In a healthy wrap-up to its 2006/2007 ski season, Vail Resorts Inc.'s revenue grew 8.2% in its third quarter ended April 30, to $369.5 million. Net income advanced 14.9% to $78.5 million, or $1.99 per share, from $68.3 million, or $1.75, a year ago. Mountain revenue increased 4.7% to $308.7 million. Mountain EBITDA grew 7.7%, to $157.4 million.
Resort revenue, the combination of Mountain and Lodging revenue, increased 5.4% to $352.4 million. Third fiscal quarter Resort EBITDA increased 9.5% to $169.9 million. Retail/rental revenues, which includes numbers from Vails joint venture managed by Ken Gart, Specialty Sport Ventures, increased 0.6% for the quarter to $53.4 million compared to $53.1 million last year. For the year-to-date, retail/rental revenues increased 7.2% to $141.2 million compared to $131.7 million last year.
With the nine months ended April 30 incorporating its entire ski season, Vail's Mountain segment revenue increased 7.8% over its ski season with a lift ticket revenue increase of 9.1%. The lift revenue increase was attributable to a 10.3% increase in effective ticket price as well as a 17.7% increase in season pass revenue, partially offset by a decrease in visitation for the nine months. Total visitation at all five of its resorts for the ski season decreased 1.1% compared to the prior season. While the Colorado resorts' visitation for the ski season increased 1%, Heavenly's visits experienced a 12% decline related to highly unfavorable weather conditions throughout the ski season.
Looking ahead to the next winter season, pass sales-to-date are up 39% in units and 54% in sales dollars. “The increase in season pass sales is largely due to a higher number of renewals at this point in our selling process combined with an 11% increase in effective pass price for our spring sales,” said CEO Robert Katz. “However, it clearly establishes early momentum going into the 2007/2008 ski season.”
