DENVER—Vail Resorts Inc., the nation’s largest ski resort operator, said Monday its net loss in the first quarter narrowed after it received a settlement that resolved a contract dispute.
Revenue fell at on-mountain and real estate businesses but increased 7.2 percent in lodging businesses, the company said.
Chief Executive Officer Rob Katz reiterated guidance for the year, saying he has not seen evidence the nation’s weakening economy would impact the company’s resorts. However, he told analysts, “we don’t think our entire business can be immune to anything that’s going in the general economy.”
Vail Resorts’ stock closed down 4.2 percent.
For the quarter ending Oct. 31, Vail Resorts reported a loss of $24.6 million, or 63 cents per share, compared with a loss of $35.8 million, or 93 cents per share, in the previous year.
The quarter included an $11.9 million cash settlement related to a contract dispute from Cheeca Holdings LLC compared with $3.6 million in contract dispute charges last year.
Excluding a stock-based compensation charge, Vail posted a loss of $23.4 million, or 60 cents per share, compared with a loss of $34.6 million, or 89 cents per share.
Overall revenue dropped 14 percent to $97.9 million from $113.5 million in the year-ago quarter. Of that, resort-related revenue, a combination of on-mountain and lodging businesses, dipped in the first quarter to $85.9 million from $86.6 million in the previous first quarter.
Analysts polled by Thomson Financial predicted a loss of 75 cents per share on revenue of $102 million.
While revenue fell below estimates, analysts noted it was a slow quarter as summer activities wound down but winter activities have not yet begun.
“While the October quarter can be difficult to model, the overall year is actually fairly predictable, assuming decent snowfall,” JMP Securities analyst Will Marks said in a research note.
Vail Resorts historically posts a loss in its first fiscal quarter because it is its slowest season from August to October.
In a conference call with analysts, Katz noted unseasonably warm weather prevailed through much of November in the Rockies but noted it’s early in the season.
The number of season ski passes sold fell 1.6 percent although the money generated on the sales was up 7.8 percent due to higher fees.
In September, Vail Resorts forecast fiscal 2008 net income in a range of $112 million to $122 million, or $117 million to $127 million excluding a charge for stock-based compensation.
Based in suburban Broomfield, Vail Resorts owns and operates Vail, Beaver Creek, Keystone and Breckenridge ski areas in Colorado, Heavenly in Nevada and California, and the lodge near Jackson, Wyo.
Its stock dropped $2.24 a share, or 4.5 percent, to close at $51.10 a share in Monday trading.
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