Vail Resorts combats weak first half of winter with acquisitions, higher lift ticket prices

It took a while for the snow to fall, but when the flakes finally returned this holiday season, Vail Resorts was able to profit in its fiscal second quarter 2013 with increased visitation, higher lift ticket prices and new acquisitions, despite lower lodging revenues.
Author:
Updated:
Original:

It took a while for the snow to fall, but when the flakes finally returned this holiday season, Vail Resorts (NYSE: MTN) was able to profit in its fiscal second quarter 2013 (ended Jan. 31) with increased visitation, higher lift ticket prices and new acquisitions, despite lower lodging revenues.

The Colorado-based ski resort company (including Vail, Breckenridge, Keystone, Beaver Creek in Colorado and Heavenly and Northstar resorts in California and Nevada) reported its fiscal second quarter revenue up 13.2 percent to $422.5 million, compared to a year ago. Net income came in at $60.6 million versus $46.4 million a year ago.

Those figures are somewhat inflated, however, as they include Vail’s recent acquisitions of Kirkwood (California/Nevada), Afton Alps (Minnesota) and Mt. Brighton (Michigan) resorts, along with European ski website SkiInfo. The company’s only segment not to benefit from the acquisitions this latest quarter was lodging sales, which fell 3.6 percent.

Company officials did not release total revenue figures excluding those acquisitions — only doing so for certain segments — creating a challenged complete comparison for investors.

Vail’s total mountain revenue, including the acquisitions, rose 14.5 percent to $361.7 million during the quarter. Excluding the acquisitions, mountain revenue rose 9.5 percent to $346 million.

The biggest gain in mountain revenue came from lift ticket revenue, which rose 17.9 percent with the acquisitions and 11.9 percent without. Effective (average) ticket prices rose 3 percent with the acquisitions, 7 percent without. Season pass revenue increased 9.9 percent with the acquisitions, but officials did not release season pass figures minus the acquisitions.

Company officials, who earlier reduced their exceptions due to the weak first half of winter, kept their forecast steady moving ahead, and were upbeat with improved snow conditions continuing into the second half of the winter season throughout much of the country.

Click here to see Vail's fiscal second quarter earnings report, released after the market closed, March 6, 2013.

--David Clucas

Related

Vail_Resorts_Logo.jpg

Outdoor financials: Vail Resorts’ profit jumps 34%, sales up 29% on increased visits

Vail Resorts Inc. (NYSE: MTN) reported higher quarterly sales and profits on increased skier visits and revenue. The Broomfield, Colo.-based ski resort and real estate company, which operates four mountains in Colorado and two in Califronia, said its fiscal second-quarter 2011 ...read more

Vail_Resorts_Logo.jpg

Lack of winter catching up to Vail Resorts

Vail Resorts (NYSE:MTN) curbed its expectations for the upcoming winter, despite reporting an uptick in early pass sales. The Colorado-based ski resort company, which operates Vail, Breckenridge, Keystone, Beaver Creek, Heavenly and Kirkwood, said pass sales for the upcoming ...read more

Vail_Resorts_Logo.jpg

Vail Resorts quarterly earnings down, but remains bullish for 2012

Vail Resorts (NYSE:MTN) reported less revenue and a steeper loss for its fiscal 2011 fourth quarter, but ended the full fiscal year with higher revenue and profit and remained bullish for 2012. The Broomfield, Colo.-based ski resort company reported quarterly revenue of $108.7 ...read more

Liftopia_thumb_062411.jpg

Liftopia sees steady rise in online lift ticket sales

To hear Ron Schneidermann tell it, in 2005 he and Liftopia co-founder Evan Reece were just a couple of “nobodies working at Hotwire who wanted to ski Tahoe on a week day in March and were looking for a lift ticket deal.” It hadn’t snowed for weeks, Schneidermann said, “and we ...read more

Financials09sm.jpg

Outdoor financials: Vail’s retail, resort spending up, but real estate lags; plus preseason wintersports sales rise

Vail Resorts Inc. (NYSE:MTN) reported higher sales from its retail and rental operations along with a rise in resort sales such as lodging and dining, but a sharp drop in its real estate business led to lower revenue and a wider loss for the company’s fiscal 2012 first quarter, ...read more

Financials09sm.jpg

Outdoor financials: Former Reebok exec invests in Newton Running, plus Vail earnings, Lululemon sales

Investors are now taking notice of the minimalist surge in footwear. The former CEO of Reebok International has invested between $10 million $20 million in Boulder, Colo.-based Newton Running Co. Paul Fireman, now head of Boston-based investment firm Fireman Capital Partners, ...read more

Financials09sm.jpg

Outdoor financials: Teva boosts strong Deckers 4Q earnings; Wintersports sales down at Head; Vail Resorts buying Kirkwood

Deckers Outdoor Corp. (Nasdaq:DECK) reported a jump in quarterly revenue and profit led by strong results from its Teva brand, plus gains from its Sanuk acquistion. The Goleta, Calif.-based footwear company reported its fourth-quarter 2011 revenue up 40 percent to a record ...read more

Vail-Logo.png

Vail says season-over-season results definitely up

Vail Resorts Inc.’s pass revenue and skier visits showed positive gains in the ski season that officially finished on Easter Sunday, April 24, 2011, for the mountain resort giant. According to certain ski season metrics for the comparative periods from the beginning of the ski ...read more

Vail_Resorts_Logo.jpg

Vail Resorts sees 14.6 percent drop in skier visits, but season pass sales keeps revenue stable

There’s a reason Vail Resorts (NYSE:MTN) sells its season passes in the spring, summer and fall. It’s insurance against a bad winter season such as this one. The Broomfield, Colo.-based owner of four ski resorts in that state and three in the Lake Tahoe Nevada/California region, ...read more