Late snow reduced ski visits – not including season pass holders – by 5.3% at Vail Resorts Inc.'s five western ski resorts in the second quarter ended Jan. 31.
The weak early season prompted the company to lower its guidance for EBITDA from its mountain operations by about 4% to $218 million to $228 million from $228 million to $238 million. However, the company reaffirmed its overall earnings guidance of $112 to $122 million first issued in late September. It said ski lift revenues that were off 13.6% in the early part of the season, were up 11% between Christmas and the end of the quarter as some of the best ski and snowboard conditions in years arrived.
Vail Resorts was able to earn record EBITDA during the quarter primarily by raising prices. The average effective lift ticket price rose 8.4% to $47.87 while the average daily room rate rose 9.6% respectively. The former increase enabled the company to record a 4.2% increase in lift ticket revenues, despite serving 113,000 fewer skiers and snowboarders. That, in turn, help Vail Resorts boost total mountain revenue, which also includes ski school, dining, retail/rental and other income, by 2.8% to $279.7 million.
The companys total resort revenue, which includes mountain and lodging revenues rose 3.2% for the quarter and 2.3% for the first six months. Net income for the entire company declined 3.2% primarily due to a decline in earnings at its real estate segment.
