Peak Resorts Inc (SKIS) Q2 FY2015 Quarterly Earnings Call Transcript

Tim Boyd, President and C.E.O. Peak Resorts.

Well. Our energy costs generally run around 9% or 10%of our revenue. The oil issue is going to be interesting for us this year. Number one, we think we are going to benefit from it on the customer side obviously because with not spending as much money on their tank they would be able to spend more money at our resorts. But it is also going to benefit us on the cost side. We do run a large fleet of snow-cats across our entire portfolio. All of those machines run on diesel and the lower cost of diesel is obviously going to have a benefit to us going forward this season on our cost of running that fleet.

Jim Young, West Family Investments

Could you give us some sensitivity?

Tim Boyd, President and C.E.O. Peak Resorts.

It’s hard to say right now. In the terms of the diesel fuel, it’s in the, probably I would say 300,000 to 400,000 gallons a year across our fleet total. On the power side, it is still a little hard to say because we are still so early in the season but we fully expect to have some pretty significant savings, especially over the last year.

Jim Young, West Family Investments

Ok. Great. Thank you.

Operator

Our next question is a follow up from Barton Crockett of FBR Capital Markets. Please go ahead.

Barton Crockett, FBR Capital Markets.

Ok. Great. Thanks for taking the question again. I wanted to follow up on the commentary about the season pass. You know, you said, it was up 11% over a five year average. Can you get us a sense of what that is year over year? I mean, I don’t know if the last year was also above the five year average?

Tim Boyd, President and C.E.O. Peak Resorts.

This year, it is about 3% to 4% over the last year. And most of that is pricing.

Barton Crockett, FBR Capital Markets.

Okay. And then another question on your pricing, I think you guys are looking to run mid single digit kind of growth in your average lift ticket, pricing and average pricing of other services. I was just wondering if that’s correct and if there is any sense of whether,, other mountains are doing something similar and any early sense of the ability to actually see this kind of pressing step.

Tim Boyd, President and C.E.O. Peak Resorts.

Barton, we have mentioned in the road show. We have given directions to all our resorts this year to blend a 5% increase in pricing. We have not gotten any push back this year from those price increases. When we look at our competition in various markets, our pricing is not above any of those others.

Barton Crockett, FBR Capital Markets.

Ok. Great. Thank you.

Operator

Thank you. The questions-and-answers session has now ended. I would now like to turn the call over to Mr. Tim Boyd. Mr. Boyd, you may proceed.

Tim Boyd, President and C.E.O. Peak Resorts.

Yes, I would like to thank everybody for participating in our first call today, and I look forward to these in the future as we go forward with Peak Resorts. Thank you very much.

Operator

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.