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.


Vail Resorts provided the update while releasing its financial statement for the fiscal year ended July 31, 2011. The statement showed revenue from its on mountain retail and rental operations increased $19.5 million, or 12.6%, to $174.3 million during the year, including $9.0 million of incremental revenue from Northstar-at-Tahoe, which enjoyed one of its longest and snowiest winters ever last year.

 

Excluding Northstar-at-Tahoe, retail/rental increased $10.5 million, or 6.8 percent, thanks primarily to higher revenues at the company's Colorado Front Range stores and Any Mountain stores, which operate in the San Francisco bay area. Combined, those stores increased their sales by approximately 8.1 percent as compared to the prior year.

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


Looking forward, the company said season pass sales are tracking ahead of their level a year ago.

“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. 


Vail Resorts is anticipating continued growth in Fiscal 2012, supported by some positive momentum in preseason indicators, which include the sale of season passes, lodging bookings and retail sales.  

 

Season pass sales through Sept. 20, 2011 are 9% higher in sales dollars and up 1% in units against the same period in the prior year and adjusted as if Northstar-at-Tahoe were owned in both periods.  While growth rates have moderated since early June, as expected due to some timing shifts, these results are very much in line with the overall increase the company expects in the total pass program when the selling periods generally conclude in late November.  

 

“Season pass sales, which accounted for 35% of total lift revenue in Fiscal 2011, provide stability to our business and we are pleased with our ability to get an increasing number of guests to commit to buying passes well in advance of the start of the ski season, particularly in these economic times,” Katz said.

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.  


Finally, sales at Vail Resort's retail stores during our annual Labor Day sales events significantly exceeded the strong levels achieved in the prior year, with gross margin percentages higher as well. 



































































































































































































































































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


About The Author

Archives

Categories

Pin It on Pinterest