SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 1995
S-K-I LTD.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-13055 03-0294233
(Commission File Number) (IRS Employer Identification Number)
30 Airport Road, Suite 5, West Lebanon, NH 03784
(Address of principal executive offices)
603-298-1160
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Item 2. Disposition of Assets.
On October 23, 1995 S-K-I Ltd.(the "Company") finalized the sale of
the majority of the assets of Bear Mountain Ski Resort and golf
course, located in Southern California, to a subsidiary of Fibreboard
Corporation of Walnut Creek, California.
The purchase price was approximately $20,500,000. Proceeds from the
sale will be used to pay down debt, strengthening the Company's
balance sheet.
Item 7(a). Financial Statements and Exhibits
(Pro forma financial information) Page
S-K-I Ltd. and subsidiaries pro forma consolidated condensed
financial information:
Unaudited pro forma statement of operations for the year
ended July 31, 1995 4
Unaudited pro forma balance sheet at July 31, 1995 5-6
Notes to unaudited pro forma financial information 7
<TABLE>
S-K-I LTD.
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED JULY 31, 1995
UNAUDITED
<CAPTION>
LESS
S-K-I LTD. BEAR MT.
HISTORICAL HISTORICAL(1) ADJUSTMENTS PRO FORMA
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Resort services $74,252,723 $9,079,014 $65,173,709
Sale of goods 23,648,797 2,698,947 20,949,850
Rental and other
income 16,058,192 1,498,120 $25,345 (A) 14,585,417
____________________________________________________________
113,959,712 13,276,081 25,345 100,708,976
____________________________________________________________
Expenses:
Cost of operations
including wages,
maintenance and
supplies:
Resort services 29,611,497 3,333,063 20,000 (A),(F) 26,298,434
Sale of goods 15,146,037 1,508,270 13,637,767
Rental and other
income 6,799,809 175,134 313 (F) 6,624,988
Other taxes 8,599,706 1,107,974 29,049 (A),(F) 7,520,781
Utilities 8,070,911 588,183 7,482,728
Insurance 6,634,837 1,480,660 50,302 (A),(F) 5,204,479
Selling, general
and administrative
expenses 19,494,655 2,416,090 234,828 (F) 17,313,393
Interest 3,818,893 165,040 (1,208,896) (B),(F) 2,444,957
Depreciation and
amortization 14,055,796 2,786,008 40,094 (A),(F) 11,309,882
Loss on sale of
Bear Mountain Ltd. 3,848,500 (G) 3,848,500
_____________________________________________________________
Total expenses 112,232,141 13,560,422 3,014,190 101,685,909
_____________________________________________________________
Income before income
taxes and minority
interest 1,727,571 (284,341) (2,988,845) (976,933)
Provision for income
taxes 997,123 (117,206) (1,090,550) (H) 23,779
_____________________________________________________________
Net Income before
minority interest 730,448 (167,135) (1,898,295) (1,000,712)
_______________________________________________________________
Minority interest in
net loss of consolidated
subsidiary 298,949 298,949
Net income $1,029,397 ($167,135) ($1,898,295) ($701,763)
______________________________________________________________
Net income(loss) per
common share $ 0.18 ($0.12)
_______________________________________________________________
_______________________________________________________________
(1) Historical results of Bear Mountain Ltd. for the year ended July 31, 1995.
</TABLE>
<TABLE>
S-K-I
PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEET
JULY 31, 1995
UNAUDITED
<CAPTION>
LESS
S-K-I LTD. BEAR MT.
HISTORICAl HISTORICAL(1) ADJUSTMENTS PRO FORMA
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS:
CASH AND INVESTMENTS $2,790,645 $2,790,645
ACCOUNTS RECEIVABLE 2,677,434 $29,700 2,647,734
INVENTORIES 3,955,722 574,526 3,381,196
PREPAIDS 1,360,460 119,729 1,240,731
NOTES RECEIVABLE 244,775 244,775
_____________________________________________________________
TOTAL CURRENT ASSETS 11,029,036 723,955 10,305,081
_____________________________________________________________
PROPERTY AND EQUIPMENT:
BUILDINGS & GROUNDS 41,557,838 5,836,387 35,721,451
MACHINERY & EQUIPMENT 73,123,058 11,048,475 62,074,583
LEASEHOLD IMPROVEMENTS 48,082,570 14,135,842 33,946,728
LIFTS, LIFTLINES &
TRAILS CORP 33,787,212 2,223,054 31,564,158
_____________________________________________________________
196,550,678 33,243,758 163,306,920
ACCUMULATED
DEPRECIATION (89,929,914) (15,364,431) (74,565,483)
_______________________________________________________________
106,620,764 17,879,327 88,741,437
CONSTRUCTION IN
PROGRESS 1,684,442 410,169 1,274,273
LAND AND DEVEL. COSTS 13,469,642 5,452,058 8,017,584
_____________________________________________________________
NET PROPERTY AND
EQUIPMENT 121,774,848 23,741,554 98,033,294
______________________________________________________________
LONG -TERM
INVESTMENTS 1,628,477 1,628,477
OTHER ASSETS 2,289,152 2,289,152
_____________________________________________________________
TOTAL ASSETS $136,721,513 $24,465,509 $112,256,004
_____________________________________________________________
_____________________________________________________________
(1) Historical assets and liabilities of Bear Mountain Ltd., as sold
on October 23, 1995.
</TABLE>
S-K-I LTD.
PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEET
JULY 31, 1995
UNAUDITED
<TABLE>
<CAPTION>
LESS
S-K-I LTD. BEAR MT.
HISTORICAL HISTORICAL(1) ADJUSTMENTS PRO FORMA
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
NOTES PAYABLE $3,858,184 $3,858,184
ACCOUNTS PAYABLE 1,617,621 1,617,621
INCOME TAXES PAYABLE 272,252 $2,063,000 (C),(D) 2,335,252
ACCRUED LEASE
PAYMENTS-VT 1,039,366 1,039,366
ACCRUED WAGES 529,874 529,874
DEPOSITS AND OTHER
UNEARNED REVENUE 1,706,017 ($117,056) 1,588,961
OTHER ACCRUED EXPENSES 5,157,743 5,157,743
______________________________________________________________
TOTAL CURRENT
LIABILITIES 14,181,057 (117,056) $2,063,000 16,127,001
______________________________________________________________
NOTES PAYABLE 38,790,032 (20,500,000) (E) 18,290,032
SUBORDINATED
DEBENTURES 11,400,000 11,400,000
DEFERRED INCOME TAXES 8,479,956 (3,506,000) (C) 4,973,956
OTHER LONG-TERM
LIABILITIES 4,432,027 4,432,027
MINORITY INTEREST 1,876,188 1,876,188
_______________________________________________________________
TOTAL LIABILITIES 79,159,260 (117,056) (21,943,000) 57,099,204
_______________________________________________________________
STOCKHOLDERS' EQUITY:
COMMON STOCK 578,593 578,593
PAID -IN -CAPITAL 6,617,552 6,617,552
RETAINED EARNINGS 50,366,108 (2,405,453) (G) 47,960,655
______________________________________________________________
TOTAL STOCKHOLDERS'
EQUITY 57,562,253 (2,405,453) 55,156,800
______________________________________________________________
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $136,721,513 ($117,056) ($24,348,453) $112,256,004
________________________________________________________________
________________________________________________________________
(1) Historical assets and liabilities of Bear Mountain Ltd., as sold
on October 23, 1995.
</TABLE>
S-K-I LTD.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED CONDENSED
FINANCIAL INFORMATION
General-the accompanying unaudited financial information reflects the
pro forma balance sheet as of July 31, 1995, assuming the October 23,
1995 Bear Mountain Ltd. sale occurred on that date, and the pro forma
statement of operations as if the Bear Mountain Ltd. sale occurred at
the beginning of fiscal 1995; such data does not purport to be
indicative of what would have occurred had this transaction been made
on these dates.
(A) Reflects the adjustment to revenue and expense for retained property.
(B) Represents the reduction in interest payments as the result of
applying the proceeds from the sale against debt. The fiscal year 1995
weighted interest rate was used in the calculation.
(C) Transfer of deferred income taxes to current as the result of the sale.
(D) Reflection of loss on sale.
(E) Application of proceeds from sale to debt.
(F) Adjustment for S-K-I management and other fees charged to Bear
Mountain Ltd.
(G) Reflects approximate loss on Bear Mountain Ltd.
(H) Reflects the tax effect of pro forma adjustments.
Item 7(b). Exhibits
(B) Exhibit index
(2) Asset Purchase Agreement between Fibreboard Corporation,
Bear Mountain Inc., Bear Mountain Ltd. and S-K-I Ltd. dated
October 6, 1995.
Omitted schedules copies of which the company agrees to furnish
supplementally to the Commission upon request.
Schedule 1.1.1 Real property being sold
Schedule 1.1.2 USFS permit
Schedule 1.1.3 Real property leases
Schedule 1.1.4 Equipment and improvements
Schedule 1.1.5 Inventories
Schedule 1.1.6 Accounts receivable
Schedule 1.1.7 Transferred agreements
Schedule 1.2.1 Real property not being sold
Schedule 1.2.6 Excluded refunds
Schedule 1.2.11 Excluded computer
Schedule 2.1-1 Fixed Assets (for base purchase price calculation)
Schedule 2.1-2 Non-retail inventories (for base purchase price
calculation)
Schedule 2.1-3 Deferred revenues (for base purchase price calculation)
Schedule 2.3 List of Potential escrow liabilities
Schedule 6.2.1 July 2, 1995 interim financial statements
Schedule 6.2.2 July 31, 1995 fiscal year end financial statements
Schedule 6.3 Debts, obligations and liabilities
Schedule 6.4(b) Capital expenditures
Schedule 6.5 Tax disputes
Schedule 6.6 Real property
Schedule 6.8 Zoning
Schedule 6.9 Commitments
Schedule 6.10 Continued use of real property
Schedule 6.11 Lake pipeline
Schedule 6.13 Pledges of inventory
Schedule 6.16 Trade names/trademarks/service marks/copyrights, etc.
Schedule 6.18 Trade secrets
Schedule 6.20-1 Season passes, group sales, etc.
Schedule 6.20-2 Vendors & suppliers
Schedule 6.21 Insurance policies
Schedule 6.22 Contracts
Schedule 6.23 Non-compliance with laws
Schedule 6.24 Pending and threatened litigation
Schedule 6.26 Required consents
Schedule 6.27 Personal identification
Schedule 6.28 Employment contracts
Schedule 6.31 Bank accounts & powers of attorney
Schedule 6.34 Environmental matters
Schedule 8a.6(c) Anticipated capital expenditures not undertaken yet
(2) Amendment No.1 to Asset Purchase Agreement dated October 19, 1995
Omitted schedules copies of which the company agrees to furnish
supplementally to the Commission upon request.
Schedule 1.1.7 Transferred agreements
Schedule 6.2-1a Adjusted stub period date balance sheet
Schedule 6.11 Lake pipeline
Schedule 6.16 Tradenames/trademarks/service marks/copyrights, etc.
Schedule 6.22 Contracts
Schedule 6.24 Pending and threatened litigation
Schedule 6.26 Required consents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
S-K-I Ltd.
(Registrant)
Date November 7, 1995 By:
Chief Financial Officer
