Vail Resorts, Inc. reported that its retail/rental revenue increased $4.9 million, or 22.3 percent, for the three months ended October 31, 2011 compared to the same period in the prior year.
Excluding the Northstar resort on Lake Tahoe which Vail Resorts acquired in 2010, retail/rental revenue increased $4.4 million, or 19.8 percent, which was driven by higher retail sales at the company’s Colorado front range stores and Any Mountain stores (in the San Francisco bay area) and was primarily attributable to strong sales at pre-ski season sales events and improved retail sales at the Vail and Beaver Creek mountain resort stores.
Additionally, the retail/rental revenue increase was partly attributable to the acquisition in July 2011 of an on-line retailer which generated $2.1 million in revenue during the three months ended Oct. 31, 2011.
The company’s Sports Specialty Ventures unit own and operates more than 165 specialty stores under various banners in California, Colorado, Nevada and Utah that sell snowsports, bicycling, golf, tennis and other sporting goods.
Vail Resorts said labor and labor-related benefits increased $2.7 million, or 10.8 percent, excluding Northstar, during the quarter largely due to an increase in staffing levels for retail/rental operations driven by increased sales volume and the addition of new stores (including the acquisition of our online retailer). Retail cost of sales increased $2.0 million, or 15.7 percent, excluding Northstar, due to increased volume in retail sales, partially offset by improved gross margins.
Vail Resorts operates the mountain resort properties of Vail, Beaver Creek, Breckenridge and Keystone mountain resorts in Colorado, the Heavenly and Northstar California ski resorts in the Lake Tahoe area of California and Nevada.
“All six of our mountain resorts are open and ramping up operations as we prepare for the holiday season,” said CEO Robert Katz. “Our metrics, which include season pass sales, lodging bookings, and retail sales, continue to track positively.
Season pass sales are up approximately 5 percent in units and 13 percent in dollars through December 4, 2011 compared with the same period in the prior year and including Northstar in both periods. We expect the final results of the program to be modestly lower than these increases, as the pace of sales slows in the coming weeks. Lodging bookings continue to trend higher, which is attributable to sizable increases at our luxury oriented properties as well as strength from several international markets.
Based on historical averages, less than 50 percent of the bookings for the winter season have been made by this time.
Lastly, retail sales throughout the fall selling period have remained consistently strong at our city and resort locations, even against strong comparisons. Thus, while it is still early, these trends and indicators are encouraging and we remain cautiously optimistic against the backdrop of uncertainty in the broader economy.”
Vail Resorts, Inc. | |||||||||
Consolidated Condensed Statements of Operations | |||||||||
(In thousands, except per share amounts) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
October 31, | |||||||||
2011 | 2010 | ||||||||
Net revenue: | |||||||||
Mountain | $ | 49,670 | $ | 40,779 | |||||
Lodging | 53,594 | 51,117 | |||||||
Real estate | 13,109 | 149,261 | |||||||
Total net revenue | 116,373 | 241,157 | |||||||
Segment operating expense: | |||||||||
Mountain | 98,555 | 83,136 | |||||||
Lodging | 55,301 | 49,574 | |||||||
Real estate | 17,847 | 145,063 | |||||||
Total segment operating expense | 171,703 | 277,773 | |||||||
