NEWRY, Maine, Dec. 6 — American Skiing Company (NYSE: SKI) today announced results for its first fiscal quarter ended October 29, 2000.
The net loss available to common shareholders for the first quarter of fiscal 2001 was $24.2 million, or $0.79 per diluted share, compared with a net loss of $28.0 million, or $0.92 per diluted share for the first fiscal quarter of 2000.
The net loss for the first quarter of 2001 included a $2.5 million benefit, net of taxes, from the cumulative effect of a change in accounting principle related to marking interest rate derivatives to their current market value as required by Statement of Financial Accounting Standards No. 133. Excluding this benefit, net loss available to common shareholders would have been $26.7 million or $0.87 per diluted share. The net loss in the first quarter of fiscal 2000 included an extraordinary loss from restructuring the Company’s senior credit facility, the cumulative effect of a change in accounting principle, the write-off of certain deferred tax assets and an after-tax gain related to the sale of certain non-strategic assets. The fiscal 2000 net loss available to common shareholders excluding these non-recurring items was a loss of $24.6 million, or $0.81 per diluted share.
Total revenues were $48.1 million for the first quarter of fiscal 2001, compared with $23.4 million for the previous year’s first quarter. Resort revenue was $20.9 million for the quarter, compared with $20.8 million in the first quarter of fiscal 2000. Real estate revenue was $27.2 million, versus $2.6 million for the same period in fiscal 2000.
The Company’s total earnings from operations before interest, income taxes, depreciation, and amortization (“EBITDA”), was a loss of $16.2 million in the first fiscal quarter of 2001, compared with an EBITDA loss of $19.7 million in the same period in fiscal 2000. Resort EBITDA for the quarter was a loss of $19.9 million versus an EBITDA loss of $19.0 million for the previous year’s first quarter. When the effects of non-recurring gains and losses are eliminated in both years, resort EBITDA was a loss $19.1 million during the first quarter of fiscal 2001 compared to a loss of $20.3 million in the same period in fiscal 2000. Real estate EBITDA was a positive $3.6 million compared with a loss of $0.7 million in the first fiscal quarter of 2000.
Due to the seasonality of the ski industry, the Company typically posts losses related to resort operations during its first and fourth fiscal quarters.
“During the first quarter we focused on preparing the nation’s largest network of alpine resorts for the 2000/2001 ski season and insuring that we are able to provide the best skiing and riding experience from coast-to-coast,” stated Leslie B. Otten, Chairman and Chief Executive Officer of American Skiing Company. “We are encouraged that during the first quarter we were able to narrow our Resort EBITDA loss by over $1.0 million after excluding the effects of non-recurring gains in fiscal 2000 and start-up costs for new hotels incurred in both years,” continued Otten.
“I am excited about our prospects for the coming ski season. Early snowfalls in the west coupled with cold temperatures in the east are yielding strong early season results. Good conditions coast-to-coast during the Thanksgiving Holiday produced strong demand for our resorts, with skier visits more than doubling over the comparable period in fiscal 2000. I am confident that this trend will continue and our bookings for the upcoming Christmas Holiday period and the remainder of the season show solid year-over-year improvement. With a return to more normal weather conditions, we are beginning to reap the benefits of investments we have made in our resorts over the last few years,” concluded Otten.
Fiscal 2001 Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions, business combinations, divestitures, asset sales, recapitalizations or any other significant business transactions that may be completed after October 29, 2000.
* The Company expects skier visits of between 5.3 – 5.5 million.
* The Company anticipates 5 – 7% in growth in revenue per skier visit.
* Revenues are expected to be between $330 – $340 million in fiscal 2001.
* Resort EBITDA is expected to be between $50 – $60 million.
* Revenues are expected between to be between $100 – $110 million in
* Real Estate EBITDA is expected to be between $10 – $12 million.
* Depreciation and amortization for fiscal 2001 is expected to be between
47 – $48 million.
* Interest expense 2001 is anticipated to be between $52 – $55 million.
* The effective income tax rate is expected to be 32.5%.
* Accretion of discount and dividends on the Company’s preferred stock
are anticipated to be $23 million.
* Non-Real Estate capital expenditures are anticipated to be $31 million.
* Based on these factors, the Company expect a net loss in the range of
1.40 – $1.70 per share based on $30.4 million shares outstanding