Vail Resorts carves less income in 2019

BROOMFIELD — Vail Resorts Inc. (NYSE: MTN) posted higher losses during the fourth quarter and lower earnings for the entire 2019 fiscal year as compared with the same periods in 2018.

Vail reported net income of $301.2 million for fiscal 2019, a decrease of 20.7 percent compared with the prior year, according to its annual earnings report released Thursday.

The company attributes part of that difference to certain tax benefits realized in 2018 and unfavorable foreign exchange rates during 2019.

During the fourth quarter of 2019, the company lost a total of 89.5 million, up from losses of $83.7 million during the same period in 2018.

The company capped off 2019 by closing on a $264 million acquisition of of Wildwood, Missouri-based Peak Resorts Inc. (Nasdaq: SKIS). The deal, finalized earlier this week, adds 17 resorts to Vail’s portfolio.

Vail “borrowed $335.6 million …  to fund the acquisition and prepay certain portions of debt assumed in the acquisition,” according to the firm’s most recent quarterly report.

During fiscal year 2020, Vail is anticipating between $293 million and $353 million of net income. 

“We are pleased with our overall results for the year, with strong growth in visitation and spending compared to the prior year, including a strong finish to the season with good conditions across our U.S. resorts throughout the year,” Vail CEO Rob Katz said in a prepared statement. “After the challenging early season period for destination visitation, our results for the remainder of the year were largely in line with our original expectations. Our results throughout fiscal 2019 highlight the growth and stability resulting from our season pass, the benefit of our geographic diversification, the investments we make in our resorts and the success of our sophisticated, data-driven marketing efforts.”

Vail released its results after markets closed Thursday afternoon. The company’s stock closed at $230.27 per share.

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