Net loss for the six-month period increased to $8 million, or 23 cents per diluted share, compared to a loss of $4.4 million, or 13 cents per diluted share last year.And real estate earnings before interest, income taxes, depreciation and amortization fell $7.2 million to $1.1 million, as expected, due to the timing of lot sales.

However, mountain EBITDA increased $12.8 million, or 24.2%, to $65.5 million. Included in mountain EBITDA for the quarter is a $1.2 million severance charge associated with the previously announced management restructuring. Excluding this severance charge, mountain EBITDA grew 26.5% to $66.7 million. Excluding the fiscal 2002 acquisitions and the fiscal 2003 ora negative EBITDA of $4.2 million.

The company's lodging acquisitions in fiscal 2002 are the major reasons for the lodging EBITDA decline, namely: $1.4 million in reduced EBITDA at the Vail Marriott and the Lodge at Rancho Mirage in the second fiscal quarter this year versus the same period last year, due in part to owning both hotels for the full quarter this year compared to a partial quarter last year during a seasonally slow period; $1 million of additional marketing and management expense in the quarter to build the RockResorts brand, from which the company expects long-term benefit over time; and) the company's $2million share of startup expenses and net losses associated with the newly opened Ritz-Carlton, Bachelor Gulch on Jan. 31.

Adam Aron, chairman and CEO of Vail Resorts, remains optimistic. "Vail Resorts' record resort EBITDA performance in the second quarter would be impressive under any circumstance, but given the current political and economic environment it is particularly gratifying," Aron says."Our mountain segment had an exceptionally strong performance, growing skier days, revenues and EBITDA compared to last year. Heavenly responded beyond our greatest expectations to Vail Resorts' initial management, marketing and product improvements with a 21% year-over-year increase in paid skier days by January 31."

He adds that Beaver Creek is poised to have a record year, "in great part due to the opening of the Ritz-Carlton, Bachelor Gulch." Given the depressed hotel market, "our lodging segment performed as expected during the quarter," he notes.