Vail Resorts Net Is Flat in First Quarter

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SAM Magazine-Vail, Colo., Dec. 11, 2006-Vail Resorts reported quarterly revenues up nearly 33 percent for the first quarter of fiscal 2007, primarily on increased real estate revenues, but expenses largely offset the gain. However, the resort cited increases in season's pass sales (21 percent in dollars) and advance bookings (24 percent in dollars) for optimism about the upcoming revenue-generating second and third quarters.

Vail Resorts' mountain revenue grew $5.9 million, or 14.6 percent, in the first quarter of fiscal 2007 to $46.2 million from $40.3 million. However, mountain expense increased $7.2 million, or 10 percent to $79.5 million.

The company's lodging revenue decreased by $1.3 million, or 3.2 percent , in the first quarter fiscal 2007 to $40.4 million from $41.8 million for the year-earlier period, when VR still owned the Snake River Lodge & Spa (sold in January 2006). Excluding the impact of the sale, lodging revenue increased $2.0 million, or 5.3percent and expenses increased $1.2 million, or 3.3 percent.

Resort revenue, the combination of mountain and lodging revenues, increased $4.5 million, or 5.5 percent in the first quarter of fiscal 2007, to $86.6 million, from $82.0 million for the comparable period last fiscal year. Resort expense increased $5.9 million, or 5.4 percent, to $115.8 million.

Vail Resorts' real estate segment remained strong. Revenue totalled $26.9 million, compared to just $3.4 million for the comparable period a year ago. Real estate expense also grew, to $26.1 million.

Overall, total revenues increased $28.1 million, or 32.9 percent, in the first quarter of fiscal 2007 to $113.5 million, up from $85.4 million for the comparable year-earlier period. Loss from operations for the quarter increased $1.0 million, or 2.0 percent, to a loss of $50.9 million. VR reported a first quarter net loss of $35.8 million compared to a net loss of $34.3 million a year earlier.

"I am very excited about the 2006/2007 ski season," said Robert Katz, CEO of Vail Resorts. "We have had strong openings at all of our mountain resorts with Keystone even opening ahead of schedule. As of today, the vast majority of our terrain is open at our Colorado resorts with Vail having over 4,000 acres currently open, including most of the Back Bowls as well as Blue Sky Basin. Our sales of season passes continued at a strong rate, with sales to date increasing 12 percent in units and 21 percent in sales dollars over the same period last year. As a reminder, these sales will be booked into revenue during the 2006-2007 ski season.

"Bookings through our central reservations systems for our five mountain resorts [are] up 15 percent in room nights and 24 percent in sales dollars."