Vail Resorts (NYSE:MTN), the owner of a string of Colorado and Utah ski resorts, announced Friday that its net loss ballooned in its fiscal fourth-quarter as fewer visitors turned up at its mountain lodges and ski slopes.
For the three months ended July 31, Vail’s net loss widened to $83.7 million, or $2.07 per share, from $57.1 million, or $1.43 per share, in the year-ago quarter. Its revenue, meanwhile, came in at $211.56 million, which fell short of the Street’s estimate of $213.3 million.
When it came to its profits, however, Vail exceeded the expectations of analysts, who had expected the resort operator to post a loss of $2.25.
Investors failed to welcome Vail's performance and sent its shares down 3% to $277.84 in Friday's morning trading session.
In a statement, Vail CEO Rob Katz said the company’s results for fiscal 2018 were hit by “very challenging conditions in the western US this past winter.”
“Our western US destination resorts experienced modest visitation declines compared to the prior year due to the historically poor conditions, particularly for the first half of the season,” noted Katz. “However, revenue at our western US resorts was in line with prior year performance due to season pass sales and yield growth.”
Next winter’s ski season looks likely to be more profitable as season pass sales for the upcoming 2018/2019 North American ski season jumped about 25% in units and 15% in sales dollars from the year-ago period.
The results came on the heels of the company closing on its $74 million acquisition of Triple Peaks LLC, the parent company of Okemo Mountain Resort in Vermont, Mount Sunapee Resort in New Hampshire and Crested Butte Mountain Resort in Colorado.
Vail also operates the resorts of Vail, Beaver Creek, Breckenridge, Keystone n Colorado as well as Park City in Utah and Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada.
The company now expects resort reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $718 million to $750 million for fiscal 2019.
At the close of July, Vail was sitting on $178.1 million in cash and had borrowings from a senior credit facility of $130 million as well as long-term debt of $1.3 billion.