Vail Resorts Loss Widens More Than Expected

By Tomi Kilgore Markets MarketWatch Pulse

Vail Resorts Inc. reported a wider-than-expected fiscal first-quarter loss and revenue that missed forecasts, but raised its full-year outlook for a measure of cash flow. Losses for the quarter to Oct. 31 widened to $62.6 million, or $1.70 a share, from $59.6 million, or $1.63 a share, in the same period a year ago. The FactSet consensus for losses per share was $1.57. Revenue rose to $178.3 million from $174.6 million, but below the FactSet consensus of $183.5 million, as misses in lodging and real estate sales offset a beat in mountain sales. The company now expects fiscal 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) of $567 million to $597 million, up from previous guidance of $482 million to $518 million. "Our first fiscal quarter historically operates at a loss given that our North American mountain resorts are not open for ski operations during the period," said Chief Executive Rob Katz. "Lodging bookings for the rest of the season are trending slightly ahead of last year at our U.S. resorts. Based on historical averages, less than 50% of the bookings for the winter season have been made by this time." The stock, which was still inactive in premarket trade, has climbed 26% year to date, while the S&P 500 has gained 9.9%.

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