Thursday, March 16, 2006

Vail Resorts Reports Record Profit

Reporting its second-quarter earnings, Vail Resorts had mostly sunny news from the snowy skies that have boosted skier visits as well as the bottom line this season.

The company posted a 7.9 percent increase in skier visits in its second fiscal quarter, which ended Jan. 31. Also reported was an increase in revenue of 8.4 percent in the second quarter compared to the same period last year, along with record net income of $43 million — a 33.4 percent increase over the second quarter of 2005.

The company also announced about $80 million in spending for upkeep and new projects for the coming year. The biggest news may be the announcement of construction on the long-awaited gondola connecting the town of Breckenridge to the resort. The company also has plans to add a new high-speed lift at Heavenly; upgrade snowmaking systems at all four Colorado resorts; build an expanded spa at Keystone Lodge; and making improvements to the company’s central reservations system.

The company’s board of directors approved between $185 million and $195 million in real estate capital expenditures in 2006. That includes ongoing projects like construction of the Arrabelle Lodge and Gore Creek Place in Vail; the Vail Front Door project; development of a golf course in Jackson Hole, Wyo.; and the second phase of the Mountain Thunder Lodge condos in Breckenridge.

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