Vail Resorts, Inc. has reported its results for the second quarter of 2014, which ended January 31, and its ski season-to-date metrics through March 9.
The company's strong year at its Colorado resorts continued, with skier visits up 11.9 percent for the second quarter of 2014 as compared to the same period last year, leading to a commensurate increase in mountain revenue. At the same time, poor weather conditions led to a decline of 27.7 percent in visitation at the company's Tahoe resorts during the same period.
Overall, resort reported EBITDA increased six percent for the second quarter of 2014 as compared to the same period last year. However, the decline in Tahoe visitation led Vail to revise its fiscal 2014 guidance range downward. Resort reported EBITDA is now expected to be between $255 million and $265 million.
Vail has also announced a 2014 capital plan of approximately $85 million, excluding capital expenditures for summer-related activities. Notable projects include upgraded lifts at Beaver Creek and Breckenridge, as well as renovations at The Lodge at Vail, a RockResort property. Capital expenditures for summer related activities are expected to be approximately $5 million.
Rob Katz, chief executive officer, said, "Overall, we are very pleased with our performance in the second quarter of fiscal 2014. Despite the very challenging conditions in Tahoe, where total snowfall was down 73 percent as of January 31, 2014, compared to the prior year, we have seen overall growth in visitation of 9.1 percent and increased guest spending, highlighting the strength of our geographically diverse business model. Results in Colorado were particularly encouraging, with total visitation up 11.9 percent, ski school revenue up 9.7 percent and dining revenue up 16 percent compared to the prior year. Unfortunately, our results were tempered by the very poor snowfall and warm temperatures in Tahoe where total visitation was down 27.7 percent compared to the prior year. Our Tahoe resorts only had 33 percent of trails open as of January 31, 2014, compared to 95 percent of trails open at the same point last season and compared to 65 percent of trails open even during the very challenging 2011/2012 ski season. Despite the conditions, our Tahoe resorts have done an admirable job in maximizing open terrain and maintaining high levels of guest service to differentiate our resorts in that marketplace. Overall, total lift revenue increased by 11.2 percent, ski school revenue increased by 12.5 percent and total Mountain revenue increased by 8.3% compared to the prior year. Our mountain performance includes the results of Canyons, which were in line with our previous public estimates, and the results of our Urban ski areas, whose performance was quite strong and also in line with our expectations."