| NEWRY, Maine, March 28, 2001 - The Board of Directors
of American Skiing Company (NYSE: SKI) announced today that William �B.J.�
Fair, currently American Skiing Company�s chief operating officer, has
been named chief executive officer of the company.
Following the resignation of Leslie B. Otten,
who had served as chairman and chief executive officer of American Skiing
Company, B.J. Fair will assume the chief executive duties, effective today.
| �I�ve been proud to lead
the American Skiing team over the past 21 years,� said Otten. �We
have built a remarkable company, and I am confident that the company�s
future under B.J.�s leadership will continue to improve as it moves into
its next phase of development. Since discussions of the Meristar
merger began last summer, I have been investigating plans outside of American
Skiing Company and intend to pursue those options.�
Steven B. Gruber, Board member of the company
and a managing partner at Oak Hill Capital Management, Inc., stated, �I
would like to thank Les Otten for the vision and energy that he brought
to the company. He�s achieved tremendous success by building this
company from a single small ski area in Maine into one of the country�s
leading operators with nine world-class ski resorts in both the Eastern
and Western United States. The Board and everyone at American Skiing
appreciates his substantial accomplishments and wishes him success in his
new endeavors.�
�B.J. Fair�s appointment as chief executive is
a natural progression in the company�s management structure. B.J.
has made significant contributions |
|
American Skiing, MeriStar
Hotels & Resorts Announce Withdrawal of Plans for Merger
NEWRY, Maine, March 23, 2001�American Skiing Company (NYSE:
SKI), and MeriStar Hotels & Resorts (NYSE: MMH) announced today that
they have withdrawn plans to merge the two companies due to changes in
economic conditions and the combined companies� inability to effect the
capital markets transactions required to consummate the merger.
�With the recent changes in economic conditions and their
resulting impact on the financing necessary to operate the combined company,
each company has reached the conclusion that pursuing operations on a standalone
basis is more attractive to its shareholders than consummation of the merger,�
said Leslie B. Otten, Chairman and Chief Executive Officer of American
Skiing Company. "We expect to continue to reap benefits from the capital
investments which we have made at our resort at The Canyons in Park City,
Utah and in the new Heavenly Gondola in South Lake Tahoe. In the
east, where the company has made significant capital investments over the
past three years, highlighted by this year�s Killington water project,
we expect to see continued improvement in our operating results.�
The Boards of each of MeriStar and American Skiing met
separately on March 22, 2001 and, following an update from management on
the status of the transaction, voted to terminate the merger plans.
The companies each executed a letter terminating their existing merger
agreement without liability to the other. |
|
in driving the business forward in the twelve months
that he has been at American Skiing Company,� said Gruber. �He brings
an exceptional level of experience in both resort management and real estate
development to the company. The Board of Directors is confident that
American Skiing Company will thrive under B.J.�s leadership and direction.�
Fair joined American Skiing Company in March 2000
as chief operating officer of American Skiing Company�s resort operations.
Prior to his involvement at American Skiing Company, Fair served as president
of Universal Studios� Port Aventura theme park where he was responsible
for the ongoing development and operation of the park. Also at Universal,
Fair served as senior vice president of Universal Creative. Earlier,
in his role as director of finance and business planning for Disney Development
Company, Fair was a principal negotiator and led financing and development
efforts for the Disney�s California Adventure expansion and related development
in Anaheim, Calif.
�I joined American Skiing Company because of the
company�s world class portfolio of assets and because I believed we could
achieve substantial upside in financial performance from improved operational
execution,� Fair said. �While the company has made large strides
during the past twelve months, we are capable of accomplishing far more.�
Outlook
Fair commented on his outlook for the company
for the immediate future.
�Although the company faces near-term challenges,
I am confident that substantial shareholder value can be created at American
Skiing during the next few years. I am eager to work closely with
the rest of the senior management team to achieve our game plan,� said
Fair.
| Fair noted that American
Skiing Company is experiencing growth in revenue and earnings in this fiscal
year. At this time, the company anticipates that resort EBITDA will
likely be at or slightly below the low end of the previously guided range
of $50-$60 million, although results are subject to change as there are
still approximately four months remaining in the year. |
Grand Summit Resort Hotel Sugarloaf/USA
|
To further strengthen operations and drive future
results, Fair will accelerate some of the efforts the management team began
while he was chief operating officer. His immediate priorities include:
-
improving cost management at both the resort and
corporate levels in the coming months
-
revising the organizational structure and management
systems to better align the efforts of resort and real estate managers
with one another, as well as with shareholders
-
strengthening the company�s marketing and sales functions
at both the corporate level and in the field to improve skier volumes and
to strengthen the share of American Skiing Company resorts in their respective
markets
-
enhancing the company�s capital structure and financial
flexibility
The American Skiing Company team of managers assembled
over the past few years remains in place to work with Fair in his new role.
In particular, Hernan Martinez, who joined as chief operating officer of
Real Estate Operations in May 2000, will continue to lead the real estate
business. Mark Miller, who has served as chief financial officer
since 1998, will assume additional responsibilities.
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.
The historical and forward-looking statements
about American Skiing Company contained in this press release are not based
on historical facts, but rather reflect American Skiing Company�s current
expectations concerning future results and events. |
