Vail Resorts posts its early gains on Monday
January 14, 2014
BROOMFIELD — Vail Resorts on Monday reported certain ski season results for the comparative periods from the beginning of the ski season through Jan. 5 and for the prior year through Jan. 6, 2013, adjusted as if Canyons — a Utah resort the company leased in 2013 — was held during both periods. The reported ski season results do not incorporate the urban ski areas of Afton Alps and Mt. Brighton.
Season-to-date total lift ticket revenue at the company's eight mountain resorts was up approximately 3.9 percent compared to the prior year season-to-date period. Season-to-date lift ticket revenue at the company's five mountain resorts in Colorado and Utah was up 11.7 percent.
Season-to-date ancillary spending outpaced skier visits, with ski school revenue up 4.5 percent and dining revenue up 2.3 percent at the company's eight mountain resorts. Additionally, retail and rental revenue for resort store locations was up 2.1 percent. For the company's Colorado and Utah resorts, season-to-date ski school revenue was up 7.5 percent, dining revenue was up 13.1 percent, and retail and rental revenue for resort store locations was up 7.7 percent.
Season-to-date total skier visits for the company's eight mountain resorts were down 0.7 percent compared to the prior year season-to-date period. Total skier visits at Colorado and Utah resorts grew at 7.4 percent compared to the prior year season-to-date period, while total skier visits at our Tahoe resorts declined approximately 23.4 percent, compared to the prior year season-to-date period.
'POOR CONDITIONS IN TAHOE'
"We are pleased that, in addition to the strong 16 percent increase in season pass sales… in early December, we saw very strong performance at our five destination resorts in Colorado and Utah in both lift ticket sales and in capturing ancillary guest spending in our ski school, food and beverage and resort retail/rental operations," Vail Resorts CEO Rob Katz said in a statement. "Unfortunately, conditions in Tahoe have been very poor with snowfall down approximately 85 percent relative to prior year resulting in visitation and guest spending well below our expectations which negatively impacted our overall revenue growth. Although results in Tahoe have been challenging, the strength of our season pass sales and season-to-date results in Colorado and Utah gives us confidence that we can remain within our fiscal year 2014 guidance range, as we incorporated the potential for challenging weather in our estimates. However, our confidence is predicated on more normalized conditions returning to Tahoe by our third quarter."