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Vail, CO, Jan. 18–Vail Resorts Inc. announced on Friday that results for the fiscal second quarter and full year would fall below expectations. Because of lack of snow, warm temperatures and a slow Millennium period, skier visits through January 12, 2000 had declined nine percent over the same period last year.
Vail expects to mitigate the impact of the skier-day declines throughrecoveries under a Reduced Skier Day Insurance Policy which the companybought at the beginning of the season. Under the policy, Vail receives afixed payment for each paid skier day below certain targeted levels for theseason.
With the insurance recoveries, Vail expects resort revenues of $145 millionto $160 million for the quarter, and resort EBITDA in the $45 million to$50 million range. Ten percent of the resort EBITDA figure for the secondquarter may be represented by insurance recoveries.
“Fortunately, since mid-December, we have seen considerable snowfall. ..and we also continue to be encouraged by solid advance bookings for ourfiscal third quarter,” said Adam Aron, chairman and CEO of Vail Resorts.