Vail Resorts, Inc. said season ticket sales as of Sept. 20 were tracking up 9 percent in dollars and 1 percent in units from last year, when revenues from the company's mountain operations rose 7.7 percent, not including the recently acquired Northstar-at-Tahoe resort.
Additionally, mountain resort stores, especially at Vail and Beaver Creek, experienced an increase in revenue primarily driven by retail sales due to higher skier visitation although these increases were tapered by the late Easter holiday in Fiscal 2011.
Retail cost of sales was relatively flat, excluding Northstar-at-Tahoe, primarily due to improved gross margins.
The gains coincided with a year that marked an overall net revenue increase in the company's Mountain operations of 7.7 percent, not including Northstar-at-Tahoe. This was driven by a 7.7 percent increase in lift ticket revenue in Fiscal 2011, excluding Northstar-at-Tahoe, led by a 9.2 percent increase in season pass revenue, strong pricing growth and a 4.1 percent increase in total visitation, which far exceeded the U.S. ski industry's growth rate of 0.6 percent. Our ancillary businesses performed well during the year reflecting improvements in consumer spending with yields up in all areas. Excluding Northstar-at-Tahoe, ski school revenue increased 7.8 percent, dining revenue increased 11.5% and retail/rental was higher by 6.8 percent. Mountain Reported EBITDA increased $29.1 million, or 15.8 percent, in Fiscal 2011, which includes incremental revenue and expense of $64.4 million and $53.9 million, respectively, from Northstar-at-Tahoe in the current fiscal year
Outlook
“We are excited about the upcoming season and expect to build upon the positive dynamics from Fiscal 2011 with several new initiatives in Fiscal 2012 that will further elevate the market position of our resorts,” said CEO Robert Katz. “Our optimism, however, is tempered by the uncertainty we are seeing in the broader economy, which has worsened over the past few months, and its potential impact on consumer spending on travel and leisure for the coming year.
Although it is still early in the cycle (less than 15% of winter season bookings are historically made by this time), bookings are up in both room nights and revenue over the prior year at the same point in time with demand stronger at the higher end.
Vail Resorts, Inc. | |||||||||||||||
Mountain Segment Operating Results and Skier Visits | |||||||||||||||
(In thousands, except Effective Ticket Price) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Percentage | Twelve Months Ended | Percentage | ||||||||||||
July 31, | Increase | July 31, | Increase | ||||||||||||
2011 | 2010 | (Decrease) | 2011 | 2010 | (Decrease) | ||||||||||
Net Mountain revenue: | |||||||||||||||
Lift tickets | $ | — | $ | — | — | % | $ | 342,514 | $ | 289,289 | 18.4 | % | |||
Ski school | — | — | — | % | 83,818 | 70,694 | 18.6 | % | |||||||
Dining | 5,808 | 4,228 | 37.4 | % | 68,052 | 53,322 | 27.6 | % | |||||||
Retail/rental | 18,602 | 17,175 | 8.3 | % | 174,339 | 154,846 | 12.6 | % | |||||||
Other | 17,307 | 14,697 | 17.8 | % | 83,468 | 70,344 | 18.7 | % | |||||||
Total Mountain net revenue | $ | 41,717 | $ | 36,100 | 15.6 | % | $ | 752,191 | $ | 638,495 | 17.8 | % | |||
Mountain operating expense: | |||||||||||||||
Labor and labor-related benefits | $ | 27,207 | $ | 21,688 | 25.4 | % | $ | 198,659 | $ | 166,378 | 19.4 | % | |||
Retail cost of sales | 10,320 | 9,882 | 4.4 | % | 71,961 | 65,545 | 9.8 | % | |||||||
Resort related fees | 1,037 | 866 | 19.7 | % | 39,476 | 35,431 | 11.4 | % | |||||||
General and administrative | 22,030 | 18,102 | 21.7 | % | 104,848 | 88,705 | 18.2 | % | |||||||
Other | 23,276 | 18,539 |