Vail Resorts Inc. said net income for the second quarter ended Jan. 31, 2011 rose by $13.9 million, or 34.1%, to $54.6 million as season pass holders took advantage of early snow to increase their visits and spending.


Revenue from the company's retail and rental operations, including more than 150 specialty shops,  increased $13.3 million, or 21.8%, for the three months ended Jan. 31, 2011 compared to the same period in the prior year. The latest quarter includes $4.5 million of incremental revenue from the acquisition of Northstar-at-Tahoe in the current fiscal year. Excluding Northstar-at-Tahoe, retail/rental increased $8.8 million, or 14.4%, which was driven primarily by retail sales which were up $8.5 million, or 19.3%. Season to date through March 6 revenues are up 10.8%.

 

Included in the overall retail/rental increase was higher revenue at Colorado Front Range stores and Any Mountain stores (in the San Francisco bay area) which combined increased by 21.0% as compared to the same period in the prior year.  Additionally, mountain resort stores experienced increased revenues across all resorts due primarily to increased retail sales driven by higher skier visitation.


Retail cost of sales increased $3.7 million, or 15.4%, excluding Northstar-at-Tahoe, mostly due to an increase in sales volume partially offset by improved gross margins. 

“We are pleased with our performance in the second quarter of fiscal 2011, which was enhanced by an improving economy, better snow conditions, including more terrain open earlier in the season,” said Vail Resorts CEO Robert Katz. “Excluding the newly acquired Northstar-at-Tahoe, our resorts saw an 8.7% increase in skier visits in the fiscal second quarter of 2011, driven in large part by increases in visits from season pass holders, with an increase in visits per pass of approximately 11.0%.”

 

Total lift revenue, also excluding Northstar-at-Tahoe, increased by 8.2%, reflecting the increases in visitation as well as a 7.3% increase in season pass revenue and higher pricing on lift ticket products in the current year.  Total season pass sales for the 2010/2011 season, which are recorded as revenue in our second and third fiscal quarters, were up approximately 18.9% over the 2009/2010 season (up approximately 9.1% excluding Northstar-at-Tahoe).


Season-to-Date Metrics through March 6, 2011

The company updated data for the comparative periods from the beginning of the ski season through Sunday, March 6, 2011, and for the similar prior year period through Sunday, March 7, 2010, which includes interim period data and is subject to fiscal third quarter end review and adjustments.


  • Season-to-date total lift ticket revenue at the company's six mountain resort properties, adjusted as if Northstar-at-Tahoe (acquired in October 2010) was owned in both periods and including an allocated portion of season pass revenue for each applicable period, was up approximately 7.5% through March 6, 2011, compared to the prior year season to date period ended March 7, 2010.
  • Season-to-date total skier visits for the company's six mountain resort properties, adjusted as if Northstar-at-Tahoe was owned in both periods, were up approximately 4.4% through March 6, 2011, compared to the prior year season to date period ended March 7, 2010.
  • Season-to-date ancillary spending at the company's six mountain resort properties, adjusted as if Northstar-at-Tahoe was owned in both periods, increased significantly, with revenue from ski school up 10.4%, dining up 8.7%, and retail/rental up 10.8% through March 6, 2011, compared to the prior year season to date period ended March 7, 2010. 





































































































































































































































































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Vail Resorts, Inc.

Mountain Segment Operating Results and Skier Visits

(In thousands, except Effective Ticket Price)

(Unaudited)







Three Months Ended

Percentage

Six Months Ended

Percentage


January 31,

Increase

January 31,

Increase


2011

2010

(Decrease)

2011

2010

(Decrease)

Net Mountain revenue:














    Lift tickets

$

155,173

$

129,517

19.8

%

$

155,173

$

129,517

19.8

%

    Ski school

37,296


30,069

24.0

%

37,296

30,069

24.0

%

    Dining

26,405


19,789

33.4

%

30,512

23,257

31.2

%

    Retail/rental

74,320


61,026

21.8

%

96,373

82,564

16.7

%

    Other

25,083


20,577

21.9

%

39,702

34,775

14.2

%

Total Mountain net revenue

$

318,277

$

260,978

22.0

%

$

359,056

$

300,182

19.6

%

Mountain operating expense:














    Labor and labor-related benefits

$

72,438

$

57,859

25.2

%

$

97,120

$

81,243

19.5

%

    Retail cost of sales

28,983


23,731

22.1

%

41,641

36,294

14.7

%

    Resort related fees

16,812


14,381

16.9

%

17,636

15,106

16.7

%

    General and administrative



31,657


26,043

21.6

%

55,846

46,570

19.9

%

    Other

41,334


32,004

29.2

%

62,117