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Killington Rumor Mill..... - Page 2

post #31 of 47
roundturns that's the theory behind all the cheap season pass deals in Colorado, they make up for discount in concession sales
post #32 of 47
Originally Posted by Mattitude View Post
And you sound like a Powder Corp employee, management, of course. Quite possibly a share holder.
I wish, I wish..., Powdr Co certainly does stand out as a ski company that will be around for the long haul, unlike other companies mentioned in this thread.
post #33 of 47
The whole idea of the ASC pass is the ALL EAST aspect. If Killington breaks off then it will be Mt Snow and the rest of New Hampsire and Maine. The ASC pass will lose appeal and value to many.

If Killington (the new one) fails to offer an aggressive season pass package they will miss out, as Phil says, on the extra money those passes bring in. There are many people who buy the pass and don't show up very often. Others show up with friends and family.

I buy that pass because of the cost. Killington doesn't really get me all that excited.
post #34 of 47
There's a lot of "hinting" in the ASC Annual Report and around the resorts about real estate again playing a role in revenues. Carefully positioned as incremental revenues and secondary to ski operations, it is a needed component to help stem the continuing loses. In most cases, ASC will partner with developers to keep their exposure at a minimum.

According to the latest annual report, 45% of 2006 ski/resort operations came from lift ticket sales (inc. season pass presales) - which equals about $125million in revenue. ($275 million total for the ski sector). Real estate revenues added another $33million. The company lost $66million on $308million in revenues.

For the quarter ended 10/06, the company lost another $45million. ($23 million from debt service) During that period, resort (ski related) revenues were $18million, with resort operating expenses of $25million. The real estate sector basically broke even. Total accumulated debt was $728million vs. $659million the same time 2005. The lift ticket revenues are not covering their share of operations. At least it appears that way - as it is reported.

Les Otten is a "regular fixture" around Sunday River this year. He has a few private projects underway and sits on the ASC BOD. The company owns huge tracts of land around the mountain at SR. If real estate will help salvage the financial mess, SR is probably at the top of the list for development, both for skiable acres and housing/commercial. K-ton and SL, not so much - no land.

A large amount of ASC's debt is coming due. Reading between the lines, it seems as though ASC is getting nervous about where they will come up with the $$ to meet obligations. The long-time faithful who've been funding the ride may have finally had enough "downhill sliding".

The cheap passes have been great, but sooner or later bank accounts run dry when more goes out than comes in. Will be interesting to see what develops.
post #35 of 47
Well, some rumors confirmed...

Mt. Snow and Attitash sold to PEAK. Not enough to end the pain, so probably more to come.

Fits too, because GM's at all other east properties were promoted to President and Managing Director in 2006. Top Dogs at Snow and A-tash were not.
post #36 of 47
I know nothing.
post #37 of 47
Thread Starter 
$73 mil in cash plus $2 mil in debt? That's all those properties were worth? SBoat sold for just shy of $300 mil. Wow. Good deal for Peak.
post #38 of 47
FTO - ASC sells Vermont's Mount Snow at New Hampshire's Attitash ski resorts to Peak Resorts. No worries, ASC season passes are still good. If not it would have been a very busy weekend at the other ASC resorts.
post #39 of 47
Interesting to me, too, as I just talked to Mt. Snow today and got a full rollover for both Jeff's and my ASC pass for next year at full price since we didn't get to use them this year. (Jeff is only skiing near home since I require so much care ).

If the passes go away or become more expensive, at least I'm covered for the price I paid this year.......or will I be? What good is a certificate for bucks off on ASC passes if there is no ASC pass?:

Jolly wonderful for us.........not.:

On Wednesday, the kind woman at MT. SNOW, where we bought our ASC pass, said "No problem....letter of credit for you and your husband coming your way in the mail. We'll cancel both cards today, but you can use the letter toward your passes next year."

Got the letter of credit in the mail today.... for $776.......good ONLY toward season passes at MT. SNOW, or the mEticket (which will get us 6 ski days each next year).

What the hell? What happened to the ASC pass??

All because we bought the Mt. Snow because we thought it would be easier to get to if we had to take pictures or pick up passes in person before the snow fell.

What we bought was a pass to ski around to different places. Now I feel cheated because Killington wanted to REFUND all but $30 of each pass, but we bought them at Mt. Snow, so they said to try them first. So I hung up and called Mt. Snow.

I'm trying to call Killington and take their refund deal in exchange for this worthless letter of credit. I don't hold hope.
post #40 of 47

K/P's turn

Sold - less than $100 mil. for K, P, and all properties - including Wobbly. Didn't bring what I thought it would.

The Canyons, SR, and SL ... doesn't make sense. I'm thinkin' ASC is over. Maybe ASC (or what's left of it) becomes the Canyons. SR and SL get sold, but they won't bring enough to settle the score with investors. Especially if K-ton/P only cha-ching'ed at $83 + 5 mil debt.
post #41 of 47
Thread Starter 
So be it. Read here:

Some confusion as to whether it's the whole thing or just the land. Powdr Corp is not mentioned, but folks over at Killingtonzone are saying something about Powdr Corp running the ski operations.

post #42 of 47
American Skiing Company (ASC) announced today that it has entered into a definitive agreement to sell its Killington and Pico ski and snowboard resorts in Vermont to SP Land Company, LLC, a major area landowner, for $83.5 million. SP Land will partner with Utah's POWDR corporation in the purchase and operation of the two ski areas. The announced sale follows the recent announcement of ASC's sale of Mount Snow, Vt. and Attitash, N.H. resorts for $73.5 million and the December announcement of the planned $265 million sale of Steamboat resort. This leaves ASC with Sugarloaf/USA and Sunday River ski resorts in Maine and The Canyons in Utah as its only remaining holdings.“Killington has been in partnership with SP Land since 2004 on a number of developable real estate parcels in the Killington area. During the design and planning phase of the Killington Village, it became apparent that the developable real estate and resort operations should be controlled by a single owner," said ASC President and CEO B.J. Fair. "We believe this transaction is a tremendous step forward for the future development of Killington, Pico and the surrounding community.”
SP Land Company, LLC is a real estate holding company with significant land holdings near Killington resort. SP Land Company, LLC first gained its real estate holdings in the area in conjunction with American Skiing Company’s restructuring of its real estate related debt in 2004. POWDR Corporation owns and operates Park City Mountain Resort in Utah, Lake Tahoe's Alpine Meadows ski resort, Mt. Bachelor in Oregon, and the Las Vegas Ski and Snowboard Resort. This deal will provide POWDR with its first Eastern ski resort interests.
Killington Resort, the largest ski and snowboard resort in the eastern United States, features an expansive lift network, the most extensive snowmaking system in the world covering 752 of 1,215 skiable acres and numerous off-mountain activities, including après ski, dining, shopping and lodging options. Stretching across seven mountain areas, including the separate Pico Mountain ski area which ASC long sought to connect with Killington via lifts and trails, Killington Resort features access to 200 trails and 33 lifts with one lift ticket.
“With the recently announced sales of Steamboat, Mount Snow, Attitash and now Killington and Pico, American Skiing Company is clearly in transition," Fair acknowledged. "We will be reviewing our organizational needs and adjusting accordingly. As a result of these transactions, the Company expects to repay all bank debt, junior subordinated debt, and have substantial resources to address the needs of our Sunday River and Sugarloaf resorts in Maine and The Canyons in Utah.”
Included in the sale of Killington and Pico are the resorts and all resort-owned operations, all of Killington/Pico’s resort-owned real estate assets and The Wobbly Barn restaurant. In addition to the cash purchase price of $83.5 million, the buyer will also assume approximately $5 million of debt and other liabilities and certain contractual obligations of ASC.
American Skiing at one time owned and operated 10 ski resorts in seven states across the U.S., but stifling debt load at high interest rates has forced the company to divest itself of most of its holdings. Subsequent financial difficulties led to its delisting from the New York Stock Exchange due to inadequate capitalization, among other financial pitfalls. Its senior credit line has been renegotiated on multiple occasions, and the company brought in Oak Hill Capital as an investor to shore up its financial resources. In March 2002, ASC announced the sale of Heavenly Resort, straddling the Nevada/California border at the southern end of Lake Tahoe, to Vail Resorts for $102 million. ASC in July 2005 completed the sale of southern Vermont's Haystack Ski Resort to a group of local businesspeople with plans to turn the ski area into an exclusive private resort community. Then, in December 2006, ASC entered into an agreement to sell Colorado's Steamboat Ski Resort to Canadian ski resort operator Intrawest for $265 million.
The proposed sales of the ASC resorts will not have an effect on any current season passes, vouchers or advance purchase ticket products for the remainder of the 2006-2007 winter season. Multi-resort products such as All-For-One and Ski America passes will continue to be valid at all ASC resorts where they previously have been honored through the end of the 2006-2007 winter season. Gift cards, Value Cards and Edge cards will continue to be valid in accordance with the terms of those specific programs.
As a condition of the purchase and sale agreement, stockholder approval is required for the sale of Killington and Pico resorts. The sole holder of the Company’s Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval. Such approval means the transaction may be approved without a meeting of the Company’s stockholders. In addition to stockholder approval, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and consent of the State of Vermont. The transaction is expected to close on or before April 30, 2007.
post #43 of 47
Wow...I hope that this works out in our favor.
post #44 of 47
XJ, I have my fingers crossed too.

BTW, I am adding "Killington" to the title, something that should have been done a while ago.
post #45 of 47
The sole holder of the Company’s Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval

Is this Les Otten?

Hmm ... refocus on SR, SL and the Canyons(?) I guess ... they really had big plans for the Canyons maybe they'll finally finish it right.
post #46 of 47
Originally Posted by ct55 View Post
The sole holder of the Company’s Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval

Is this Les Otten?

Hmm ... refocus on SR, SL and the Canyons(?) I guess ... they really had big plans for the Canyons maybe they'll finally finish it right.

Lifted directly from the 2006 Annual Report:

Our company is controlled by a small number of principal stockholders.
As a result of a stockholders’ agreement and the terms of the preferred stock held by Oak Hill Capital Partners, L.P. and certain related entities (Oak Hill), and Leslie B. Otten (Mr. Otten), the holder of all of the 14,760,530 shares of Class A common stock, Oak Hill controls a majority of our board of directors. Oak Hill also owns all of our outstanding Series C-1 Preferred Stock and Series C-2 Preferred Stock.

And the most important statement-
Oak Hill may have interests different from the interests of the holders of our common stock.

P.S. OaK Hill is based in TX. Texans have been in control of a large chunk of NE skiing for a while now. :wink:

Oddly enough, "Mr. Otten" and Paul Wachter (Director out of CA) didn't sign the annual report
post #47 of 47
It's those darned Texns agin! TARNATION!!!

They couldn't find oil under the mountains so they sold em off - EHAAA
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