Vail Resorts posts losses, announces capital investment

BROOMFIELD — Vail Resorts Inc. (NYSE: MTN) reported losses Friday of $107.8 million for the first fiscal quarter of 2019, sending the company’s stock into a tailspin.

Those losses for the quarter that ended Oct. 31 were significantly higher than the $28.4 million loss posted in the same period last year.

The company’s stock fell nearly 18 percent Friday, closing trading for the week at $223.25. The price bounced back slightly Monday and opened trading Tuesday at $236.65.

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“Our first fiscal quarter historically operates at a loss, given that our North American mountain resorts are not open for ski operations during the period,” Vail CEO Rob Katz said in a prepared statement. “The quarter’s results are primarily driven by winter operating results from (Australian ski resort) Perisher and our North American resorts’ summer activities, dining, retail/rental and lodging operations, and administrative expenses.”

Despite the increased quarterly loss, Vail reported a boost in season pass sales.

North American ski season pass sales increased approximately 21 percent in units and 13 percent in sales dollars as compared to last year.

“For the year, and excluding sales of military passes to new purchasers who were not pass holders last year, we achieved solid growth in our Colorado, Destination and Whistler Blackcomb markets, while experiencing declines in both the Northern California and Utah markets,” Katz said in a statement.

Vail also said on Friday that it plans to invest about $175 million in resort improvements for the 2019-2020 ski season.

In Colorado, capital improvement plans call for enhanced snowmaking equipment at Vail, Keystone and Beaver Creek, according to a company news release.

“The ability to expand snowmaking infrastructure in areas of Vail Mountain with higher elevations, colder temperatures and connectivity to areas that typically hold good natural snow would be transformational for the early-season experience for skiers and snowboarders, even in years where conditions are less favorable than we’ve seen across Colorado this season,” Pat Campbell, president of Vail Resorts’ mountain division, said in a statement. “At Keystone, we plan to invest in top-of-the-line snowmaking technology upgrades, helping position Keystone to be the first for the earliest opening in Colorado and further add to the tremendous value already offered to season pass holders.”