| American Skiing Company | |||
| Ticker: | SKI | Sunday River Access Road | |
| Exchange: | New York Stock Exchange | Bethel, ME 04217 | |
| Industry: | Service (SIC Code 7999) | (207) 824-8100 | |
| # of Employees: | 6300 | ||
| Type of Shares: | Class A Common Shares | Filing Date: | 8/13/97 | |
| U.S. Shares: | 14,750,000 | Offer Date: | 11/5/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $17.00 - $20.00 | |
| Primary Shares: | 14,750,000 | Offer Price: | $18.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.13 | |
| Offering Amount: | $272,875,000 | Selling: | $0.68 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 32,858,108 |
| Manager | Tier | Phone |
| Donaldson, Lufkin & Jenrette Securities Corp. | Lead Manager | (212) 371-0641 |
| Furman Selz Incorporated | Co-manager | (212) 309-8285 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Schroder Wertheim & Company, Incorporated | Co-manager | (212) 492-6900 |
| Issuer's Law Firm: | Lebdeuf, Lamb, Greene & Macrae |
| Bank's Law Firm: | Latham & Watkins |
| Auditor: | Price Waterhouse |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 7/28/96 | 4/27/97 | 4/28/96 | 4/27/97 | ||
| Revenue: | $73.42 | $163.73 | $66.77 | Assets: | $302.77 |
| Net Income: | -$2.24 | $3.17 | $9.99 | Curr Assets: | $36.40 |
| EPS: | Liabilities: | $277.70 | |||
| Prior EPS: | $47.42 | $9.55 | Curr Liabilities: | $38.51 | |
| Cash Flow/Oper: | $7.46 | -$15.01 | $11.89 | Equity: | $25.07 |
| Cash Flow/Fin: | $116.94 | -$34.08 | -$122.58 | Cash: | $2.42 |
| Cash Flow/Inv: | -$13.84 | -$34.08 | Working Cap: | -$2.11 | |
| Business Description |
| The company is the largest operator of alpine resorts in the U.S. The company will own and operate nine ski resorts, including two of the top five resorts in the country based on 1996-1997 skier visits, with at least one resort in each major skiing mkt. These resorts generated over 4.9 million skier visits, representing approximately 9.4% of total skier visits in the United States during the 1996-97 ski season. The Company's existing resorts include Sunday River and Sugarloaf in Maine; Attitash/Bear Peak in New Hampshire; Killington, Mount Snow/Haystack and Sugarbush in Vermont; and The Canyons in Utah (collectively, the "Existing Resorts"). On July 31, 1997, the Company entered into a definitive agreement (the "Acquisition Agreement") with respect to the acquisition of (i) the Steamboat ski resort and 168 acres of land held for development in Steamboat Springs, Colorado ("Steamboat") and (ii) the Heavenly ski resort near Lake Tahoe, California ("Heavenly" and, together with Steamboat, the "Acquired Resorts"). After giving pro forma effect to the Acquisition, the Company's resort revenues and Resort EBITDA (as defined) for the nine months ended April 27, 1997 would have been approximately $240.1 million and $69.8 million, respectively. |
| Competition |
| The skiing industry is highly competitive and is capital intensive. The Company's competitors include other major ski resorts throughout the United States, Canada and Europe. The Company's competitors include other worldwide recreation resorts, including warm weather resorts and various alternative leisure activities. The competitive position of the Company's resorts is dependent upon numerous factors, such as proximity to population centers, availability and cost of transportation to and within a resort, natural snowfall, snowmaking quality and coverage, resort size and attractiveness of terrain, lift ticket price, prevailing weather conditions, appeal of related services and lodging facilities, duration of the ski season and resort reputation. In addition, some of the Company's competitors have greater financial resources than the Company which could adversely affect the Company's competitive position and relative ability to withstand adverse developments. There can be no assurance that its competitors will not be successful in capturing a material portion of the Company's present or potential customer base. |
| Business Plan |
| The company believes that the following key operating strategies will allow it to increase revenues and EBITDA by capitalizing on its position as a leading mountain resort operator and real estate developer. The key elements of this strategy are: (I) High Impact Capital Improvements, (ii) Integration of Investments in Resort Infrastructure and Real Estate, (iii) Mountainside Real Estate Development, (iv) Increase Revenues Per Skier, (v) Innovative Marketin Programs, (vi) Capitalize on a Multi-Resort Network, (vii) Growth through Acquisitions and (viii) Expand Golf and Convention Business. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund the acquisition price, to repay indebtedness of ASC East, Inc., to make an investment in ASC East to fund the redemption of all outstanding Discount Notes, to repay indebtedness of the company and subsidiaries, to pay certain fees and expenses relating to the transactions and for general corporate purposes and capital expenditures. |
| Officer Name | Title | Age |
| Leslie B. Otten | Director, President and Chief Executive Officer | 48 |
| Christopher E. Howard | Director, Senior Vice President, Chief Administrative Officer, General Counsel and Clerk | 39 |
| Thomas M. Richardson | Director, Senior Vice President, Chief Financial Officer and Treasurer | 44 |
| Burton R. Mills | Senior Vice Preside--Mountain Operations | 44 |
| G. Christopher Brink | Senior Vice President--Marketing | 44 |
| Warren C. Cook | Senior Vice President--Resort Operations | 52 |
| Michael Meyers | Vice President--Real Estate Devlopment | 44 |
| W. Scott Oldakowski | Vice President--Real Estate Sales | 33 |