Despite a wider-than-expected first-quarter loss, Vail Resorts Inc. said Monday it anticipates another winter of robust business.
The Broomfield-based ski-resort operator on Monday reported a net loss of $35.8 million for the quarter ended Oct. 31, up from $34.3 million for the same period last year. Earnings are traditionally low for ski resorts in August, September and October.
Season-pass sales at Vail’s five mountain resorts were up 21 percent over last winter. Advance hotel bookings also were on the rise, up 15 percent in total room nights and 24 percent in sales dollars.
“We’re excited. There is clearly some strong momentum from last year,” said chief executive Rob Katz. “Our early-season metrics are very favorable.”
Vail Resorts reported total revenue of $113.5 million for the first quarter of fiscal year 2007, up $28.1 million, or 32.9 percent, compared with last year, boosted in part by strong real-estate sales. Real-estate revenue for the quarter increased by more than 690 percent, from $3.4 million last year to $26.9 million this year.
This winter, Vail Resorts plans to begin selling units at its new Peak 7 base village at Breckenridge.
“The real estate is really the icing on the cake,” said Will Marks, an industry analyst at JMP Securities in San Francisco. “The company will likely see record pricing in Breckenridge.”
Marks said he considers Vail Resorts’ stock price to be “dirt cheap” compared with others in the sector. “We think it’s going to continue to go up,” he said.
The company also announced Monday it has begun selling memberships in the new Vail Mountain Club, a private, slope-side club being built just steps from the Vista Bahn Express lift. It plans to sell 150 full memberships for a deposit of $250,000 and 300 social memberships for a $100,000 deposit.
“Although we just began accepting deposits for this premiere private club on Dec. 6, we already have sales commitments representing $15.2 million of total proceeds,” said Katz.
Vail Resorts also owns Beaver Creek and Keystone in Colorado, Heavenly in northern California, the RockResorts luxury hotel chain and the Grand Teton Lodge Co. in Wyoming.
Vail Resorts stock closed Monday at $45.52, down $1.26. Its stock price has been on the rise lately, increasing more than 16 percent since Nov. 1.
Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.
