Vail Resorts Inc. (NYSE: MTN) reported an earnings drop of 29% for its fiscal third quarter. Weakness in visits from out-of-state guests was the primary reason. Total skier visits across the company's properties -- Vail, Beaver Creek, Keystone and Breckenridge in Colorado, and Heavenly in California -- were down 5.3% relative to the same period for the previous year.
The ski resort operator generated total earnings for the quarter (which ended April 30, 2009) of $61.6 million, which amounts to $1.68 per share. For the quarter ending April 30, 2008, Vail Resorts had earnings of $87.3 million (or, $2.24 per share).
Revenue for the quarter dropped from $339.7 million to $333.5 million -- a fall of 21%. Lift ticket revenue was off 11%, with total visits to Vail's properties down 9%. Weakness in visitors from outside Colorado (and, for Heavenly, California), was offset by a 26% jump in revenue from season passes -- which is up 39% as of May 31, 2009. In the third quarter of last fiscal year, in-state guests comprised 37% of visitors. For the most recent quarter, this group is up to 43%.
Revenue for other categories is down as well. Ski school is off 21%, and dining revenue declined 20%. The retail/rental category lost 19%. Revenue per available room-night lost 18.6%.
Vail Resorts has been actively courting the weak spot in its revenue stream, pushing a number of deals that focus on the off-season, and the Breckenridge property could see an upside from the city's 150th anniversary celebration in August. But there's no way to make an end-run around a brutal travel market.
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