Vail Resorts Inc. reported that retail/rental revenue increased $800,000, or 1.3 percent, for the three months ended April 30, compared to the same period in the prior year despite the lowest snowfall in 20 years.
The growth was primarily driven by an increase in retail sales of $1.7 million, or 4.5 percent. The increase in retail sales was primarily attributable to an on-line retailer acquired in July 2011, partially offset by declines in retail sales occurring at Any Mountain stores resulting from unseasonably warm weather in the San Francisco bay area. Additionally, impacting retail/rental revenue was a decline in rental revenue of $900,000, or 4.2 percent, due to the decline in skier visitation.
Retail/rental revenue per visit was up 12.3 percent, reflecting the high income demographic of resort guests, which enabled the company to benefit from enhanced consumer spending, especially in the luxury segment, as well as from international guests.
“We are pleased with our third quarter results as they evidenced our ability to successfully navigate the most challenging winter in the history of the United States ski industry,” said CEO Rob Katz.
There were several positive indicators in the third quarter that contributed to performance and bode well for the 2012/2013 ski season, Katz continued. Mountain net revenue increased 0.9 percent to $354.6 million as higher spending per skier visit, improved lift ticket pricing and strong season pass revenue more than offset the decline in skier visits.
Lift ticket revenue increased 0.7 percent during the quarter despite a drop of 9.8 percent in visitation benefitting from a 12.8 percent increase in season pass revenue and a 9.4 percent gain in ETP, excluding season pass holders. On a per visit basis, ski school revenue per visit increased 12.1 percent and dining revenue per visit was higher by 9.7 percent.
Over the course of the 2011/2012 ski season, international visitation increased by approximately 2 percent, despite a 12.1 percent decline in total visitation and continued challenges in the European economy, reflecting targeted marketing efforts to drive more visits from this growing international segment.
For the full 2011/2012 ski season, visitation at Tahoe resorts declined 22.4 percent compared to the prior year, while Colorado resorts were down 8.9 percent with Beaver Creek essentially flat reflecting its higher mix of luxury and destination guests.
Season passholders, representing arguably the most weather sensitive guests, skied only approximately one day less, on average, in the current ski season compared to the prior year. Overall season pass revenue represented approximately 40 percent of total lift ticket revenue for the winter season.
Total spring season pass sales, which include sales through Tuesday May 29, compared to sales through Tuesday May 31, 2011 and including Kirkwood pass sales in both years, were up approximately 17 percent in units and approximately 22 percent in sales dollars.
“These sales, which will be recorded as revenue in the second and third quarters of fiscal 2013, provide perhaps the strongest indicator we have seen for the upcoming 2012/2013 ski season,” Katz said.
Vail Resorts, Inc. | ||||||||||||||||
Mountain Segment Operating Results and Skier Visits | ||||||||||||||||
(In thousands, except Effective Ticket Price) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Percentage | Nine Months Ended | Percentage | |||||||||||||
April 30, | Increase | April 30, | Increase | |||||||||||||
2012 | 2011 | (Decrease) | 2012 | 2011 | (Decrease) | |||||||||||
Net Mountain revenue: | ||||||||||||||||
Lift tickets | $ | 188,712 | $ | 187,341 | 0.7 | % | $ | 342,411 | $ | 342,514 | (0.0) | % | ||||
Ski school | 47,040 | 46,522 | 1.1 | % | 84,292 | 83,818 | 0.6 | % | ||||||||
Dining | 31,388 | 31,733 | (1.1) | % | 61,757 | 62,244 | (0.8) | % | ||||||||
Retail/rental | 60,144 | 59,364 | 1.3 | % | 160,958 | 155,737 | 3.4 | % | ||||||||
Other | 27,302 | 26,458 | 3.2 | % | 70,776 | 66,161 | 7.0 | % | ||||||||
Total Mountain net revenue | $ | 354,586 | $ | 351,418 | 0.9 | % | $ | 720,194 | $ | 710,474 | 1.4 | % | ||||
Mountain operating expense: | ||||||||||||||||
Labor and labor-related benefits | $ | 72,583 | $ | 74,332 | (2.4) | % | $ | 174,231 | $ | 171,452 | 1.6 | % | ||||
Retail cost of sales | 22,633 | 20,001 | 13.2 | % | 67,590 | 61,641 | 9.7 | % | ||||||||
Resort related fees | 20,827 | 20,802 | 0.1 | % | 38,648 | 38,439 | 0.5 | % | ||||||||
General and administrative | 30,164 | 26,972 | 11.8 | % | 89,074 | 82,818 | 7.6 | % | ||||||||
Other | 38,004 | 40,029 | (5.1) | % | 108,713 | 102,146 | 6.4 | % | ||||||||
Total Mountain operating expense | $ | 184,211 | $ | 182,136 | 1.1 | % | $ | 478,256 | $ | 456,496 | 4.8 | % | ||||
Mountain equity investment income, net | 336 | 406 | (17.2) | % | 944 | 1,324 | (28.7) | % | ||||||||
Mountain Reported EBITDA | $ | 170,711 | $ | 169,688 | 0.6 | % | $ | 242,882 | $ | 255,302 | (4.9) | % | ||||
Colorado skier visits | 2,505 | 2,752 | (9.0) | % | 4,853 | 5,329 | (8.9) | % | ||||||||
Tahoe skier visits | 739 | 844 | (12.4) | % | 1,289 | 1,662 | (22.4) | % | ||||||||
Total skier visits | 3,244 | 3,596 | (9.8) | % | 6,142 | 6,991 | (12.1) | % | ||||||||
ETP | $ | 58.17 | $ | 52.10 | 11.7 | % | $ | 55.75 | $ | 48.99 | 13.8 | % | ||||
