Portland, ME, May 30, 2001--(AP by David Sharp) American Skiing Co. announced Wednesday it will sell its Steamboat resort in Colorado and cut jobs under a restructuring that is designed to reduce its debt and operating costs.
Under the plan, 70 full-time jobs will be eliminated and another 160 full-time jobs will be converted to seasonal jobs companywide in an effort to save $5 million a year, said William ``B.J.'' Fair, chief executive officer of the company.
The Bethel, Maine.-based company, has had a tough time since it went public in November 1997. Its stock was trading at $1.25 in early afternoon trading on the New York Stock Exchange, down 1 cent, or 0.8 percent. The initial price was $18.
American Skiing also said it expected third-quarter earnings to fall below projections, blaming the revised figure on charges related to restructuring and merger activities, and weaker-than-expected results from the company's real estate subsidiary.
Despite the problems, Fair said he was encouraged that skier visits returned to normal levels thanks to the snowy winter.
The restructuring comes two months after the company's founder, Les Otten, resigned as chairman and chief executive officer.
American Skiing also said it would focus on boosting resort village development, restructuring its debt and attracting new capital.
The company's other holdings include Sugarloaf and Sunday River in Maine; Attitash Bear Peak in New Hampshire; Killington, Mount Snow and Sugarbush in Vermont; The Canyons in Utah and Heavenly in California and Nevada.
Credit Suisse First Boston has been retained to assist in the sale.
Copyright (c) 2000 The Associated Press