FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended January 28, 1996 Commission File Number 0-13055
S-K-I Limited
(Exact name of registrant as specified in its charter)
Delaware 03-0294233
(State or other jurisdiction o (I.R.S. Employer
incorporation or organization) Identification No.)
Airport Exec. Plaza, Suite 5
PO Box 5494
West Lebanon, NH 03784
(Address of principal executive office) Zip Code
Registrant's telephone number, including area code 603-298-1183
_________________________________________________________
(Former name, former address and former fiscal year, if
changed since last report.)
Indicate by checkmark whether the registrant (1) has
filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at January 28, 1996
Common Stock $.10 Par Value 5,790,882
S-K-I LTD.
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION: Page No.
Item 1. Financial Statements
Consolidated Statement of Operations (Unaudited)
Three Months Ended January 28, 1996
and January 29, 1995 3
Consolidated Statement of Operations (Unaudited)
Six Months Ended January 28, 1996
and January 29, 1995 4
Consolidated Balance Sheet (Unaudited)
As of January 28, 1996 and January 29, 1995 5-6
Consolidated Balance Sheet
As of January 28, 1996 (Unaudited) and
July 31, 1995 (Audited) 7-8
Consolidated Statement of Cash Flows (Unaudited)
Six Months Ended January 28, 1996 and January 29, 1995 9
Notes to (Unaudited) Condensed Consolidated
Financial Statements 10-12
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 13-15
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 16
Item 6. Exhibits and Reports on Form 8-K 16
Signature Page 17
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed: S-K-I Ltd.,
Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd., Sugarloaf Mountain
Corp., Waterville Valley Ski Area Ltd. and Ski Insurance Company.
Consolidated Statement of Operations For the Three Months Ended
(Note 1) January 28, 1996 January 29, 1996
(Unaudited) (Unaudited)
Revenues $49,391,217 $50,104,232
Expenses:
Cost of operations including
wages, maintenance and supplies 20,913,759 20,731,395
Other taxes 3,173,649 3,266,631
Utilities 4,318,219 4,462,677
Insurance 2,295,674 2,622,260
Selling, general and
administrative expenses 6,936,146 7,334,328
Interest 674,776 1,226,650
Depreciation and amortization (Note 3) 4,706,324 6,755,347
Total expenses 43,018,547 46,399,288
Income before provision for income taxes 6,372,670 3,704,944
Provision for income taxes (Note 3) 1,819,035 1,411,446
Net income before minority interest 4,553,635 2,293,498
Minority interest in net income of
consolidated subsidiary 667,361 128,573
Net income $ 3,886,274 $ 2,164,925
Net income per common share (Note 5) $ .67 $ 0.37
Retained earnings, beginning of period $42,206,358 $45,058,970
Add: Net income 3,886,274 2,164,925
Less: Dividends paid on common stock 752,392 693,997
(Note 9)
Retained earnings, end of period $45,340,240 $46,529,898
See accompanying Notes to (Unaudited) Condensed Consolidated
Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed: S-K-I Ltd.,
Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd., Sugarloaf Mountain
Corp., Waterville Valley Ski Area Ltd. and Ski Insurance Company.
Consolidated Statement of Operations For the Six Months Ended
(Note 1) January 28, 1996 January 29, 1995
(Unaudited) (Unaudited)
Revenues $57,081,210 $56,221,438
Expenses:
Cost of operations including
wages, maintenance and supplies 28,712,332 27,667,612
Other taxes 4,257,995 4,237,845
Utilities 5,220,992 5,342,485
Insurance 3,318,842 3,556,281
Selling, general and
administrative expenses 11,480,682 11,457,415
Interest 1,914,906 1,880,819
Depreciation and amortization(Note 3) 4,922,469 6,924,299
Loss on sale of Bear Mountain(Note 2) 4,206,646
Total expenses 64,034,864 61,066,756
(Loss) before income tax benefit (6,953,654) (4,845,318)
Income tax benefit (Note 3) (2,711,915) (1,720,466)
Net (loss) before minority interest (4,241,739) (3,124,852)
Minority interest in net income(loss) of
consolidated subsidiary 31,737 (318,039)
Net (loss) ($4,273,476) ($2,806,813)
Net (loss) per common share (Note 5) ($ .74) ($ .49)
Retained earnings, beginning of period $50,366,108 $50,030,708
Less: Net (loss) 4,273,476 2,806,813
Less: Dividends paid on common stock(Note 9) 752,392 693,997
Retained earnings, end of period $45,340,240 $46,529,898
See accompanying Notes to (Unaudited) Condensed Consolidated
Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed: S-K-I Ltd.,
Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd., Sugarloaf Mountain
Corp., Waterville Valley Ski Area Ltd. and Ski Insurance Company.
Consolidated Balance Sheet
January 28, 1996 January 29,1995
ASSETS (Unaudited) (Unaudited)
Current assets:
Cash and short-term investments
(at cost, which approximates
market value) $ 8,338,063 $ 8,041,141
Accounts receivable 3,377,850 2,376,720
Notes receivable 241,254 260,670
Inventories 4,767,646 5,957,245
Prepaid expenses 2,569,797 2,285,860
TOTAL CURRENT ASSETS 19,294,610 18,921,636
Property and equipment, at cost:
Buildings & grounds 35,819,580 38,607,465
Machinery and equipment 56,961,345 64,728,155
Leasehold improvements 39,161,044 61,417,171
Lifts/liftlines and trails on
corporate property 31,564,158 29,832,397
163,506,127 194,585,188
Less - accumulated depreciation and
amortization (79,487,328) (96,355,574)
84,018,799 98,229,614
Construction in progress 6,062,888 16,330,373
Land and development costs 7,917,583 14,494,258
NET PROPERTY AND EQUIPMENT 97,999,270 129,054,245
Long-term investments 2,627,406 453,407
Other assets 2,601,325 2,794,965
TOTAL ASSETS $122,522,611 $151,224,253
See accompanying Notes to (Unaudited) Condensed Consolidated
Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed: S-K-I Ltd.,
Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd., Sugarloaf Mountain
Corp., Waterville Valley Ski Area Ltd. and Ski Insurance Company.
Consolidated Balance Sheet
January 28, 1996 January 29, 1995
LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited) (Unaudited)
Current liabilities:
Current portion of long-term debt $ 1,598,519 $ 3,484,011
Accounts payable 7,397,993 6,361,648
Federal income tax
payable (receivable) (Note 3) 880,097 (1,459,793)
Accrued lease payments - Vermont 550,687 509,602
Accrued wages 1,350,410 1,449,801
Deposits and other unearned revenue 4,542,844 5,371,805
Other accrued expenses (Note 7) 9,571,719 9,987,709
TOTAL CURRENT LIABILITIES 25,892,269 25,704,783
Long-term debt 21,117,554 46,993,646
Subordinated debentures 11,400,000 11,400,000
Deferred income taxes (Note 3) 5,160,059 7,757,253
Other long-term liabilities (Note 7) 4,463,582 3,809,818
Minority interest in consolidated
subsidiary 1,907,925 1,857,099
TOTAL LIABILITIES 69,941,389 97,522,599
Stockholders' equity
Common stock 579,087 578,332
Paid-in capital 6,661,895 6,593,424
Retained earnings 45,340,240 46,529,898
TOTAL STOCKHOLDERS' EQUITY 52,581,222 53,701,654
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $122,522,611 $151,224,253
See accompanying Notes to (Unaudited) Condensed Consolidated
Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed: S-K-I Ltd.,
Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd., Sugarloaf Mountain
Corp., Waterville Valley Ski Area Ltd. and Ski Insurance Company.
Consolidated Balance Sheet
January 28, 1996 July 31, 1995
ASSETS (Unaudited)
Current assets:
Cash and short-term investments
(at cost, which approximates
market value) $ 8,338,063 $ 2,790,645
Accounts receivable 3,377,850 2,677,434
Notes receivable 241,254 244,775
Inventories 4,767,646 3,955,722
Prepaid expenses 2,569,797 1,360,460
TOTAL CURRENT ASSETS 19,294,610 11,029,036
Property and equipment, at cost:
Buildings and grounds 35,819,580 41,557,838
Machinery and equipment 56,961,345 73,123,058
Leasehold improvements 39,161,044 48,082,570
Lifts/liftlines and trails on
corporate property 31,564,158 33,787,212
163,506,127 196,550,678
Less - accumulated depreciation and
amortization (79,487,328) (89,929,914)
84,018,799 106,620,764
Construction in progress 6,062,888 1,684,442
Land and development costs 7,917,583 13,469,642
NET PROPERTY AND EQUIPMENT 97,999,270 121,774,848
Long-term investments 2,627,406 1,628,477
Other assets 2,601,325 2,289,152
TOTAL ASSETS $122,522,611 $136,721,513
See accompanying Notes to (Unaudited) Condensed Consolidated
Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed:
S-K-I Ltd., Killington Ltd., Mount Snow Ltd., Bear Mountain Ltd.,
Sugarloaf Mountain Corp., Waterville Valley Ski Area Ltd.
and Ski Insurance Company.
Consolidated Balance Sheet
January 28, 1996 July 31, 1995
LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited)
Current liabilities:
Current portion of long-term debt $ 1,598,519 $ 3,858,184
Accounts payable 7,397,993 1,617,621
Federal income tax payable (Note 3) 880,097 272,252
Accrued lease payments - Vermont 550,687 1,039,366
Accrued wages 1,350,410 529,074
Deposits and other unearned revenue 4,542,844 1,706,017
Other accrued expenses (Note 7) 9,571,719 5,157,743
TOTAL CURRENT LIABILITIES 25,892,269 14,181,057
Long-term debt 21,117,554 38,790,032
Subordinated debentures 11,400,000 11,400,000
Deferred income taxes (Note 3) 5,160,059 8,479,956
Other long-term liabilities (Note 7) 4,463,582 4,432,027
Minority interest in consolidated subsidiary 1,907,925 1,876,188
TOTAL LIABILITIES 69,941,389 79,159,260
Stockholders' equity
Common stock 579,087 578,593
Paid-in capital 6,661,895 6,617,552
Retained earnings 45,340,240 50,366,108
TOTAL STOCKHOLDERS' EQUITY 52,581,222 57,562,253
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $122,522,611 $136,721,513
See accompanying Notes to (Unaudited) Condensed
Consolidated Financial Statements.
S-K-I LTD.
Item 1. Financial Statements
Company or group of companies for which report is filed:
S-K-I Ltd., Killington Ltd., Mount Snow Ltd., Bear Mountain
Ltd., Sugarloaf Mountain Corp., Waterville Valley Ski
Area Ltd. and Ski Insurance Company
Consolidated Statement of Cash Flows For the Six Months Ended
January 28, 1996 January 29,1995
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss ($4,273,476) ($2,806,813)
Non-cash items included in net income:
Loss on sale of Bear Mountain
Ltd.(Note 2) 4,206,646
Minority interest in net loss of
subsidiary 31,737 (318,039)
Depreciation and amortization 4,922,469 6,924,299
Deferred tax benefit (3,319,897)
CASH FLOW FROM OPERATING ACTIVITIES
BEFORE CHANGES IN ASSETS AND
LIABILITIES 1,567,479 3,799,447
Changes in assets and liabilities:
Decrease(increase) in accounts
receivable 138,544 (726,526)
Decrease in notes receivable 3,521 111,069
Increase in inventories (1,386,127) (2,035,408)
Increase in prepaid expenses (1,327,338) (351,615)
Increase in accounts payable 5,780,372 3,967,327
Increase(decrease) in income
taxes payable 607,845 (1,721,807)
Decrease in accrued lease payments -
- Vermont (488,679) (662,263)
Increase in accrued wages 820,536 984,894
Increase in deposits and other
unearned revenue 2,953,883 3,930,286
Increase in other accrued expenses 4,413,987 3,971,937
Increase in other long-term liabilities 31,555 601,537
CASH FLOW PROVIDED BY OPERATING ACTIVITIES
AFTER CHANGES IN ASSETS AND LIABILITIES 13,115,578 11,868,878
Cash flows from investing activities:
Additions to property and equipment (4,980,162) (17,310,439)
Net book value of property and
equipment sold 40,760
Purchase of long-term investments (998,929) (453,407)
Other (80,958) 421,253
Net proceeds from the sale of net
assets of Bear Mountain (Note 2) 19,131,587
Businesses acquired less cash on hand
from businesses acquired (12,552,020)
NET CASH USED FOR INVESTING ACTIVITES 13,071,538 (29,853,853)
Cash flows from financing activities:
Proceeds from issuance of long-
term debt and subordinated debentures 42,315 24,206,022
Net(reductions)in revolving
credit agreement (17,500,000)
Reductions in long-term debt (214,793) (2,188,780)
(Decrease)increase in current
portion of long-term debt (2,259,665) 2,528,265
Proceeds from issuance of common stock 44,837 16,172
Payment of dividends (752,392) (693,997)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (20,639,698) 23,867,682
Net increase in cash and short-term
investments 5,547,418 5,882,707
Cash and short-term investments at
beginning of year 2,790,645 2,704,302
CASH AND SHORT-TERM INVESTMENTS AT
END OF PERIOD $ 8,338,063 $8,587,009
Interest paid $1,921,753 $1,477,308
Income taxes paid, net of refunds 150,200 281,350
See accompanying Notes to (Unaudited) Condensed
Consolidated Financial Statements.
S-K-I LTD.
PART 1. NOTES TO (UNAUDITED) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying
unaudited condensed consolidated financial statements
contain all adjustments necessary to present fairly the
financial position as of January 28, 1996, July 31,1995
and January 29, 1995, the results of operations
for the three months and six months ended January
28, 1996 and January 29, 1995 and cash flows for the
six months ended January 28,1996 and January 29,
1995. All such adjustments are of a normal
recurring nature with the exception of the sale of
the majority of Bear Mountain assets. The unaudited
condensed consolidated financial statements should
be read in conjunction with the following notes and
the consolidated financial statements in the 1995
Annual Report to the Securities and Exchange
Commission on Form 10-K.
2. Bear Mountain Sale
On October 23, 1995 the Company sold a majority of
the ski resort related and golf course assets of
Bear Mountain to Fibreboard Corporation for
approximately $20,500,000. The transaction had the
following noncash impact on the balance sheet:
Increase in current assets, net $ 263,812
Decrease in property, plant and equipment, net (23,833,271)
Increase in other non-current liabilities, net 231,226
____________
$ (23,338,233)
3. Income Taxes
The provision for taxes on income is based on a
projected annual effective tax rate. The Company
has reflected an effective tax rate through the
second quarter of approximately 39%.
Deferred income taxes include the cumulative
reduction in current taxes payable resulting
principally from the excess of depreciation reported
for tax purposes over that reported for financial
purposes.
4. Seasonal Business
Results for interim periods are not indicative of
results to be expected for the year, due to the
seasonal nature of the business (skiing resorts).
5. Net Income per Common Share
Earnings per Common Share figures are based on the
average shares outstanding during the second quarter
of Fiscal 1996 of 5,788,445 and year to date Fiscal
1996 of 5,787,611 (5,782,995 in second quarter
Fiscal 1995 and 5,782,503 year to date Fiscal 1995).
Shares issuable upon the exercise of stock options
grants have not been included in the per share
computation because they would not have a material
effect on earnings per share.
6. Stock Options
The 1988 Incentive Stock Option Plan authorized
168,750 shares of common stock to be optioned. On
November 18, 1994 the stockholders approved an
additional 100,000 shaares. In the second quarter
of Fiscal 1996 3,250 shares were exercised and 1,500
shares were forfeited. In the first quarter of
Fiscal 1996, 1,700 shares were exercised and 4,050
shares were forfeited.
The 1982 Stock Option Plan authorized 187,500 shares
of common stock to be optioned. No shares were
granted, exercised or forfeited under this plan
during the first or second quarters 1996.
7. General Liability
Provision is made for the estimated costs under the
deductible portion of S-K-I's general liability
insurance policies. The balance of such reserves at
January 28, 1996, July 31, 1995 and January 29, 1995
were $4,804,779, $5,765,878, and $3,556,741
respectively. Of such amounts, $4,118,382,
$4,432,027 and $3,048,634 are included in other long-
term liabilities at January 28, 1996, July 31, 1995
and January 29, 1995, respectively, with the
remaining balance included in other accrued
expenses.
8. Postretirement Health Care and Life Insurance Benefits
The Company does not provide health care and life
insurance benefits for retired employees who reach
normal retirement age. The adoption of SFAS No.
106, Employer's Accounting for Postretirement
Benefits Other Than Pensions, has no effect on the
Company's financial position or results of
operation.
9. Dividend Paid
During November 1995, the Board of Directors
declared a $.13 per share dividend on Common Stock
payable to stockholders of record on December 8,
1995. The dividend was paid on January 17, 1996.
10. Subsequent Events
S-K-I Ltd. announced that is has received, through
its investment financial advisor Schroder Wertheim,
an offer by LBO Enterprises of Newry, Maine, to
purchase all of the approximately 6,000,000 shares
of outstanding stock of S-K-I Ltd. for $18.00 per
share. The S-K-I Ltd. board of directors has
approved a definitive merger agreement with LBO
Enterprises. A meeting of S-K-I Ltd. shareholders
will be held in the near future to consider the offer
as recommended by the S-K-I Ltd. board. The total value
of the offer for the equity approximates $107,000,000. The
transaction is subject to, among other things,
shareholder approval and regulatory approvals.
11. In March 1995, the Financial Accounting Standards
Board issued Statement of Financial Accounting
Standards No. 121 (FAS 121), "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of". The standard identifies
indicators to determine whether an impairment of
longlived assets has been incurred and provides
guidance in determining the amount of the
impairment. The Company will adopt SFAS No. 121 in
1996. The Company expects that there will not be a
material impact to the Company's financial position
or results of operations as a result of adopting
this standard.
In October 1995, the Financial Accounting Standards
Board issued Statement of Financial Accounting
Standards No. 123 (FAS 123), "Accounting for Stack
Based Compensation". The Company does not intend to
adopt the new compensation expense provisions of FAS
123 but will adopt the disclosure provisions in 1996.
S-K-I LTD.
PART I.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following revenue and expense analysis, section
I and II, compares results of the remaining
divisions after the sale of Bear Mountain. For this
discussion, Bear Mountain results have been removed
for this year and last in order not to distort the
comparison between years.
I. Revenue and expense changes for the second quarter
of Fiscal 1996 compared to the second quarter of Fiscal
1995.
Revenues increased 18% because of an overall
increase in operations with tickets, restaurants and
bars, and retail representing the majority of the
increase at all areas.
Cost of operations increased 17% in support of
increased revenues with a large percnetage due to
lease expense related to the Bombardier lease
contract.
Other taxes increased 11% primarily due to
increases in sales and meals and rooms tax from
higher revenues.
Interest decreased 45% primarily due to reduction of
debt using cash from the sale of Bear Mountain and
secondarily from better cashflow from operations.
Depreciation decreased 13% primarily due to the
Bombardier contract whereby grooming vehicles were
sold back to Bombardier and then leased from them.
II. Revenue and expense changes for the first six months
of Fiscal 1996 compared to the first six months of
Fiscal 1995.
Revenues increased 18% for reasons noted in the
quarter to quarter comparison with similar
divisional results.
Cost of operations increased 15% again for reasons
noted in the quarter to quarter comparison with
similar divisional results.
Other taxes increased 12% as noted in quarter to
quarter comparison with similar divisional results.
Selling, general and administrative increased 10%
due to a more aggressive "Peaks of Excitement"
marketing program.
Depreciation decreased 12% as noted previously
primarily due to the lease contract with Bombardier.
III. Balance Sheet changes at the end of the second
quarter of Fiscal 1996 compared to the end of the
second quarter of Fiscal 1995.
Accounts receivable increased approximately
$1,001,000 due to very nearly $868,000 of the
proceeds from the sale of Bear Mountain assets which
remain in escrow at January 28, 1996. Management
expects this balance to be collected in full of
during the third quarter.
Inventories decreased approximately $1,190,000
primarily due to the sale of vehicle maintenance
parts to Bombardier and Bear Mountain.
Prepaids increased approximately $284,000 primarily
due the "Peaks of Excitement" marketing program.
Fixed assets decreased approximately $31,079,000
primarily due to the sale of Bear Mountain and
secondarily to the Bombardier lease contract,
partially offset by fixed assets for completion of
the Skyeship at Killington.
Construction in progress decreased approximately
$10,267,000 primarily due to the Skyeship at
Killington and secondarily to a smaller overall
capital program in 1996 versus 1995.
Land and development decreased $6,600,000
primarily due to the sale of Bear Mountain and
secondarily to a transfer from development to fixed
assets at Killington.
Long-term investments increased approximately
2,174,000 due to reinvesting current cash and
premiums accumulating within Ski Insurance Company.
Short-term notes payable decreased approximately
$1,886,000 primarily due to the payment of a note
setup at the time of the purchase of Bear Mountain
in 1988 and a reduction in the line of credit at
Sugarloaf.
Deposits decreased approximately $829,000 primarily
due to decreases in lodging deposits and the sale of
Bear Mountain.
Long-term notes payable decreased approximately
$25,876,000 primarily due to repayments using cash
from the sale of Bear Mountain and to improved cash
flows from operations.
Deferred income taxes decreased approximately
$2,597,000 principally due to the transfer of Bear
Mountain's deferred income taxes to current income
taxes as a result of the sale.
Other long-term liabilities increased approximately
$654,000 primarily due to on-going premium payments
from the divisions to the wholly owned insurance
captive partially offset by the payment of claims.
IV. Balance Sheet changes at the end of the second
quarter of Fiscal 1996 compared to the year ended
July 31, 1995.
Cash, Prepaid Expenses, Inventories, Construction in
Progress, Accounts Payable, Income Taxes Payable,
Accrued Wages, Deposits and Other Accrued Expenses
usually reflect large increases or decreases due to
the seasonal nature of the business.
Accounts receivable increased approximately $700,000
due primarily to very nearly $868,000 of the
proceeds from the sale of Bear Mountain assets which
remain in escrow at January 28, 1996. Management
expects this balance to be collected in full during
the third quarter.
Land and development decreased approximately
$5,552,000 primarily due to the sale of Bear
Mountain.
Long-term investments increased $999,000 primarily
due to reinvesting current cash and premiums
accumulating within Ski Insurance Company.
Deferred charges and other assets increased
approximately $312,000 in large part because of
receivables related to the sale of Bear Mountain.
Short-term notes payable decreased approximately
$2,260,000 primarily due to the payment of a note
due from the purchase of Bear Mountain and a paydown
in the line of credit at Sugarloaf.
Accrued lease payments-Vt decreased approximately
$489,000 primarily due to payment in December on
Fiscal 1995 leasehold liability.
Long-term notes payable decreased approximately
$17,672,000 primarily due to repayments using cash
received from the sale of Bear Mountain and improved
cash flows from operations.
V. Liquidity
Cash generated from operations during the first six
months of Fiscal 1996 was $13,115,578 as compared to
cash generated during the first six months of Fiscal
1995 of $11,868,878. Cash generated from investing
activities was $13,071,538 during the first six
months of Fiscal year 1996. Cash used for investing
activities during the first six months of Fiscal
year 1995 was $29,853,853. Due to the seasonality of the
Company's business and a significant increase to
capital assets in the first six months of Fiscal
1995, the Company utilized its bank facilities to
meet its cash needs. During the first six months of
Fiscal 1996, until the sale of Bear Mountain in late
October 1996, the Company utilized its bank
facilities to meet its cash needs.
S-K-I LTD.
PART II
OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders
On November 17, 1995 the Company held its annual meeting of stockholders
at which time Joseph D. Sargent was elected to a three year term on the
Board of Directors. The continuing members of the Company's Board
of Directors are Jose M. Calhoun, F. Ray Keyser, Jr., Walter N. Morrison,
Joseph D. Sargent, Mary T. Sargent, Preston Leete Smith, Thomas C. Webb
and Martel D. Wilson, Jr. The following votes were cast:
For Withheld/Against
Joseph D. Sargent 4,485,028 20,932
Item 6 - Exhibits and Reports on Form 8-K
(b) A Form 8-K was filed on November 7, 1995 for the sale of Bear Mountain.
A Form 8-K was filed on February 15, 1996 for the purchase of S-K-I Ltd.
S-K-I LTD.
SIGNATURE OF CHIEF FINANCIAL OFFICER
Pursuant to the requirement of the Securities Exchange
Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto
duly authorized.
S-K-I LTD.
Dated:
By:______________________________
Martel D. Wilson, Jr.
Vice President &
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-28-1996
<CASH> 8,338,063
<SECURITIES> 0
<RECEIVABLES> 3,619,104
<ALLOWANCES> 0
<INVENTORY> 4,767,646
<CURRENT-ASSETS> 19,294,610
<PP&E> 177,486,598
<DEPRECIATION> 79,487,328
<TOTAL-ASSETS> 122,522,611
<CURRENT-LIABILITIES> 25,892,269
<BONDS> 11,400,000
0
0
<COMMON> 579,087
<OTHER-SE> 52,022,135
<TOTAL-LIABILITY-AND-EQUITY> 122,522,611
<SALES> 0
<TOTAL-REVENUES> 49,391,217<F1>
<CGS> 0
<TOTAL-COSTS> 20,913,759<F2>
<OTHER-EXPENSES> 21,430,012
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 674,776
<INCOME-PRETAX> 5,705,309
<INCOME-TAX> 1,819,035
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,886,274
<EPS-PRIMARY> .67
<EPS-DILUTED> .67
<FN>
<F1>
Revenues include the sale of tangible products, resort services and rental
and other income. Revenues are dissaggregated for annual report and
10-K only.
<F2>
Cost of Goods are dissaggregated for annual report and 10-K only.
</FN>
</TABLE>
