K-Mart: Cash cow or money pit?

[Pushgears]

It is hard to believe that Killington is not highly profitable to ASC The mountain seems like a real money-maker.

Pico on the other hand is another story - how CAN it make money?

Does ASC release data on the financial performance of its ski areas?

[Bubba]

Does ASC release data on the financial performance of its ski areas?

No, not on an individual basis.

[Bling Skier]

"K-Mart: Cash cow or money pit?"
Mooooo!

[SPORE]

Along with Mt. Snow, Killington has been ASC cash cow for many years now, untill this last off-season killington saw little if no capital improvements.

[KingsFourMan]

Even in the hands of pathetic ASC, k-mart is definitely a cash cow, no question about it, though ASC has steadily driven it into the ground since taking over. years of poor snowmaking/grooming, deferred maintenance, and other cost cutting measures by ASC like closing old Sunrise Mt, and operating fewer lifts, have resulted in a steady and steep decline in skier visits since.

K is still #1 in the east in "skier visits" but Okemo is a close #2 in will likely pass K very soon. Okemo is run like a swiss watch, and because of it, skier visits have soared, and real estate values there are at least 25% higher than they are at K. If Okemo can become the #1 resort in the east with that lame ass mountain, imagine what K could be in the hands of someone like the Muellers, Intrawest, Vail Assoc., etc.

i can't wait for the day when ASC finally shits themselves to death.

[IceDevil]

Since I just wrapped up my marketing class I can tell you that Killiington is not a cash cow. K would need to to the Eastern skiing industry what Tide is to Laundry detergent.

It seems like K is simply a tool ASC is using to deal with competition. A very good product but unfortunately the money invested is simply to combat competition.

[CAPBOY]

Since I just wrapped up my marketing class I can tell you that Killiington is not a cash cow. K would need to to the Eastern skiing industry what Tide is to Laundry detergent.

It seems like K is simply a tool ASC is using to deal with competition. A very good product but unfortunately the money invested is simply to combat competition.

It's a good thing you didn't wrap up your finance class. In that case, we'd have to take issue with your professor.

[Tree_Skier]

Mount Snow is the biggest cash cow for ASC but Killington certainly makes alot of money also. they just spend more then MS. My info is a little old (5 years since working for MS) but MS EBITA is generaly between 8 and 12 million Killingtons is a little higher but they spend significantly more then Mount Snow does.

[whiteout]

Even in the hands of pathetic ASC, k-mart is definitely a cash cow, no question about it, though ASC has steadily driven it into the ground since taking over. years of poor snowmaking/grooming, deferred maintenance, and other cost cutting measures by ASC like closing old Sunrise Mt, and operating fewer lifts, have resulted in a steady and steep decline in skier visits since.

K is still #1 in the east in "skier visits" but Okemo is a close #2 in will likely pass K very soon. Okemo is run like a swiss watch, and because of it, skier visits have soared, and real estate values there are at least 25% higher than they are at K. If Okemo can become the #1 resort in the east with that lame ass mountain, imagine what K could be in the hands of someone like the Muellers, Intrawest, Vail Assoc., etc.

i can't wait for the day when ASC finally shits themselves to death.

how do you know K is a cow if ASC financials are consolidated? i've always thought they were, but i'm not so sure now, especially after this sh*t snow year. i know my rental income is WAY down from the prior years

[newpylong]

Even in the hands of pathetic ASC, k-mart is definitely a cash cow, no question about it, though ASC has steadily driven it into the ground since taking over. years of poor snowmaking/grooming, deferred maintenance, and other cost cutting measures by ASC like closing old Sunrise Mt, and operating fewer lifts, have resulted in a steady and steep decline in skier visits since.

K is still #1 in the east in "skier visits" but Okemo is a close #2 in will likely pass K very soon. Okemo is run like a swiss watch, and because of it, skier visits have soared, and real estate values there are at least 25% higher than they are at K. If Okemo can become the #1 resort in the east with that lame ass mountain, imagine what K could be in the hands of someone like the Muellers, Intrawest, Vail Assoc., etc.

i can't wait for the day when ASC finally shits themselves to death.

Well put, I think I agree 100% with that. I still can't believe they closed Sunrise. The idea about attending the lifts, paying ski patrol and cafeteria is lame in my mountain. Sometimes you have to operate some things at a loss for the greater good. What about putting a new lift in Ram's head that doesn't even go to the top. "Beginners coildn't handle the upper Mt. steeps" - Lame.

Not putting the skyeship into the top - I know the winds between Skye and K peak are big, but doesn't the upper and lower sections operate independently anyway??? Perhaps they knew in advance that they would be putting the K1 in... but still..

Perhaps someday they will put a High Speed lift into Sunrise, add a little more snowmaking, but I doubt it. I really miss that "escape" over there (outside of that godaweful lift). If you had a good storm there were some sweet runs off the midstation (thunderball, gold dust, etc.).

[junior]

Since I just wrapped up my marketing class I can tell you that Killiington is not a cash cow. K would need to to the Eastern skiing industry what Tide is to Laundry detergent.

It seems like K is simply a tool ASC is using to deal with competition. A very good product but unfortunately the money invested is simply to combat competition.

I believe you are incorrect. Killington is the driving force behind ASC.

School and the real world are 2 very different things. You will see that when you graduate. What did they tell you in MKT 101 that leads you to believe that K is not a cash cow? Just curious.

[SkiDork]

Not putting the skyeship into the top - I know the winds between Skye and K peak are big, but doesn't the upper and lower sections operate independently anyway??? Perhaps they knew in advance that they would be putting the K1 in... but still..

From what I was told (could be wrong, of course) the reason they didn't go to the top with the Skyeship had to do with the peak restaurant not being able to handle it structurally

[Mister Moose]

Not putting the skyeship into the top - I know the winds between Skye and K peak are big, but doesn't the upper and lower sections operate independently anyway??? Perhaps they knew in advance that they would be putting the K1 in... but still..

From what I was told (could be wrong, of course) the reason they didn't go to the top with the Skyeship had to do with the peak restaurant not being able to handle it structurally

??? The peak restaurant is the old gondola terminal. Seems odd that it wouldn't be structurally capable.

I'm one of the lucky ones that was bashed against the tower in high winds on the upper section of the old gondola. I always figured that's why they removed it.

[andyzee]

I believe that Killington Ski resort itself is a cash cow. What's killing ASC is all the other business it's involved in i.e. Hotels.

[junior]

I believe that Killington Ski resort itself is a cash cow. What's killing ASC is all the other business it's involved in i.e. Hotels.

Totally agree!!!!!!