Vail Resorts’ 2Q earnings falls on poor early season |

Vail Resorts’ 2Q earnings falls on poor early season

DENVER ” Vail Resorts Inc., the nation’s largest ski resort operator, said Monday its net income dipped in the fiscal second quarter as a dearth of early season snowfall kept skiers away.

For the quarter that ended Jan. 31, the company reported net income of $51.3 million, or $1.31 a share, compared with net income of $53 million, or $1.35 a share, in the year-ago quarter.

Revenue fell 0.3 percent to $360 million, from $361 million. Lodging and mountain operations drew $314.5 million in revenue, up 3.2 percent, which was offset by a 19 percent drop in revenue in the real estate segment to $45.5 million.

Chief Executive Officer Rob Katz said scarce snow hurt business in November and early December when lift ticket revenue fell 13.6 percent. However, skiers began hitting the slopes from the Christmas holiday period through Jan. 31, boosting lift ticket revenue 11.1 percent higher than the comparable period in the previous year.

He also blamed the “challenging economy” for the slowdown.

In the first six months, Vail Resorts posted net income of $26.7 million, or 68 cents a share, compared with net income of $17.2 million, or 44 cents a share, in the year-ago period. Revenue fell 3.5 percent to $457.9 million from $474.5 million.

Based in suburban Broomfield, Vail Resorts owns and operates Vail, Beaver Creek, Keystone and Breckenridge ski areas in Colorado, Heavenly in Nevada and California, and the lodge near Jackson, Wyo.

Its stock fell 75 cents, or 1.8 percent, to $40.87 in Monday morning trading.

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