American Skiing Co. (ASC) announced Wednesday that it
anticipates second quarter financial results for the FY
ended January 30, 2000 to fall below analysts' estimates.
Due to the effects of warmer-than-usual weather and lighter
travel over the New Year's Holiday, ASC is predicting a 10%
drop in company-wide skier visits during the second fiscal
quarter, compared with the same period last year. The
company revealed that total revenues for the quarter are
expected to be between $110-125M, compared with $109.5M
during the same period in '99. Resort revenues for the
quarter are expected to be in the range of $95-105M,
compared to $103.2M in '99. Meanwhile, ASC's overall
earnings before interest, income taxes, depreciation and
amortization (EBITDA) are expected to be in the range of $9-
12M, down from last year's $14.5M. Resort EBITDA for the
quarter are also expected to drop, from $16M last year to
between $11-15M this year (ASC). In Portland, ME, Dean Lunt
noted that ASC's overall earnings "will be down" 17-38% from
'99, although actual earnings won't be out until February.
The company reported an annual loss of $32M during last
year's ski season. ASC President Bradley McCurtain: "We are
going to have to get a lot of snow and it is going to have
to come in the next few weeks for them to have even a decent
season" (PRESS-HERALD, 1/19).
VAIL VISITS DOWN: In Boulder, CO, Lisa Marshall wrote
that Vail Resorts announced that skier visits through
January 12 "were down" 9% at its four resorts, and it
"expects revenue for the fiscal quarter to fall below
expectations." But Vail "hopes to recover about" $4.5M in
lost revenue through a "Reduced Skier Day Insurance Policy"
it purchased before the season. Marshall noted that the
early-season revenue shortfalls "came as little surprise to
financial analysts," as shares of Vail have fallen more 22%
during the past year (Boulder DAILY CAMERA, 1/15).
