Vail Resorts posts first-quarter loss
December 12, 2013
VR’s fiscal year
Vail Resorts operates on a fiscal year that runs from Aug. 1-July 31, meaning it’s peak earning periods are in the second and third quarters.
BROOMFIELD — There isn't much going on during the first quarter of Vail Resorts's fiscal year. There isn't much resort activity in the August-through-October pages on the calendar. So it isn't a surprise the company posts a loss during that period.
But the company's first-quarter loss this fiscal year was more pronounced than during the same quarter 12 months ago.
In a quarterly earnings report Monday, company CEO Rob Katz said the company incurred more losses this year due to operating expenses at its new resorts — The Canyons, near Park City, Utah, as well as small "urban" resorts in Minnesota and Michigan. Katz said the losses were also due to litigation between The Canyons and Park City.
Overall, Vail Resorts reported a loss of $73 million for the quarter, compared with a loss of $60.6 million during the same period last year.
PASS SALES UP
On the plus side of the ledger, the company reported significant gains in pass sales, both in units — up 13 percent — and revenue, which was up 16 percent from the same period last year.
The company's real estate division also reported good news. The company closed on two units at the Ritz-Carlton Residences in Vail. The company also closed on a unit at One Ski Hill Place in Breckenridge just after the quarter's close.
Katz said the company ended the quarter with $114.2 million in cash and no new borrowing on its most senior line of credit. The company also announced a first-quarter dividend of just more than 20 cents per share.
Wall Street apparently approved of the report. The company's stock gained $1.08 per share Monday and closed at $75.98, just off the 52-week high of $76.90.