Hot real-estate and season-pass sales helped propel Vail Resorts Inc. to second-quarter net income of $53 million, up $10 million, or 23 percent, over the same period last year.
“We’re excited about our fiscal year to date and the prospects for the overall long-term success of the company,” said Rob Katz, chief executive of the Broomfield-based resort operator, during a conference call with investors.
Vail Resorts’ stock soared on the positive financial news, closing at $58.33 on Monday, up $3.33, or 6.1 percent.
Skier visits at Vail’s four Colorado resorts – Vail, Beaver Creek, Breckenridge and Keystone – were up 2.6 percent for the quarter, with a total of 2.51 million skiers hitting the slopes.
But inclement weather over the holidays dragged down visits by season-pass holders, Katz said. Skier visits at Vail Mountain were off 3.7 percent compared with last winter, to 725,000 skiers and snowboarders. Keystone saw the largest growth in skier visits, up 9.3 percent to 598,000 people.
Heavenly, Vail Resorts’ property in northern California, saw a 6.2 percent decrease in skier visits, which the company also blamed on weather.
Revenue for the quarter ended Jan. 31 rose to $361 million, up 25 percent from $288 million a year earlier.
Regardless of the declines at Vail and Heavenly, lift revenues for the quarter were up 13.4 percent over a year earlier, boosted by a 20 percent increase in season-pass sales.
“Pretty amazing numbers,” said Will Marks, an industry analyst with JMP Securities in San Francisco. “They’re obviously doing exceptionally well from an operational standpoint.”
Vail Resorts said it expected to spend $90 million to $95 million on capital expenditures at its resorts in 2007, including new snowmaking equipment and chairlifts.
On the real-estate front, the company announced it has entered into purchase agreements for all 13 of the Lodge at Vail Chalets, which are at the base of Vail Mountain, at an average price per square foot of $2,488.
It also has taken reservations on 54 of the 71 condominiums at the Ritz-Carlton Residences in Lionshead. The units are currently priced at an average of $1,775 per square foot.
Last week, Vail Resorts announced plans for a $1 billion new resort village in West Lionshead, called Ever Vail.
Katz said the company also is looking to expand its real-estate development at Heavenly and Keystone in the next few years.
Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.
