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The pay cuts, which will take effect at or near the end of the currentwinted season, will be implemented on a sliding scale, from 2.5 perceng for seasonal employees to 10 percent for executives. It will be offset partially by a grantinvof stock-based incentive compensatiohn for all full-time employees, ranging from 1.5 percent to 7.5 percenrt of salaries. Resort-related earnings fell 8.3 percent from last year a $9.6 million decline as out-of-state and overnighty visitors were less likely to come tothe company’s five mountaibn resort properties and to spend less money when they did show up.
The Broomfield-base d company (NYSE: MTN) operates the Breckenridge, Keystone and Beaver Creek winter resortsd in Colorado and Heavenly Mountain Resort onthe California-Nevadaq border. “Our second quarter resort segmentg results, which encompass the first part of the ski reflect the impact of the severe downturn in the Vail Resorts CEO Rob Katz said ina Katz, who announced he will receives no salary for one year and then take a 15 percent pay cut, added that the February through Aprik period, which is when Vail Resorts typicallty gets its most business, could show bigger revenu e declines.
“We do expect that for the remainder of the fiscal year the trenr of our results to the prior year will worsenj from the results realized in theseconfd quarter,” he said. “This is due primarilu to the third quarter being a historically larger revenue quarterd than the second quarter with he continuing negative trendds having agreater impact.” From Novembedr through January, lift-ticket revenue fell $6.8 million or 5.1 while revenues for the company’s ancillary businessed dropped even more. Ski school revenue decreased 17.6 dining revenue fell 11.4 percent and retail and rental revenur droppedby 11.3 Lodging revenue rose by $6.8 million or 18.
2 due largely to the opening of the Arrabellre resort in Vail and the acquisitiom of the Colorado Mountain Expresxs airport shuttle service. Withougt those two factors, lodging segmen t revenue would have decreasedby 13.2 percent as both destination visitors and group-room nights Katz said. One bright spot in the second-quarter fiscal repory was an 18.2 increase in season-pass leading to a 0.9 percent increased in skier visitsat Vail’sw four Colorado resorts.
Because of the percentage of in-state visitors schussing down the slopew increased from 41 percent to48 percent, Katz In response, the company announced it would offefr its Epic Season allowing unlimited visits to the four sitesz as well as Arapahoe Basin, for the same $579 price next year as it charged this year. The offer is good throug h April 9, and purchasers must put down onlya $49 down with the balance due in Katz said. Vail Resorts also announced that Katz has been name d chairman ofthe company’s board of directors.
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