SOUTH LAKE TAHOE -- Heavenly Ski Resort's parent company announced Monday it was advised by the New York Stock Exchange it no longer meets the criteria for a continued listing.
It also falls below the threshold necessary to maintain market capitalization, defined as the ratio between price per share and outstanding shares.
American Skiing Co. dropped below the standard of keeping its closing price above $1 a share in a 30-day period. The last time the stock reached that level was Oct. 22. Its low fell to about half that amount. Over the last few months, shares have fluctuated in the between 70 and 90 cents. The stock closed Monday at 48 cents.
The exchange notified the ski resort operator 45 days ago and gave it a six-month "cure" period to rectify its stock status.
American Skiing asked NYSE for 18 months to comply, as it remains committed to maintaining its listing. ASC is submitting a business plan that will outline the process.
"Everything the company has done in the last seven to eight months has focused on improving the company's financial position," ASC spokesman Skip King said.
Selling its Steamboat ski resort represents one component of that plan. King said he's unable to determine a timeline for the sale. A letter of intent by an undisclosed company was submitted, and the two firms have been engaged in "active discussions."
"We do expect to sell the resort. Unfortunately, the events of Sept. 11 have impacted market capitalization," King said.
NYSE's listing standard mandates market capitalization of no less than $50 million over a 30-day trading period. On Monday, it was $17.1 million.
During the past two quarters, the Newry, Maine-based ski resort operator posted losses totaling nearly $180 million. The company's debt more than doubled from 1996 to 1999 as it bought ski resorts. It went public in November 1997 at $18 a share but plummeted in a few years.
Earlier this month, Moody's Investors Service Inc. downgraded the debt-laden company's credit rating, citing a reduction in skier visits after the terrorist attacks.
For the quarter ending April 29, 2001, Heavenly skier visits totaled 846,108 -- down from 896,630 for the same period during the previous year.
American Skiing, which also owns Killington in Vermont and The Canyons in Utah, should release an earnings report in early March.
