Vail Resorts (NYSE: MTN) reported Thursday that the ski resort operator posted a wider fourth-quarter loss to a lack of skiing and a large decline in real estate revenue.
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However, the results were better than Wall Street expectations, according to Associated Press
The ski resort operator lost $38.7 million, or $1.07 per share, compared with a loss of $11.1 million, or 29 cents per share, during the same time a year ago.
Analysts predicted a larger loss of $1.09 per share, according to a Thomson Reuters poll. Analysts' estimates typically exclude one-time items.
Revenue for the period ended July 31 slid 62 percent to $101.9 million from $270.5 million, but surpassed Wall Street's $96.6 million forecast. The real estate segment took the biggest hit, with revenue dropping to $20.8 million from $184.6 million. Mountain revenue dipped to $36.2 million from $37.5 million, while lodging revenue declined to $44.9 million from $48.3 million.
Vail Resorts is one of many lodging and leisure companies that has been hurt by consumers' discretionary spending pullback. While people may still opt to ski, they may be skiing less frequently or deciding not to book a room and just do a day trip in an attempt to save some cash.
For the year, net income tumbled 52 percent to $49 million, or $1.33 per share, from $102.9 million, or $2.64 per share.
Annual revenue slipped to $977 million from $1.15 billion.
Total ski visits fell 5.3 percent for the 2008/2009 season, while total lift ticket revenue dropped 8.4 percent. Fewer skiers came from out-of-state or overseas, with destination visitation off about 15 percent.
One bright spot came from season passes, with overall visits from season pass holders up 17 percent on an increase in the number of passes sold and a rise in pass usage.
Revenue per available room at hotels owned for at least a year declined 10.9 percent for the fiscal year on more promotions and packaged discounts as well as customers booking rooms closer to their arrival date.
Revenue per available room, known as revpar, is a key gauge of a lodging company's performance.
Vail anticipates 2010 earnings in a range of $25 million to $35 million.
In trading at the opening bell, Vail shares rose $1.67, or 4.7 percent, to $36.42.
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