Vail Resorts sees net revenue increase despite low snow
March 16, 2018
Despite a dry winter across the West, Vail Resorts recently announced in its quarterly results that it is still having a good season.
In the company's fiscal year 2018 second-quarter results, it reported net income of $235.7 million, a 58 percent increase from the second fiscal quarter of 2017. The total net revenue increased $9.4 million.
In a press release announcing the results, Rob Katz, chief executive officer of Vail Resorts, said that visitation was down by 3.1 percent, particularly for non-pass skiers, but advanced purchase passes helped make the quarter a success.
"Given the historically low snowfall across the western U.S. this winter, we are pleased with our results for the quarter, which demonstrate the resiliency of our strategic business model and the network of resorts and loyal guests we have developed," he said.
He said that some resorts owned by the company, such as Whistler Blackcomb, saw more snow and sales, which balanced out sales from the weaker areas.
"Through January 31, conditions across the western U.S. remained challenging, with season-to-date snowfall in Vail, Beaver Creek and Park City at the lowest levels recorded in over 30 years while Tahoe was more than 50 percent below the 20-year average," he said. "While open terrain in Colorado began to improve toward the end of the quarter, it remained very low in both Utah and Tahoe."
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But Katz said that recent storms in Tahoe and Utah created better conditions for spring skiing.
The lodging segment net revenue for the quarter decreased by $2.1 million, a 3.4 percent drop. The average daily rate decreased by 1.6 percent at the company's owned hotels and managed condominiums.
The report also announced updates that will take place at the company's resorts this year. At Park City Mountain Resort, there are plans to upgrade the fixed-grip High Meadow chair to be a four-person, high-speed lift. There are also plans to improve the grading and expand snowmaking in the Canyons area to create a beginner and family learning zone.
Plus, the Cloud Dine restaurant, which overlooks the resort, will gain an additional 200 seats, and the Mid-Mountain Lodge will undergo renovations to improve the dining experience.
"Each of these projects reinforces our commitment to Park City's position as the best resort for families and culinary experiences and continues to build on the significant improvements we've made at Park City over the last four years," Katz said.
Vail Resorts announced in the report that it plans to invest about $3 million in the 2018 calendar year for EpicDiscovery summer activities. Another $6 million will go toward capital projects to repair infrastructure.
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