American Skiing sees higher revenue
Resort and real estate revenues both increased for American Skiing Company during the third quarter ended April 29.
And, while income from continuing real estate operations increased, the loss from continuing resort operations also increased according to the company’s quarterly report released today.
For the quarter, resort revenues totaled $48.8 million, up $1.9 million or 4 percent over the 13 weeks ended April 30, 2006. A snowy February in the East led to a 6 percent increase in skier visits, the company said.
A near $10 million increase in marketing, general and administrative expenses led to a $10.2 million loss in resort operations for the third quarter, compared to a $1.1 million loss during third quarter 2006.
Included in the marketing, general and administrative expenses was a $10.4 million provision for a Phantom Equity Plan which benefits certain company officers when a “valuation event,” or the sale or disposition of company assets resulting in proceeds of $300 million or more occurs.
American Skiing has sold three major ski resorts – Steamboat in Colorado, Attitash/Bear Peak in New Hampshire and Killington/Pico in Vermont – since March for a total of $422 million and an additional $11 million in assumed debt.
Sale of Sunday River/Sugarloaf is expected to close by July 31 for $77 million plus $2 million in assumed debt.
Real estate revenues increased by 144 percent to $2.9 million during the third quarter, up from $1.2 million for the same time period during 2006. The increase is credited to recent land sales.
Income generated by real estate sales totaled $1.4 million for the 13 weeks ended April 29, 2007 compared to $0.1 million for the same time period 2006. – TRACIE STONE