Town Board - KSRP Meeting?

Post by **Bubba** » Jun 5th, '07, 13:43

Anyone go to the meeting last night and care to report?

Snowjob · Post by **Snowjob** » Jun 5th, '07, 13:57

Sorry Bubbs, the meeting was confidential. :)

BeantownFlyer · Post by **BeantownFlyer** » Jun 5th, '07, 14:00

Very detailed write up here, and it is not pleasant:

http://www.killingtonblog.com/display_g ... 070605.txt

Mister Moose · Post by **Mister Moose** » Jun 5th, '07, 14:23

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

Highway Star won't be happy about this one.

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

Geoff will be happy about this one.

Double screwjob for those people who recently bought expensive lifetime passes, saw their value fall with the cheap passes, now the value may be zero, AND they now have to pony up (in 2 years) more dough at the higher prices.

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

No early season lift. No HSQ upgrades right away.
Sounds like same old K for more money.

Let the howling begin.

HS, is our $20 bet still on?

4-mile · Post by **4-mile** » Jun 5th, '07, 14:46

I hope most of this stuff is a case of underpomise and overdeliver. Because their plan sounds worse than ASC's and I ddin't think that was possible.

robrules · Post by **robrules** » Jun 5th, '07, 14:55

Here's all the items for the lazy like me.

1. Powdr will make modest capital investments next year, in areas that will not be totally evident to most people. (Note from Bill.. In prior public statements, Powdr had stated that they will be spending much of their time and initial development dollars improving resort infrastructure to enhance the guest experience. But many of the improvements would, by their nature, be invisible to resort guests.)

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

3. Powdr's emphasis will be on higher margins from fewer skier visits, resulting in more profits(higher yield per skier).

4. Future capital investment will be funded from profits/cash flow. Funding will be at a maintenance level until profits make more possible.

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

7. Internally managed and run programs will be favored over outsourced/local contracts.

8. Emphasis will be on winter, not summer guest traffic.

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

11. Real estate development is a 25 year project. A lot needs to be done to get it started. Partners wil be considered in high risk investments.

12. Powdr and SP Land have minority investments in each others business..

robrules · Post by **robrules** » Jun 5th, '07, 15:03

robrules wrote:
6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

I guess that leaves the current marketing team out in the cold.

Looks like I will be buying a pass at Stratton during the summer. Bye bye Killington, it was fun while it was cheap. At least the place will be as dead as Andy Z's board for those willing to stick it out.

Geoff · Post by **Geoff** » Jun 5th, '07, 15:16

Mister Moose wrote: 10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

Geoff will be happy about this one.

My wife will be even happier.

jerryg · Post by **jerryg** » Jun 5th, '07, 15:42

Mister Moose wrote:9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

Highway Star won't be happy about this one.

They must not have gotten his memo on ROI!

JerseyGuy · Post by **JerseyGuy** » Jun 5th, '07, 15:45

1. Powdr will make modest capital investments next year, in areas that will not be totally evident to most people. (Note from Bill.. In prior public statements, Powdr had stated that they will be spending much of their time and initial development dollars improving resort infrastructure to enhance the guest experience. But many of the improvements would, by their nature, be invisible to resort guests.)

Trust us... we're putting, well, some money into the place. Sure, you won't be able to see it in improved lifts or trails or buildings or snowmaking or grooming or signage or employees, but it's there. Now get your ass up here and buy your thousand-dollar pass and just be happy we're not ASC. (Uh, did we mention we're not ASC?)

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

Yeah... Killington as the Second Coming of Stratton! What a GREAT idea! THAT'LL work! Note SCREAMING use of SARCASM!

3. Powdr's emphasis will be on higher margins from fewer skier visits, resulting in more profits(higher yield per skier).

Because rich people will want to pay more money to ski the same old crappy Killington. Killington... Now with New Invisible Improvements!

4. Future capital investment will be funded from profits/cash flow. Funding will be at a maintenance level until profits make more possible.

Ah... the "pay as you go" system. You people don't give us enough money next year, we're not gonna give you anything in return. What are we, Welfare?

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

As opposed to making lift system adjustments in order to DETRACT from skier enjoyment. (Turns out the focus groups weren't too crazy about that idea.)

6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

Uh-oh... either Tommy Boy 'n' Dave are about to lose their jobs... or they're about to be the only two people left in K-Marketing!

7. Internally managed and run programs will be favored over outsourced/local contracts.

Screw the local businesses and pre-existing business relationships. We got our own guys to do things now.

8. Emphasis will be on winter, not summer guest traffic.

"Closed For the Summer. Bought Real Estate? Bummer."

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

Yeah, you go in that room and hold your breath waiting for the Interconnect, and we'll let you know when to exhale.

HS is gonna LOVE that one.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

Please, rich people... please please please please come spend money here! Please! Forget Okemo and Stratton! Pretty please? It's ever so much less crowded than it used to be!

11. Real estate development is a 25 year project. A lot needs to be done to get it started. Partners wil be considered in high risk investments.

Translation: we'll all be dead and buried before anything approaching a "Village" exists at Killington. Talk amongst yourselves...

12. Powdr and SP Land have minority investments in each others business.

Kinda like two people holding hands as they jump off a cliff. Folks, where I come from, that's called a "suicide pact"...

skiadikt · Post by **skiadikt** » Jun 5th, '07, 15:46

if some improvements are made to snowmaking, then with lesser crowds (particularly weekends), it sounds like it could be an improved ski experience. icksnay on the interconnectway.

with no new lifts, trails & interconnect, the best thing is this might shut hs up for a while.

newpylong · Post by **newpylong** » Jun 5th, '07, 16:06

Sounds like a rockin' plan... not. See ya at Mount Blow next year.

Highway Star · Post by **Highway Star** » Jun 5th, '07, 16:23

robrules wrote:Here's all the items for the lazy like me.

1. Powdr will make modest capital investments next year, in areas that will not be totally evident to most people. (Note from Bill.. In prior public statements, Powdr had stated that they will be spending much of their time and initial development dollars improving resort infrastructure to enhance the guest experience. But many of the improvements would, by their nature, be invisible to resort guests.)

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

3. Powdr's emphasis will be on higher margins from fewer skier visits, resulting in more profits(higher yield per skier).

4. Future capital investment will be funded from profits/cash flow. Funding will be at a maintenance level until profits make more possible.

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

7. Internally managed and run programs will be favored over outsourced/local contracts.

8. Emphasis will be on winter, not summer guest traffic.

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

11. Real estate development is a 25 year project. A lot needs to be done to get it started. Partners wil be considered in high risk investments.

12. Powdr and SP Land have minority investments in each others business..

This is all competely expected and the obvious route to take, if you look Killington's economic fundamentals......not at all suprising. Once you get ahold of their playbook and thier numbers, they become highly predictable. That leads me to say:

Here is what they are NOT telling you, and are leaving out:

- Do not expect any lift upgrades at all for ~5 years after which they will replace the Skye Peak Quad. Snowdon Triple might actually be the first to be replaced, with a HSQ. (lifts have a 30 year depreciation, so don't expect to see them pull out any lifts that are under 25+ years old)

- Do not expect any new lifts, anywhere, for any reason.

- They are not discussing signifigant capital this year because it doesn't exist. It's actually a very small number, which is a secret. It's going into snowmaking efficiency, because they have dire need to improve snow quality/qty to draw higher priced visits and satisfy pass purchases at a higher price.

- No Interconnect ever.

- Expect them to close down Pico completely after they break ground on the Village and have enough permits to keep the development from being stopped.

Highway Star · Post by **Highway Star** » Jun 5th, '07, 16:53

See my up to the minute analysis on pass pricing, over on epicski:

http://forums.epicski.com/showthread.php?t=56056&page=7

winter · Post by **winter** » Jun 5th, '07, 17:07

Up to the minute?

Is it live, local, and latebreaking?

You should come work with me HS