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what's asc doing?

post #1 of 10
Thread Starter 
I found this story about ASC. Could this be the ned for them as we know them?
Thanks to www.saminfo.com

ASC Restructures; Steamboat on the Block
SAM Magazine--Newry, Maine, May 30, 2001--American Skiing Company (ASC) announced a comprehensive plan to improve capital structure and enhance future operating performance, which calls for the sale of Steamboat Springs, Colo., staff reduction, redeployment of management and capital resources, and restructuring of its loans. ASC has retained Credit Suisse First Boston to help with the sale of Steamboat, which they anticipate closing on by the end of 2001. When asked why Steamboat was chosen, B.J. Fair, ASC's CEO and Mark Miller, ASC's CFO, said the resort is a consistent performer and, as such, will yield funds to delever the senior lenders on the resort side. While neither divulged an asking price, they felt confident that ASC would be able to sell the resort at a comfortable multiple.
While ASC tries to sell Steamboat, they will also be concentrating on restructuring some of its loans and getting more capital. ASC has already entered an agreement with its lenders to waive certain financial convenants under the company's $165 million senior secured credit facility, for a specified period of time, while both parties negotiate a comprehensive amendment. On the real estate side, they are also attempting to restructure many of its high-interest loans. As to where any capital infusion might come from, Fair would not elaborate, but said he was talking to several potential resources.
Another aspect of the restructuring was the elimination of 70 full time year-round positions, from its total of 1,600, and the conversion of 160 full time year-round jobs to seasonal positions. ASC estimates saving $5 million in the process.
Finally, ASC announced a new strategic plan that will focus more on building out resort villages and integrating real estate development with resort village amenities. Fair said that over the years ASC has invested significant money in lifts, snowmaking and skier development programs, but the company will now turn its attention to "enhancing the broader resort village experience, improve guest service and strengthen the resort destination experience."
At the same time as announcing the changes, ASC also released its preliminary third quarter results, which showed a drop in total revenues (resort and real estate) from $223.1 million in the third quarter of 2000 to $179 million this year. EBITDA is expected to go from $71.7 million last year to $57.5 million for this year's third quarter. ASC blames some of its losses on non-recurring expenses such as the failed merger with MeriStar, restructuring expenses and a loss on the sale of development rights for the Heavenly Grand Summit. In addition, last yearÌs real estate revenues included the selling of units at Canyons.

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post #2 of 10
TR,
Interesting.. something to keep an eye on.
Robin? any thoughts?
post #3 of 10
Yeah, I have a few Senior Mgmt. friends with ASC but after the "Les, would you step outside for a minute" board meeting, things have been tight lipped.
Interestingly Les's departure from the big chair did not elicit the kind of "told ya so" response from the industry...rather most felt kinda bad...he was trying something new, bold and different...just an over-leveraged gambit...kinda like me in slalom!
post #4 of 10
Thread Starter 
i'll keep my ears open for any news about the Canyons Resort. So far nothing about it on the local news.
post #5 of 10
I called today...a old friend is a C** at Canyons...nothing so far, another at Intrawest's Mountain Creek dodged that bullet where I think 30 FT where eliminated, and 50 offered seasonal...let the "it didn't snow on our new condos blues begin"
post #6 of 10
Interesting. Many of the Instructors at Sugarloaf are hoping for an Intrawest buyout.
post #7 of 10
Robin-Suprising that they are letting people go at Mountain Creek. This past season was one of the busiest on record. Several big snow storms minimized the amount of snow making necessary to keep the place in good shape. A very good snow year by NJ standards. I ski there often and several weekends they ran out of places to park cars,rental equipment,instructors etc.. Their first real estate offering sold out in one day with a waiting list for the next phase. Interesting<FONT size="1">

[This message has been edited by BillA (edited May 31, 2001).]</FONT>
post #8 of 10
Robin,
Do you know Lyle Stewart?
He was at the canyons last year. Did he make the cut or what's his status. I'll have to drop him a line..
post #9 of 10
Nope...sorry don't know Lyle. Is he in mid-upper mgmt. or yrd ft? That's where they "right sized".
As I understand it, it is no secret that MC is the weakest link in the Hussien, Smythe system. Intrawest of course did buck the trend, avoiding one basket of eggs and hedged geographic dispersment against regional snowfall, basing aquisition on available developable land. They have had some bad luck (fire) etc. and MC seems to have all the IW ingredients...can't figure it out either!
As far as Sugarloaf is concerned...who doesn't look for that big white knight. I am by now means an industry analyst, but I think the trend for all the conglomerates to batten the hatches for a while. I have however heard rumblings about IW's interest in some of Charlie Locke's Canadian Properties, but Harbor, Booth Creek, CP and now ASC are all sticking out FSBO's. Only Powdr seems to be looking.
Ok...elbows off the fence...time to quit gossiping like an old lady!
post #10 of 10
Thanks Robin,
He is an LVL 3 instructor below Barry Scott (SSD).
we had a wonderful time learning from him.
He and his wife are expecting (sometime in June). I was just curious.
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