Intrawest’s financial picture continues to blossom but the same can’t be said for one of its main competitors. A poor snow year has hurt the American Skiing Company, which owns 11 resorts in the United States, raising questions about whether the company will continue with its real estate development and resort improvement plans. ASC borrowed heavily to finance its acquisitions of Steamboat in Colorado and Heavenly in Nevada just before the company went public in November, 1997. Proceeds from the public offering, which had an opening value of $265,500,000, were intended to be used to finance the Steamboat and Heavenly purchases. The company’s stock opened at $18 per share when it hit the market on Nov. 6, 1997. ASC’s second quarter results for the current year (Jan. 21) were released in March and showed a $10.8 million loss. That started a plunge, which saw the stock bottom out at $2 3/8 per share. More recently, banks approved a $20 million capital plan for the coming year, which brought ASC at least some temporary relief. But the company’s financial troubles have led to speculation that it may sell off some of its resort assets. Some reports also suggest ASC may announce some sort of strategic alliance when it unveils its third quarter results. ASC's resorts include Attatish Bear Peak in New Hampshire; The Canyons in Utah; Haystack Ski Area, Killington, Mount Snow Resort, Sugarbush Resort and Pico in Vermont; Sugarloaf and Sunday River in Maine; Heavenly and Steamboat.
