Below is a story from www.saminfo.com
the leading ski industry trade publication.
Sorry for the long reply,but it is worth reading. I'am glad i don't own stock in ASC.
ASC LOSS INCREASES IN SECOND FISCAL QUARTER
March 18, 2005
SAM Magazine--Park City, Utah, Mar. 18, 2005--American Skiing Company (ASC) reported a $22.1 million net loss for the 14 weeks ended January 30, 2005, compared to a net loss of $21.7 million for the 13 weeks ended January 25, 2004. The loss from resort operations was $21.4 million for the 14 weeks ended January 30, 2005 versus a loss of $17.7 million for the 13 weeks ended January 25, 2004. The increased loss stemmed from costs related to various refinancings the company has undertaken recently.
Overall revenues were down slightly from the previous year. They totaled $106.1 million for the 14 weeks ended January 30, 2005, compared with $103.0 million for the 13 weeks ended January 25, 2004. Revenue from resort operations was $103.4 million this year compared to $92.9 million a year ago. ASC’s fiscal 2005 includes an extra week of operations compared to fiscal 2004; revenue associated with the additional week was approximately $11.6 million. Without the extra week, skier visits were down approximately 3 percent. Revenue from real estate operations was $2.7 million this year versus $10.1 million a year ago, when the company recognized $8.9 million from land parcel sales.
The company also reported a 10.6 percent increase in revenues for the first four weeks of its fiscal 2005 third quarter over the first four weeks of its fiscal 2004 third quarter, along with a 4 percent increase in year-over-year hotel bookings, reflecting favorable winter weather in the northeast in February. Other positive trends include an increase in group and conference business and increases in season pass visitation as a result of the heavily discounted All For One season pass program.
“While we did experience poor early season weather conditions in the East, excellent skiing and riding conditions now prevail at all of our resorts,” CEO B.J. Fair said. “As a result, we remain cautiously optimistic about the remainder of this year's ski season.”
AMERICAN SKIING COMPANY POSTS SMALLER LOSSJune 10, 2004
SAM Magazine--Park City, Utah, June 10, 2004--American Skiing Company reported a loss for the nine months ended April 25 of $38.4 million, slightly less than the $42.8 million loss a year earlier. The company credited increased season's pass revenues, cost controls and coordinated marketing for the improved financial performance despite a slight decline in skier days.
Skier visits were off a reported 2 percent across the seven ASC areas. Visits were up 12 percent at the Canyons, but fell nearly 10 percent at Mt. Snow and Killington. ASC reported slight increases at Sunday River and Attitash, due in part to a joint discounted season's pass program.
Total consolidated revenue was $267.1 million for the first 39 weeks of fiscal 2004, compared with $248.7 million for fiscal 2003. Resort revenue was $237.1 million in fiscal 2004 compared with $238.0 million for fiscal 2003. Real estate revenue was $30.0 million, versus $10.7 million for the comparable period in fiscal 2003.
ASC REPORTS SECOND QUARTER LOSSMarch 10, 2004
SAM Magazine--Park City, Utah, Mar. 10, 2004--American Skiing Company (ASC) lost $21.7 million in its fiscal second quarter ended Jan. 31, 2004, compared to a loss of $16.7 million for second quarter of 2003. For the first six months of fiscal 2004, net loss totalled $62.9 million, compared with a net loss of $55.8 million in the corresponding period of fiscal 2003. Improved financial performance at ASC's western resorts helped mitigate the impact of difficult weather conditions in New England, according to the company.
Total consolidated revenue was $103.0 million for the second quarter of fiscal 2004, compared with $100.3 million for the second quarter of fiscal 2003.
Of the total, resort revenue was $92.9 million for the quarter, compared with $99.0 million for the second quarter of fiscal 2003. The decline in resort revenue primarily reflects lower eastern skier visits, according to ASC
Real estate revenue was $10.1 million, versus $1.3 million for the comparable period in fiscal 2003. The sale of three land parcels at Steamboat resort accounted for $8.9 million of the 2004 total.
Resort operating expenses narrowed, from $88.3 million for the six-month period in 2003 to $84.9 million in the 2004 period, as a result of aggressive cost control efforts, ASC said. But this reduction was offset by higher costs associated with compliance with the Sarbanes-Oxley Act and other corporate and legal expenses, according to ASC.
AMERICAN SKIING FIRST QUARTER FIGURES RELEASEDDecember 10, 2003
SAM Magazine--Park City, Utah, December 10, 2003--This reporter must first confess that she has absolutely no background in financial matters. So, when American Skiing Company released its first quarter figures today with a caveat about the company adopting Statement of Financial Accounting Standards No. 150, "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity" (SFAS No. 150), she can only offer limited interpretation. In this case, as a result of adopting SFAS No. 150, American Skiing reclassified $298.7 million of mezzanine-level securities to liabilities. Ouch. That's going from the plus column to the minus column, we think. In addition, approximately $43.1 million of accretion of discount and dividends on the preferred stock in fiscal 2004 will be included in interest expense, whereas previously it was reported as accretion of discount and dividends on mandatorily redeemable stock. Another ouch, we think.
But let's get to the numbers, of which there are two sets. There are the numbers with the new accounting standards, which show very large increases in losses, but American Skiing has also added the "what if" numbers--what if they excluded the restructuring charge and the accretion of preferred stock dividends.
For example, the net loss available to common shareholders for the first quarter of fiscal 2004 was $41.3 million compared with a net loss of $39.1 million for the same quarter last year. However, this year's number includes a $0.1 million restructuring charge. Moving on to consolidated loss from continuing operations, this year's first quarter's figure was $41.3 million compared with a loss of $30.2 million last year. What if they didn't incur those extra charges this quarter? The number would have been $30.9 miilion. The loss from continuing resort operations was $35.9 million for the quarter compared to a loss of $24.9 million last year. The "what if" number comes in at $25.5 million. Still a greater loss, but certainly not as bad.
Total consolidated revenue was $18.5 million compared to $20.6 million last year. Resort revenue for the quarter was $16.1 million compared with $16.9 million. Real estate revenue was $2.3 million compared to $3.7 million for the first quarter in fiscal 2003. The company blames the decline in revenues on a soft economy and slower-than-usual summer business.
The one bright spot in American Skiing's numbers were season pass sales. Year-to-date season pass sales (as of November 30) were 27.4 percent higher than last year, thanks in large part to the combined Attitash Bear Peak/Sunday River pass. Season pass sales for the two resorts increased 100 percent over last year. Across all the eastern resorts, sales are up 38.6 percent versus 5.2 percent in the West.
But hope springs eternal over at American Skiing Company. "We have enjoyed abundant early season snowfall in the West and conditions in the East have steadily improved," said CEO BJ Fair. "We remain cautiously optimistic given a number of positive indicators as we approach the heart of the season." So do we, so long as there are no new accounting changes.
© 2005 Ski Area Management Magazine