Snowboarding Online || American Skiing Company

PR: American Skiing Company Reports Fiscal Year End and Fourth Quarter Results
10/15/98

NEWRY, Maine, Oct. 14 /PRNewswire/ -- American Skiing Company today announced financial results for the 1998 fiscal year and fourth quarter ended July 26, 1998. Fiscal Year Results Pro Forma For the year, total revenues on a pro forma basis increased 30.4 percent to $344.0 million compared with $263.9 million in 1997.

Pro forma resort revenue increased 10.5 percent for the fiscal year to $282.2 million compared with $255.5 million for the previous fiscal year. Real estate revenue was $61.8 million versus $8.5 million in the prior fiscal year.

Total pro forma earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") excluding a one-time stock compensation charge increased to $73.8 million for fiscal year 1998 for a 33.2 percent increase over fiscal 1997 total pro forma EBITDA of $55.4 million. Pro forma resort EBITDA for this fiscal year rose 4.7 percent to $56.2 million versus $53.7 million in the previous year. Real estate EBITDA grew to $17.6 million from $1.7 million in last fiscal year.

On a pro forma basis, net loss available to common shareholders excluding a one-time stock compensation charge, net of income tax benefit, and extraordinary items was $5.5 million, or a loss of $0.18 per diluted share. This can be compared with a loss of $4.3 million, or $0.15 per diluted share for fiscal 1997.

Actual
On an actual basis for the year, total revenues increased 94.1 percent to $340.4 million compared with $175.4 million in 1997. Actual resort revenue increased 67.0 percent for the fiscal year to $278.6 million compared with $166.9 million for the previous fiscal year. Real estate revenue was $61.8 million versus $8.5 million in the prior fiscal year.

Total actual earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") excluding a one-time stock compensation charge increased 156.0 percent to $83.7 million for fiscal year 1998 compared with total actual EBITDA of $32.7 million for 1997. Actual resort EBITDA for this fiscal year rose 113.5 percent to $66.2 million versus $31.0 million in the previous year. Real estate EBITDA grew to $17.6 million from $1.7 million in last fiscal year.

Net income available to common shareholders excluding a one-time stock compensation charge, net of income tax benefit, and extraordinary items was $2.0 million, or $.08 per diluted share for the year compared with a loss of $5.9 million, or $6.06 per diluted share for fiscal 1997.

Fourth Quarter Results
Pro Forma
For the quarter ended July 26, 1998, total revenues increased 61.7 percent to $24.9 million over the $15.4 million reported for the period last year.

Pro forma resort revenue was $12.7 million versus $12.9 million in the same quarter in 1997. Real estate revenue was $12.2 million compared with $2.5 million for the fourth quarter last year.

Total pro forma earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") was a loss of $16.7 million versus a loss of $13.6 million in the same quarter last year. Resort EBITDA for the quarter was a loss of $19.2 million compared with a loss of $14.1 million in the same period last year. Real estate EBITDA was $2.4 million in the quarter versus $0.6 million for the same period in 1997.

Fourth quarter net loss available to common shareholders was $19.7 million or a loss of $0.65 per diluted share compared with a net loss of $13.6 million, or $0.46 per diluted share for the comparable three-month period in the prior year.

Actual
On an actual basis for the fourth fiscal quarter, total revenues increased 112.8 percent to $24.9 million versus $11.7 million in 1997. Actual resort revenue was $12.7 million compared with $9.2 million for a 38.0 percent increase. Real estate revenue rose to $12.2 million in the fourth quarter over real estate revenues of $2.5 million reported in the same period of 1997.

Total earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") was a loss of $16.7 million versus a loss of $8.4 million in the same quarter last year. Resort EBITDA for the quarter was a loss of $19.2 million compared with a loss of $8.9 million for the same period in 1997. Real estate EBITDA was $2.4 million in the quarter versus $0.6 million for the same fiscal period in 1997.

For the fourth quarter, net loss available to common shareholders was $19.7 million or $0.65 per diluted share compared with a net loss $9.1 million or $9.30 per diluted share. Historically, the company has experienced a loss in the first and fourth quarters due to the seasonality of the ski (Keyword to: aol://4785:SKI) resort business.

"Fiscal 1998 has been a year of tremendous growth and accomplishment," said Leslie B. Otten, President and Chief Executive Officer. "We reached each of the significant milestones identified in our business strategy. We diversified our resort portfolio geographically by expanding into the Colorado, Utah and California markets. By acquiring Steamboat and Heavenly, we expanded our presence nationwide with two well-known, premier resorts. With The Canyons, we created one of the largest resorts in Utah in only 15 months. From today until the 2002 Olympic Winter Games, The Canyons has extraordinary growth potential."

Otten continued by stating, "We dramatically expanded the attractions at all our resorts and introduced our real estate product to the national market with tremendous success. In addition to on-mountain improvements, we opened three 200-room Grand Summit Hotels at our New England resorts and began construction on three large hotels at our western resorts."

Otten concluded, "1998 was a building year for our Company. With all that was achieved, we have set the stage for driving revenues and generating future earnings as we capitalize on our accomplishments."

The fiscal year results on a pro forma basis assumes that the Company's initial public offering and the acquisition of Steamboat and Heavenly resorts occurred at the beginning of the year, rather than November 6th and November 12th respectively.

Headquartered in Newry, Maine, the American Skiing Company is the largest operator of alpine ski, snowboard and golf resorts in the United States. Its major businesses include resorts at 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; Heavenly in California/Nevada and its Grand Summit Resort Hotels.

Statements in this press release, other than statements of historical information, are forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors in the ski and resort industry; and the weather. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.

Back to Business Main

Visa U.S.A. Extends U.S. Ski & Snowboard Partnership Through 2002 Olympic Winter Games in Salt Lake City 10/15/98

K2 Falls 30 Percent on Third-Quarter Earnings Warning 10/15/98

Mt. Bachelor President Retires 10/12/98

China Seeks Business At Fair 10/12/98

Avalanche in Oceanside 10/12/98

Bolle To Distribute Reusch Gloves 10/12/98

Resorts Gobble Up Retailers 10/8/98

Snowboarding in London? Red Bull Lameness 10/8/98

Jacks Garage Sk8 Demo and Snowboard Sale 10/1/98

Peter Weaver Named President And CEO Of Marker International 10/1/98

Airwalk Sets Up Testing Center 9/29/98

Vans Reports Record First Quarter 9/29/98

Ride Sports Announces Fiscal Year 1998 Results 9/29/98

Ride Sports Licenses Device Binding to Atomic/Oxygen 9/28/98

Europe Adventure: Palmer Summer Camp Day5. 9/28/98

American Skiing Company and Subsidiaries
Consolidated Financial Statements
(in thousands of dollars except per share amounts)
Actual
Three Months Ended         Year Ended
Net Revenues: July 26, 1998  July 27, 1997   July 26, 1998  July 27, 1997
Resort                 $12,700        $9,176     $278,577      $166,923
Real estate             12,229         2,485       61,843         8,468
Total net revenues      24,929        11,661      340,420       175,391
Operating expenses:
Resort                  22,400        13,582      169,865       109,774
Real estate              9,810         1,933       44,292         6,813
Marketing, general
and administrative      9,465         4,528       42,554        26,126
Stock compensation
charge                      -             -       14,254             -
Depreciation and
amortization            3,491         1,347       37,966        18,293
Total operating
expenses               45,166        21,390      308,931       161,006
Income (loss)
from operations      (20,237)       (9,729)       31,489        14,385
Interest expense         9,547         5,334       34,575        23,730
Loss before benefit
for income taxes
and minority
interest in loss
of subsidiary        (29,784)      (15,063)      (3,086)       (9,345)
Benefit for
income taxes         (11,187)       (6,162)        (774)       (3,613)
Minority interest
in (loss) gain
of subsidiary              11         (250)        (445)         (250)
Loss from continuing
operations           (18,608)       (8,651)      (1,867)       (5,482)
Extraordinary expense        -             -        5,081             -
Net loss              (18,608)       (8,651)      (6,948)       (5,482)
Accretion of
discount and
dividends accrued on
mandatorily redeemable
preferred stock         1,084           444        5,346           444
Net loss available
to shareholders'    $(19,692)      $(9,095)    $(12,294)      $(5,926)
Basic and diluted loss per share
Weighted average
shares outstanding     30,270           978       25,832           978
Loss per
common share before
extraordinary item    ($0.61)       ($8.85)      ($0.07)       ($5.61)
Extraordinary expense        -             -      ($0.20)             -
Net loss per share     ($0.65)       ($9.30)      ($0.48)       ($6.06)
Other Data
Resort EBITDA        $(19,165)      $(8,934)      $66,158       $31,023
Real estate EBITDA       2,419           552       17,551         1,655
Total EBITDA         $(16,746)      $(8,382)      $83,709       $32,678
American Skiing Company and Subsidiaries
Consolidated Financial Statements
(in thousands of dollars except per share amounts)
Pro Forma
Three Months Ended          Year Ended
Net Revenues:  July 26, 1998    July 27, 1997  July 26, 1998 July 27, 1997
Resort                 $12,700       $12,917     $282,183      $255,455
Real estate             12,229         2,485       61,843         8,468
Total net revenues      24,929        15,402      344,026       263,923
Operating expenses:
Resort                  22,400        20,344      178,450       163,706
Real estate              9,810         1,933       44,292         6,813
Marketing, general
and administrative      9,465         6,747       47,532        38,000
Stock compensation
charge                      -             -       14,254             -
Depreciation and
amortization            3,491         2,725       39,564        35,380
Total operating
expenses               45,166        31,749      324,092       243,899
Income (loss)
from operations      (20,237)      (16,347)       19,934        20,024
Interest expense         9,547         6,085       35,395        26,733
Loss before
benefit for
income taxes and
minority interest in
loss of subsidiary   (29,784)      (22,432)     (15,461)       (6,709)
Benefit for
income taxes         (11,187)       (9,036)      (5,600)       (2,585)
Minority interest in
(loss) gain
of subsidiary              11         (250)        (445)         (250)
Loss from
continuing
operations           (18,608)      (13,146)      (9,416)       (3,874)
Extraordinary
expense                     -             -        5,081             -
Net loss              (18,608)      (13,146)     (14,497)       (3,874)
Accretion of
discount and dividends
accrued on mandatorily
redeemable
preferred stock         1,084           444        5,346           444
Net loss available
to shareholders'    $(19,692)     $(13,590)    $(19,843)      $(4,318)
Basic and diluted loss per share
Weighted average
shares outstanding     30,270        29,510       29,936        29,510
Loss per common share
before extraordinary
item                  ($0.61)       ($0.45)      ($0.31)       ($0.13)
Extraordinary
expense                     -             -      ($0.17)             -
Net loss per share     ($0.65)       ($0.46)      ($0.66)       ($0.15)
Other Data
Resort EBITDA        $(19,165)     $(14,174)      $56,201       $53,749
Real estate EBITDA       2,419           552       17,551         1,655
Total EBITDA         $(16,746)     $(13,622)      $73,752       $55,404
American Skiing Company and Subsidiaries
Supplemental Data
(in thousands of dollars except per share amounts)
Pro Forma
FYE              FYE
July 27, 1997    July 26, 1998    % Change
Lift tickets                   $127,231        $136,045          6.9%
Food & beverage                  30,188          35,709         18.3%
Retail                           30,713          39,563         28.8%
Skier development                20,517          22,325          8.8%
Lodging & property management    29,201          29,745          1.9%
Summer                            9,774           9,688         -0.9%
Other                             7,747           9,106         17.5%
Total resort revenues           255,369         282,181         10.5%
Real estate sales                 8,468          61,843        630.3%
Total revenues                 $263,837        $344,024         30.4%
Balance Sheet Data:                             July 26, 1998
Real estate developed
for sale                                       $78,597
Total assets                                    777,883
Total resort debt                               351,539
Total real estate debt                           31,411
Total debt                                      382,950
Less: cash and cash equivalents                  16,001
Net debt                                       $366,949