Vail Resorts Reports Losses For Fiscal Q1

NEW YORK— Resort Revenue for the quarter, which excludes revenue from real estate and technology operations, decreased 5.4% to $57.4 million from $60.7 million in the comparable period of fiscal 2001. Total revenue for the quarter, which includes revenue from real estate and technology operations, grew 5.5% to $74.3 million versus $70.4 million in the fiscal first quarter last year. For the first quarter of fiscal 2002, the company reported a loss from resort operations before interest, income taxes, depreciation and amortization of $24.6 million compared to a loss of $18.6 million last year. Losses in the fiscal first quarter are anticipated due to the seasonality of the companys ski resort operations; however, this quarters loss reflects impacts resulting from the September 11th terrorist attacks and their aftermath. Real estate revenue for the first quarter of fiscal 2002 was $15.9 million compared to $9.0 million during the same period of the prior year, a 76.7% increase. Real estate operating income for the quarter was $6.3 million, compared to operating income of $4.7 million in fiscal 2001, a 35.2% increase.      Technology revenue for the first quarter was $1.1 million compared to $0.7 million during the same period last year, and technology operating income for the quarter was a loss of $64,000, compared to income of $121,000 in fiscal 2001, said the company.      The net loss for the quarter was $24.4 million, or $0.70 per diluted share, compared to last years first quarter net loss of $21.2 million, or $0.61 per diluted share. In accordance with Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets,” which the company adopted as of August 1, 2001, the company no longer amortizes goodwill and other intangibles with indefinite lives, resulting in a favorable impact of approximately $0.03 per fiscal quarter. Adam Aron, chairman/CEO of Vail Resorts said, “Like many in the U.S. travel industry, Vail Resorts felt the effects of a nationwide downturn in travel following the terrorist attacks on September 11. Despite post-September 11 economic and political conditions, the Company performed as expected given these uncertain times.” Commenting on the current 2001-2002 ski season, Aron said, “Looking ahead, while ski vacation bookings have been building since the low levels immediately after September 11, these difficult times have caused a near-term reduction in vacation travel within the U.S. which are likely to affect Vail Resorts throughout fiscal 2002. Accordingly, aggressive cost reduction efforts have been accompanied by a myriad of sales and marketing initiatives to optimize performance in what looks to be a sobering year.”