Vail Resorts warns economy will cool profits | SummitDaily.com
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Vail Resorts warns economy will cool profits

BROOMFIELD – The nation’s largest ski operator posted a narrower-than-expected loss in its fiscal fourth quarter because of its real estate deals and said the economic downturn will trim profits next year.

For the quarter ending July 31, Vail Resorts Inc. posted a loss of $11.1 million, or 29 cents per share, compared with a loss of $34.3 million, or 88 cents per share in the same quarter last year. Analysts polled by Thomson Reuters expected a loss of 21 cents per share.

The company also said its profit will likely decline next year because of a poor economy.

“We are certainly not immune to the dramatic challenges facing the economy today,” said Chief Executive Robert Katz.

The company said it expects net income of between $60 million and $76 million next year. In 2008, the company reported net income of $102.9 million, or $2.64 per share, a 68 percent increase from $61.4 million, or $1.56 per share, the previous year. Analysts anticipated net income of $90.2 million for the year.

Vail Resorts stock fell $3.50, or 8.7 percent, to $36.90 a share in early trading Thursday. Located in suburban Denver, 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.

Last quarter, revenue more than doubled to $270.5 million from $96.5 million in the fourth quarter of 2007. Analysts had anticipated revenue of $248.8 million.

The big jump in revenue came from the real estate division, which saw its revenue swell to $184.6 million from $12.4 million. Vail said it closed on five chalets in July.

Revenue jumped nearly 23 percent to $1.15 billion from $940.5 million in 2007.


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