Vail Resorts, Inc. (MTN: chart), a holding company that operates Mountain, Lodging and real estate segments through its subsidiaries, reported its earnings were up $1.75 a diluted share from $1.61 a share a year ago. This is above analyst’s expectations of $1.73 a share. Excluding stock-based compensation expenses, the company would have earned $1.77 a share. Results for Q3 do not reflect the operations of the sold assets constituting the Vail Marriott, Rancho Mirage and SRL&S.

A 15% rise in Q3 profit was increased mostly due to higher ticket prices and increased skier visits, with ticket prices accounting for 6.5% and skier visits accounting for 6%. Lodging revenue decreased by 30% from $256.8 million, and real estate revenue fell 50% to $7.1 million. Mountain revenue for Q3 showed a 14.8% increase to $294.8 million from $256.8 million in the year-earlier period. Lodging revenue for the quarter decreased by 29.8% to $39.5 million from $56.3 million. Resort revenue, which combines Mountain and Lodging revenues, rose 6.8% to $334.3 million from $313.1 million last year. Real estate revenue for the quarter decreased 50.3% to $7.1 million from $10.7 million a year earlier. Income from operations improved 13% to $123.2 million from $109.1 million a year ago.

Excluding the stock-based compensation expense, Mountain expense for Q3 grew 12.4% to $148.7 million from $132.3 million a year ago. Lodging expense decreased 29.3% to $30.5 million from $43.1 million last year. Resort expenses, which Mountain and Lodging expenses combined, increased 2.5% to $179.9 million from $175.5 million a year ago. Real estate expense decreased 29.7% to 11.4 million from $14.8 million in the year-earlier period.

As of August 1st, 2005, the company adopted the provisions of the SFAS 123R using the modified prospective method. The company recorded a pre-tax stock-based compensation expense of $1.1 in the quarter that ended April 30th, 2006. This is in comparison to the $0.1 million under the provisions of APB 25 for the quarter ending April 30th, 2005. The company reported a total pre-tax stock-based compensation expense of $4.7 million in the nine months ended April 30th, 2006, compared to $0.4 million for the nine months ended April 30th, 2005.

In the EBITDA areas, which is Earnings Before Interest, Taxes, Depreciation, and Amortization and is used to measure the debt-paying capabilities of the company; the Mountain segment grew 17% to $146.1 million from $124.9 million a year ago. Reported EBITDA for the Lodging segment decreased 31.6% to $9 million from $13.1 million a year ago. And the Q3 Resort segment, which includes both Mountain and Lodge segments combined, reported EBITDA rose 12.4% to $155.1 million from $138 million a year ago. The Real Estate segment reported EITDA for the quarter decreased to a loss of $4.3 million from a loss of $1.9 million a year ago.

The company announced it had recently closed on a 493 acre, non-Federal land for 5 acres of Federal Land within the White River National Forest, land-exchange with the USDA Forest Service as part of its proposed ‘Front Door’ project near the Vista Bahn chairlift at the base of Vail Mountain. The company announced they had commenced a pre-marketing process for The Lodge at Vail Chalets, which resulted in execution of contracts on 9 of 13 chalets. This represented a gross sale proceeds for the 9 chalets upon closing of $110.5 million with an average price of $2400 a square foot.

The company currently estimates the operating income, before taxes and overhead, for this project will range from $57 to $67 million and is expected to be realized in the summer 2008 upon closing on the chalets. Additional amenities are expected to be added with an estimated total cost of $60 to $65 million.

The company updated its full year guidance of Resort reported EBITDA to range between $189 million and $194 million. Guidance for Real Estate reported EBITDA was not changed from its estimate of $4 million and $9 million. The company now expects its net income for the full fiscal year to range from $42 to $48 million. The company’s stock is currently up 4% in early afternoon trading.