SAM Magazine-Broomfield, Colo., Sept. 26, 2008-Vail Resorts, Inc. (VR) on Thursday reported record fiscal 2008 net income of $102.9 million, a 67.6 percent increase over the prior fiscal year, as well as record fiscal 2008 resort revenue of $855.6 million and record total revenue of $1.15 billion, increases of 3.4 percent and 22.5 percent respectively over the prior fiscal year. Company executives, however, already see signs that the slowing economy will impact next year's financial results.

Other financial measures for 2008 include mountain reported EBITDA of $220.6 million, a 6.2 percent increase over the prior fiscal year; resort reported EBITDA of $230.8 million, a 2.2 percent increase over the prior fiscal year; and real estate reported EBITDA of $45.9 million.

"I am pleased with our results for fiscal 2008, which were achieved despite challenging early season conditions and overall deterioration in the macro-economic environment," said VR CEO Robert Katz. Mountain results, he said, were "driven by a 5.6 percent increase in effective ticket price and a 7.7 percent increase in season pass revenue. Twenty six percent of lift ticket revenue was derived from season pass revenue." International visits, up 26 percent, also contributed.

Katz reported that the company was affected by the decline in the U.S. economy during the second half of last ski season, and remains so. "We have certainly begun to see the impact of the current economic softness," Katz said. "Whether these results represent guests delaying their purchases or are signs of a visitation decline for the upcoming season is not something we can discern yet."

He noted that "season pass sales, including Epic Season Passes sold to Colorado Front Range customers, are up 0.2 percent in sales dollars, while down 8.4 percent in units over the prior year. Including Heavenly, sales are down 1.5 percent in sales dollars and 10 percent in units. At this point, these results historically represent 65 percent of the ultimate total sales of season passes for the year."

Similarly, Katz indicated that "advance bookings through our central reservations and directly at our owned and managed properties are down 13 percent in sales dollars and down 17.7 percent in room nights" compared to 2007. He added that these "represent only approximately 15 to 20 percent of the ultimate total room nights for the season we historically have booked through these channels."

Despite the economic storm clouds, VR is investing $105 million to $115 million in improvements for the 2008-09 season. On the mountains, investments include a new eight-passenger River Run gondola at Keystone, new snowmaking at Peak 7 in Breckenridge, and re-grading and snowmaking for the main trail connecting California and Nevada at Heavenly. Beaver Creek is opening a new children's ski school center adjacent to the top of last year's Buckaroo Express Gondola, and the Inn at Beaver Creek is undergoing a $7 million transformation to become The Osprey, a new boutique hotel. \