Vail Resorts 3rd-qtr net income up as revenue rises 5 percent, frets about full year outlook

Vail Resorts 3Q net income rises 18 pct

BROOMFIELD, Colo. — Vail Resorts Inc. said Wednesday that its third-quarter profit rose 18 percent as revenue climbed and more skiers visited its mountains during a strong spring.

CEO Rob Katz said some spring ski weekends were so strong they rivaled pre-recession times.

“During the spring break and Easter periods in 2010, we saw levels of skier visitation, total lift revenue, ski school revenue, dining revenue and retail/rental revenue that were comparable to the results we saw during the same periods in 2008 and 2007 — giving us confidence in improving consumer trends as we start planning for the 2010/2011 ski season,” he said in a statement.

Skier visits at its five resorts during the quarter that ended April 30 rose 4.6 percent from last season to about 3.2 million.

The company finished ski season with about 6 million skier visits at its Vail, Breckenridge, Keystone and Beaver Creek resorts in Colorado and Heavenly in California — a 2.5 percent increase from last season.

For the season and the quarter, lift ticket, ski school, dining, and retail and rental revenue were all up. Still, Katz said the company would be “challenged” to meet the top end of its full-year guidance for earnings of between $25 million and $35 million after a slow start to the season, with low early snowfall at its Colorado resorts.

Vail shares fell 27 cents to $37.93 in morning trading Wednesday.

For the three months that ended on April 30 the lodging and leisure company said net income rose to $72.8 million, or $1.98 per share, from $61.6 million, or $1.68 per share, a year ago.

Revenue climbed 5.1 percent to $350.3 million, up from $333.5 million. The mountain division’s revenue rose 8.3 percent.

Analysts surveyed by Thomson Reuters expected the company to earn $1.85 per share with revenue of $341.1 million.

For the nine months ended April 30, Vail Resorts reported net revenue of $731 million, down from $875 million a year earlier. Net income was $72.3 million, or $1.97 per share, down from $87.7 million, or $2.39 per share, a year earlier.