NEWRY, Maine, Oct. 16 /PRNewswire/ — American Skiing Company (NYSE: SKI) today announced financial results for the 2000 fiscal year and fourth quarter ended July 30, 2000. The annual fiscal period ended July 30, 2000 was comprised of 53 weeks while the fiscal 1999 period only contained 52 weeks. Fourth quarter results included 13 weeks for both periods.
Fiscal 2000 Year-End Results
For fiscal 2000, net loss available to common shareholders was $52.5 million, or $1.73 per diluted share, compared with a loss of $32.3 million, or $1.07 per diluted share for fiscal 1999.
For fiscal 2000, total revenues were $424.1 million compared with total revenues of $317.1 million in fiscal 1999. Resort revenue for fiscal 2000 was $292.1 million compared with $292.6 million in the previous fiscal year. Real estate revenue was $132.1 million versus $24.5 million in fiscal 1999.
Total earnings from operations before interest, income taxes, depreciation and amortization (“EBITDA”) was $47.0 million for fiscal 2000 versus $40.6 million in the prior fiscal year. Resort EBITDA for this fiscal year was $38.8 million versus $42.9 million in fiscal 1999. Real estate EBITDA was $8.2 million versus a loss of $2.3 million in fiscal 1999.
Fourth Quarter Results
Fourth quarter net loss available to common shareholders was $30.8 million for fiscal 2000, or a net loss of $1.01 per diluted share, compared with a net loss of $22.5 million, or $0.74 per diluted share, for the comparable three- month period in the prior year.
For the fourth quarter ended July 30, 2000, total revenues were $51.1 million compared with $18.1 million reported for the comparable period last year. Resort revenue for the quarter was $16.9 million versus $14.7 million for the same quarter in 1999. Real estate revenue for the quarter was $34.2 million compared with $3.4 million for the fourth quarter last year.
Total EBITDA for the fourth quarter of fiscal 2000 was a loss of $19.4 million versus a loss of $22.7 million in the same quarter last year. Resort EBITDA for the quarter was a loss of $19.0 million compared with a loss of $19.8 million in the same period in 1999. Real estate EBITDA was a loss of $0.4 million for the quarter versus a loss of $3.0 million for the same period last year. Real Estate EBITDA was negatively affected by shortfalls in sales and closings at The Canyons Grand Summit Hotel, and to a lesser degree, cost over-runs at the Canyons and write-off of certain development costs unrelated to current projects.
“Although the past two ski seasons were disappointing because of unfavorable weather, we look to the upcoming ski season with a new level of confidence for both our resort and real estate businesses. Since the end of this past ski season we have been busy taking corrective action and re- evaluating our strategy. We are committed to selling down our real estate inventory and reducing our real estate debt levels by at least $40 million prior to starting any new projects this spring,” said Leslie B. Otten, Chairman and Chief Executive Officer.
“During fiscal 2000 we continued to execute on our long term resort village development plans at the Canyons resort in Park City, Utah,” Otten said. “With the March 2000 grand opening of the 360 room Grand Summit Hotel and 150 unit Sundial Lodge, we added the first 1,800 ski-in/ski-out beds to the heart of the village core. Although results for this project did not meet our initial expectations, we are excited at the level of sales and market acceptance since opening. As of year-end, the Grand Summit at the Canyons was 52% sold-out. The Canyons opportunity has also begun to attract third party investments. Westgate Resorts has recently started construction in the Village center and the new cabriolet-style people mover serving the Village is being built this summer and funded by the Village Management Association. Coupled with our own future village development and exposure from the 2002 Olympics, this expansion should continue to drive incremental skier visits and improved financial performance at this emerging world-class resort.”
“We also anticipate excellent results from our fiscal 2000 resort investments this winter. We will add 325 new acres of terrain at the Canyons, take advantage of our recently opened Grand Summit hotel at Steamboat, complete a new 8 passenger gondola that will link downtown South Lake Tahoe with our Heavenly resort, and increase snowmaking capacity at Killington by 30 percent,” continued Otten.
“Armed with a strengthened management team, our ability to execute on our long term strategic vision, while providing the best vacation experience for our customers, has never been greater. We will continue to focus on real estate and resort projects that provide superior returns and create substantial shareholder value,” Otten concluded.
Looking ahead to 2001, the Company expects to increase skier visits and resort per-capita spending 5% to 7%, with Resort EBITDA margins in the range of 16% to 17%.
The Company will be hosting its Earnings Conference Call on Monday, October 16th at 5:00 p.m. eastern standard time. The dial in number for the call is (612) 332-0630. A replay of the Company’s Earnings Conference Call will be available at (320) 365-3844 with an access code of 542622, beginning on Monday, October 16th at 7:30 p.m. through Monday, June 23rd until 12:00 a.m.midnight.
Headquartered in Newry, Maine, American Skiing Company, founded by Leslie B. Otten, is the largest operator of alpine ski, snowboard and golf resorts in the United States. Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada. More information is available on the company’s website at www.peaks.com.