Like just about every other person and entity, Vail Resorts has had a tough spring.
A rough ride
- $298.05: Vail Resorts peak stock price, set Aug. 27, 2018.
- $131.73: Vail Resorts stock price on April 3, a five-year low.
- $206.97: Vail Resorts stock price at the June 4 market close.
Vail Resorts on Thursday afternoon released its earnings report for the third quarter of its fiscal year, February through the end of April. That’s usually the company’s most profitable quarter, but operations were short-circuited by the worldwide outbreak of the COVID-19 virus and the March 15 shutdown of all Vail Resorts’ North American resorts.
The company took a 47.8% decline in net income during the quarter compared to the previous year. Total net revenue declined 27.5%.
In a statement, Vail Resorts CEO Rob Katz said that the decline in third-quarter revenue began in the first two weeks of March, stating that, “We experienced a negative change in performance that we believe was due to the impact of COVID-19 on traveler behavior.”
The statement adds that the company actually expected a steeper drop in net revenue. The statement notes that the company expected a third-quarter decline of between $180 million and $200 million in resort reported EBITDA (earnings before interest, taxes depreciation and amortization). Results weren’t that bad, to the tune of about $40 million, the report states.
While Vail Resorts suffered a bad quarter, Katz said he’s optimistic about the future in a Thursday earnings call.
Katz noted that the resorts expect to be open for summer operations and the Australian ski season by late June or early July.
