Vail Resorts Reports 18.1 Percent Increase in Quarterly Profit

Vail Resorts reported that its net income increased by 18.1 percent for the third quarter due to an increase in skier visits during the spring. Total skier visitation improved by 4.6 percent for the third quarter as compared to the same period in the prior year. Lift ticket revenue increased 7 percent, with similar percentage increases in both lift revenue excluding season passes and season pass revenue.

Total skier visitation increased 4.6 percent in the quarter led by the company’s Heavenly resort, which experienced a 9.8 percent increase in visitation, while overall visitation for its four Colorado resorts, excluding Heavenly, increased by 3.7 percent.

Season pass holders skied approximately 10 days on average during the 2009-10 ski season, with the number of days skied per season pass being lower by a half day on average across its season pass products, despite record low snowfall at its Colorado resorts during the early part of the season.

Overall destination visitation increased by an estimated 7.9 percent during the third quarter, which favorably impacted its total lift revenue as well as its ancillary business revenue, including guest spend per visit. The ski school and retail/rental businesses experienced the largest ancillary revenue increases in the third quarter, up 11.7 percent and 14.3 percent.

Total net revenue was $350.3 million for the three months ended April 30, 2010, compared with $333.5 million in the same period in the prior year, a 5 percent increase. Net income attributable to Vail Resorts, Inc. was $72.8 million, or $1.98 per diluted share, for the three months ended April 30, 2010, compared with net income attributable to Vail Resorts, Inc. of $61.6 million, or $1.68 per diluted share, in the same period in the prior year.