Press Release: Vail Resorts
May 4, 2001
AVON, CO -- In response to changes in the travel and leisure industry, Vail Resorts (NYSE: MTN) announced yesterday
a consolidation of management and administrative functions, which will be accomplished through a combination of
layoffs, attrition and elimination of vacant positions. The consolidation will affect less than one-half of one
percent of total staff across the four ski resorts and the corporate offices. Approximately 37 jobs are being eliminated
this month.
``It's difficult to engage in this kind of consolidation, especially for companies like ours that operate in small
communities. The individuals affected each have contributed to the success and popularity of our resorts and we
want them to know that we have appreciated their service over the years,'' said Andy Daly, president of Vail Resorts.
``While it's unfortunate that we have to take this measure, it is necessitated by fundamental shifts across the
travel and leisure industry. These shifts include rapidly evolving consumer expectations, such as keeping skiing
affordable. All of our market segments, from day skiers to destination travelers, now demand greater value and
we have successfully met this demand, although we cannot continue to do so without a fundamental commitment to
lower our fixed operating costs while maintaining the highest level of guest service. In today's increasingly competitive
landscape for leisure dollars, companies that don't respond to changing market demands, particularly in the face
of an uncertain economy, don't thrive,'' explained Daly.
``Although this is a difficult decision, we need to be leaner, smarter and better than our competition to secure
continued success. We believe this consolidation measure is in the best interests of our Company, our guests and
our resort communities,'' said Daly. He added, ``This action will allow us to realign our cost structure and adapt
our business strategies to better compete in this dynamic environment. While we believe cost savings will result
from this measure, we do not expect that these management and administrative savings will be significant to our
near-term financial results.''
Vail Resorts, Inc. is the premier mountain resort operator in North America. The Company operates the Colorado
mountain resorts of Vail, Breckenridge, Keystone and Beaver Creek, and the Grand Teton Lodge Company in Jackson,
Wyo. The Vail Resorts website is www.vailresorts.com. Vail Resorts is a publicly held company traded on the New
York Stock Exchange (NYSE: MTN).
Statements in this press release, other than statements of historical information, are forward looking statements
that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements 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, failure to
achieve anticipated benefits of the consolidation; general business and economic conditions; competitive factors
in the ski and resort industry; and the weather. Investors are directed to other risks discussed in documents filed
by the Company with the Securities and Exchange Commission.
SOURCE: Vail Resorts