Real estate brings Vail Resorts’ quarterly profits down
By Ed Sealover, Denver Business Journal
Vail Resorts Inc. ended fiscal year 2010 with increased revenue year-over-year from its mountain segment, but decreased net revenue from its lodging and real estate segments, leading to an overall 11.1 percent decrease in revenues, according to fiscal results released Thursday.
Net income for the Broomfield-based company (NYSE: MTN) was $30.4 million, or 83 cents per diluted share, in the fiscal year that ended on July 31, compared to $49 million, or $1.33 per diluted share, in the prior year.
Vail Resorts CEO Rob Katz lauded the performance, noting that net revenue increased 3.9 percent for the important mountain segment that covers the company’s four Colorado ski resorts and one on the California-Nevada border.
The overall 37.9 percent net income decline was due primarily to the timing of real estate closings at the company’s newly opened properties in Breckenridge and Vail — closings that he expects to increase in the current fiscal year.