VAIL RESORTS SECOND QUARTER RESULTS REFLECT FLAT VISITS
SAM Magazine—Broomfield, Colo., Mar.10, 2010—Vail Resorts (VR) reported mixed second-quarter results today, as a slight gain in mountain operations was offset by a slight decline in lodging revenues and a virtual absence of real estate activity this year compared to last, due primarily to the timing of real estate closings. Overall, the results show a second year of depressed destination visits.Resort revenue, the combination of mountain ops and lodging, was flat: $299.7 million in second quarter 2010, $299.6 million in 2009. Small increases in revenues for lift tickets, ski school, and retail/rental were offset by declines in f&b, lodging, and “other” revenue (which includes employee housing). In lodging, average room rates declined 2.1 percent, while revenue per available room decreased 11.1 percent.
Operating expenses also declined, by a slight 1.4 percent, as reduced labor and labor-related benefits dropped 9.6 percent. But G & A costs increased 16.9 percent, mostly due to higher employee medical costs.
Real estate income dropped from $89.2 million in the 2009 quarter to just $.9 million in 2010. As a result, total revenues for the quarter were off 22.7 percent—from $388.8 million in 2009 to $300.5 million in 2010.
Season-to-date through Mar. 7, visits across the five VR areas were up .4 percent, with ski school revenues up 3.8 percent and rental/retail rising 5.5 percent. All these categories show slight improvement from VR’s status in early January. Lodging bookings have increased as well, with all properties except Keystone showing a slight 1 percent growth in room nights compared to last year. However, including Keystone, room nights were off 6 percent through February.
Capital investment plans for 2010 are up from 2009, but below the levels of 2007 and 2008. VR projects spending of $75 million to $85 million, about half of that for annual maintenance. Major development projects include a high-speed quad for Vail’s Sun Up and Sun Down bowls and expansion of Adventure Ridge, a year-round restaurant at the top of the Heavenly gondola, a coaster ride at Breckenridge, and Keystone Lodge room renovations.
