American Skiing Company Reports 1st QTR Results

NEWRY, Maine, Dec. 1 /PRNewswire/ — American Skiing Company (NYSE: SKI)today announced results for its first fiscal quarter ended October 24,1999.

The net loss available to common shareholders including certain non-recurring items for the first quarter of fiscal 2000 was $28.0 million, or$0.92 per diluted share, compared with a net loss of $20.3 million, or$0.67 per diluted share for the first fiscal quarter of 1999.

Net loss for the first quarter of fiscal 2000 includes the following non-recurring items: (i) an after-tax extraordinary loss resulting from therestructuring of the Company’s senior credit facility of $0.6 million,(ii)the cumulative effect of a change in accounting principle relating tostart-upcosts at certain of the Company’s resorts and hotels of $0.7 million, netoftaxes, (iii) the write-off of certain deferred tax assets of $3.0million, and(iv) an after-tax gain related to the sale of certain non-strategicassets inthe amount of $1.0 million. The net loss available to common shareholdersexcluding these non-recurring items was a loss of $24.6 million, or $0.81perdiluted share.

Total revenues were $23.4 million for the first quarter of fiscal 2000,compared with $24.8 million for the previous year’s first quarter. Resortrevenue was $20.8 million for the quarter, compared with $20.3 million inthefirst quarter of fiscal 1999. Real estate revenue was $2.5 million,versus$4.5 million for the same period in fiscal 1999.

The Company’s total earnings from operations before interest, incometaxes, depreciation, and amortization (“EBITDA”), was a loss of $19.7millionin the first fiscal quarter of 2000, compared with an EBITDA loss of$18.1 million in the same period in fiscal 1999. Resort EBITDA for thequarter was a loss of $19.0 million versus an EBITDA loss of $18.6million forthe previous year’s first quarter. Real estate EBITDA was a loss of$0.7 million compared with a gain of $0.4 million in the first fiscalquarterof 1999.

Due to the seasonality of the ski industry, the Company typically postslosses related to resort operations during its first and fourth fiscalquarters.

“Our first quarter was dedicated to preparing the nation’s largest networkof alpine resorts for the 1999/2000 ski season,” stated Leslie B. Otten,Chairman and Chief Executive Officer of American Skiing Company.”Bolsteredby a significantly enhanced balance sheet, the first quarter of fiscal2000has been an exciting period of important achievements toward our goal ofproviding the highest quality skiing and riding experience available ineachof our markets.

“In terms of planning, we recently won major approvals for development atThe Canyons, Heavenly and Killington, increasing the visibility of ourlong-term real estate development pipeline,” Otten continued. “In the nearterm,we are looking forward to the delivery of the Sundial Lodge and GrandSummitHotel at the Canyons during the second and third fiscal quarters. Theadditional bed base, dining venues and amenities afforded by these hotelswillbe a perfect complement to the phenomenal on-mountain experience currentlyavailable at The Canyons.

“We are particularly excited with the initial results from theintroduction of the industry’s first personalized pre-purchased liftticketproduct, the mEticket. This product is just one example of our focus oncustomer service and the benefits to our guests only available through ourmulti-resort network,” Otten concluded.

Headquartered in Newry, Maine, American Skiing Company, founded by LeslieB. Otten, is the largest operator of alpine ski, snowboard and golfresorts inthe United States, growing skier visits ten-fold over the last five years.Its resorts include Steamboat in Colorado; Killington, Mount Snow andSugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; AttitashBearPeak in New Hampshire; The Canyons in Utah; and Heavenly inCalifornia/Nevada.

Statements in this press release, other than statements of historicalinformation, are forward-looking statements that are made pursuant to thesafeharbor provisions of the Private Securities Litigation Reform Act of 1995.Such forward-looking statements are subject to certain risks anduncertaintiesthat could cause actual results to differ materially from those projected.Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date hereof. Such risks anduncertainties include, but are not limited to, general business andeconomicconditions; competitive factors in the ski and resort industry; and theweather. Investors are also directed to other risks discussed indocumentsperiodically filed by the company with the Securities and ExchangeCommission.

American Skiing Company and Subsidiaries

Consolidated Statement of Operations

(in thousands, except per share amounts)

For the quarter ended

Oct. 24, 1999 Oct. 25, 1998

Net revenues

Resort $20,806 $20,311

Real estate 2,549 4,485

Total net revenue 23,355 24,796

Operating expense

Resort 29,015 28,074

Real estate 3,284 4,040

Marketing, general

and administrative 10,753 10,826

Depreciation and

amortization 3,202 2,708

Total operating expenses 46,254 45,648

Loss from operations (22,899) (20,852)

Interest expense 7,966 8,930

Loss before benefit

from income taxes (30,865) (29,782)

Benefit from income taxes (9,052) (10,573)

Loss before extraordinary

item and

accounting change (21,813) (19,209)

Extraordinary loss, net of

tax benefit of $396 621 –

Cumulative effect of change in

accounting principle, net of

tax benefit of $449 704 –

Loss before preferred

stock dividends (23,138) (19,209)

Accretion of discount and

dividends accrued on

mandatorily redeemable

preferred stock 4,816 1,059

Net loss available to

common shareholders $(27,954) $(20,268)

Basic and fully diluted loss per share:

Loss from operations $(0.88) $(0.67)

Extraordinary loss,

net of taxes (0.02) –

Cumulative effect of

change in accounting

principle, net of taxes (0.02) –

Net loss available to

common shareholders $(0.92) $(0.67)

Weighted average

shares outstanding 30,287 30,286

Other data:

Resort EBITDA $(18,962) $(18,589)

Real Estate EBITDA (735) 445

Total EBITDA $(19,697) $(18,144)

American Skiing Company and Subsidiaries

Balance Sheet Data

(in thousands of dollars)

Oct. 24, 1999

Real estate developed

for sale $260,261

Total assets 963,739

Total resort debt 266,525

Total real estate debt 166,046

Total debt 432,571

Less: cash and

cash equivalents 7,827

Net debt $424,744

American Skiing Company and Subsidiaries

Supplemental Data

(in thousands of dollars)

Resort revenues Oct. 24, 1999 Oct. 25, 1998 % Change

Lift Tickets $70 $105 -32.9%

Food and beverage 3,534 3,362 5.1%

Retail sales 3,1
18 3,662 -14.8%

Skier Development 136 570 -76.2%

Golf, summer activities 4,697 4,940 -4.9%

Lodging and Property 5,247 4,847 8.3%

Misc. Revenue 4,004 2,825 41.7%

Total resort revenues $20,806 $20,311 2.4%