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Tuesday, May 29, 2007

American Skiing Company (AESK)

AESK, AMERICAN SKIING CO., website, sec, yahoo, chart
Obviously a seasonal business.

As of the 10-K, this company owned some big name ski resorts:

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.

maybe its the sports team model ....you probably want get any steady cash flow but you can sell for more than you paid later ....if you are interested in ski resort financials and return figures the only one I know of is MTN ....not a pure play but close enought ....actuall, a lot of "value" managers own it
I was thinking of sports teams as well, but more as a trophy property for people that want prestige.
anyone hear on the sale of Sunday River and Sugarloaf?
MTN makes it's money on real estate development. The ski resort is only an attraction to make people want to come and stay at their expensive hotels, shop at their stores and buy the condos they develop that are only 'minutes away' from the slope.

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).
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