Tuesday, May 29, 2007
American Skiing Company (AESK)
Obviously a seasonal business.
As of the 10-K, this company owned some big name ski resorts:
- Steamboat (Colorado)
- The Canyons (Utah)
- Killington/Pico (Vermont)
- Sunday River (Maine)
- Mount Snow (Vermont)
- Sugarloaf (Maine)
- Attitash (New Hamshire)
But this summary shows that it's not working out:
in millions 2002 2003 2004 2005 2006
Revenue $272 $264 $284 $276 $307
Resort expenses $166 $168 $167 $172 $174
One time expenses $111
Operating income ($113) $3 $11 $7 $19
Interest expense $54 $47 $88 $82 $87
Net loss ($200) ($82) ($28) ($73) ($66)
Actually I only looked at this because I was curious about the returns on big ski resorts. Based on this, I can't imagine why anyone would build or own one. It puts lift ticket prices in a new light.
So they sold Steamboat for $239.1 million.
They sold Mount Snow and Attatash for $61.9 million.
They sold Killington for $85.2 million and used the cash to pay off some debt.
Based on this, it looks like they're trying to keep The Canyons.
The stock sells at 22. No, thanks.
Value managers own it as a real estate play. (ski resorts typically do not own the land on the mountain itself; that's usually leased from the govt).