Vail Posts Record Fiscal 2006 Second Quarter
SAM Magazine--Vail, Colo., March 13, 2006--Vail Resorts released its second quarter results today (three months ended January 31) and the snow gods were kind. First, the company reports that skier visits increased 7.9 percent over the same period last year, giving Vail Resorts a new skier visit record--2,875,000 million versus 2,664,000 during the same quarter last year. All of its Colorado resorts posted increases in visits, while Heavenly, because of late snowfall, saw a decrease of 8.1 percent to 434,000 skier visits.
When it comes to revenue, net figures go like this: Mountain revenue increased from $214 million to $246 million; lodging revenue went from $42.5 million in 2005 to $32 million in 2006; real estate saw a small increase in revenue from $7.8 million to $9.7 million. Total expenses went from $180 million to $190 million in 2006.
EBITDA figures bear out the same scenario: Mountain reported EBITDA was $97 million for this second quarter as opposed to $82 million last year. Lodging reported EBITDA saw a decrease from $1.25 million to a loss of $815,000 this year. Resort reported EBITDA went from $83.5 million last year to $96.2 million in 2006.
Finally, the basic net income per share went from $0.91 last year to $1.15 for the second quarter in 2006. Speaking of shares, Vail also announced that its board of directors has approved the repurchase of up to three million shares of common stock. Shares of common stock purchased under this plan will be held as treasury shares and may be used for employee stock plans. However, the repurchase was approved only and the actual buying back of stock will depend on the company's available resources.
Lastly, with fresh money in the bank, Vail announced its plans for capital improvements. The company expects to spend between $75 million and $80 million for maintenance capital and discretionary resort improvements. Highlights include a new gondola at Breckenridge which will connect the town to Peaks 7 and 8; a new high-speed chairlift at Heavenly; an expanded spa at the Keystone Lodge; snowmaking upgrades at Vail, Beaver Creek and Heavenly; and upgrades to central reservations, marketing database and e-commerce booking systems.
But the proposed real estate expenditures is where the real money is being spent. Vail is looking to spend between $185 million to $195 million, mainly on its Vail's Front Door project and the ongoing Arrabelle and Gore Creek Place developments. Vail did say that "net cash outlays for real estate are expected to be significantly less as the company anticipates that it will secure additional non-recourse financing for the major Vail projects in addition to the receipt of proceeds from real estate deposits and land sales."