Vail Resorts Restates 1999, 2000, And 2001 Earnings

VAIL, Colo., Oct 25 (Reuters) – Ski resort operator Vail Resorts Inc. on Friday said it was restating earnings lower by an average of about 30 percent for 1999, 2000 and 2001, due to a change in how the company accounts for private club membership initiation fees.

Vail said in an amended annual report filed with the U.S. Securities and Exchange Commission that it lowered its net income for 2001 to $13.6 million, or 39 cents per share, compared witho $18.7 million, or 53 cents per share as previously reported.

For 2000 the company cut its earnings to $10.4 million, or 30 cents per share, from its previously reported earnings of $15.3 million, or 44 cents per share, and for 1999 the company lowered its earnings to $8.9 million, or 25 cents per share, from $12.8 million, or 37 cents per share, last year.

The company said it will now amortize the initiation fees over a 30-year period. Previously, the company recognized the revenue from the fees immediately or upon the completion of certain milestones.

The Vail, Colorado-based company said its cash balance is unaffected by the adjustments.