Vail Resorts Profit Rises
SAM Magazine—Broomfield, Colo., June 6, 2014—Vail Resorts’ (VR) has reported increased net revenues for the third quarter (February through April) due to both increased visits at its Colorado areas and the addition of Canyons, Afton Alps, and Mount Brighton to its resort portfolio. Net income hit $117.9 million, up 20.8 percent from $97.6 million a year earlier, on revenues of $543 million, up from $470 million.
In addition, VR reported that sales of season’s passes for 2014-15 are maintaining the double-digit growth seen in past years, up 14 percent in units and 20 percent in dollars. The greatest percentage growth in pass sales has come from VR’s new markets in Minnesota and Michigan, spurred by last year’s purchase of the Midwestern resorts. VR CEO Rob Katz said that destination markets, including Minneapolis and Detroit, "represented more than half of our total growth for the spring selling period, and remains the largest area of untapped potential for our season pass program."
For the third quarter, skier visits rose 11.2 percent, and lift revenues climbed 17.1 percent. Those totals include Canyons, Afton Alps and Brighton, which were not included in the year-earlier figures. In late April, VR reported that, with Canyons’ 2012-13 figures added to VR’s for comparison purposes, visits this season were up 2.3 percent, and lift revenue rose 7.6 percent, compared to the prior season. That comparison did not include the Midwest resorts in either year.
VR’s growth was led by its Colorado resorts, which saw visits climb by 5.6 percent in the quarter. Tahoe resort saw vast improvement compared to the early season, and were down just 4.4 percent compared to the year-earlier quarter.
Lodging revenue was another strength, up 24.6 percent, due to increased visitation and higher rates at the Colorado resorts and the addition of properties at Canyons.
For the nine-month period through April 30, VR’s net income reached $103.8 million, on total revenues of $1.12 billion. Those figures are up from the same period a year prior, which saw $97.5 million net income on $1.01 billion in total revenue.