Sept 30, 2009
Vail Resorts Sees Overall FY Net Income Fall 52%
Vail Resorts, Inc. reported results for the fiscal year ended July 31, 2009. Commenting on the company's fiscal 2009 results, Rob Katz, Chief Executive Officer said, "I am pleased that Vail Resorts was able to deliver solid results for the fiscal year ended July 31, 2009, given the unprecedented economic environment and its impact on the travel and leisure sectors.
"Total skier visits declined 5.3% for the 2008/2009 ski season and total lift ticket revenue declined 8.4%. We estimate that total destination (out-of-state and international) visitation declined by approximately 15% for the 2008/2009 ski season, while we saw overall visits from season pass holders improve by 17.0% due to an increase in the number of passes sold and an increase in pass usage during the season. Visitation at our Colorado resorts declined by 3.5% during the 2008/2009 ski season compared to the 2007/2008 ski season. Our ancillary business revenue lines, including ski school, dining and retail/rental, experienced greater percentage declines than our lift ticket revenue variance due to the combination of lower Destination visitation and lower average guest spend during their stay."
This quote, part of a much longer article on corporate management's report to the investment community, discusses at great length how the resort is coping with the recession. It's amazing how a fall of 5.3% in visits translates into a 52% income drop.