Mountain revenue for fiscal 2004 was $500.4 million, up 7.8 percent, while mountain expense climbed only 0.7 percent, to $369.0 million. Lodging revenue grew 6.3 percent, to $176.3 million, while lodging expense increased 4.0 percent, to $161.1 million.
Real estate revenue and expenses both decreased, due to the timing and mix of real estate projects. Revenue was $45.1 million, with expenses of $16.8 million.
As a result of the above, income from operations for the fiscal year improved by 137.2 percent, to $81.8 million compared to $34.5 million for the same period last year. Nonetheless, the resort reported a net loss for 2004 of $6.0 million, compared to a net loss of $8.5 million in 2003. The loss stemmed from one-time charges for early extinguishment of debt and for mold remediation. Without these items, net income would have been $20.4 million. Vail estimates that the early retirement of debt will save the company more than $5 million a year for the next five years.
Vail Resorts is projecting net income of $14 to $22 million for fiscal 2005. One reason for optimism: to date, sales of season passes and other advance purchase products are up by 25.7 percent.