American Skiing Company Announces Fiscal 2006 First Quarter Results

PARK CITY, Utah, Dec. 14 /PRNewswire-FirstCall/ -- American Skiing Company (OTC: AESK) (BULLETIN BOARD: AESK) today announced its financial results for the first quarter of fiscal 2006. The Company also reported stronger season pass sales than at the same time in fiscal 2005, as well as positive guest reservation trends heading into its winter operating season. Increases in season pass sales were driven primarily by the second successful year of its acclaimed All For One multi-resort pass in the eastern market.

"While it is quite early in the season, we have enjoyed successes from our season pass initiatives. The second year of our All For One pass and favorable early-season skiing and riding conditions have contributed to a great start to the season for the Company. The East saw an October opening at Killington with the rest of our eastern resorts opening by Thanksgiving weekend. In the West, abundant early season snowfall and cool winter temperatures for snowmaking have created fantastic skiing and riding conditions at both The Canyons and Steamboat, with Steamboat recording a record amount of snowfall through its early season," said CFO Betsy Wallace.

Fiscal 2006 First Quarter Results

On a GAAP basis, net loss attributable to common shareholders for the first quarter of fiscal 2006 was $42.2 million, or $1.33 per basic and diluted common share, compared with a net loss attributable to common shareholders of $37.7 million, or $1.19 per basic and diluted common share for the first quarter of fiscal 2005. Total consolidated revenue was $20.1 million for the first quarter of fiscal 2006, compared with $19.5 million for the first quarter of fiscal 2005. Revenue from resort operations was $17.1 million for the first quarter of fiscal 2006 compared with $17.8 million for the first quarter of fiscal 2005. The decrease in resort revenues reflects the lower levels of summer business at the Company's eastern resorts due to rainy weather, and lower levels of group and conference business at Steamboat and The Canyons in the first quarter of fiscal 2006. Revenue from real estate operations was $3.0 million for the quarter versus $1.7 million for the comparable period in fiscal 2005. The increase in real estate revenue was primarily a result of increased sales of fractional unit inventory at Steamboat versus the comparable period in fiscal 2005.

The loss from resort operations was $40.8 million for the first fiscal quarter of 2006 versus a loss of $37.1 million for the first quarter of fiscal 2005. The wider loss was associated with the decrease in revenues mentioned above, a $2.0 million increase in resort interest expense, a $0.4 million increase in repairs and maintenance expense and employee benefits, a $0.7 million increase in marketing, general and administrative expenses and a $0.8 million increase in depreciation expense due largely to a $0.7 million adjustment recorded as a result of the review of the seasonal usage of ski resort operating assets; offset by a $0.2 million net gain on sale of property and a $0.7 million increase in fair value of the interest rate swap agreement.

The loss from real estate operations was $1.4 million for the first fiscal quarter of 2006 compared with a loss of $0.6 million for the comparable quarter in fiscal 2005. The increased loss was associated with a $0.8 million increase in costs due to an increase in revenues and a $1.5 million increase in impairment loss on the sale of retail commercial space; offset by a $1.2 million increase in revenues mentioned above, a $0.2 million decrease in depreciation and amortization and a $0.1 million decrease in interest expense due to restructuring of real estate debt.

About American Skiing Company

Headquartered in Park City, Utah, American Skiing Company is one of the largest operators of alpine ski, snowboard and golf resorts in the United States. Its resorts include Killington, Pico and Mount Snow in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash in New Hampshire; Steamboat in Colorado; and The Canyons in Utah. More information is available on the Company's web site, http://www.peaks.com/.

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. We have tried, wherever possible, to identify such statements by using words such as "anticipate", "assume", "believe", "expect", "intend", "plan", and words and terms of similar substance in connection with any discussion of operating or financial performance. Such forward-looking statements involve a number of risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results, performances or achievements to differ materially from those projected include, but are not limited to, the following: changes in regional and national business and economic conditions affecting both our resort operating and real estate operating segments; competition and pricing pressures; adverse weather conditions regionally and nationally; changes in weather patterns resulting from global warming; seasonal business activity; increased gas and energy prices; changes to federal, state and local regulations affecting both our resort operating and real estate segments; failure to renew land leases and forest service permits; disruptions in water supply that would impact snowmaking operations; the loss of any of our executive officers or key operating personnel; and other factors listed from time to time in our documents we have filed with the Securities and Exchange Commission. We caution the reader that this list is not exhaustive. We operate in a changing business environment and new risks arise from time to time. The forward-looking statements included in this press release are made only as of the date of this document and under Section 27A of the Securities Act and Section 21E of the Exchange Act, we do not have or undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

                 American Skiing Company and Subsidiaries
     Unaudited Condensed Consolidated Financial Statement Information
                 (in thousands, except per share amounts)

                                             13 Weeks Ended   13 Weeks Ended
                                                October 30,      October 24,
                                                   2005             2004
  Net revenues:
      Resort                                     $17,147          $17,820
      Real estate                                  2,969            1,726
          Total net revenues                      20,116           19,546

  Operating expenses:
      Resort                                      23,963           23,609
      Real estate                                  1,942            1,108
      Marketing, general and
       administrative                             11,568           10,817
      Depreciation and amortization                2,910            2,279
      Gain on sale of property                      (169)              --
      Impairment loss on property sold             1,533               --
          Total operating expenses                41,747           37,813

  Loss from operations                           (21,631)         (18,267)

  Interest expense, net                          (21,254)         (19,453)

  Increase in fair value of interest rate
   swap agreement                                    686               --
  Net loss                                      $(42,199)        $(37,720)

  Basic and diluted net loss per common share:
  Net loss                                        $(1.33)          $(1.19)
  Weighted average common shares
   outstanding - basic and diluted                31,738           31,738

For more information, please refer to the Company's Form 10-Q, filed on December 14, 2005, with the Securities and Exchange Commission.

American Skiing Company and Subsidiaries

Unaudited Segment Information and Reconciliation of GAAP to Non-GAAP Metrics

                              (in thousands)

                                          13 Weeks Ended     13 Weeks Ended
                                         October 30, 2005   October 24, 2004

  Loss from resort operations                $(40,796)          $(37,122)
  Loss from real estate operations             (1,403)              (598)
      Net loss                               $(42,199)          $(37,720)


  Net loss                                   $(42,199)          $(37,720)
  Gain on sale of property                       (169)                --
  Impairment loss on property sold              1,533                 --
  Increase in fair value of interest
   rate swap agreement                           (686)                --
  Net loss excluding gain on sale of
   property, impairment loss on
   property sold and increase in fair
   value of interest rate swap agreement     $(41,521)          $(37,720)
  Loss from resort operations                $(40,796)          $(37,122)
  Gain on sale of property                       (169)                --
  Increase in fair value of interest
   rate swap agreement                           (686)                --
  Loss from resort operations excluding
   gain on sale of property and increase
   in fair value of interest rate swap
   agreement                                 $(41,651)          $(37,122)
  Loss from real estate operations            $(1,403)             $(598)
  Impairment loss on property sold              1,533                 --
  Income (loss) from real estate
   operations excluding impairment loss
   on property sold                              $130              $(598)



                 American Skiing Company and Subsidiaries
             Unaudited Balance Sheet Data - October 30, 2005
                              (in thousands)

  Real estate developed for sale      $21,515
  Total assets                       $427,886

  Total resort debt (a)              $650,014
  Total real estate debt               20,464
      Total debt (a)                 $670,478

  (a) Includes preferred stock of $321,478 as a result of the adoption of
      SFAS No. 150.

      Excluding preferred stock, total resort debt would be $328,536 and
      total debt would be $349,000.

For more information, please refer to the Company's Form 10-Q, filed on December 14, 2005, with the Securities and Exchange Commission.