In spite of revenue gains in its mountain and lodging segments and a large increase in lift ticket sales, Vail Resorts net loss for the first quarter of fiscal 2005 widened to ($31.5 million) compared to ($25.4 million) last year. The main cause for the increased net loss was a $9.8 million decline in real estate sales. Vail Resorts Chairman and CEO Adam Aron, said that he feels the company “…is well on track for fiscal 2005.”
Mountain revenues increased 3.1% to $34.5 million. Lift ticket sales led the way from a pure growth standpoint, albeit from a small base, increasing 53.8% to $40,000. Retail and rental sales made up the largest part of the mountain segment, posting 0.9% growth to $17.2 million. Lodging revenues increased 5.7% to $46.3 million.
“Our first quarter results were quite acceptable, and well ahead of our own internal expectations for this point in fiscal 2005. Our first fiscal quarter is a seasonally low point for the company annually,” said Aron. “As such, the financial results for the quarter per se are far less important than how well we set up Vail Resorts for the coming 6-month ski season.”
Vail re-iterated its guidance for the fiscal 2005 year with Mountain Reported EBITDA for fiscal 2005 to range from $138 million to $146 million and Lodging Reported EBITDA to range from $10 to $18 million, with total Resort Reported EBITDA between $152 and $160 million. The company also projected net income in fiscal 2005 ranging from $14 million to $22 million.
Aron Added, “With the good early season snowfall, solid season pass sales, buoyant advance ski school reservations, and strong airline and hotel bookings, we continue to be quite upbeat about this year’s ski season.”
