Vail Resorts reports $43M loss

Posted By: The Ski Channel on December 7, 2010 4:23 pm

Vail Resorts Inc. lost more money in its fiscal first quarter than a year ago, pressured in part by higher segment operating expenses.

The ski resort operator said Tuesday that it usually reports a loss during the quarter as its mountain resorts are not open for winter ski operations during that time.

The company based in Broomfield, Colo., also raised its fiscal 2011 earnings outlook slightly due to an increase in its resort reported EBITDA guidance and a reduction to its real estate reported EBITDA forecast.

Shares of Vail Resorts rose $1.26, or 2.6 percent, to $50.36 in morning trading. Earlier in the session the stock hit a fresh 52-week high of $51.95.

Vail Resorts lost $43 million, or $1.20 per share, for the three months ended Oct. 31. That compares with a loss of $41.2 million, or $1.14 per share, in the prior-year period.

Analysts surveyed by Thomson Reuters, whose estimates normally remove one-time items, predicted a smaller loss of $1.10 per share.

Total segment operating expenses increased to $271 million from $124.3 million.

Revenue more than doubled to $234.4 million from $80.8 million as the company pulled in a lot more money from real estate sales. Real estate revenue totaled $149.3 million in the quarter due to closings at the Ritz-Carlton Residents in Vail, Colo. This compares with real estate revenue of $205,000 a year earlier.

Wall Street expected $219.9 million in total revenue.


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