SAM Magazine—Wildwood, Mo., Dec. 21, 2018—Despite growing competition in the Northeast in the multi-resort pass market, Peak Resorts reported record season pass sales through Dec. 17, 2018. Company-wide pass sales were up 36 percent in units and 38 percent in revenue year over year.
The company’s flagship Peak Pass product was up 18 percent in units and 20 percent in revenue year-over-year. The Peak Pass has a total of five pass options valid at its 10 Northeast and Mid-Atlantic resorts, including the three recently acquired Snow Time resorts in Pennsylvania. Sales of the Drifter Pass, an unlimited season pass for 18- to 29-year-olds, were up 27 percent year-over-year on a revenue basis. Additionally, 34 percent of Snow Time passholders upgraded to a Peak Pass.
In its fiscal 2019 second quarter results, for the three months ended Oct. 31, Peak reported revenue of $8 million, down from $8.8 million in the same period last year.
The acquisition of Snow Time resulted in higher general and administrative expenses year-over year for the second quarter. That was partially offset by a 9.3 percent decline year-over-year in resort operating costs and 20.1 percent drop in labor related expenses.
The decline in labor expenses was partially associated with the termination of the operating contract at the Attitash hotel, which also contributed to the lower total year-over-year revenue for this quarter.
An early start to winter operations at Mount Snow, Vt., and Wildcat, N.H., and increased summer season business helped offset the loss of the hotel revenue stream. That said, as Peak noted in its report, the second quarter is typically a slow period for the company.
Report by Katie Brinton