DENVER—Vail Resorts Inc., the nation’s largest ski resort operator, said Monday its net income dipped 3 percent in the fiscal second quarter as a dearth of early season snow kept skiers away.
Although business turned around as bountiful snow fell in late December and January, overall skier visits fell 3.9 percent in the quarter, Chief Executive Officer Rob Katz said. A skier visit is equal to one person buying and using a lift ticket.
In addition, the nation’s struggling economy affected the resorts but the impact was offset partially by a 23 percent increase in international visitors.
“We are keenly aware of the current challenges in the broader economy, and our company cannot be immune to impacts to the broader travel industry,” Katz told analysts during a conference call. “However, our business model remains very solid, as indicated by our results since the weather-challenged early season.”
For the quarter that ended Jan. 31, the company reported net income of $51.3 million, or $1.31 a share, compared with net income of $53 million, or $1.35 a share, a year earlier.
Revenue fell 0.3 percent to $360 million from $361 million. Lodging and mountain operations drew $314.5 million in revenue, up 3.2 percent, which was offset by a 19 percent drop in revenue in the real estate segment to $45.5 million.
From November to Dec. 22, lift ticket revenue fell 13.6 percent but rose 11.1 percent during the remainder of the quarter, Katz said.
Skier visits fell at all five resorts: Vail, down 6.2 percent; Breckenridge, 4 percent; Keystone, 4.5 percent; Beaver Creek, 1.5 percent; and Heavenly in California, down 1 percent.
All of the resorts, particularly Heavenly, showed better results through January, Katz said.
In the first six months, Vail Resorts posted net income of $26.7 million, or 68 cents a share, compared with net income of $17.2 million, or 44 cents a share, in the year-ago period. Revenue fell 3.5 percent to $457.9 million from $474.5 million.
Katz expects business for the full season to be higher than it was last year although there may be softness in April because Easter—traditionally a big time for skiers—falls in March this year.
He reaffirmed fiscal 2008 guidance of net income from $112 million to $122 million. Resort-related capital expenditures are forecast as much as $110 million during the calendar year.
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 fell $1.49, or 3.6 percent, to $40.13 a share in Monday afternoon trading but hit a 52-week low of $39.32 a share at one point earlier in the day.
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