Investors Barely React To Vail Resorts' Q1 Miss
Vail Resorts (NYSE: MTN) is barely moving in after hours trading after the company announced its first quarter results.
The company reported a Q1 EPS of $(2.04), which may not compare to the Street estimate of $(1.89).
Earnings per share were down 20 percent from the year-ago period.
Revenue arrived at $123.4 million, which may not compare to the Street's projection of $121.33 million. Sales were up six percent year-over-year.
"Our first fiscal quarter is historically a loss quarter since our mountain resorts are not open for winter ski operations during the period," Rob Katz, Chief Executive Officer of Vail Resorts, said in a company release. "The quarter is driven primarily by our late summer mountain activities, dining, retail and lodging operations, and administrative expenses for our year-round employees.
"Our Resort EBITDA loss for the quarter was consistent with our expectations and was higher than the prior year largely due to expenses from the Acquisitions. Mountain net revenue in the quarter advanced 10.4% to $57.3 million, driven by growing summer visitation, resulting retail and rental activity and strong dining revenue as well as the impact of the Acquisitions."
Katz also said that the firm's Lodging segment revenue increased to $4.7 million for the three months ended October 31, 2013. This is a nine percent increase when compared the year-ago period.
"Lodging revenue growth was partially offset by the negative impact of the government shutdown on Grand Teton Lodge Company that forced the park to close early," Katz added.
Year-to-date, Vail Resorts has performed fairly well, rising more than 34 percent.
RockResorts, one of Vail Resorts' subsidiaries, recently teamed up with JMA Ventures and announced a new agreement for Constellation Residences at Northstar.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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