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Vail Resorts Releases Fiscal Year-End Earnings Reports - Good News

Posted by Breckenridge Associates Real Estate on Thursday, September 23rd, 2010 at 10:18am.

Despite historically low snowfall during the 2009-2010 ski season coupled with a challenging economy, Vail Resorts has taken positive strides with their earnings report released today at the close of their fiscal year. Some detailed highlights follow below. The company's CEO, Rob Katz, cited some encouraging signs heading into the 2010-2011 season including: improved season pass sales, the opening of One Ski Hill Place in Breckenridge which adds on-mountain amenities including a 20,000 square foot skier restaurant, the Ski Hill Grill and an après ski venue, the T-Bar as well as the launch of EpicMix, a revolutionary new online, mobile and social media application that allows guests to digitally capture and share their skiing experience.

Vail Resorts earnings highlights include:

Total Performance
* Total net revenue was $868.6 million for Fiscal 2010 compared to $977.0 million in the prior year, an 11.1% decrease.
* Net income attributable to Vail Resorts, Inc. was $30.4 million, or $0.83 per diluted share, for Fiscal 2010 compared to net income attributable to Vail Resorts, Inc. of $49.0 million, or $1.33 per diluted share, in the prior year.
* The effective tax rate for Fiscal 2010 was 33.5% compared to the effective tax rate for the prior year of 37.7%. The current year's effective tax rate was favorably impacted by the Company's purchase of the remaining noncontrolling interest in SSV, the Company's retail/rental business on April 30, 2010.

Mountain Segment
* Mountain segment net revenue was $638.5 million for Fiscal 2010 compared to $614.6 million in the prior year, a 3.9% increase.
* Mountain Reported EBITDA was $184.0 million for Fiscal 2010 compared to $164.4 million in the prior year, a 12.0% increase.
***Lift revenue increased $12.7 million, or 4.6%, for Fiscal 2010 compared to Fiscal 2009, due to a $6.6 million, or 3.6%, increase in lift revenue excluding season passes and a $6.1 million, or 6.5%, increase in season pass revenue. The increase in lift revenue excluding season passes was driven by a 3.3% increase in visitation excluding season pass holders coupled with a 0.4% increase in effective ticket price (“ETP”) excluding pass products. The increase in season pass revenue was due to an increase in season pass units sold, as well as year-over-year price increases in season pass products including the Epic Season Pass. Total skier visitation increased 2.5% led by our Heavenly resort which experienced a 10.7% increase in visitation while overall visitation for our four Colorado resorts (excluding Heavenly) increased 1.2%. Our four Colorado resorts were negatively impacted by significantly below average snowfall, particularly in the early season up to mid-January 2010, but experienced increased visitation during the second half of the ski season particularly during the spring break and Easter holiday periods which primarily contributed to the overall increase in skier visits in Colorado for the 2009/2010 ski season compared to the 2008/2009 ski season. Visitation by season pass holders increased by approximately 1.7% with average visits per season pass holders declining approximately 4.8%, or approximately one half a day less skied per season pass holder, over the 2008/2009 ski season resulting in an increase in ETP.
***Ski school revenue increased $5.4 million, or 8.2%, in Fiscal 2010 compared to Fiscal 2009, primarily due to a 5.6% increase in yield per skier visit as both group and private lessons benefited from higher guest spend and were also favorably impacted by new programs offered in ski school during the 2009/2010 ski season. Dining revenue increased $1.1 million, or 2.0%, in Fiscal 2010 compared to Fiscal 2009, primarily due to improved dining revenue for the 2009/2010 ski season compared to the 2008/2009 ski season as on-mountain dining realized an increase in the average revenue per transaction of approximately 3.6%, although dining operations were negatively impacted in the first half of the 2009/2010 ski season by the significantly lower than average early season snowfall in Colorado which resulted in delays in the opening of certain on-mountain dining venues.
***Revenue from retail/rental operations increased $7.4 million, or 5.0%, primarily due to higher retail sales and rental volumes at our Vail, Beaver Creek and Breckenridge mountain resort stores and San Francisco Bay area stores as retail/rental revenue increased 8.1% for the 2009/2010 ski season compared to the 2008/2009 ski season. This increase was partially offset by declines in retail sales for both the first and fourth quarters of Fiscal 2010 of 4.0% and 2.1%, respectively, compared to the same periods in the prior year due primarily to a decline in sales volumes at mountain resort stores not proximate to our ski resorts. Retail/rental revenue was particularly strong in the second half of the ski season which was bolstered by increased visitation to our resorts and higher guest spend.

With positive news from the Breckenridge Ski Resort and Keystone Ski Resort's parent company, Vail Resorts and the continued investment and support of our local ski towns and economy, Breckenridge and Summit County are great places to call home. Contact us today to learn more about local real estate and opportunities in the area. Now is a great time to buy your mountain dream home.

Read the Vail Resorts full earnings report here.

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