SAM Magazine—Wildwood, Mo., July 16, 2018—Peak Resorts reported record revenue of $56 million for its fiscal 2018 fourth quarter ending April 30, a 9 percent increase over the same period last year. Reported EBITDA edged up 4 percent to $21.5 million. For the year as a whole, revenues rose to $131.6 million compared to $123.2 million a year ago, but reported EBITDA fell more than 4 percent due to increased operating costs.
Contributing to the record fourth quarter was an 11.4 percent rise in food and beverage revenue, a 9.9 percent increase in ski instruction revenue, and 9.6 percent growth in lift ticket and tubing revenues, as well as 22.4 percent growth in other revenue.
Visits were up 14 percent year-over-year at Mount Snow, Vt., the company’s flagship resort, “which compares favorably to the roughly 1.2 percent increase seen across the state of Vermont according to the Vermont Ski Areas Association,” said Peak Resorts CEO Tim Boyd. “We also generated very strong fiscal fourth quarter and full year results across our Midwest mountains as these locations benefited from favorable winter weather after several less than stellar winters and a 19 percent rise in visitation over the prior year.”
The revenue increase was somewhat offset by a 10.7 percent increase in operating costs, driven by a 14.5 percent rise in labor expenses, more than 10 percent rise in retail and F&B cost of sales, and a 9.6 percent bump in power and utility expenses.
But the company has been investing in improvements, too. Peak Resorts CFO Chris Bub said, “We invested $4.3 million in capital improvements in the fiscal 2018 fourth quarter and a total of $31 million for the full year, including nearly $22 million on our West Lake and Carinthia expansions at Mount Snow. Notably, with this spending, the majority of our deferred maintenance projects from fiscal 2017 are now complete.”