Vail Resorts is one of the leading resort operators in North America. The Company operates the Colorado mountain resorts of Vail, Breckenridge, Keystone and Beaver Creek, the California mountain resort of Heavenly, the Grand Teton Lodge Company in Jackson, Wyoming and acquired a majority interest in RockResorts, a luxury hotel management company 

• Financial performance as expected in the seasonally low first quarter comprised of the months of August through October.
• Season pass sales for the 2006/2007 ski season up 21% over same period in the prior year.
• Strong advance bookings provide momentum for the 2006/2007 ski season.
• Company announces launch of membership sales for the Vail Mountain Club. 
 

BROOMFIELD, Colo. – December 11, 2006 - Vail Resorts, Inc. (NYSE: MTN) today announced financial results for the first quarter of fiscal 2007 ended October 31, 2006. 

The Company uses the term “Reported EBITDA” and “Reported EBITDA excluding stock-based compensation” when reporting financial results in accordance with SEC rules regarding the use of non-GAAP financial measures. The Company defines Reported EBITDA as segment net revenues less segment operating expenses plus or minus segment equity investment income or loss. 

Mountain Segment

Mountain revenue grew $5.9 million, or 14.6%, in the first quarter of fiscal 2007 to $46.2 million from $40.3 million for the comparable period last fiscal year. Mountain expense increased $7.2 million, or 10.0%, to $79.5 million. Reported EBITDA for the Mountain segment decreased $1.3 million, or 4.2%, to a loss of $32.5 million compared to a loss of $31.2 million for the comparable quarter last fiscal year.

Lodging Segment
Lodging revenue decreased by $1.3 million, or 3.2%, in the first quarter fiscal 2007 to $40.4 million from $41.8 million for the comparable period last fiscal year. Lodging expense decreased $1.3 million, or 3.4%, to $36.3 million. For the first quarter of fiscal 2006, the Lodging segment included revenue of $3.4 million and operating expense of $2.5 million related to Snake River Lodge & Spa (“SRL&S”), which was sold by the Company in January 2006; the Company subsequently obtained a long-term management contract for the hotel. Excluding the impact of the sale of SRL&S, Lodging revenue increased $2.0 million, or 5.3% and expenses increased $1.2 million, or 3.3%. Additionally, the Company recognized $2.4 million in revenue in the first quarter of fiscal 2007 associated with a termination fee pursuant to the terms of the management agreement at The Lodge at Rancho Mirage, in conjunction with the closing of the hotel as part of a redevelopment plan by the current hotel owner. Reported EBITDA for the Lodging segment was essentially flat at $4.1 million in the current and prior fiscal year first quarters.