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Vail Resorts lowers profit expectations


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By Mark Harden, Denver Business Journal

Vail Resorts Inc. said Tuesday it saw a 4.3 percent rise in lift ticket revenue and a 2 percent gain in total skier visits for the 2012-13 ski season through Sunday from the same period of last year’s winter season.

But the ski resort operator also pulled back on its profit guidance for fiscal-year 2013, with CEO Rob Katz citing “the challenging early season.”

Broomfield-based Vail Resorts — operator of Heavenly, Northstar, Kirkwood as well as Colorado’s Vail, Breckenridge, Beaver Creek and Keystone ski resorts — also posted year-over-year increases in various other revenue streams in a report Tuesday.

It said dining revenue was up 9 percent from a year earlier, retail and rental revenue rose 7.7 percent, and ski school revenue was up 2.9 percent.

But despite year-over-year revenue increases that were boosted by generous snow over the holidays, results were hampered by weaker snow through mid-December, “when conditions at our Colorado resorts were very poor and highly unusual,” Katz said.

The company said it now projects fiscal-year 2013 net income of $38.9 million to $48.9 million, down from the $50 million to $60 million it projected in September.

Vail Resorts’ fiscal year runs through July 31.

The revenue numbers for the 2011-12 season were adjusted to include revenue from Kirkwood resort, which Vail Resorts acquired in April 2012.

The comparisons cover seven ski areas, but do not include two recently acquired “urban” ski resorts, Afton Alps in Minnesota and Mount Brighton in Michigan, the company said.

In other news, Vail Resorts said Tuesday it is adding Bruce Sewell, senior vice president and general counsel of Apple Inc., to its board. Sewell is a former professional ski patroller.

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Comments

Comments (4)
  1. Fred Fernandez says - Posted: January 15, 2013

    Profits down? I paid $74 for a half day lift ticket for a twelve year old. I’m gonna spend my money at Sierra from now on. I hope their profits plummet.

  2. Michael Thompson says - Posted: January 16, 2013

    I am courious how the Tahoe area’s did. the snow has been very good this year for the Christmas season.

    However I wonder how many stayed away due to the 100$ lift ticket.

    My thought is that they priced themself out of the market.

  3. Steve says - Posted: January 16, 2013

    The only business at Tahoe that is sizable, healthy, robust and growing, based 100% on discretionary spending, customer base is primarily out of town tourists, annual reliable increasing demand allowing annual price increases all go toward increased corporate profits, with huge demands on local infrastructure. A lift ticket tax similar to other competitive areas should be considered.

  4. "HangUpsFromWayBack" says - Posted: January 16, 2013

    I don’t know a single person who feels sorry for their earning,plus they don’t pay their slave employees decent wage for the area high cost living.

    Those CEO’S JUST HAVE TO SETTLE FOR A CAD VERSE A BMW THIS YEAR.

    Bigger not always better when it comes to the bottom line,plus they got too much invested in timeshare ownerships all over the country that’s not selling like hot cakes anymore.