Vail Resorts, Inc. said net income increased 18.0% to $60.5 million in the second fiscal quarter ended January 31, compared to $51.3 million in the prior-year second fiscal quarter, despite a decline in the mountain and resort segments.
This improved income can be primarily attributed to the 18.2% increase in revenue in the lodging segment, which rose to $41.2 million in the quarter due to the opening of Arrabelle in January of 2008 and the acquisition of CME on November 1, 2008.
Mountain segment revenue declined 7.6% was $258.5 million in the second quarter, compared to $279.7 million in the second quarter of fiscal 2008. While resort revenue was $299.6 million in Q2 compared to $314.5 million last year, a decrease of 4.7%. Total revenue increased 8.0% to $388.8 million from $360.0 million last year.
Net income was $60.5 million, or $1.65 per diluted share, in the second quarter, compared to net income of $51.3 million, or $1.31 per diluted share, in the year-ago period. In addition, included in the six month net income results in the prior year was the receipt of the final cash settlement from Cheeca Holdings, LLC of which $11.9 million, net of final attorney's fees and on a pre-tax basis.
Additionally, the company announced a company-wide wage reduction plan in which all affected employees will have their salaries reduced on a sliding scale from 2.5% for seasonal employees to 10% for executives. Additionally, newly-appointed CEO Robert A. Katz has elected not to take any salary for a full year and then receive a 15% salary reduction.
