Vail Resorts posts increase in quarterly earnings
Vail Resorts Inc.’s fiscal third-quarter earnings rose 5.6 percent, with resort officials today underlining skier visits were up in Colorado and California, and declaring for the first time a quarterly dividend for stock investors.
For the quarter ended April 30, the only publicly traded ski resort reported a profit of $76.9 million. This is up from $72.8 million a year ago. The latest period included $2.6 million in write-downs and $6.6 million in debt-extinguishment charges. Revenue jumped 18 percent to $414.5 million.
The Tamarack Lodge, which opened this past season at Heavenly, helped boost F+B sales for Vail Resorts. Photo/LTN file
Shares closed Wednesday at $43.41 and are down 17 percent this year.
This is often the most telling of the quarterly reports because it includes February, March and April – all ski months.
Vail is an indicator the travel and tourism sector is on the rebound.
The company bucked a trend in California where overall skier visits were down 12 percent for the 2010-11 season.
“For the 2010-2011 ski season, visits to our Colorado resorts were up 4 percent compared with a gain of 1 percent for the rest of the Rocky Mountain region. Visits to our Tahoe resorts, including Northstar-at-Tahoe in both periods, increased 3.9 percent in contrast to a 7.1 percent decline for the rest of the Pacific Southwest Region (which includes California). Visits to all six of our resorts were up 4 percent, adjusted as if we owned Northstar-at-Tahoe in both periods, compared with 0.1 percent growth for the rest of the U.S. ski industry,” CEO Rob Katz said in a statement. “Northstar-at-Tahoe has been a great addition to our company, achieving record visitation and profitability, and helping to drive a 36 percent increase in our Tahoe season pass program for the 2010-2011 season.”
Vail owns Heavenly Mountain Resort on the South Shore. In October it acquired Northstar-at-Tahoe in Truckee.
Companywide spring season pass sales for the 2011-12 season were up 19 percent in units and 27 percent in sales dollars through June 5, compared with the prior year period ended June 6, 2010, (adjusted as if Northstar-at Tahoe were owned in both periods).
One-third of Vail’s season pass sales come in the spring when the price is at its lowest. Those sales are not part of this quarterly earnings report.
Lodging reported net revenue was $49.8 million for the quarter compared to $44.9 million for the same period last year, for an increase of 11 percent.
Closing of four condominium units at the Ritz-Carlton Residences at Lion’s Head helped drive a surge in Vail Resorts’ real estate porfolio. Net revenue was $13.2 million for the quarter compared to $3.2 million a year ago.
It was also announced Vail Resorts’ will be issuing its first cash dividend of 15 cents per share of common stock.
— Kathryn Reed
Vail is doing an astonishingly good job, under adverse conditions. Their operation at Heavenly is world class in every respect. The grooming is seamless, lifts run on time and the employees are highly dedicated and helpful.
The Heavenly Ski Patrol deserves special mention, because they are so incredibly good at their job. Unlike other Tahoe resorts, Heavenly’s Ski Patrol keep the peace and control speeders, while always maintaining a friendly demeanor.
Best of all, under Vail’s management, Heavenly has made skiing very affordable for locals and even reopened last year after they closed, just to give locals a special treat. Vail/Heavenly also contributes to local charitable causes.
Without Vail’s leadership and the world class staff at Heavenly, South Lake Tahoe would probably be a ghost town. We owe a real debt of gratitude to Vail and to Heavenly.
First of all why does Vail always have to show their arrogance by saying how they did better than the rest of California? Interesting to note they didn’t say how Heavenly did individually! They lumped it in with Northstar which has been on steady upward trend with skier visits for many years!
I believe Sierra’s skier visits are also up? As I also believe that Sierra has had an ever increasing market share since Vail came onto the South Shore.
This is one of the few industries in the two western states, and particularly unique at Lake Tahoe, that is experiencing growth and healthy, seemingly non-elastic increasing revenues.
Just begging to be taxed.
It’s to bad that the City is unable to receive any dollars from Heavenly Valley for the Road Repairs through a ticket tax!!
Just because they are in the County they don’t pay anything for roads yet you can’t get there without driving on City Roads.
And there Snow Removal Service is the best, provided by the City!!!