Vail Resorts Q4 Loss Widens, But Declares Dividend

(RTTNews) - Ski resort operator Vail Resorts, Inc (MTN) reported Wednesday a net loss for the fourth quarter that widened from last year, reflecting a loss on extinguishment of debt. Loss per share for the quarter came in wider than analysts' expectations, while quarterly revenues topped their estimates. The company also provided net income guidance for the full-year 2015, and declared a quarterly cash dividend.

"Our results continue to reflect increases in overall visitation, pricing, average guest spend and season pass sales. Summer revenue increased over the prior fiscal year as we continue to build out our summer activities, including new zip lines at Vail and Breckenridge, as well as challenge ropes courses at Vail and Heavenly," CEO Rob Katz said in a statement.

The Broomfield, Colorado-based mountain resort operator posted reported a net loss of $75.36 million or $2.08 per share for the fourth quarter, wider than $59.87 million or $1.67 per share in the prior-year quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report a loss of $1.95 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew to $135.49 million from $112.31 million in the same quarter last year, and topped nine Wall Street analysts' consensus estimate of $127.21 million.

Mountain revenues grew to $54.0 million from $51.84 million, and lodging revenues improved to $62.59 million from $58.09 million last year. Real estate revenues soared to $18.90 million from $2.37 million a year ago.

The company's board of directors also declared a quarterly cash dividend on Vail Resorts' common stock of $0.415 per share of common stock, payable on October 22 to shareholders of record on October 7, 2014.

The company noted that through September 21, 2014, season pass sales increased 14 percent in units and 18 percent in sales dollars, compared to the prior-year period ended September 22, 2013.

Looking ahead to fiscal 2015, the company expects net income in a range of $75.5 million to $100.5 million, and adjusted EBITDA in the range of $340 million to $360 million.

"We intend to build the lift and other infrastructure that will connect the two resorts during the summer of 2015 and will be looking to upgrade or add new lifts, restaurants and snowmaking capabilities at both resorts, all subject to regulatory approval. We intend to provide more detail on our full capital plans in March 2015," Katz added.

MTN closed Wednesday's regular trading session at $87.18, down $0.91 on a volume of 0.43 million shares.