(WHITEFISH, MONT.) — Winter Sports, Inc. (WSI), owner and operator of Big Mountain Ski and Summer Resort, reported results of the second quarter of its fiscal year ending May 31, 2002. Revenues reported for the quarter ending December 2, 2001 were $987,584 comparable to $986,666 for the same quarter ending December 3, 2000. A net loss of $609,358 ($.62 loss per share) was reported versus a net loss of $753,168 ($.75 loss per share) recorded in the second quarter of the prior year.
The resort delayed its traditional Thanksgiving day opening due to less than average natural snow and warmer than usual temperatures. This made snowmaking unattainable. The Company continues to see revenue growth associated with the property management it acquired in the second half of fiscal year 2001. Operating expenses decreased by $216,743 or 10% during the second quarter this year compared to the second quarter of the previous year. This is due in part to planned cost cutting efforts when it was determined that the resort would not be able to achieve its planned opening date.
“Our management team consistently tries to manage our costs,” reported Michael Collins, President and CEO. “After the attacks of September 11 we were particularly cautious, which has had a positive effect on our financial results even with the late opening. Our response to the uncertainties in our industry are in line with those implemented by many other major ski resorts and will likely continue to be used in uncertain times,” he continued.
Total revenues for the first two quarters of fiscal year 2001 total $2,391,210 compared with $2,992,840 for the first two quarters of fiscal year 2001, a decrease of 20%. This decrease is due to real estate sales of $839,000 in the current fiscal year compared with $1,809,200 in the previous fiscal year. Revenue in the other categories remained relatively consistent with the prior year with the exception of the addition of the property management business.
A net loss of $1,154,019 ($1.17 loss per share) was realized during the first two quarters ending December 2, 2001 compared with a net loss of $855,300 ($0.85 loss per share) during the first two quarters ending December 3, 2000. The Company’s resort operations are seasonal in nature. Winter ski operations account for the bulk of the Company’s operating revenue and commence late in the second fiscal quarter. Results of the first two quarters are not indicative of those expected for the full year. Winter Sports, Inc. common stock is traded over the counter on the NASDAQ Electronic Bulletin Board under the symbol WSKI.