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earningsrelease2q05.txt
PRESS RELEASE





      American Skiing Company Announces Fiscal 2005 Second Quarter Results

  All For One Program Drives Increase in Season Pass Visitation; Excellent Snow
             Conditions Provide Momentum Heading Into Third Quarter.

PARK CITY, UTAH - March 16, 2005 - American Skiing Company (OTC: AESK) today
announced its financial results for the second quarter of fiscal 2005.
Highlights of the ski season to date include an increase in group and conference
business and increases in season pass visitation as a result of the successful
introduction of the All For One pass at the company's resorts in the East, which
allows guests to ski throughout the ski season for as little as $349.

"We entered this season poised to capture additional skier visits on the
strength of our new creative marketing efforts, and I am pleased to report that
our innovative All For One pass products have done just that," said CEO B.J.
Fair. "With the introduction of the All For One pass this year, we have
contributed to the financial health of the company, while making skiing and
riding at our network of resorts accessible to many more than in past years. The
success of the All For One program and the increased exposure to the ASC
experience should benefit us for the remainder of the current season and in the
years ahead."

"While we did experience poor early season weather conditions in the East,
excellent skiing and riding conditions now prevail at all of our resorts," Fair
continued. "We are reaping the benefits of superb recent natural snowfall in the
Northeast, followed by favorable weather conditions at all resorts. As a result,
we remain cautiously optimistic about the remainder of this year's ski season."

In addition to the financial results through January 30, 2005 the company also
reported a 10.6% increase in revenues for the first four weeks of its fiscal
2005 third quarter over the first four weeks of its fiscal 2004 third quarter
along with approximately a 4% increase in year over year hotel booking pace.
Strong visitation through the February holiday period was cited as a driver of
increased ticket product and resort amenity revenues.

Fiscal 2005 Second Quarter Results

Total consolidated revenue was $106.1 million for the 14 weeks ended January 30,
2005, compared with $103.0 million for the 13 weeks ended January 25, 2004.
Revenue from resort operations was $103.4 million for the 14 weeks ended January


                                       1


30, 2005 compared to $92.9 million for the 13 weeks ended January 25, 2004. As
the result of the company being on a 52-53 week fiscal year, fiscal 2005
includes an extra week of operations compared to fiscal 2004. This resulted in
an additional week of operations in the second quarter of fiscal 2005 compared
to the second quarter of fiscal 2004. Revenue associated with the additional
week was approximately $11.6 million. Without the extra week in fiscal 2005,
skier visits were down approximately 3% as compared to fiscal 2004 due to lower
amounts of natural snowfall and warmer temperatures in the East, and wind events
from the beginning of the ski season through the end of the Christmas holiday
period. Revenue from real estate operations was $2.7 million for the 14 weeks
ended January 30, 2005 versus $10.1 million for the 13 weeks ended January 25,
2004, when the company recognized $8.9 million from land parcel sales.

On a GAAP basis, the net loss for the 14 weeks ended January 30, 2005 was $22.1
million, or $0.70 per basic and diluted common share, compared to a net loss of
$21.7 million, or $0.68 per basic and diluted common share for the 13 weeks
ended January 25, 2004. The loss from resort operations was $21.4 million for
the 14 weeks ended January 30, 2005 versus a loss of $17.7 million for the 13
weeks ended January 25, 2004. The increased loss was associated with a $6.0
million deferred financing costs write-off and loss on extinguishment of Senior
Subordinated Notes relating to the refinancing of Senior Debt, Subordinated
Notes and Preferred Stock this past November 2004, a $3.8 million increase in
depreciation and amortization due to asset additions (specifically, the
conversion of operating leases to capital leases), a $3.4 million increase in
interest expense due to compound interest associated with the junior
subordinated notes and the accretion of discount and dividends on mandatorily
redeemable preferred stock and an additional week of outstanding borrowings, a
$4.3 million decrease in marketing, general and administrative costs, $2.0
million in reduced operating lease costs as a result of the conversion to
capital leases and the results of the extra week of operations discussed above.
Excluding the deferred financing costs write-off and loss on extinguishment of
Senior Subordinated Notes, the loss from resort operations was $15.4 million for
the 14 weeks ended January 30, 2005 compared to a loss of $17.7 million in the
13 weeks ended January 25, 2004. The company has provided reconciliations from
GAAP financial measures to non-GAAP financial measures in the tables following
this discussion.

The loss from real estate operations was $0.7 million for the 14 weeks ended
January 30, 2005, compared with a loss of $4.0 million for the 13 weeks ended
January 25, 2004. The decrease in the loss was largely due to the reduced
interest expense during fiscal 2005 as result of the restructuring of the real
estate credit facility in May 2004.

Fiscal 2005 to Date Results

Skier visits company-wide for the 27 weeks ended January 30, 2005 increased 9.5%
over skier visits for the 26 weeks ended January 25, 2004. The increase was due
to the extra week of operations in fiscal 2005 compared to fiscal 2004 to date,
and the increased season pass visits associated with the All For One pass
products. Total consolidated revenue was $125.6 million for the 27 weeks ended
January 30, 2005, compared with $121.4 million for the 26 weeks ended January
25, 2004. Revenue from resort operations was $121.2 million for the 27 weeks
ended January 30, 2005 compared to $109.0 million for the 26 weeks ended January


                                       2


25, 2004. The increase in resort revenue reflects an additional week of
operations in the second quarter of fiscal 2005 compared to the second quarter
of fiscal 2004, as discussed above, and strong fiscal 2005 first quarter group
and conference business at Steamboat and The Canyons. Revenue from real estate
operations was $4.4 million for the 27 weeks ended January 30, 2005 versus $12.4
million for the 26 weeks ended January 25, 2004, including the previously
mentioned land parcel sales.

On a GAAP basis, net loss for the 27 weeks ended January 30, 2005 was $59.9
million, or $1.89 per basic and diluted common share, compared with a net loss
of $62.9 million, or $1.98 per basic and diluted common share for the 26 weeks
ended January 25, 2004. The loss from resort operations was $58.5 million for
the 27 weeks ended January 30, 2005 versus a loss of $53.6 million for the 26
weeks ended January 25, 2004. The increased loss was associated with $6.0
million in deferred financing costs write-off and loss on extinguishment of
Senior Subordinated Notes, a $3.8 million increase in depreciation and
amortization due to asset additions (specifically, the conversion of operating
leases to capital leases), a $4.8 million increase in interest expense due to
compound interest associated with the junior subordinated notes and the
accretion of discount and dividends on mandatorily redeemable preferred stock
and an additional week of outstanding borrowings, a $3.7 million decrease in
marketing, general and administrative costs and a reduction of $2.0 million in
operating lease costs as a result of the conversion to capital leases. Excluding
the deferred financing costs write-off and loss on extinguishment of Senior
Subordinated Notes, the loss from resort operations was $52.6 million for the 27
weeks ended January 30, 2005 compared to a loss of $53.6 million for the 26
weeks ended January 25, 2004. The company has provided reconciliations from GAAP
financial measures to non-GAAP financial measures in the tables following this
discussion.

The loss from real estate operations was $1.3 million for the 27 weeks ended
January 30, 2005 compared with a loss of $9.4 million for the 26 weeks ended
January 25, 2004. The decrease in the loss was largely due to the reduced
interest expense from the previously mentioned credit facility restructuring.

Use of Non-GAAP Financial Information

The company uses both GAAP and non-GAAP metrics to measure its financial
results. Management believes that non-GAAP financial measures which exclude
certain items provide useful information to investors regarding the company's
ongoing financial condition and results of operations. In particular, the
company has excluded deferred financing costs write-off and loss on
extinguishment of Senior Subordinated Notes from net loss. Management believes
these non-GAAP metrics are useful to investors because they remove certain items
that occur in the affected periods and provide a basis for measuring the
company's results of operations and financial condition against other periods.
Since the company has historically reported non-GAAP results to the investment
community, management also believes the inclusion of non-GAAP measures provides
consistency in its financial reporting. However, non-GAAP financial measures
should not be considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. In addition to the information
contained in this press release, investors should also review information
contained in the company's Form 10-Q and Form 10-K, dated March 16, 2005 and


                                       3


November 9, 2004, respectively, as well as other filings with the Securities and
Exchange Commission when assessing the company's financial condition and results
of operations. The company has provided reconciliations from GAAP financial
measures to non-GAAP financial measures in the tables following this discussion.

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 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,
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 segments; competition and pricing pressures; negative
impact on demand for our products resulting from terrorism and availability of
air travel (including the effect of airline bankruptcies); failure to maintain
improvements to resort operating performance at the covenant levels required by
our new resort senior credit facility; the possibility of domestic terrorist
activities and their respective effects on the ski, golf, resort, leisure and
travel industries; failure of on-mountain improvements and other capital
expenditures to generate incremental revenue; 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.


                                       4





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



                                               14 Weeks Ended     13 Weeks Ended     27 Weeks Ended     26 Weeks Ended
Net revenues:                                 January 30, 2005   January 25, 2004   January 30, 2005   January 25, 2004
                                              ----------------   ----------------   ----------------   ----------------
                                                                                           
  Resort                                      $        103,411   $         92,904   $        121,231   $        109,032
  Real estate                                            2,663             10,056              4,389             12,401
                                              ----------------   ----------------   ----------------   ----------------
    Total net revenues                                 106,074            102,960            125,620            121,433
                                              ----------------   ----------------   ----------------   ----------------

Operating expenses:
  Resort                                                67,786             62,410             91,395             84,935
  Real estate                                            2,155              8,538              3,263             10,196
  Marketing, general and administrative                 16,210             20,490             27,027             30,770
  Restructuring and asset impairment                       -                  -                  -                  137
  Depreciation and amortization                         14,400             10,631             16,679             12,934
                                              ----------------   ----------------   ----------------   ----------------
    Total operating expenses                           100,551            102,069            138,364            138,972
                                              ----------------   ----------------   ----------------   ----------------

Income (loss) from operations                            5,523                891            (12,744)           (17,539)

Interest expense and other, net                         21,684             22,580             41,137             45,408
Write-off of deferred financing costs and
  loss on extinguishment of senior
  subordinated notes                                     5,983                -                5,983                -
                                              ----------------   ----------------   ----------------   ----------------
Net loss                                      $        (22,144)           (21,689)           (59,864)           (62,947)
                                              ================   ================   ================   ================

Basic and diluted net loss per common share:
Net loss                                      $          (0.70)  $          (0.68)  $          (1.89)  $          (1.98)
                                              ================   ================   ================   ================
Weighted average common shares outstanding -
  basic and diluted                                     31,738             31,738             31,738             31,738
                                              ================   ================   ================   ================


For more information, please refer to the Company's Form 10-Q, filed on March
16, 2005, with the Securities and Exchange Commission.

5 American Skiing Company and Subsidiaries Unaudited Segment Information and Reconciliation of GAAP to Non-GAAP Metrics (in thousands of dollars) 14 Weeks Ended 13 Weeks Ended 27 Weeks Ended 26 Weeks Ended January 30, 2005 January 25, 2004 January 30, 2005 January 25, 2004 ---------------- ---------------- ---------------- ---------------- Loss from resort operations $ (21,426) $ (17,701) $ (58,548) $ (53,573) Loss from real estate operations (718) (3,988) (1,316) (9,374) ---------------- ---------------- ---------------- ---------------- Net loss $ (22,144) $ (21,689) $ (59,864) $ (62,947) ================ ================ ================ ================ Net loss $ (22,144) $ (21,689) $ (59,864) $ (62,947) Write-off of deferred financing costs and loss on extinguishment of senior subordinated notes 5,983 - 5,983 - ---------------- ---------------- ---------------- ---------------- Net loss excluding write-off of deferred financing costs and loss on extinguishment of senior subordinated notes $ (16,161) $ (21,689) $ (53,881) $ (62,947) ================ ================ ================ ================ Loss from resort operations $ (21,426) $ (17,701) $ (58,548) $ (53,573) Write-off of deferred financing costs and loss on extinguishment of senior subordinated notes 5,983 - 5,983 - ---------------- ---------------- ---------------- ---------------- Loss from resort operations excluding write-off of deferred financing costs and loss on extinguishment of senior subordinated notes $ (15,443) $ (17,701) $ (52,565) $ (53,573) ================ ================ ================ ================
American Skiing Company and Subsidiaries Unaudited Balance Sheet Data - January 30, 2005 (in thousands of dollars) Real estate developed for sale $ 24,093 ================ Total assets $ 457,756 ================ Total resort debt (1) $ 613,042 Total real estate debt 27,692 ---------------- Total debt (1) $ 640,734 ================ (1) Includes preferred stock of $288,613 as a result of the adoption of SFAS No. 150. Excluding preferred stock, total debt would be $352,121. For more information, please refer to the Company's Form 10-Q, filed on March 16, 2005, with the Securities and Exchange Commission. 6 American Skiing Company and Subsidiaries Unaudited Supplemental Revenue Data (in thousands of dollars) 14 Weeks Ended 13 Weeks Ended 27 Weeks Ended 26 Weeks Ended January 30, 2005 (1) January 25, 2004 % Change January 30, 2005 (1) January 25, 2004 % Change ---------------- ---------------- -------- ---------------- ---------------- -------- Resort revenues Lift tickets $ 52,871 $ 46,285 14.2% $ 52,914 $ 46,330 14.2% Food and beverage 13,429 11,796 13.8% 17,914 15,336 16.8% Retail sales 11,447 10,553 8.5% 12,146 11,326 7.2% Skier development 9,772 9,033 8.2% 9,868 9,115 8.3% Golf, summer activities 23 24 (4.2%) 3,530 3,443 2.5% Lodging and property 12,675 11,914 6.4% 19,271 17,810 8.2% Miscellaneous revenue 3,194 3,299 (3.2%) 5,588 5,672 (1.5%) -------------------------------------- --------------------------------------- Total resort revenues $ 103,411 $ 92,904 11.3% $ 121,231 $ 109,032 11.2%
Season-to-Date -------------------------------------- Unaudited Skier Visits January 30, 2005 (1) January 25, 2004 % Change ---------------------- ---------------- ---------------- --------- Attitash 75,810 69,865 8.5% The Canyons 182,949 169,206 8.1% Killington 430,801 394,120 9.3% Mount Snow 217,514 188,642 15.3% Sugarloaf/USA 147,197 118,081 24.7% Sunday River 215,850 198,550 8.7% Steamboat 429,017 412,814 3.9% -------------------------------------- Total Skier Visits 1,699,138 1,551,278 9.5% ====================================== (1) Represents an additional fiscal week of operations relative to fiscal 2004. 7

The following information was filed by American Skiing Co Me on Wednesday, March 16, 2005 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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