SAM Magazine-Broomfield, Colo., March 11, 2009-Vail Resorts second quarter results for fiscal 2009, ended Jan. 31, show resort revenue (mountain operations and lodging) of $299.6 million compared to $314.5 million a year earlier, a decrease of 4.7 percent. Lodging bookings were down 14.9 percent. But total revenue, including real estate sales, came to $388.8 million in 2009 compared to $360.0 million in 2008, an increase of 8 percent.

Mountain segment revenue was $258.5 million, compared to $279.7 million in 2008, a decline of 7.6 percent. "The company's mountain segment results were negatively impacted by lower destination visitation, which drove lower lift revenue and to a greater degree a decline in our ancillary business revenue, including ski school, dining and retail/rental," said Rob Katz, VR chairman and CEO. "This was partially offset by strong season pass revenue and pass skier visitation including from our new Epic Season Pass holders." Total season pass sales (including the Epic Season Pass) increased by $17.1 million, or 22.1 percent, through Jan. 31, 2009, the entire 2007/2008 ski season. Overall, lift ticket revenue decreased $6.8 million, or 5.1 percent, and average ticket prices declined 4.4 percent.

Other departments declined more steeply, as they were more affected by the downturn in destination visits: Ski school, down $6.2 million, or 17.6 percent; dining, down $2.6 million, or 11.4 percent; and retail/rental, down $7.5 million, or 11.3 percent.

How big was the destination decline? The ratio of destination to in-state guest visits was approximately 52 to 48, compared to 59 to 41 a year ago. Total skier visits increased one percent at VR's four Colorado resorts; including Heavenly, VR's total decreased one percent.

In the lodging segment, average daily rate decreased 6.4 percent, and revenue per available room decreased 15.1 percent on a "same store" basis for units owned or managed by VR. With the opening of the very upscale Arrabelle and the purchase of the CME airport shuttle, however, lodging revenues rose to $41.2 million, up 18.2 percent from 2008.

Through Mar. 1, VR said season to date visits for its five resorts were down 5.1 percent, with lift ticket revenue off by 8 percent. Bookings were down 13.9 percent in room nights.

Looking ahead, Katz said VR "remains in a strong position from a capital structure and balance sheet perspective," but predicted that "the trend of our results to the prior year will worsen," in part because "the continuing negative trends" will have a "greater impact" during the fiscal third quarter, the period of highest visitation (February through April).

Even so, VR expects to spend approximately $50 million to $60 million on resort capital expenditures in calendar 2009, including $32 million to $37 million for such "maintenance" items as snow-cat replacements, lift upgrades, snowmaking equipment, and rental fleets.

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