higher than at the same time in fiscal 2003. The increase has been driven primarily by the successful introduction of a combined Attitash Bear Peak/Sunday River season pass. As a result, year-to-date season pass sales for both resorts increased more than 100% through November 30, 2003. Season pass sales for all five eastern resorts were 38.6% higher than at the same time last year, with every resort posting double-digit increases. Season pass sales at western resorts were 5.2% higher year-to-date, through November 30, 2003. The Company further reported that it continues to witness a general trend toward last minute booking patterns in line with the experience of other companies in the leisure industry.
The Company has enjoyed excellent early season skiing and riding conditions at its western resorts. The Canyons Resort, in Park City, Utah, opened a week earlier than planned, following a series of storms that left more than six and a half feet of natural snowfall. Conditions in Utah continued to improve and by Thanksgiving Day, The Canyons had received more than eight feet of natural snow. As a result, the resort recorded a significant increase is skier visits during Thanksgiving weekend relative to the comparable period in fiscal 2003. Early season conditions at Steamboat were also superb, with more than six feet of natural snow waiting for skiers and riders when the resort opened on November 26th. Steamboat posted a modest decline in year-over-year skier visits during Thanksgiving weekend compared to exceptional early season results in fiscal 2003.
In the East, early season conditions were less favorable than in fiscal 2003 when the Company enjoyed excellent weather and strong Thanksgiving weekend visitation. All of The Company's eastern resorts were open by November 28th, but with significantly less available terrain than during the prior year. As a result, eastern skier visits during Thanksgiving weekend declined over the comparable period in fiscal 2003. Since Thanksgiving, the Company has enjoyed optimal snowmaking temperatures as well as significant natural snowfall setting the stage for excellent conditions during the peak holiday season.
On a GAAP basis, net loss available to common shareholders for the first quarter of fiscal 2004 was $41.3 million, or $1.30 per basic and diluted share, compared with a net loss of $39.1 million, or $1.23 per basic and diluted share for the first quarter of fiscal 2003. The net loss in the first quarter of fiscal 2004 included a $0.1 million restructuring charge. The Company did not incur restructuring charges during the first quarter of fiscal 2003.
Total consolidated revenue was $18.5 million for the first quarter of fiscal 2004, compared with $20.6 million for the first quarter of fiscal 2003. Resort revenue was $16.1 million for the quarter, compared with $16.9 million for the first quarter of fiscal 2003. The slight decline in resort revenues reflects the continued effect of a soft economy on conference business and poor weather in the East that impacted golf and summer business. Real estate revenue from ongoing fractional ownership sales was $2.3 million, versus $3.7 million for the comparable period in fiscal 2003. The decrease in real estate revenue resulted from the impacts of continuing disruptions related to the Company's efforts to restructure its real estate senior credit facilities and weak economic conditions.
The Company's consolidated loss from continuing operations was $41.3 million for the first quarter of fiscal 2004, compared with a consolidated loss from continuing operations of $30.2 million for the comparable period in fiscal 2003. Excluding the restructuring charge and the accretion of preferred stock dividends, the consolidated loss from continuing operations was $30.9 million for the first quarter of fiscal 2004. The loss from continuing resort operations was $35.9 million for the first fiscal quarter of 2004 versus a loss of $24.9 million for the first quarter of fiscal 2003. Excluding the restructuring charges and the accretion of preferred stock dividends, the loss from continuing resort operations was $25.5 million for the first quarter of fiscal 2004 compared to a loss of $24.9 million for the comparable quarter of fiscal 2003.
The wider resort loss was driven almost entirely by lower revenues. Resort operating expenses were essentially flat year-over-year as a result of aggressive cost control efforts which helped mitigate increases in insurance and other costs that could not be as easily controlled. The loss from continuing real estate operations was $5.4 million for the first fiscal quarter of 2004, compared with a loss of $5.3 million for the first quarter of fiscal 2003.
American Skiing Company and Subsidiaries
Unaudited Condensed Consolidated Financial Statement Information
(in thousands of dollars except per share amounts)
Quarter Ended
Net revenues: October 26, 2003 October 27, 2002
------------------ -----------------
Resort $16,128 $16,911
Real estate 2,345 3,714
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Total net revenues 18,473 20,625
----------------- ------------------
Operating expenses:
Resort 22,525 22,500
Real estate 1,658 3,576
Marketing, general and administrative 10,280 10,033
Restructuring charges (1) 137 -
Depreciation and amortization 2,303 2,416
----------------- ------------------
Total operating expenses 36,903 38,525
----------------- ------------------
Loss from operations (18,430) (17,900)
Interest expense, net (1) 22,828 12,274
----------------- ------------------
Loss from continuing operations (41,258) (30,174)
Accretion of discount and dividends on
mandatorily redeemable preferred stock (1) - (8,931)
----------------- ------------------
Net loss available to common shareholders $(41,258) $(39,105)
================= ==================
Basic and diluted loss per common share:
Net loss available to common shareholders $(1.30) $(1.23)
================= ==================
Weighted average common shares outstanding 31,738 31,724
================= ==================
(1) For more information, please refer to the Company's Form 10-Q, dated
December 10, 2003, on file with the Securities and Exchange Commission.
American Skiing Company and Subsidiaries
Unaudited Reconciliation of GAAP to Non-GAAP Metrics
(in thousands of dollars)
Quarter Ended
October 26, 2003 October 27, 2002
--------------- ---------------
Net loss available to common shareholders $ (41,258) $ (39,105)
Restructuring charges (1) 137 -
--------------- ---------------
Net loss available to common shareholders excluding restructuring charges $ (41,121) $ (39,105)
=============== ===============
Quarter Ended
October 26, 2003 October 27, 2002
--------------- ---------------
Consolidated loss from continuing operations $ (41,258) $ (30,174)
Restructuring charges (1) 137 -
--------------- ---------------
Consolidated loss from continuing operations excluding restructuring
charges (41,121) (30,174)
Accretion of discount and dividends on preferred stock (1) 10,248 -
Loss from continuing resort operations excluding restructuring
charges and accretion of discount and dividend on preferred stock $ (30,873) $ (30,174)
=============== ===============
Loss from continuing resort operations $ (35,872) $ (24,858)
Restructuring charges (1) 137 -
--------------- ---------------
Loss from continuing resort operations excluding restructuring charges (35,735) (24,858)
Accretion of discount and dividends on preferred stock (1) 10,248 -
Loss from continuing resort operations excluding restructuring charges
and accretion of discount and dividend on preferred stock $ (25,487) $ (24,858)
=============== ===============
Loss from continuing real estate operations $ (5,386) $ (5,316)
=============== ===============
(1) For more information, please refer to the Company's Form 10-Q, dated
December 10, 2003, on file with the Securities and Exchange Commission.
American Skiing Company and Subsidiaries
Unaudited Balance Sheet Data - October 26, 2003
(in thousands of dollars)
Real estate developed for sale $ 47,509
------------------
Total assets $ 479,581
==================
Total resort debt (1) $ 548,257
Total real estate debt 107,009
------------------
Total debt (1) 655,266
Less: cash and cash equivalents 6,104
------------------
Net debt (2) $ 649,162
==================
(1) Includes preferred stock as a result of the adoption of SFAS No. 150
(2) Includes preferred stock as a result of the adoption of SFAS No. 150.
Excluding preferred stock, net debt would be $340,215.
