American Skiing Company Reports Fiscal 2000 Second Quarter Results
Company Exceeds Previously Announced Revenue and EBITDA Range
NEWRY, MAINE, March 7 /PRNewswire/ — American Skiing Company (NYSE: SKI)today announced results for the second fiscal quarter ended January 30, 2000.
Total revenues were $126.6 million for the quarter, compared with $109.5million in the corresponding period of fiscal 1999. Resort revenue was $104.5million versus $103.2 million in the second quarter of fiscal 1999. Realestate revenue was $22.1 million compared with $6.3 million in the secondquarter of fiscal 1999.
Total earnings before interest, income taxes, depreciation andamortization (EBITDA) were $14.3 million for the quarter, compared with $14.5million for the same period last year, which included $1.5 million in one-timecharges related to real estate development. Resort EBITDA was $14.7 millioncompared with $16.0 million in the second quarter of fiscal 1999. Real estateEBITDA was a loss of $0.3 million, versus a loss of $1.5 million in thecorresponding period of fiscal 1999.
The net loss available to common shareholders for the second quarter of2000 was $15.1 million, or $0.50 per basic and diluted share, compared with anet loss $10.8 million, or $0.36 per basic and diluted share, for the secondquarter of fiscal 1999.
For the six months ended January 30, 2000, the Company reported totalrevenues of $150.0 million, compared with $134.3 million for the first sixmonths of fiscal 1999. Resort revenue was $125.3 million, compared with $123.5million in fiscal 1999. Real estate revenue increased to $24.7 from $10.8million in fiscal 1999.
Total six-month EBITDA for fiscal 2000 was a loss of $5.4 million versus aloss of $3.7 million in fiscal 1999. Six-month resort EBITDA was a loss $4.3million compared with a loss of $2.6 million in fiscal 1999. Real estateEBITDA for the six-month period was a loss of $1.1 million, versus a loss of$1.1 million in fiscal 1999.
Net loss for the six months ended January 30, 2000 was $43.1 million, or$1.42 per basic and diluted share compared with a loss of $31.0 million, or$1.03 per basic and diluted share, in the corresponding period of fiscal 1999.
“As we mentioned in our release dated January 18, 2000, adverse weatherconditions and the millennium backfire negatively affected the early part ofour second quarter. We did however, experience a return to strong businesslevels in the final weeks of the quarter, allowing us to exceed the previouslyannounced revenue and EBITDA range,” said Leslie B. Otten, Chairman and ChiefExecutive Officer of American Skiing Company.
“Additionally, we made significant progress on many fronts during thequarter and in the weeks following, including the opening of the Sundial Lodgeand Grand Summit Hotel at The Canyons in Utah. Together these two projectsrepresent the first phase of our resort village development and frame theinitial forum at the center of the resort. The resort has been met withtremendous enthusiasm and these slopeside developments are creating a catalystthat has markedly increased our real estate sales velocity. We look forwardto a strong remainder of the ski season in Utah as the skiers and ridersdiscover the newest full service alpine resort in North America,” Ottenstated.
“I am pleased to report that all of our resorts received an abundance ofnatural snowfall in the latter half of January and throughout February. Thissnow is now consistently producing phenomenal skiing and riding conditionsfrom east to west. As a result the Company has seen a resurgence of marketdemand and experienced a particularly strong President’s week at all of ourresorts,” Otten continued.
“We look forward to delivering the highest quality resort experience toour guests and better financial performance for the remainder of the 1999/2000ski season,” concluded Otten.
As of March 2, 2000 the Company had approximately $75 million of availableborrowing capacity under itts $100 million senior revolving credit facility.
Additionally, the Company announced that it has received unanimous consentfrom its senior lenders for an amendment to the Company’s senior creditagreement, which brings financial covenants in line with second quarterresults. “We are very appreciative of the support that our senior lenderscontinue to give us. They understand and are committed to the ski industryand we look forward to rewarding them for that commitment with strongerfinancial performance and a better credit profile” said Mark Miller, SeniorVice President and Chief Financial Officer.