Newry, Maine (10 September, 2001) - American Skiing Company (NYSE: SKI) announced today that it has entered into an agreement to sell its Sugarbush Resort in Warren, Vermont to Summit Ventures NE, Inc., a company formed by a group of local investors.
"American Skiing Company is focused on improving our financial results and resort operations," said American Skiing Company CEO BJ Fair. "While we were not seeking a buyer for Sugarbush, we believe the unsolicited offer we received from Summit Ventures is in the best interest of American Skiing Company investors. The sale is consistent with our strategic plan to focus management and financial resources on our highest growth opportunities. Sugarbush is an outstanding resort, and we are confident that the resort will benefit from the ownership of Summit Ventures."
"Our team is made up of long-time Mad River Valley residents and experienced ski industry professionals," said Thomas McHugh, CEO of Summit Ventures. "We know these mountains and what makes them special, and we're committed to preserving and enhancing the unique character of Sugarbush."
As part of the agreement, the new owners will honor Sugarbush season passes that have already been sold for the upcoming 2001/2002 ski season. Purchasers of American Skiing Company All East and Ski America passes may keep their passes for use at American Skiing Company's network of resorts or may exchange them for a Sugarbush season pass.
Mark Miller, American Skiing Company's chief financial officer, said that although a sale of Sugarbush was not part of the Company's original strategic plan to de-lever the company and improve its bottom line, the sale was consistent with the Company's policy of examining unsolicited offers to determine whether they were in the best interest of the Company.
Net proceeds of the sale will be used to reduce American Skiing Company's debt. The transaction is subject to financing and standard closing conditions, and is expected to close by the start of the ski season. Terms of the sale are confidential.
About American Skiing Company:
Headquartered in Newry, Maine, American Skiing Company is the largest operator of alpine ski, snowboard and golf resorts in the United States. Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada. More information is available on the company's Web site, www.peaks.com.
This document contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect American Skiing Company's current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward looking statements. 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: failure to fully implement the restructuring plan outlined by the Company in a press release on May 30, 2001; changes in regional and national business and economic conditions affecting both American Skiing Company's resort operating and real estate segments; competition and pricing pressures; failure to effectively manage growth, business and financial condition; failure to effectively integrate or operate recently acquired companies and assets; failure to renew or refinance existing financial liabilities and obligations or attain new outside financing; failure of on-mountain improvements and other capital expenditures to generate incremental revenue; adverse weather conditions regionally and nationally; seasonal business activity; changes to federal, state and local land use regulations; changes to federal, state and local regulations affecting both American Skiing Company's resort operating and real estate segments; litigation involving anti-trust, consumer and other issues; failure to renew land leases and forest service permits; disruptions in water supply that would impact snowmaking operations and impact operations; the loss of any of our executive officers or key operating personnel; control of American Skiing Company by principal stockholders; failure to hire and retain qualified employees; and other factors listed from time-to-time in American Skiing Company's documents filed by the Company with the Securities Exchange Commission. The forward looking statements included in this document are made only as of the date of this document and under section 27A of the Securities Act and section 21E of the Securities Exchange Act, we do not have or undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.