Vail Resorts Inc. reported Retail/rental revenues increased by $9.9 million, or 13.4 percent in the second quarter ended Jan. 31, due in large part to increases in rental revenue; strong growth in retail sales generated from O2 Gearshop and increases at stores at its Tahoe resorts, which saw significantly better snowfall and weather conditions during the current year fiscal year compared with a year earlier.
Net revenue for the companys Mountain segment, which reflects all income from lift, retail/rental, restaurant and other on-mountain amenities excluding lodging, increased 9.5 percent for the second quarter of fiscal 2013 compared to the same period in the prior year.
Total skier visitation increased 2.9 percent for the second quarter of fiscal 2013 compared to the same period in the prior year. Season-to-date skier metrics through March 3, 2013 across our seven mountain resorts improved from our metrics release in mid-January with increases in year-over-year growth in revenues in each line of business.
The company announced ski season-to-date metrics for the comparative periods from the beginning of the ski season through Sunday, March 3, 2013, and for the similar prior year period through Sunday, March 4, 2012, adjusted as if Kirkwood, which was acquired in April 2012, was owned in both periods. The reported ski season metrics do not include the results of Afton Alps and Mt. Brighton in either period. The following data is interim period data and subject to fiscal quarter end review and adjustments.
Highlights
Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was up approximately 10.3 percent compared to the prior year season-to-date period.
Vail reiterated its fiscal year 2013 guidance issued on Jan. 15, 2013.
Vail Resorts, Inc. |
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Mountain Segment Operating Results |
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(In thousands) |
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(Unaudited) |
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Three Months Ended January 31, |
Percentage Increase |
Six Months Ended January 31, |
Percentage Increase |
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2013 |
2012 |
(Decrease) |
2013 |
2012 |
(Decrease) |
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Net Mountain revenue: |
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Lift tickets |
$ |
175,658 |
$ |
153,699 |
14.3 |
% |
$ |
175,658 |
$ |
153,699 |
14.3 |
% |
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Ski school |
41,723 |
37,252 |
12.0 |
% |
41,723 |
37,252 |
12.0 |
% |
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Dining |
29,826 |
24,722 |
20.6 |
% |
36,199 |
30,369 |
19.2 |
% |
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Retail/rental |
83,748 |
73,850 |
13.4 |
% |
110,473 |
100,814 |
9.6 |
% |
||||||||||||||
Other |
30,786 |
26,415 |
16.5 |
% |
49,600 |
43,474 |
14.1 |
% |
||||||||||||||
Total Mountain net revenue |
$ |
361,741 |
$ |
315,938 |
14.5 |
% |
$ |
413,653 |
$ |
365,608 |
13.1 |
% |
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Mountain operating expense: |
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Labor and labor-related benefits |
$ |
83,684 |
$ |
72,730 |
15.1 |
% |
$ |
117,978 |
$ |
102,821 |
14.7 |
% |
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Retail cost of sales |
35,244 |
29,427 |
19.8 |
% |
51,435 |
44,954 |
14.4 |
% |
||||||||||||||
Resort related fees |
17,396 |
16,742 |
3.9 |
% |
18,385 |
17,826 |
3.1 |
% |
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General and administrative |
34,813 |
31,699 |
9.8 |
% |
62,117 |
57,406 |
8.2 |
% |
||||||||||||||
Other |
49,860 |
44,891 |
11.1 |
% |
78,630 |
71,037 |
10.7 |
% |
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Total Mountain operating expense |
$ |
220,997 |
$ |
195,489 |
13.0 |
% |
$ |
328,545 |
$ |
294,044 |
11.7 |
% |
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Mountain equity investment income, net |
99 |
178 |
(44.4)% |
533 |
608 |
(12.3)% |
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Mountain Reported EBITDA |
$ |
140,843 |
$ |
120,627 |
16.8 |
% |
$ |
85,641 |