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VAIL, CO-Vail Resorts Inc. reported that revenues for its second quarter of fiscal 2006, which ended Jan. 31, hit $246.2 million, a 15% increase from $214.2 million for the comparable period last year. Expenses increased $17.8 million, or 13.4%, to $150.7 million.
Lodging revenue for the quarter, however, decreased by $10.5 million, or 24.7%, to $32.1 million. Lodging expenses decreased $7.7 million, or 18.9%, to $32.9 million. In fiscal 2005 the company sold the assets constituting the Vail Marriott Mountain Resort & Spa and the Lodge at Rancho Mirage. Consequently, results for the second quarter of fiscal 2006 do not reflect the operations of the sold assets, according to a company statement.
For the second quarter of fiscal 2005, the Lodging segment included revenue of $11.9 million and operating expense of $9.6 million related to these entities. In addition, Vail Resorts retained management contracts for both the Vail Marriott and Rancho Mirage. As a result, lodging revenue includes incremental management fee revenue of $366,000 for these entities for the second quarter of fiscal 2006.
Resort revenue, the combination of mountain and lodging revenues, rose $21.6 million, or 8.4%, to $278.3 million. Resort expense increased 5.8% to $183.6 million, up $10.1 million. Excluding stock-based compensation expense, resort expense increased $8.9 million, or 5.1%, to $182.1 million. Meanwhile, real estate revenue for the quarter rose 23.3% to $9.7 million, and real estate expense decreased 4.9% to $6.4 million.
Total revenue grew $23.4 million, or 8.8%, to $288 million and total segment operating expense increased $9.8 million, or 5.4%, to $189.9 million. Excluding stock-based compensation expense, total segment operating expense increased $8.2 million, or 4.5%, to $188.1 million. Income from operations for the quarter improved $16.4 million, or 27.1%, to $77 million compared to $60.6 million for the same period last year. In addition, Vail Resorts expects to spend $185 million to $195 million for real estate-related capital expenditures, including costs to be incurred for the construction of resort-related assets.
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