How are resorts doing this season?

[stomachdoc]

Anyone have a sense--or inside knowledge--as to how the ski areas are doing this season so far. Certainly the storm a couple of days ago helped--conditions are fantastic now in NH/VT/ME.

In my conversations with staff and my own observations at my home area of Waterville Valley, they are ahead somewhat from last season--which was a dismal one. February vacation week will be a pivotal one, I think.

I'm curious how things have gone at some of the less popular/financially precarious places so far this year (Crotched, Burke, etc.).

 

[hammer]

Crotched had a pretty decent number of people when I was there a few weeks ago. I hope that they're doing well...

 

[KingM]

They reported in the newspapers a few weeks back that VT area resorts were down 20% from last year. That was about right for December but January was even worse from a lodging perspective. Thankfully, the new snow should help going into the President's Day weekend and the school break the following week, which is the second most important time of the season for us, after Christmas.

BTW, MRG reported picking up another 6-8 inches last night, and there are snow showers predicted for the next few days so skiing should be great for the next week or two.

 

[awf170]

i have been to wildcat 4 times this year and they dont seem to be doin to well because i went there during christmas vacation and the lines were still only like 5 minutes midday. But i think they do better in the spring anyway. So i would say they are doin okay

 

[riverc0il]

yesterday was the busiest i have ever seen cannon since i have been skiing there. clearly the big dump brought skiers out in droves to the mountains. i would guess that so far things haven't been up to par for the new england ski industry with exception of closer to the metro areas that have dependable snow and were within the southern new england big storm ranges (crotched, wachusett, pats, nashoba, bradford, etc. must all be having steller years so far i would guess???).

 

[RossiSkier]

American Skiing Co (AESK.OB)
Attash, Kililngton/Pico, Sugarloaf USA, Sunday River, Mount Snow/Haystack, The Canyons, Steamboat

Income Statement
PERIOD ENDING 25-Jan-04 All numbers in thousands

Total Revenue = 102,960
Cost of Revenue = 32,012
Gross Profit = 32,012

Operating Income or Loss = 891
Net Income Applicable To Common Shares = -$21,689

 

[swade2469]

I have been hitting pats peak and crotched regularly on weekends. If one this is true, they are doing all they can. Especially Pats. The after 3 special is quite cool. The crowds are a little much, but there is plenty of live music and action. Crotched is a little more subdued, but as I was leaving yesterday I was greeted by the marketing manager and she just asked me how it was and if anything could be improved. Seems that they are trying really hard. I must say that even though the mountain is small, the snow at crotched has been the best and most consistent of any mountain I have seen yet.

 

[ctenidae]

ASC's numbers don't surprise me- they've run at a loss the last three years, as I recall. Last year they lost $35M, or thereabouts. I haven't looked into them too closely, but I wonder what's driving the losses? Are they paying down debt at a horrendous rate, and if so, what are they doing carrying that much debt? Seasonal business + long-term debt = Poor long-term prospects.
(edit add in- Just lokoed over their 10-Q for their fiscal first quarter (July-October). They do carry a lot of debt ($220M or so), which they've recently refinanced to extend maturity. Not that it's much on topic, but unless they can continue refinancing debt as it comes due, which gets harder every time you do it, they don't have enough cash on hand to get through half a season. No wonder they're trading at $0.46)

I'd say Sunapee's doing pretty well this year- they've had good snow, and thecrowds have been pretty good, from both sides of the aisle. Solid numbers, but not so many that it threatens to turn others away.

 

[ski_resort_observer]

ASC

ASC hasn't made a penny since the day LBO formed it. That's what happens when you go into massive debt to by a much bigger company that your own.
It IPO'd at 18 bucks a share and is currently 46 cents a share.

 

[thetrailboss]

I'm curious how things have gone at some of the less popular/financially precarious places so far this year (Crotched, Burke, etc.).

Burke laid off their snowmaking crew on MLK day...they hit their budget. This snow should help them.

Sugarbush is the one to watch IMHO...flat revenue as of late and a major price increase on day rates. They now boast one of the highest season ticket rates. Oddly enough, they've been throwing out some interesting promos, such as the $14 day today which signals to me that they need business.

 

[awf170]

I think one of the things that killed ASC was putting all that money into the canyons because of what i heard it is never crowded and they are losing tons of money on it.

 

[thetrailboss]

I think one of the things that killed ASC was putting all that money into the canyons because of what i heard it is never crowded and they are losing tons of money on it.

And one of the most idiotic things I heard about the place is that they rely on snowmaking at this resort because they don't get much snow. Now how many westerners are going to ski at a place that relies on snowmaking when the other places are blessed with snow?

 

[awf170]

ya i never knew that about park city area until like a week ago, because they all claim like 350 inches a year, but when i went website i found that that is only at the summit so the base only gets like 150. That kinda makes me reconsider those ski areas around park city (even though that is where im staying) when snowbird alta and brighton get 500 at their BASE.
Also i heard i trip report from the canyons a few weeks ago and it said there were bare spots at lower elavations, so i guess they arent even doing good with there snowmaking.
Another thing i think is killing ASC is the bad snow the past few years and how much they rely on snowmaking.

 

[ctenidae]

Actually, looking at ASC's financials, it lookslike it's the resort side that's killing them. Ski operations, while not in the black, aren't the source of all their debt. They've got a construction loan that runs about $120M, and various other facilities tied up in developments. The financing going on around the fractional ownership places is staggering, both in its size and complexity. I really wonder how much stuff is being held off the balance sheet, too- since ASC is really just a holding company, owning the companies that own the resorts, there are lots of shady looking deals going on. I'm sure everything we see is perfectly "legal", but one has to wonder. For instance, the Grand Summit at Killington is owned by Grand Summit Realty, and leased to ASC. ASC owns GSR.
Anyway, I think what's killing them is a combination of poor planning, terrible snow, and too-fast expansion. If they can slow themselves down and dig out, they'll be okay, but obviously people aren't interested in investing in them, adn at teh moment their growth prospects are, shall we say, dim.

 

[ski_resort_observer]

season passes

Regarding the Bush's season pass prices. Sugarbush considers it's main competitor Stowe. Whatever Stowe's day ticket and season pass prices are, or were last year, the Bush's will be similar.

If they call it right, they do play cat and mouse regarding the day they announce the prices, the Bush will be alittle less. To be honest, haven't seen Stowe's prices, so I don't know about this year. In 1996, my first year working there, and since, the Bush's SP prices are pretty expensive, comparativly, except for college students and kids.

The decision to not lower SP prices this season ,in the face of the ASC pass knock downs, was not hard. It's just deteriating(sic) the ski experience for their guests, have heard alot more complaints this year. Especially about kmart and Mt Snow. I actually think the Bush gained some new customers.

As far as how ski resorts are doing this year, for slier visits as of Jan 1 the Bush was slightly behind last year but with those 2 weeks of springlike skiing
in Jan, I think we are slightly ahead. With the upcoming holiday/vacation bookings extremely strong things look pretty good in light of the type of season we have had.