Vail Resorts Announces Reorganization in Lodging Division
BROOMFIELD, Colo., Nov. 30, 2011 /PRNewswire/ -- Vail Resorts (NYSE: MTN) today announced that it will no longer seek to add new RockResorts managed properties which are located outside of the Company's six mountain resorts. The Company indicated that it would continue to look for new owned and managed properties located at the base of its mountain resorts and will continue to operate its owned RockResorts properties at its mountain resorts under the RockResorts brand. The Company will also continue to look to add new concessions in the U.S. National Park system to complement its Grand Teton operations. The Company intends to fully support and operate all of its existing managed properties outside of its mountain resorts as contemplated under their current agreements. As part of this strategic shift, the Company will be making selected staff reductions in its Lodging Division and expects all of these changes to result in incremental growth in EBITDA from the Lodging Division.
"The current economic and real estate environments make it difficult to realize the benefits of growing our Lodging Division outside of our mountain resorts and the National Parks," said Rob Katz, chairman and chief executive officer of Vail Resorts. "We believe that by narrowing the focus of our Lodging segment, we will provide an enhanced experience for our guests and better long-term profitability."
About Vail Resorts
Vail Resorts, Inc., through its subsidiaries, is the leading mountain resort operator in the United States. The Company's subsidiaries operate the mountain resort properties of Vail, Beaver Creek, Breckenridge and Keystone in Colorado, Heavenly and Northstar mountain resorts in the Lake Tahoe area of California and Nevada, and the Grand Teton Lodge Company in Jackson Hole, Wyoming. The Company's subsidiary, RockResorts, a luxury resort hotel company, manages casually elegant properties. Vail Resorts Development Company is the real estate planning, development and construction subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com.
Statements in this press release, other than statements of historical information, are forward looking statements. Such forward-looking statements, including the anticipated financial performance from the Lodging Division, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include but are not limited to prolonged weakness in general economic conditions, including adverse affects on the overall travel and leisure related industries; unfavorable weather conditions or natural disasters; adverse events that occur during our peak operating periods combined with the seasonality of our business; competition in our mountain and lodging businesses; our ability to grow our resort and real estate operations; our ability to successfully complete real estate development projects and achieve the anticipated financial benefits from such projects; further adverse changes in real estate markets; continued volatility in credit markets; our ability to obtain financing on terms acceptable to us to finance our real estate development, capital expenditures and growth strategy; our reliance on government permits or approvals for our use of Federal land or to make operational improvements; adverse consequences of current or future legal claims; our ability to hire and retain a sufficient seasonal workforce; willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases, and the cost and availability of travel options; negative publicity which diminishes the value of our brands; our ability to integrate and successfully realize anticipated benefits of acquisitions or future acquisitions; our ability to successfully implement the staff reductions and other anticipated cost reductions in the Lodging Division; and implications arising from new Financial Accounting Standards Board/governmental legislation, rulings or interpretations.
All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements, except as may be required by law. Investors are also directed to other risks discussed in documents filed by us with the Securities and Exchange Commission.
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