Vail, CO, June 8, 1999 — Vail Resorts, Inc. (NYSE:MTN) announced financial results for the third quarter and nine months ended April 30, 1999. Resort Revenue (which excludes revenue from real estate operations) for the third quarter increased 11% to $188.2 million from $170.1 million in the comparable period last year. Total Revenue for the quarter (which includes revenue from real estate operations) grew 16% to $202.2 million from $174.0 in the same quarter in fiscal 1998.
Earnings from resort operations before interest, income taxes, depreciation and amortization (“Resort EBITDA”) for the third quarter were $75.4 million versus $86.1 million in the same quarter last year. As previously reported, the decline in Resort EBITDA reflects the overall weakness in the Colorado ski industry due largely to unfavorable weather conditions during the 1998-1999 ski season.
Net Income for the quarter was $30.2 million, or $0.87 per diluted share, compared to $41.7 million, or $1.20 per diluted share, in the third quarter last year.
For the nine months ended April 30, 1999, Resort Revenue increased 17% to $379.3 million compared to $324.2 million in the same period last year. Total Revenue grew to $410.8 million from $390.0 million in the first nine months of fiscal 1998. Resort EBITDA for the nine month period was $100.9 million compared to $119.3 million in 1998.
Net income for the nine month period was $26.3 million, or $0.76 per diluted share, compared to $46.9 million, or $1.35 per diluted share, in the same period in fiscal 1998.
In the third quarter of fiscal 1999, revenue per skier day grew 14% to $75.38 from $66.30 in the comparable quarter last year, despite a 3% decline in skier days. Total skier days for the third quarter were 2.5 million compared to 2.6 million last year. The Company also announced that on a preliminary basis, skier days for the 1998-1999 total ski season for all four resorts combined are expected to be 4,588,607, a 3% decline from the 4,716,605 skier days reported in the 1997-1998 ski season.
Adam Aron, Chairman and Chief Executive Officer, commented, “While the 1998-99 ski season has been disappointing for the U.S. ski industry, there are a number of exciting advances which our Company has made that will allow us to maintain our standing as the leader in the mountain resort industry. First, our non-lift ticket businesses continue to perform well, demonstrating the success of our business strategy. Second, Vail and Beaver Creek received tremendous worldwide exposure by hosting the 1999 World Alpine Ski Championships. Third, we have announced our intention to acquire our fifth resort and our first summer resort, the Grand Teton Lodge Company in Jackson Hole, Wyoming. And, fourth, we completed a $200 million private debt offering with attractive terms, providing our Company with meaningful financial flexibility. As a result of these advances, we believe our portfolio of world class resorts is extremely well positioned for future growth.” Vail Resorts, Inc. is the premier mountain resort operator in North America. The Company operates the Colorado mountain resorts of Vail, Breckenridge, Keystone, and Beaver Creek.